Conversion Rate

Conversion Rate is a term businesses use to measure how many visitors to a website or users of an app take a specific action that’s valuable to the company. It could be anything from signing up for a newsletter to making a purchase. To put it simply, if 100 people visit a website and 10 of them buy something, the conversion rate is 10%. It’s a handy way to see how well a business is doing at turning potential customers into actual customers.

For businesses focused on online sales or digital marketing, the conversion rate is a super important number. It helps them figure out whether their website is effective or if certain marketing campaigns are working. If lots of people are visiting a site but not many buy anything, then the business might want to make some changes to encourage more purchases.

In the realm of business intelligence, tracking and analyzing conversion rates gives companies insights into customer behavior and the effectiveness of their marketing strategies. This helps them make better decisions, like how to design their website or what kind of promotional offers to make. Ultimately, understanding conversion rates helps businesses to attract more customers, improve sales, and grow their bottom line.