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Definition

Conversion rate

Conversion rate is the percentage of visitors to a company’s website who take a desired action. For example, the percentage of visitors buying a product or service, registering a membership or downloading a catalogue. It is calculated by dividing the number of actions completed by the total number of site visitors.

A company can increase its conversion rate by ensuring it offers appealing products and services for a good price and by making sure its website is easy to navigate, with actions that are easy to take.

More about conversion rates

If ABC Co. has 100,000 visitors to its e-commerce website in a three-month period and 1,000 of those visitors make a purchase, its conversion rate is:

1,000
100,000 = 0.01

That would mean ABC Co. has a 1% conversion rate.

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