Marketing, sales and customers
Conversion rate
- Marketing, sales and customers
Definition
The percentage of people or leads at one stage who go on to complete a chosen next action, such as placing an order.
Example
Out of 5,000 website visits, 200 result in a purchase. Purchase conversion rate = 200 ÷ 5,000 × 100 = 4%.
See how it works
200 ÷ 5,000 × 100 = 4% conversion rate for this defined event and denominator.
Check your understanding
Common mistake: State what counts as a conversion and the denominator. Visitors, sessions and leads are not interchangeable.
What is 50 sign-ups from 1,000 visits?
Show explanation
5%, provided visits are the agreed denominator and sign-up is the conversion event.
For your role
Choose your role to see what this term means in your work.
Why it matters
It shows how well each step of a sales or marketing process turns interest into results, and small gains at a weak step can lift sales a lot.
Where it is used
Sales pipeline reviews, marketing reports and website analytics. Used by sales operations, marketing analysts, sales managers and e-commerce teams.
How to calculate it
Conversion rate % = number who completed the action ÷ number who could have completed it × 100
Worked example
Raket Parts B.V. received 328 enquiries between January and October 2025. 101 of them led to an order. Enquiry-to-order conversion rate = 101 / 328 x 100 = 30.8%.
Measured from a later stage the rate changes: 159 enquiries received a quote, so quote-to-order conversion = 101 / 159 x 100 = 63.5%. Always name both stages.
Raket Parts B.V. is a fictional company created for Insyt.
Definitions vary. What counts as a conversion and what sits in the denominator vary: visits or unique visitors, all leads or qualified leads, orders or paid orders. Check how your organisation calculates it.