What is a Conversion Rate?

Ruben Buijs

Founder & Digital Consultant

Written on Jul 31, 2023

2 minutes

Lead generation

Conversion Rate, in the context of lead generation, refers to the percentage of website visitors or potential customers who take a desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form. It measures the effectiveness of a marketing campaign or website in converting leads into customers.


Let's say you run an e-commerce website and receive 1,000 visitors in a month. Out of these visitors, 50 make a purchase. Your conversion rate would be 5% (50 divided by 1,000 multiplied by 100).

Another example could be a landing page for a software product. If 200 people visit the landing page and 20 of them sign up for a free trial, the conversion rate would be 10% (20 divided by 200 multiplied by 100).


The conversion rate is a critical metric for any business engaging in lead generation. It provides valuable insights into the effectiveness of marketing strategies, website design, and user experience. A high conversion rate indicates that your efforts are resonating with your target audience and that your website is optimized for conversions. On the other hand, a low conversion rate may suggest that improvements are needed in your marketing messages, call-to-action buttons, or overall user experience.

How to Use Conversion Rate

To calculate the conversion rate, you need to track the number of conversions and the total number of visitors or leads. You can use various analytics tools or software to gather this data. Once you have the numbers, simply divide the number of conversions by the total number of visitors or leads, and multiply by 100 to get the conversion rate as a percentage.

Besides calculating the conversion rate, it is essential to analyze the factors influencing it. You can segment the data by traffic source, landing page, or demographic information to identify which channels or pages are performing well and which need improvement. This analysis will help you optimize your marketing efforts and website to increase your conversion rate.

Useful Tips

  1. Improve your website's user experience: A user-friendly and intuitive website design can significantly impact your conversion rate. Ensure that your website loads quickly, is mobile-responsive, and has clear navigation to guide visitors through the conversion process.

  2. Optimize your call-to-action (CTA) buttons: Use compelling and action-oriented language for your CTA buttons. Experiment with different colors, sizes, and placements to make them more noticeable and persuasive.

  3. Create targeted and relevant content: Tailor your marketing messages and landing pages to specific audience segments. Personalized and relevant content can increase engagement and conversions.

  4. Implement A/B testing: Test different variations of your landing pages, headlines, copy, and CTA buttons to determine what resonates best with your audience. A/B testing can help you make data-driven decisions to optimize your conversion rate.

  5. Streamline the conversion process: Minimize the number of steps required for a conversion. Simplify forms, eliminate unnecessary fields, and provide clear instructions to make it easier for visitors to complete the desired action.


The conversion rate is the percentage of website visitors who take a desired action, such as making a purchase, filling out a form, or subscribing to a newsletter.
To calculate the conversion rate, divide the number of conversions by the total number of visitors and multiply by 100. For example, if you had 1000 visitors and 50 conversions, the conversion rate would be 5%.
Conversion rate is important because it indicates how effective your website or marketing efforts are in turning visitors into customers. A higher conversion rate means more successful conversions and higher revenue.
A good conversion rate varies depending on the industry and type of conversion. Generally, a conversion rate between 2-5% is considered average, while rates above 10% are considered excellent.
There are several strategies to improve conversion rates, such as optimizing website design, creating compelling content, improving site speed, simplifying the conversion process, and implementing A/B testing to identify what works best.
Conversion rates can be influenced by various factors, including website design, user experience, page load time, pricing, trustworthiness, call-to-action effectiveness, targeting the right audience, and the quality of your product or service.
Yes, conversion rates can vary across different channels. User behavior, intent, and expectations may differ on various channels such as social media, search engines, email marketing, or direct website traffic.
It is recommended to track your conversion rate regularly to monitor the effectiveness of your marketing efforts. The frequency may vary depending on your business goals, but monthly or weekly tracking is common.
Common conversion rate optimization techniques include conducting user research, performing A/B testing, improving website usability, optimizing landing pages, enhancing call-to-action buttons, and personalizing user experiences.
No, conversion rate is an important metric, but it should not be the only metric to measure success. Other metrics like average order value, customer lifetime value, bounce rate, and return on investment (ROI) also provide valuable insights into your business performance.

Article by

Ruben Buijs

Ruben, the founder of Boei, leverages over a decade of consultancy experience at Ernst & Young to optimize lead generation. Boei specializes in converting website visitors into qualified leads. Outside of work, Ruben is passionate about crossfit and enjoys gaming occasionally.

Table of contents

  1. Examples
  2. Importance
  3. How to Use Conversion Rate
  4. Useful Tips
  5. Related Terms

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