What does Conversion rate mean?

Conversion rate is a metric that expresses what share of users or visitors performed a desired action, i.e. a conversion. In e-commerce, it is most often completing an order, but it can also be registering, submitting a form, signing up for a newsletter or downloading a file. It is usually calculated as the number of conversions divided by the number of users or visits and expressed as a percentage. For example, if 3 out of 100 visitors make a purchase, the conversion rate is 3%. This metric helps evaluate the effectiveness of a website, campaigns and the purchase process and reveal room for optimization.