Conversion Rate
The percentage of visitors who complete a desired action on your website or campaign.
Definition
Conversion rate is calculated by dividing conversions by total visitors and multiplying by 100. A conversion can be any desired action: purchase, form submission, download, signup, etc. Average e-commerce conversion rates are 2-3%, but vary widely by industry. Improving conversion rate (CRO) is often more cost-effective than increasing traffic.
Why It Matters
Conversion rate is the ultimate measure of marketing effectiveness because it connects activity to outcomes. Traffic, impressions, and clicks mean nothing if they don't lead to the actions your business needs—purchases, signups, or leads.
Improving conversion rates is often more efficient than increasing traffic. Doubling your conversion rate has the same effect as doubling your traffic, but typically at a fraction of the cost and effort.
Examples in Practice
An e-commerce site simplifies checkout from 5 steps to 2, increasing conversion rate from 2% to 3.5%—a 75% improvement.
A B2B company adds social proof and reduces form fields, doubling landing page conversion rates.
A SaaS trial optimizes onboarding flow, improving free-to-paid conversion by 40% without changing the product.