In brief: Conversion rate is completed conversions divided by the appropriate number of visits, users, or opportunities in the same period.
How I use conversion rate in practice
I always name the numerator, denominator, and period. For an e-shop this may be orders per session; for B2B, qualified inquiries per relevant visit. I segment by source, device, and offer type because one average mixes different situations. I read the rate together with volume, value, and result quality.
What to watch out for
Conversion rate can rise when broader but important traffic is removed. It can also look good because events are measured twice. The percentage alone says nothing about margin or the long-term relationship.
Questions for decisions
- What exactly counts as a conversion?
- Is the denominator right for the decision?
- Is the event being measured twice?
- Is business value growing alongside the rate?