Conversion rate

A conversion rate is a business metric that shows how many people take a desired action, like making a purchase or signing up for a service, compared to the total number of people who could have taken that action.

To calculate the conversion rate, divide the number of converted visitors by the overall number of visitors and multiply the result by 100 to get the percentage. For example, if 100 people visit a website and 10 of them make a purchase, the conversion rate would be 10 percent. 

A conversion rate helps businesses understand how effective their efforts are at getting people to do what they want them to do, like buying something or subscribing to a newsletter. It’s one of the main marketing KPIs for evaluating the performance of promotional campaigns, advertising channels, and so on.

The average conversion rate varies across industries. For example, in the travel industry, a website conversion rate above 2 percent is considered good performance.

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