Conversion rate is the percentage of people who take a desired action out of the total who had the opportunity. You divide conversions by the total audience and multiply by 100. It measures how effectively a page, campaign, or funnel stage turns attention into action.

Conversion rate is a lever that compounds. Doubling it doubles output from the same traffic and the same spend, which is cheaper than buying more traffic. But define the conversion that matters. A high signup rate is worthless if those signups never become customers. Optimize the conversion closest to revenue.

Example:

 500 visitors land on a page and 25 book a call. Conversion rate is 25 / 500 = 5%.

What is a good conversion rate?

 It depends on the action and the channel. A landing page might convert at 2 to 5%, while a sales-qualified opportunity might close at 20 to 30%. Compare against your own baseline.

Why improve conversion rate before buying more traffic?

 Raising conversion rate increases results from existing traffic at no extra acquisition cost, making it a more capital-efficient lever.