Conversion rate
Percentage of those who have interacted with a firm (i.e., received direct mail, walked into a store or visited a site) and ultimately responded, either through a purchase or other activity.
Implications
The percentage of visitors to a website or participants in a marketing campaign who take a desired action, such as making a purchase, signing up for a newsletter, or completing a survey, crucial for evaluating the effectiveness of marketing efforts.
Example
Example: An e-commerce site tracks its conversion rate to determine how many visitors are completing purchases, allowing the company to optimize product pages and checkout processes.
Related Terms
Different from click-through rate, which measures how many people click on a link, the conversion rate measures how many people complete the desired action after clicking.
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