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Conversion Rate

A “conversion” can refer to any key action that moves a prospect closer to becoming a customer, depending on the goal of the page or campaign. Common examples include:

  • Completing a purchase (eCommerce)
  • Signing up for a newsletter or webinar
  • Downloading a resource (e.g., eBook, whitepaper)
  • Filling out a lead generation form
  • Starting a free trial or demo request
  • Clicking a key CTA button

Formula:

Conversion Rate (%) = Number of Conversions / Total Number of Visitors x 100

Example: If a landing page receives 2,000 visitors in a month and 100 of them complete the lead form, the conversion rate is:

100/2000 x 100 = 5%

This means 5% of visitors performed the intended action.

Why conversion rate matters:

  • Performance Indicator: It shows how effectively a page, ad, or campaign drives action.
  • ROI Optimization: Higher conversion rates typically lead to lower acquisition costs and better marketing ROI.
  • User Experience Insights: Low conversion rates can signal friction points, unclear messaging, or misaligned targeting.
  • Scalability: Improving conversion rates often has a compounding effect on growth—especially for paid acquisition.

Factors that influence conversion rate:

  • Quality and relevance of traffic
  • Clarity and persuasiveness of the offer
  • Landing page design and copy
  • CTA placement and strength
  • Page speed and mobile friendliness
  • Trust signals (e.g., testimonials, reviews, security badges)
  • Ease of completing the action (form length, checkout friction)

Example (Ecommerce): An online apparel store sees a 1.2% conversion rate on product pages. After simplifying the checkout process, adding customer reviews, and improving mobile speed, the conversion rate jumps to 2.4%. This doubles revenue without increasing traffic or ad spend, illustrating why CRO (Conversion Rate Optimization) is so powerful.