What is Conversion Rate?
Conversion rate is the ratio of users who complete a target action (a "conversion") to the total number of users who could have taken that action. It is one of the most important metrics in product analytics and marketing.
Conversions can be defined at any level: a macro conversion might be completing a purchase or starting a paid subscription, while a micro conversion could be signing up for a newsletter or adding an item to a cart.
Conversion rate = (Number of conversions / Total visitors or users) x 100. Tracking conversion rates across different segments, channels, and time periods reveals what drives users to act — and where they drop off.
Example
Your signup page receives 5,000 visitors per month, and 400 of them complete registration. Your signup conversion rate is 8%. After redesigning the form, the rate improves to 11%.
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