What Is a Conversion Rate?
The percentage of people who complete an action out of everyone who could have. Simple to calculate, easy to misread.
Beginner6 min readDaksh BathlaDEFINITIONMarketing
Conversion Rate
The percentage of people who complete a specific action out of everyone who had the chance to. Both halves — the action and the group — have to be stated for the number to mean anything.
EXAMPLE
500 people visit a signup page and 25 sign up. The conversion rate is 5% of page visitors to signups.
WHY IT MATTERS
It's how you find the leak. A funnel of conversion rates shows which single step is losing the most people, which is almost always cheaper to fix than sending more people in.
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