The Conversion Rate is the percentage of users who take a desired action. This desired action can vary depending on which products or services a company offers. However, typical forms of these actions are downloading content, signing up for a newsletter, joining a community, getting in contact with a website owner or clicking on display ads.
The conversion rate measures how many users of an application can be converted into customers that create a value for the company. Therefore, it is a unit that is especially important in terms of online marketing.
In online marketing, it usually varies between one and five percent. It is calculated by simply taking the number of conversions and dividing it by the number of total ad clicks that can be tracked to a conversion during the same time period.
A high conversion rate depends on several factors like
- interest level of the visitor
- attractiveness of the offer
- ease of the process.
Optimizing these factors will usually help marketers to noticeably improve their conversion rate.