Marketing
Definition
Conversion rate is the percentage of users completing a target action (signup, trial start, demo booked, purchase) out of the total audience. Different funnel stages have different conversion rates: visitor-to-lead, lead-to-MQL, MQL-to-SQL, SQL-to-Closed-Won.
Key points
- Formula: (Conversions / Total users) × 100
- Track conversion rates by funnel stage, channel, and segment
- Improving conversion rate is typically higher ROI than increasing traffic
- A/B testing finds meaningful improvements
Example
1,000 website visitors; 30 sign up for trial. Visitor-to-trial conversion rate = 3%.
Stop stitching tools to track this
CRM, communications and operations share one database here, so the numbers this term describes are a dashboard rather than a spreadsheet.