What does the term 'conversion rate' refer to?

The term 'conversion rate' refers specifically to the percentage of visitors to a website who complete a desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form. This metric is crucial for evaluating the effectiveness of a website or an online marketing campaign, as it directly indicates how well a site converts traffic into actionable outcomes. By calculating the conversion rate, businesses can gain insights into user behavior, identify areas that might need improvement, and strategically optimize their marketing efforts to increase that rate.

Other definitions mentioned do not accurately capture the essence of conversion rates; they focus on different aspects of customer behavior or engagement but do not specifically relate to the actions completed on a website. Understanding conversion rates helps businesses assess their performance and implement strategies that can lead to improved sales and customer interactions.