Conversion Rate
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Conversion rate = (number of conversions / total number of visitors or leads) x 100. A conversion can be any defined goal — a purchase, a sign-up, a form submission — depending on what the business is measuring.

A page might have a high rate for 'clicked a button' but a much lower rate for 'completed a purchase,' so comparing conversion rates across teams or campaigns is only meaningful when everyone agrees on the same definition of a conversion event.

Overall e-commerce conversion rates commonly range between 1-4% of site visitors completing a purchase, though this varies widely by industry, traffic source, and price point — paid search traffic often converts differently than organic or social traffic.

Improving conversion rate usually comes from reducing friction in the buying or sign-up process — clearer calls to action, faster page load times, simplified checkout forms, and trust signals like reviews — since these changes turn more of the existing traffic into completed conversions.

Not necessarily — a high conversion rate on low-value traffic can generate less total revenue than a lower conversion rate on high-value traffic, so conversion rate should be viewed alongside total conversion volume and average order value, not in isolation.