Vertical Financials
Marketing Metrics

Conversion Rate

Definition

The percentage of website visitors or sessions that end in a purchase.

Formula

Conversion Rate % = Orders ÷ Sessions × 100

Conversion rate connects marketing to finance: small changes multiply across every visitor you pay to acquire. A move from 2.0% to 2.5% is 25% more orders from the same ad budget.

Compare it by channel and device, not just site-wide. Watch for: rising conversion from heavy discounting, which can lift orders while lowering contribution margin.

Example

50,000 sessions and 1,250 orders in a month gives a 2.5% conversion rate.

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