What is meant by the term 'conversion rate' in marketing?

The term 'conversion rate' in marketing refers specifically to the percentage of users who take a desired action. This action could vary depending on the goals of a marketing campaign, such as making a purchase, signing up for a newsletter, or filling out a contact form. A higher conversion rate indicates that a larger percentage of visitors are engaging in the desired behavior, which reflects the effectiveness of marketing strategies in persuading potential customers.

Understanding conversion rates is essential for marketers, as it directly relates to the success of campaigns and overall business growth. It allows businesses to measure the impact of their marketing efforts and optimize strategies accordingly to improve user engagement and increase sales.