What is a Conversion?

The desired action was taken by a website visitor, such as making a purchase, registering for an event, subscribing to an e-newsletter, completing a lead-gen form, downloading a file, etc.

Conversion is prospective customers who take a specific action you want. For example, the following are the specific conversion that an organization may track:

  • The percentage of website visitors who fill out a form, call your company, or purchase something from you online
  • Percentage of callers who are issued proposals
  • A percentage of proposals you win
  • Make a Purchase
  • Register for an  Event


No matter how good your current conversion is, they can always get better.  And improving them dramatically improves profits.

For example, if you spend $5,000 on advertising, you may bring 5,000 prospective customers to your website. If your online sales conversion rate is 5%, then you’ll secure 250 new customers. Alternatively, if your conversion rate improved to 6%, you would gain 300 new customers. In this latter scenario, you’d gain an additional 10 customer for no additional advertising cost, thus boosting your profits significantly.


In electronic commerce, conversion marketing is the phrase used to often describe the act of converting a customer who browses your site to a paying customer. For example, if a customer abandons their shopping cart, the merchant may market a special offer (e.g. free shipping or discount) to convert the customer from browser to paying customer. It is measured by conversions the percentage of visitors who take the desired action.


Always remember that you can’t improve what you can’t measure.

You need to track your conversions on both a daily and monthly basis. Doing so allows you to immediately correct problems (e.g., why is our conversions are so low today? it’s because our website isn’t loading properly) and make sure you are improving them over time.



« Back to Glossary Index