There might not be a term heard more frequently by marketing specialists than the **conversion rate**. And that’s for a reason — the conversion rate is everything to a business that runs online.

This is one of the most effective ways to measure the performance of your advertising campaigns.

The average number of conversions per advertisement interaction is shown as a percentage.

## What is a Conversion Rate?

A conversion rate is the percentage of visitors to your website that have completed a particular goal (a conversion) out of the total number of visitors.

A high conversion rate is telling about your successful marketing strategy. This means that people want what you offer, and they are simply able to get it!

## How to Calculate a Conversion Rate?

Conversion rates are calculated by simply taking the number of conversions and dividing it by the total number of advertisement interactions that can be tracked to a conversion during the same period of time.

We have mentioned three formulas for calculating conversion rate:

- Conversion Rate = Total number of conversions / Total number of sessions * 100
- Conversion Rate = Total number of conversions / Total number of unique visitors * 100
- Conversion Rate = Total number of conversions / Total number of leads * 100

All three of these formulas are valid, and it totally depends on you what exactly you want to calculate. Whether it’s the number of sessions, unique visitors, or the number of leads.

**For Example: **if you had 5 conversions from 100 interactions, your conversion rate would be 5%, since 50 / 100 * 100 = 5%.

## What’s a Good Conversion Rate?

It’s a fairly common question, and the true answer is that it depends on your industry, how you define the conversion rate and the nature of your business.

We must not forget that a conversion is not always the same as a purchase. Although the conversion rate is a practical measure, the purpose of most marketing campaigns is not to produce conversions, but to produce sales.

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