Analytics & Metrics
Conversion Rate
Conversion rate is the percentage of people who complete a desired action out of the total who had the opportunity to do so. The action might be a purchase, sign-up, download, or lead form submission. It measures how effectively traffic or audiences turn into outcomes.
Why it matters
Conversion rate connects activity to results, showing whether the audience you reach actually does what you want. Small improvements compound across funnels, often delivering more value than simply buying more traffic.
How it is measured
Conversion rate = (conversions / total visitors or clicks) x 100. Example: 40 sign-ups from 2,000 visitors gives (40 / 2,000) x 100 = 2%. Define the denominator clearly, since rates based on sessions, unique visitors, or ad clicks differ.
Typical benchmarks
Ecommerce conversion rates commonly land in the low single digits, but they vary widely by industry, traffic source, price point, and how 'conversion' is defined. Your own funnel history is the most reliable benchmark.
Frequently asked questions
What is a good conversion rate?
For ecommerce, low single digits is common, but the right number depends on industry, offer, and traffic quality. Lead-gen and high-intent traffic can convert far higher. Compare to your own baseline and tested variations.
How do I improve conversion rate?
Tighten message-to-offer relevance, simplify the path to action, strengthen the call to action, improve page speed, and reduce friction in forms or checkout. A/B testing is the reliable way to validate changes.
How is conversion rate different from CTR?
CTR measures clicks against impressions, capturing interest in your message. Conversion rate measures completed actions against visitors or clicks, capturing whether that interest produced the outcome you wanted.