Conversion rate
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In marketing, conversion rate quite simply refers to the number or percentage of visitors who convert casual content views or website visits into desired actions based on subtle or direct requests from an marketers, advertisers, and content creators.[1]
Primarily used in Internet Marketing, conversion rate is a loosely defined term that may be interpreted differently by individual marketers, advertisers, and content creators. To online retailers, for example, conversion rate may refer to the sale of a product to a consumer whose interest the item was initially sparked by clicking a banner advertisement.
To content creators, however, conversion rate may refer to membership registrations, newsletter subscriptions, software downloads, or other activities... usually caused by a subtle or direct request from the content creator for a visitor to take such an action.
Conversion Value
Some companies may have multiple desired actions on their websites: request information, sign up for an email newsletter, download demonstration software, or make a purchase. An economic value can be assigned to each type of action and the total value per visitor can be optimized in addition to the conversion rate.
Measuring Conversions
For web sites that seek to generate offline responses, for example telephone calls or foot traffic to a store, measuring conversions can be difficult. In order to measure online conversions a marketer can use web analytics software. Some online marketing companies, such as Verizon, offer tracking programs tied to a specific phone number that the business registers for receiving web site inquiries.