Conversion rate is the percentage of visitors who complete a desired action on your website. It's one of the most important metrics for measuring how effectively your site turns visitors into customers or leads.
The Formula
Conversion Rate = (Conversions / Total Visitors) × 100
If 1,000 people visit your site and 30 buy something, your conversion rate is 3%.
What Counts as a Conversion?
Conversions vary by business type:
E-commerce
- Purchase completed
- Added to cart
- Started checkout
SaaS
- Free trial signup
- Demo request
- Paid subscription
Lead Generation
- Form submission
- Phone call
- Email signup
Content Sites
- Newsletter signup
- PDF download
- Account creation
What's a Good Conversion Rate?
Benchmarks vary widely:
- E-commerce: 2-4% is typical
- B2B landing pages: 2-5%
- Email signup: 1-5%
But comparison to benchmarks is less useful than improving your own rate over time.
Factors Affecting Conversion Rate
Traffic Quality
Targeted traffic converts better than random visitors.
Page Speed
Every second of delay reduces conversions.
User Experience
Confusing navigation, broken forms, and poor mobile experience kill conversions.
Trust Signals
Reviews, testimonials, security badges, clear policies.
Value Proposition
Is it clear why someone should convert?
Call to Action
Is it obvious what visitors should do next?
Conversion Rate Optimization (CRO)
CRO is the systematic process of increasing conversion rates through:
- Analytics analysis
- User research
- A/B testing
- Iterative improvements
Micro vs. Macro Conversions
Macro conversions: The primary goal (purchase, signup) Micro conversions: Steps toward the goal (add to cart, create account)
Track both. Micro conversions help identify where users drop off.