What is Conversion Rate?

Conversion rate is the percentage of visitors or users who complete a desired action, such as making a purchase, signing up for a newsletter, or downloading a file. It's calculated by dividing the number of conversions by the total number of visitors and multiplying by 100.

When to focus on Conversion Rate?

Conversion rate optimization should be a priority when you have sufficient traffic, want to improve ROI from existing traffic, are testing new features or designs, or when you need to justify marketing spend and demonstrate value.

When might Conversion Rate be misleading?

Conversion rate alone can be misleading if traffic quality is poor, if the sample size is too small, or if you're not considering the lifetime value of converted customers. It should be analyzed alongside other metrics.

What is the importance of Conversion Rate in Marketing?

Conversion rate directly impacts revenue and ROI, helps identify areas for improvement in user experience, enables data-driven decision making, and provides a clear metric for measuring the effectiveness of marketing campaigns and website optimizations.