What is a Conversion Rate?

Ruben Buijs

Founder & Digital Consultant

Written on Aug 10, 2023

2 minutes

Product Management

Conversion Rate refers to the percentage of website visitors or users who complete a desired action on a website or digital platform. It is a key metric used in product management and marketing to measure the effectiveness of a website or app in converting visitors into customers or achieving specific goals.


Let's consider a few examples to understand Conversion Rate better:

  1. E-commerce Website: If an online store receives 1,000 visitors in a month and 50 of them make a purchase, the conversion rate would be 5% (50 divided by 1,000 multiplied by 100).

  2. Lead Generation Landing Page: A company creates a landing page to collect customer leads. If 200 visitors fill out the lead form out of 1,000 visitors, the conversion rate would be 20%.


Conversion Rate is a crucial metric for businesses as it directly reflects the success of their digital efforts. Here's why Conversion Rate is important:

  1. Measuring Effectiveness: Conversion Rate helps businesses evaluate the effectiveness of their website or app in achieving its objectives. It provides insights into whether the design, content, and user experience are appealing and persuasive enough to convert visitors.

  2. Optimizing Marketing Campaigns: By tracking Conversion Rates, businesses can analyze the performance of various marketing campaigns and channels. They can identify which campaigns are driving the most conversions and optimize their marketing strategies accordingly.

  3. Improving User Experience: A low Conversion Rate may indicate issues with user experience, such as confusing navigation, slow loading times, or an unclear call-to-action. By monitoring Conversion Rates, businesses can identify areas for improvement and enhance the overall user experience.

How to Use It

To effectively use Conversion Rate, follow these steps:

  1. Define Your Conversion Goals: Determine the specific actions or goals you want users to complete on your website or app. This could include purchases, form submissions, downloads, or any other desired action.

  2. Set Up Conversion Tracking: Implement tracking tools like Google Analytics to measure and analyze conversions. Set up conversion events and funnels to track user behavior and identify bottlenecks in the conversion process.

  3. Monitor and Analyze: Regularly monitor your Conversion Rate and analyze it in relation to different traffic sources, user segments, or marketing campaigns. This will help you identify trends, patterns, and areas for improvement.

  4. Optimize and Test: Use the insights gained from analyzing Conversion Rates to optimize your website or app. Experiment with different designs, content, and calls-to-action to improve your Conversion Rate. A/B testing can be a valuable technique to measure the impact of changes accurately.

Useful Tips

Consider these tips to enhance your Conversion Rate:

  1. Simplify the Conversion Process: Make it as easy as possible for users to complete the desired action. Eliminate unnecessary steps, minimize form fields, and provide clear instructions and guidance throughout the process.

  2. Optimize Landing Pages: Pay attention to the design, messaging, and layout of your landing pages. Ensure they are visually appealing, communicate the value proposition effectively, and have a strong call-to-action that stands out.

  3. Improve Page Load Speed: Slow-loading pages can lead to higher bounce rates and lower Conversion Rates. Optimize your website's performance by compressing images, using caching techniques, and minimizing server response time.

  4. Leverage Social Proof: Incorporate social proof elements such as customer testimonials, reviews, or case studies to build trust and credibility. This can positively influence users' decision-making process and increase the likelihood of conversion.


Conversion rate is the percentage of website visitors or users who take a desired action, such as making a purchase or filling out a form.
Conversion rate is important because it indicates the effectiveness of your website or product in turning visitors into customers. It helps measure the success of your marketing efforts and identifies areas for improvement.
Conversion rate is calculated by dividing the number of conversions by the number of visitors or users, and then multiplying by 100 to get the percentage.
A good conversion rate varies depending on the industry and type of product or service. Generally, a higher conversion rate is desirable, but what is considered good can differ. It is important to benchmark your conversion rate against your competitors or industry standards.
There are several strategies to improve conversion rate, such as optimizing your website's design and user experience, creating compelling and clear calls-to-action, reducing friction in the conversion process, and conducting A/B testing to identify what works best for your audience.

Article by

Ruben Buijs

Ruben is the founder of ProductLift. I employ a decade of consulting experience from Ernst & Young to maximize clients' ROI on new Tech developments. I now help companies build better products

Table of contents

  1. Examples
  2. Importance
  3. How to Use It
  4. Useful Tips
  5. Related Terms

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