Conversion Rate

Conversion rate is a KPI that measures thow well a website is doing to persuade visitors to complete desired actions. The actions could range from making a purchase, signing up for a newsletter, filling out a contact form, downloading content and many more actions. The conversion rate is normally presented as a percentage and is calculated by dividing the number of conversions by the total number of visitors to the site during a specific period, then multiplying by 100. See the example below.

If an e-commerce website receives 1,000 visitors in one month and 50 of those visitors make a purchase, the conversion rate would be calculated as follows: (50 conversions / 1,000 visitors) x 100 = 5%.

A high conversion rate indicates that users find value in what they see on the site and want to take action. A low conversion rate may suggest issues with user experience, relevance of content or product offerings, or ineffective calls-to-action.

 

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