Conversion rate is a metric that measures the percentage of people who take a desired action (e.g., make a purchase, sign up for a newsletter) in response to a marketing campaign or website. It is calculated by dividing the number of conversions (i.e., desired actions taken) by the number of visitors or impressions, and expressing the result as a percentage.
Here’s the formula for calculating the conversion rate:
Conversion Rate = (Number of Conversions / Number of Visitors or Impressions) x 100
For example, if your marketing campaign generates 1,000 visitors and 100 of those visitors make a purchase, your conversion rate would be:
Conversion Rate = (100 / 1,000) x 100 = 10%
This means that 10% of the visitors to your website or marketing campaign took the desired action (in this case, making a purchase).
Conversion rate is an important metric for understanding the effectiveness of your marketing efforts. By tracking and analyzing your conversion rate, you can identify areas for improvement and optimize your marketing campaigns to increase the number of conversions.
