Conversion Rate

KPI Name

Conversion Rate

Alternative Names

Goal Completion Rate

KPI Description

Measures the percentage of website visitors who complete a desired action (e.g., purchase, signup).

Category

Marketing

KPI Type

Quantitative, Lagging

Target Audience

Digital Marketers, Sales Teams, Business Owners

Formula

Conversion Rate = (Number of Conversions ÷ Total Visitors) × 100

Calculation Example

If a website gets 50 conversions from 5,000 visitors, Conversion Rate = (50 ÷ 5,000) × 100 = 1%

Data Source

Google Analytics, CRM Software

Tracking Frequency

Weekly, Monthly, Quarterly

Optimal Value

Higher is better; depends on industry benchmarks.

Minimum Acceptable Value

A low conversion rate may indicate weak call-to-action or poor user experience.

Benchmark

E-commerce ~1-3%, SaaS ~3-8%, Lead Generation ~2-10%

Recommended Chart Type

Line chart (to track trends), Bar chart (to compare campaigns)

How It Appears in Reports

Displayed in marketing and sales reports to assess effectiveness.

Why Is This KPI Important?

Indicates how well a website converts visitors into leads or customers.

Typical Problems and Limitations

Can be influenced by traffic quality, user experience, and pricing.

Actions for Poor Results

A/B test landing pages, optimize CTAs, improve website UX.

Related KPIs

Bounce Rate, Cost per Lead (CPL), Customer Acquisition Cost (CAC)

Real-Life Examples

A SaaS company increased conversion rate from 2% to 6% by improving onboarding.

Most Common Mistakes

Focusing only on conversion rate without analyzing customer lifetime value.