Definition
Conversion rate is the percentage of visitors or sessions that complete a goal, such as a purchase, sign-up or enquiry, out of all visitors or sessions.
Conversion rate explained
To calculate it, divide the number of conversions by the number of visitors (or sessions, or ad clicks, depending on the report) and multiply by 100. Always check which denominator a tool uses, because conversion rates per session and per user can differ considerably.
A single site-wide conversion rate hides a lot. Break it down by channel, landing page, device and audience. Organic visitors reading an educational guide will convert at a very different rate from visitors on a pricing page or from a branded search ad. Comparing like with like shows where improvements are possible.
Define conversions carefully. A newsletter sign-up and a sales-qualified demo request are both conversions, but they are not worth the same. Tracking micro-conversions, such as starting a form, alongside macro-conversions, such as a purchase, gives a fuller picture of where visitors get stuck.
Example
Your online store gets many visits from a gift guide but few sales. Segmenting conversion rate by landing page shows the guide converts far below your product pages, so you add direct product links and a clear call to action to the guide.
Why it matters
Conversion rate connects traffic to revenue. It shows whether visitors from search and ads are the right people and whether your pages persuade them.
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Related terms
- CRO (Conversion Rate Optimization)CRO (conversion rate optimization) is increasing the share of visitors who take a desired action, such as buying, booking or submitting a form.
- Key eventA key event in GA4 is an event you mark as important to your business, such as a purchase, lead or sign-up, so it is reported as an outcome.
- A/B testingA/B testing compares two versions of a page or element by showing each to a random share of visitors and measuring which produces more conversions.
- CPA (Cost Per Acquisition)CPA (cost per acquisition) is the average advertising cost to win one conversion, such as a sale, sign-up or lead: total ad spend divided by conversions.