What is a conversion rate? When an online user buys a product or signs up to receive information from a website, that’s called a conversion. In that context, the conversion rate calculates what it took to make those actions happen. The rate breaks down the steps to that sale or sign up by showing a percentage of users who converted versus the ones who didn’t.
How do conversion rates work? The conversion rate is impacted by the quality of the website or landing page, the relevance of the offer, and the effectiveness of the call to action.
Types of conversion rates:
There are two main types of conversion rate:
Why are conversion rates important to marketers? When looking at the range of performance metrics, Conversion Rate ranks highly because they show how effective a campaign is in leading to outcomes such as sales and sign ups.
Who needs to know what conversion rates are:
Use conversion rate in a sentence: “If marketers have to turn up their ad volume to boost or even maintain Conversion Rates, the unintended consequence is that the increased supply of programmatic ads will be worth less as brands revert to less targeted approaches such as the old ‘spray and pray’ model.”