Conversion is the completion of a desired action by a website visitor.
In an online store, the most common conversion is a completed purchase. However, conversions can also include actions such as signing up for a newsletter, submitting a contact form, creating an account, or downloading a resource.
A conversion occurs whenever a visitor completes a goal that has been defined by the website owner.
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Why Conversion Matters
Conversion is one of the most important indicators of an online store’s effectiveness.
A website may attract a large number of visitors, but if those visitors do not take meaningful actions, the business receives little value from that traffic.
Monitoring conversions helps businesses understand how effectively their website turns visitors into customers, subscribers, or leads.
Types of Conversion
Transactional Conversion
A transactional conversion occurs when a visitor completes a purchase.
For most online stores, this is the primary conversion goal because it directly generates revenue.
Non-Transactional Conversion
A non-transactional conversion occurs when a visitor completes another valuable action that does not immediately result in a sale.
Examples include:
- Newsletter subscriptions
- Account registrations
- Contact form submissions
- Resource downloads
These actions may contribute to future sales and customer engagement.
What Is Conversion Rate?
Conversion rate measures how many visitors complete a desired action.
It is typically calculated using the following formula:
Conversion Rate = (Number of Conversions ÷ Number of Visitors) × 100
For example, if an online store receives 1,000 visitors and 50 of them make a purchase, the conversion rate is 5%.
Conversion vs. Traffic
Conversion ≠ Website Traffic
Website traffic measures how many people visit a website.
Conversion measures how many visitors complete a specific goal.
A website can have high traffic but low conversion if visitors are not taking the desired actions.
For this reason, both metrics should be evaluated together.
Factors That Influence Conversion
Many factors can affect conversion rates, including:
- Website usability
- Product information quality
- Page loading speed
- Trust and security signals
- Checkout process simplicity
- Pricing and promotions
Small improvements in these areas can often have a measurable impact on conversion performance.
Practical Implications
A higher conversion rate allows a business to generate more value from existing website traffic.
Rather than focusing only on attracting additional visitors, businesses often work to improve conversion rates by making websites easier to use and reducing obstacles in the customer journey.
Summary
Conversion is the completion of a desired action by a website visitor. In an online store, this is most commonly a purchase, although other actions such as newsletter sign-ups and account registrations may also be considered conversions.
Tracking conversions and conversion rates helps businesses measure website effectiveness and identify opportunities for improvement.