Definition
Conversion rate measures the % of users who complete a goal action (signup, purchase, activation) out of those exposed to the step.
Formula
Conversion rate = conversions / opportunities (views/clicks/sessions)
Common mistakes
- Mixing denominators (clicks vs sessions) and comparing as if equal.
- Optimizing conversion rate by narrowing intent and losing scale.
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Conversion Rate" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., CPL to CAC Calculator) to sanity-check assumptions.
- Read the related guide (e.g., CVR (Conversion Rate): definition, formula, and how to calculate) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- CPL to CAC Calculator: Convert cost per lead (CPL) into CAC using lead-to-customer rate (and compute targets).
- Click-through Conversion Rate Calculator: Calculate click-through conversion rate (click-to-conversion CVR) and estimate required clicks for target conversions.
- Activation Rate Calculator: Compute activation rate: what % of new signups reach your activation event (and what you need to hit a target).
- Trial-to-paid Conversion Calculator: Compute trial-to-paid conversion rate and estimate required conversions to hit a target.
- Feature Adoption Rate Calculator: Compute feature adoption: what % of active users used a specific feature in a time window.
Guides
- CVR (Conversion Rate): definition, formula, and how to calculate: CVR explained: what conversion rate means, how to calculate it correctly, and how to improve it without sacrificing scale.
- Activation rate: definition, formula, and how to improve activation: Activation rate explained: how to define activation, the activation rate formula, and practical ways to improve activation without vanity metrics.
- Trial-to-paid conversion: definition, formula, and how to improve it: Trial-to-paid conversion explained: how to calculate it, choose a window, and improve conversion without harming retention.
- Feature adoption rate: definition, how to measure adoption, and pitfalls: Feature adoption explained: how to define adoption events, choose the right denominator, and use adoption to improve activation and retention.
- PQL to paid: how to define PQLs and track conversion to revenue: A practical guide to PQL-to-paid conversion: define predictive PQL events, measure cohorts, and use segmentation to improve conversion and retention.