Definition
Conversion rate reflects the percentage of visitors who take a desired action, such as completing a purchase, filling out a form, or signing up for a newsletter. It is a critical metric in digital marketing and sales, showing how effectively a website or campaign turns prospects into customers or leads.
Why Use
- Evaluates the success of marketing or sales strategies.
- Identifies which channels produce the most conversions.
- Guides where to focus improvement efforts for better results.
- Helps optimise budget allocation based on successful actions.
Core Concepts
- Total number of visitors during a specific period.
- Completed desired actions, called conversions.
- Calculation: (Conversions / Visitors) x 100.
- Landing page and call-to-action quality.
- Conversion funnel stages and bottlenecks.
Examples
If an e-commerce page has 2,000 visitors in a month and 60 make a purchase, the conversion rate is (60 / 2,000) x 100 = 3%. This means 3% of visitors completed the desired action.
Common Pitfalls
- Comparing different goals or visitor types incorrectly.
- Ignoring traffic quality when interpreting conversion rates.
- Neglecting conversion tracking setup or data accuracy.
See Also
Related concepts include Call to Action, Landing Page Optimisation, Bounce Rate, and Funnel Conversion.
