Conversion rate is a metric used to measure the effectiveness of a marketing campaign, website, or any business activity that has a goal of prompting a user to take a specific action. It is calculated by taking the number of conversions, which could be any desired action such as a purchase, subscription, or download, and dividing that by the total number of visitors or interactions that could potentially lead to that action. The result is then multiplied by 100 to get a percentage. A high conversion rate indicates that a high proportion of visitors are taking the desired action, and it is often seen as a sign of successful marketing and a well-designed user experience. Conversely, a low conversion rate might suggest that there are barriers to conversion, such as poor website design, unclear calls-to-action, or an offer that does not resonate with the target audience. By tracking and analyzing conversion rates, businesses can identify areas for improvement and optimize their strategies to better meet the needs and desires of their customers.
