Conversion rate refers to the percentage of people who take a desired action or make a specific transaction out of the total number of visitors or participants in a particular activity or process.
https://www.hostitsmart.com/blog/click-through-rate-vs-conversion-rate/ is a crucial metric in various fields, such as digital marketing, e-commerce, and website analytics, and is used to measure the effectiveness of a specific call-to-action or goal.
In the context of online marketing and e-commerce, the desired action can be a wide range of activities, including:
Making a purchase on an e-commerce website.
Signing up for a newsletter.
Filling out a contact form.
Downloading a free resource.
Clicking on an advertisement.
Registering for an event or webinar
The conversion rate is typically expressed as a percentage and is calculated by dividing the number of successful conversions by the total number of visitors, and then multiplying the result by 100 to get a percentage.
Conversion Rate = (Number of Conversions / Total Visitors) * 100
For example, if a website has 500 visitors in a day, and 50 of them make a purchase, the conversion rate for that day would be (50 / 500) * 100 = 10%. This means that 10% of the website's visitors made a purchase.
Marketers and website owners use conversion rate as a key performance indicator (KPI) to assess the success of their marketing campaigns, website design, and overall user experience. By analyzing and optimizing conversion rates, they can improve the efficiency and profitability of their online activities.
