Conversion Rate

What Does Conversion Rate Mean?

A conversion rate is an equation that online advertisers and marketers use to compare the total number of visitors to a website to the number that become paying customers, subscribers or users. Conversion rates are extremely helpful to electronic storefront owners, who can use website traffic results to determine what other marketing methods should be enlisted to increase product sales.


Techopedia Explains Conversion Rate

Conversion rate is calculated based on the number of unique visitors turned into customers, subscribers and users divided by the number of total unique visitors. Returning customer data is normally not included in the equation.


CR = NC ÷ NV


CR = Conversion Rate
NC = Number of Unique Visitors Who Become Customers
NV = Number of Unique Visitors

Many of the top electronic storefronts have mastered conversion rate marketing techniques. Online storefronts sometimes enlist the help of marketing professionals to increase their conversion rates. In many cases, this involves remarketing items at a better price – either through discounts or free shipping offers – to potential customers who have abandoned their online shopping carts.


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Margaret Rouse is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical, business audience. Over the past twenty years her explanations have appeared on TechTarget websites and she's been cited as an authority in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine and Discovery Magazine.Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages. If you have a suggestion for a new definition or how to improve a technical explanation, please email Margaret or contact her…