Conversion rate is a key metric used to measure the effectiveness of a product or website in converting visitors into customers. It is the percentage of visitors who take a desired action, such as making a purchase, filling out a form, or subscribing to a service.
To calculate conversion rate, divide the number of conversions by the total number of visitors and multiply by 100. For example, if a website had 1,000 visitors and 50 of them made a purchase, the conversion rate would be 5%.
Conversion rate optimization (CRO) is the process of improving the conversion rate by analyzing user behavior, identifying areas for improvement, and testing different variations of the product or website.
There are several factors that can impact conversion rate, including the design and layout of the product or website, the clarity of the messaging, the ease of navigation, and the overall user experience.
It is important for product managers to track conversion rate regularly and use it as a tool for making data-driven decisions about product development and marketing strategies. By understanding what drives conversions and optimizing for those factors, product managers can increase revenue and improve customer satisfaction.