What is Conversion Rate?

When concerning online marketing and sales, a conversion occurs when a visitor or prospective customer performs the marketer’s planned action.  For example, the visitor may purchase something on your site, or it may even be something as simple as completing a survey or joining an online email list. So what is a conversion rate?  The conversion rate is the percentage of visitors who perform the intended action. By measuring a percentage of visitors the website owner will be able to determine how well or badly their website is doing regardless of traffic levels. When a web surfer notices your ad and clicks on it, you have a potential customer. If this visitor decides to buy something from you, then you have a customer. This can be described as a conversion because the website visitor was “converted” into a customer.

Your conversion rate is the number of conversions divided by the number of page views. It is the percent of people that buy something or take action, when visiting your website.

Successful conversion rates can be interpreted differently by different groups of people like marketers, advertisers or content creators. The desired action can take many forms which vary from site to site.  Some examples include product sales, membership registrations, newsletter subscriptions, software downloads or really any activity beyond page browsing. A high conversion rate means that a larger number of visitors are actually becoming customers.

Conversion rate is the most critical statistic about a website.  Conversion rate directly impacts profitability and is important to a website’s success or failure.  Having a higher conversion rate can boost’s the website’s profits and a lower conversion rate can lead to negative consequences like getting pushed out of the marketplace.

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