Defining Conversion Rates
Definition : The conversion rate is the percentage of users who take a desired action . The archetypical example of conversion rate is the percentage of website visitors who buy something on the site.
Example : An ecommerce site is visited by 100,000 people during the month of April. During that month, 2,000 users purchased something from the site. Thus, the site’s conversion rate is 2,000/100,000 = 2%.
There is room to tighten the definition somewhat:
- How do we count the baseline number of “users” ? Only as unique visitors, or do we count a person for as many times as they visit during the measurement period?...