Marketing & Acquisition

Conversion Rate

The percentage of visitors who complete a desired action (purchase, signup). Average e-commerce rate: 2-3%.

Formula

Conversion Rate (%) = (Conversions / Total Visitors) × 100

What is Conversion Rate?

Conversion rate measures what percentage of your website visitors take a desired action — typically making a purchase. It's one of the most important metrics for e-commerce because small improvements have outsized impact on revenue.

E-Commerce Benchmarks

Average: 2-3%
Good: 3-5%
Excellent: 5%+

Rates vary significantly by traffic source. Email traffic converts at 4-5%, while social media traffic might convert at 1-2%.

How to Improve Conversion Rate

Optimize product pages (images, descriptions, reviews)
Simplify checkout process
Offer free shipping thresholds
Add social proof and urgency elements
Improve site speed

Example

10,000 visitors, 250 purchases. Conversion rate = 2.5%.

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