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Conversion Rate (Glossary)

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The conversion rate is a key term in e-commerce and digital marketing. It measures how many website visitors actually perform a desired action – for example, completing a purchase, filling out a contact form, or signing up for a newsletter.

Imagine your online shop is visited by 100 people in one day. If 5 of those people make a purchase, your conversion rate is 5 percent. The formula for this is very simple: number of desired actions divided by the total number of visitors, multiplied by 100.

A high conversion rate means that your website or offering persuades visitors and encourages them to take action. Companies therefore try to improve the conversion rate through targeted measures – such as clear design, trustworthy payment options or fast loading times.

The goal: To turn as many interested parties as possible into actual customers! The conversion rate thus helps you to measure the success of your online activities and to optimise them in a targeted manner.

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