Conversion rate
What is conversion rate?
Conversion rate is the percentage of people who complete a target action out of everyone who had the chance: visitors who sign up, emails that get a reply, trial users who pay. It is calculated as conversions divided by total, times 100.
Every stage of a sales funnel has its own conversion rate.
Why conversion rate matters
Conversion rates show where effort pays off. Improving a weak step is often cheaper than finding more people to put through it.
Related marketing terms
A sales funnel describes how many people move from first hearing about you to buying, stage by stage, narrowing at each step.
Customer acquisition cost (CAC)
Customer acquisition cost, CAC, is the average amount spent on sales and marketing to win one new customer in a given period.
Cold emailWhite hat
A cold email is a first message sent to someone you have no prior relationship with, to start a business conversation. It must follow anti-spam law.
A promo code is a discount code customers enter at checkout. Unique codes per creator also show which creator drove each sale.