What is a Conversion Rate?

Kauri Ääremann
Co-Founder / CEO
June 12, 2023


If you run an online business, you probably know how important it is to convert your website visitors into customers. But how do you do that? How do you persuade them to take action and buy your product, sign up for your service, or fill out your form?

That’s where conversion rate optimization (CRO) comes in. CRO is the process of adjusting your website and content to generate greater conversions from the traffic already landing on it. It’s not about getting more visitors, but getting more out of the ones you already have.

In this article, we’ll explain what conversion rate and CRO are, why they matter, and how to measure and improve them. We’ll also give you some tips and best practices to optimize your website for better conversions and higher ROI.

What is conversion rate?

A conversion rate is the percentage of visitors who complete a desired action on your website. For example, if 100 people visit your website and 10 of them buy your product, your conversion rate is 10%.

A desired action can be anything that you want your visitors to do, such as:

Purchasing a product or service

• Signing up for a newsletter or a free trial

• Downloading an ebook or a whitepaper

• Filling out a contact form or a survey

• Clicking on a link or a button

Different types of conversions have different values for your business. For instance, a sale is more valuable than a sign-up, and a sign-up is more valuable than a click. That’s why you should track and optimize different kinds of conversion rates on your website.

To calculate your conversion rate, you can use this simple formula:

This is a conversion rate formula

Conversion rate = (Number of conversions / Number of visitors) x 100%

For example, if you have 500 visitors and 50 conversions, your conversion rate is:

(50 / 500) x 100% = 10%

Measuring different kinds of conversion rates

Not all conversions are created equal. Some conversions are more important and valuable than others for your business. That’s why you should measure and optimize different kinds of conversion rates on your website.

One way to categorize conversions is by using the terms macro conversions and micro conversions.

Macro conversions are the primary goals of your website. They are the actions that directly generate revenue or leads for your business. Examples of macro conversions for e-commerce, SaaS, or any other online enterprise could be:

• Revenue

• Contact us

• Request a quote

• Free trial

Micro conversions are the steps or milestones that help you reach the end goal. They are the actions that indicate interest, engagement, or satisfaction from your visitors. Micro conversion examples would include:

• Email clicks

• Downloads on white paper

• Blog subscriptions

• Product views

Both macro and micro conversions are important for your CRO strategy. Macro conversions tell you how well your website is performing in terms of achieving your main objectives. Micro conversions tell you how well your website is performing in terms of providing a positive user experience and building trust and loyalty.

What is a good conversion rate?

One of the most common questions that marketers and business owners ask is: what is a good conversion rate?

The answer is: it depends.

There is no definitive answer to this question because conversion rates can vary widely depending on various factors, such as:

• Your industry and niche

• Your goals and objectives

• Your traffic source and channel

• Your target audience and segment

• Your website design and content

• Your offer and value proposition

• Your competitors and benchmarks

Generally speaking, though, a good conversion rate is one that is higher than the industry average. Another way to think about it is that a good conversion rate is one that helps your business meet its goals. These goals might include total revenue, subscriber growth, or return on investment of marketing budgets.

According to Ruleranalytics, the average conversion rate across all industries is 2.9%.

Of course, these numbers are only averages and may not reflect your specific situation. That’s why you should always compare your conversion rate to your own historical data and industry standards.

To benchmark your conversion rate against your competitors and industry standards, you can use tools like Google Analytics Benchmarking Reports, Google Ads Performance Grader, or HubSpot’s Website Grader.

These tools can help you see how your website or landing page performs compared to others in your industry or niche. They can also provide you with insights and recommendations on how to improve your conversion rate.

However, you should not obsess over achieving a specific number or beating your competitors. Instead, you should focus on continuous improvement and experimentation.


Conversion rate optimization (CRO) is a crucial process for online businesses looking to maximize their website's potential. By adjusting website elements and content, businesses can generate higher conversions from their existing traffic. Understanding the concept of conversion rates, which represent the percentage of visitors who complete desired actions, is essential. These actions can vary from purchasing a product or service to filling out a contact form or clicking on a link.

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