Digital marketing glossary
What is conversion rate?
Written and reviewed by L.K. Monu Borkala · Updated
Definition
Conversion rate is the percentage of visitors, clicks or leads that complete the action you want, such as buying, booking, filling a form or messaging you on WhatsApp. If 200 people visit a page and 6 of them book, the page's conversion rate is 3%. It shows how well a page, ad or sales process turns interest into action.
How it works
Pick one clear action to count and track it, then divide the number of conversions by the number of people who had the chance to convert, and multiply by 100. What you divide by changes the meaning. In Google Ads, conversion rate is conversions divided by ad interactions such as clicks. On a website, it is often conversions divided by sessions or users. For a sales team, it can be paying customers divided by enquiries. Improving the rate, called conversion rate optimisation, usually comes from a clearer offer, fewer form fields, faster pages, trust signals such as reviews, and a stronger call to action.
Formula
Conversion rate = (Conversions ÷ Visitors, clicks or leads) × 100
Example
Imagine a bike service centre in Coimbatore whose booking page gets 1,000 visits a month and 20 bookings, a 2% conversion rate. The form asks for eight details, including the bike's chassis number. The owner cuts it to name, phone, model and preferred date, and adds a ₹499 general service price and three recent reviews. If the same traffic then brings 35 bookings a month, the rate is 3.5%, and the extra bookings cost nothing more in ads.
An illustration: the business and the rupee figures are made up to show how the idea works.
Common mistake
Comparing conversion rates that use different bases, such as a Google Ads rate based on clicks and a website rate based on all sessions. Another mistake is drawing conclusions from tiny numbers. Going from 1 to 2 bookings out of 50 visits is not proof of anything, so wait for enough visits before you decide.
Where you learn it
- Module 1: Digital Marketing Foundations
- Class: The Marketing Funnel: Awareness → Consideration → Conversion → Loyalty · read it free
- Module 2: Website & Landing Pages
- Class: Conversion Rate Optimisation (CRO) Basics
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