Glossary · 1 min read

Conversion rate: definition, formula and common pitfalls

Conversion rate is the share of visitors, sessions or users who complete a goal. The formula, worked examples, and the choices that change the number.

Conversion rate is the proportion of a defined audience that completes a defined goal in a defined period.

conversion rate = conversions ÷ opportunities × 100

Worked example

120 orders from 4,000 visitors in a week: 120 ÷ 4,000 × 100 = 3.0%.

The choices hidden in the formula

  • Denominator: visitors (users), sessions, or people who reached a step? Session-based rates are usually lower than user-based ones, because one person can have several sessions. State which one you use.
  • Numerator: orders, or people who ordered? One person can order twice.
  • Period and filters: date range, bots excluded, internal traffic excluded, consented users only?

Pitfalls

  • Comparing rates with different definitions (your session rate versus a benchmark’s user rate).
  • Ignoring value: a higher rate with lower order value can mean less revenue. See business outcomes versus conversion metrics.
  • Forgetting uncertainty: with small numbers, rates swing a lot by chance. 3 of 100 and 6 of 100 are not reliably different.

Search lessons, guides, case studies and templates. Press Esc to close.