Conversion Rate - Marketing

Conversion rate is most simply defined as the percentage of users who take a desired action.

This "action" can take many forms, varying from campaign to campaign. Examples include sales of products, membership registrations, newsletter subscriptions, software downloads, or just about any activity beyond simple page browsing.

Site X has 100,000 visitors during the month of August. In that same month 15,000 of those visits resulted in the purchase of widget Y. Thus, the conversion rate for the purchase of widget Y during the month of August would be 15%.

(15,000 / 100,000) = 0.15
(Conversions / Distribution (ie: Visits)) = Conversion Rate

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