The conversion rate is a key term in eCommerce and digital marketing. It measures how many visitors to a website actually perform a desired action - for example, complete a purchase, fill out a contact form or sign up for a newsletter.
Imagine your online shop is visited by 100 people in one day. If 5 of them buy something, your conversion rate is 5 per cent. The formula for this is very simple: the number of desired actions divided by the total number of visitors, times 100.
A high conversion rate means that your website or offer convinces visitors and persuades them to take action. Companies therefore try to improve the conversion rate through targeted measures - such as a clear design, trustworthy payment options or fast loading times.
The aim is to turn as many interested parties as possible into actual customers! The conversion rate therefore helps you to make the success of your online activities measurable and to optimise them in a targeted manner.