Conversion Rate

Conversion rate is the percentage of people who take a desired action after interacting with your business, such as making a purchase, signing up, or clicking a link, out of the total number of visitors.

Why it matters
Conversion rate shows how effectively your business turns interest into action. Improving it often has a bigger impact than driving more traffic, because it helps you get more value from what you already have.

What conversion rate is not
Conversion rate is not just a reflection of traffic quality. A low rate often points to unclear messaging, friction in the experience, or mismatched expectations, not a lack of interest.

Where this shows up

• Ecommerce product and checkout pages
• Email campaigns and landing pages
• Calls to action across a website
• Marketing and performance analysis

Related terms

• Customer Journey (where and why people decide to act)
• User Experience (UX) (how easy the action feels)
• Ecommerce (a common environment where conversion is measured)

A simple conversion rate formula is:

$$\text{Conversion rate}=\frac{\text{Number of conversions}}{\text{Number of visitors}}\times 100$$

For example, if 200 people visit a page and 10 of them buy, your conversion rate$=5\%$.