What is Conversion Rate?

Conversion Rate is the percentage of website visitors who complete a desired action, known as a conversion. This action could be anything from filling out a contact form, signing up for a newsletter, making a purchase, or downloading a resource.

Conversion Rate is calculated using the formula:

Conversion Rate = (Conversions ÷ Total Visitors) × 100

If 200 people visit a landing page and 20 complete the desired action, the conversion rate is 10 percent.

Why Conversion Rate Matters

Conversion Rate is one of the most important metrics for measuring the effectiveness of your digital marketing efforts. It directly reflects how well your website or landing page persuades visitors to take action.

Key benefits include:

  • Indicates ROI from traffic acquisition
  • Helps measure campaign effectiveness
  • Highlights the quality of user experience
  • Identifies opportunities to improve landing pages and CTAs
  • Supports optimisation through A/B testing and CRO (Conversion Rate Optimisation)

A high conversion rate means your page is performing well, while a low rate may indicate usability or messaging issues.

Example in Use

A business runs Google Ads directing visitors to a product page. Out of 1,000 visitors, 50 make a purchase. That gives a conversion rate of 5 percent. To improve performance, the business tests a new headline and call-to-action button, resulting in a 7 percent conversion rate.

By continually testing and refining content, businesses can increase conversions without needing more traffic.

Related Terms

  • Call to Action (CTA)
  • Landing Page
  • A/B Testing
  • User Engagement
  • CRO (Conversion Rate Optimisation)
Eveline Roberts

Eveline has 10 years of experience in marketing, with a focus on paid media, affiliate, and content strategies. She has also worked in sales and operations, bringing a well-rounded view to business growth.