Conversion rate – what it means and how to interpret the figure

Definition

Conversion rate is the share of visitors who complete a desired action, such as a purchase or a form submission, expressed as a percentage. It is calculated as the number of conversions divided by the number of visitors, multiplied by 100.

What counts as a conversion is up to you – a purchase, a quote request, a booking or a download. That is why the conversion rate says little on its own: it only becomes meaningful once you know which action it measures and against which traffic. The metric is often abbreviated to CR.

The conversion rate formula, with a worked example

The formula is simple: the number of conversions divided by the number of visitors, multiplied by 100.

• Conversion rate = (number of conversions ÷ number of visitors) × 100

Say an online shop gets 3,500 visitors in a month and 120 of them make a purchase. The conversion rate is then 120 ÷ 3,500 × 100 = 3.43%. If you swap "purchase" for "quote request" or "newsletter sign-up", the calculation is exactly the same – but the figures, and what they mean for the business, will be completely different.

What counts as a good conversion rate?

There is no universal answer – what is "good" depends on the industry, the traffic source, the price and what you count as a conversion. A figure that is strong for a B2B service with long sales cycles would be weak for a low-priced impulse buy. A high figure can even be a warning sign: if it is based on only a few visits, the sample is too small to trust. So always look at your conversion rate in context, and compare it first and foremost with your own history.

Want to go further, with industry benchmarks, a calculator, common pitfalls and practical ways to raise the rate? Read our guide Conversion rate: calculate it, benchmarks and how to increase it.