Conversion rate is the percentage of visitors to a website or other online platform who take a desired action, such as making a purchase, signing up for a newsletter, or filling out a form. Conversion rate is typically calculated by dividing the number of conversions (i.e., the number of people who took the desired action) by the total number of visitors to the site. For example, if a website has 100 visitors and 10 of them make a purchase, the conversion rate would be 10%.
Conversion rate is an important metric for businesses that operate online, as it can provide insight into the effectiveness of their website or platform. A high conversion rate can indicate that a website is effective at converting visitors into customers, while a low conversion rate may indicate that there are opportunities for improvement. As a result, businesses often focus on optimizing their conversion rate in order to increase sales and revenue. This can involve A/B testing different versions of a website, improving the user experience, or offering promotions or incentives to encourage visitors to take the desired action.