What is a Conversion Rate?

Ruben Buijs

Founder & Digital Consultant

Written on Aug 1, 2023

1 minutes

Customer Experience

The conversion rate is a crucial metric in the realm of customer experience. It measures the percentage of website visitors or potential customers who take a desired action, such as making a purchase, filling out a form, or subscribing to a newsletter. Essentially, it reflects the effectiveness of your marketing efforts in turning prospects into customers.


Let's say you run an e-commerce store and 1,000 visitors come to your website. Of those 1,000 visitors, 50 of them make a purchase. In this case, your conversion rate would be 5% (50 divided by 1,000 multiplied by 100).


Understanding and optimizing your conversion rate is vital for the success of your business. A high conversion rate indicates that your website and marketing strategies are resonating with your target audience, leading to increased sales and revenue. On the other hand, a low conversion rate may indicate issues with your website design, user experience, or marketing campaigns that need to be addressed.

How to Use It

To calculate your conversion rate, divide the number of conversions (desired actions) by the total number of visitors or opportunities and multiply by 100 to get a percentage. This simple formula can be applied to various scenarios, whether you want to measure the conversion rate of a specific landing page, an email campaign, or even your overall website performance.

Useful Tips

  • Continuously monitor and analyze your conversion rates to identify trends, patterns, and areas for improvement.
  • A/B testing can help you optimize your conversion rate by comparing different versions of a webpage or marketing campaign to see which one performs better.
  • Pay attention to your website's user experience, ensuring it is intuitive, easy to navigate, and mobile-friendly.
  • Streamline your conversion process by reducing friction and eliminating unnecessary steps or form fields.
  • Personalize your marketing messages and offers to better resonate with your target audience, increasing the likelihood of conversion.


Conversion rate refers to the percentage of website visitors or users who take a desired action, such as making a purchase, filling out a form, or subscribing to a newsletter.
Conversion rate is calculated by dividing the number of conversions by the total number of visitors, and then multiplying by 100 to get the percentage.
A good conversion rate varies depending on the industry and specific goals of a website or business. Generally, a higher conversion rate is considered better, but it is important to compare against industry benchmarks.
Some common conversion rate optimization techniques include improving website design and user experience, creating compelling and clear calls-to-action, reducing friction in the conversion process, and conducting A/B testing.
Conversion rate is important because it directly impacts the effectiveness and profitability of a website or business. A higher conversion rate means more customers or leads, resulting in increased revenue and growth.
To improve conversion rate, you can analyze user behavior through analytics, optimize landing pages, simplify the conversion process, enhance product descriptions, provide social proof, and personalize the user experience.
Some common barriers to conversion include a complicated or lengthy checkout process, lack of trust or security, poor website performance, unclear value proposition, and irrelevant or overwhelming content.
A micro-conversion refers to a smaller, intermediate action that indicates progress towards a primary conversion goal. Examples include signing up for a newsletter, adding items to a wishlist, or downloading a free resource.
Tracking conversion rate over time helps in identifying trends, evaluating the impact of changes or optimizations, and measuring the effectiveness of marketing campaigns. It allows for data-driven decision making and continuous improvement.
In most cases, it is highly unlikely to achieve a 100% conversion rate. There will always be some visitors who do not convert due to various reasons such as browsing behavior, lack of interest, or decision to defer the action.

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 It
  4. Useful Tips
  5. Related Terms

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