Glossary
What is conversion rate?
Conversion rate is the percentage of people who completed the action you wanted, such as buying, booking or giving an email, out of everyone who had the chance. You decide what counts as a conversion, and which group is the starting point.
Updated 6 October 2026
The percentage of people who finished a chosen goal, such as buying or signing up, out of everyone who could have: conversions divided by visitors, times 100.
The formula, with a start and an end
Conversion rate = conversions ÷ visitors × 100. Say 400 people open your product page and 20 buy: 20 ÷ 400 = 0.05, so the conversion rate is 5%. Change the starting group and the figure changes: 20 sales out of 8,000 people who saw the post is 0.25%. Neither is wrong, as long as you say which one you mean.
A conversion does not have to be a sale. It can be an email given for a free guide, a booking, a reply to a DM or a form submitted. Pick one per page and measure that one. Counting everything as a conversion makes the number look good and tell you nothing.
Measuring each step from Instagram
Most Instagram sales are a chain, not a leap. Each link has its own rate, and the one with the biggest drop is where to look first.
| Step | People | Rate from the step before |
|---|---|---|
| Saw the Reel (reach) | 10,000 | n/a |
| Opened the profile or DM | 500 | 5% |
| Tapped the link | 150 | 30% |
| Bought | 12 | 8% |
From top to bottom, the overall rate is 12 ÷ 10,000 = 0.12%, which sounds dire until you see that the weakest step in this example is the first one. The click step is the click-through rate and the final step is the conversion rate for the page. Tracked links or UTM parameters are the usual way to connect a click to a later purchase, and what you can see depends on the tool or store that takes the order.
Ways to move the number
- Make the offer clear in one line, and put the price where people can see it without scrolling.
- Remove steps: every extra form field or screen loses some people.
- Send people to the page that matches the post, not to a homepage.
- Wait for enough people before judging a change. Three sales out of 40 visitors tells you little.
Tip: Write the single goal of each page above its first draft, such as “get an email for the checklist”. If you cannot say it in one line, the page is trying to do too much to convert well.
An example
A tutor’s link page gets 250 visits in a week and 10 people book a trial lesson, a 4% conversion rate. She moves the booking button above the text, and the next week 15 of 260 visitors book, about 5.8%.
Questions people ask
How do you calculate conversion rate?
Divide the number of people who completed the goal by the number who could have, then multiply by 100. If 30 people sign up out of 600 visitors to a page, the conversion rate is 5%. Say what the starting group is each time.
What counts as a conversion?
Whatever you decide is the goal: a purchase, a booking, an email given in exchange for a free item, a DM reply or a form submitted. Choose one goal per page or post so the number means something, and keep to it.
What is a good conversion rate?
We found no official source to cite for a typical range, so we will not give one. It depends on price, audience and what counts as a conversion. Compare your own pages over time and change one thing at once.
What is the difference between CTR and conversion rate?
CTR is clicks out of the people who saw a link or ad. Conversion rate is the people who finished the goal out of those who arrived. The first measures how well the promise worked, the second how well the page delivered.
Sources
Related terms
- Click-through rate (CTR)The percentage of people who clicked or tapped after seeing an ad, link or button: clicks divided by the number who saw it, times 100.
- Marketing funnelThe steps a person takes from first seeing your content to becoming a customer, drawn as a funnel because fewer people reach each next step.
- UTM parametersTags added to a URL, such as utm_source and utm_campaign, that tell an analytics tool which source, medium and campaign sent a visitor to your page.
- Lead generationCollecting contact details from people who show interest in what you offer, so you can follow up. A lead is that person; generation is how you get them.
- Cost per leadThe average you spend to collect one lead, such as a sign-up or an email address. Work it out as total spend divided by the number of leads.
- ROASReturn on ad spend: revenue attributed to your ads divided by what you spent on them. A ROAS of 3 means three units of sales for every one unit of ad spend.
More terms
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