What does conversion rate measure?

The conversion rate is a key performance metric in digital marketing that quantifies the effectiveness of a campaign in persuading users to take a specific desired action. This action can vary widely depending on the campaign goals; common examples include making a purchase, signing up for a newsletter, filling out a contact form, or downloading an app.

When considering the conversion rate, it is calculated by taking the number of users who complete the desired action and dividing that by the total number of visitors to the website, then multiplying by 100 to get a percentage. This metric is crucial because it reflects how well a website or advertisement is achieving its intended objectives, illustrating how many visitors are converting into customers or leads.

Options discussing the number of visitors or time spent on a webpage provide important insight into user behavior but do not directly relate to the effectiveness of converting those visitors into taking actions that benefit the business. Similarly, generating income per sale focuses on revenue rather than the proportion of users completing desired actions. All these elements can contribute to understanding overall performance, but the conversion rate specifically measures the effectiveness of turn visitors into actions that drive business goals.