Acquisition & Conversion

Conversion Rate

Conversion rate measures the percentage of users who complete a desired action, such as signing up, purchasing, or activating.

Key Takeaways
  • Conversion rate is the percentage of visitors or users who complete a target action out of the total number who had the opportunity.
  • Common Mistakes:
  • Using the wrong denominator (e.g., all website traffic instead of relevant page visitors).
  • Not segmenting conversion rates by traffic source, device, or user type.
  • Comparing conversion rates across different funnels or time periods without context.
  • Ignoring multi-touch attribution when users convert after multiple visits.
  • Not accounting for seasonality or promotional effects.
  • Optimizing for early-funnel conversion while ignoring downstream quality.

Definition

Conversion rate is the percentage of visitors or users who complete a target action out of the total number who had the opportunity.

High conversion rate

Strong product-market fit, effective messaging, or good user experience.

Low conversion rate

Friction in the funnel, poor targeting, or unclear value proposition.

Improving conversion

Optimization efforts are working; continue testing and iterating.

Formula

Conversion Rate (%) = Conversions / Total Visitors × 100

Variables

Conversions

Number of users who completed the desired action.

Total Visitors

Number of users who had the opportunity to convert.

Examples

Website trial signup conversion

MetricCount
Website visitors5,000
Trial signups250
  1. 1Conversion rate = 250 / 5,000 × 100
  2. 2Conversion rate = 5%
→ Conversion rate = 5%

Track in Daymark

Data Sources

CSVgoogle sheetspostgreSQL

Required Fields

Funnel event data
  • date
  • stage
  • user_id
  • event_type

Sample Questions

  • What is the trial signup conversion rate?
  • Show conversion rate trend over the last 6 months
  • Calculate conversion rate by traffic source
  • What's the conversion rate at each funnel stage?
  • Compare conversion rates for different landing pages
  • Show conversion rate by device type or browser
  • Identify where users drop off in the funnel
Analyze conversion

Dashboard Template

1. line
Conversion rate over time

Weekly or monthly trend

2. funnel
Funnel visualization

Drop-off at each stage

3. bar
Conversion by source

Compare channel performance

Common Mistakes

  • •Using the wrong denominator (e.g., all website traffic instead of relevant page visitors).
  • •Not segmenting conversion rates by traffic source, device, or user type.
  • •Comparing conversion rates across different funnels or time periods without context.
  • •Ignoring multi-touch attribution when users convert after multiple visits.
  • •Not accounting for seasonality or promotional effects.
  • •Optimizing for early-funnel conversion while ignoring downstream quality.

FAQ

Q: What's a good conversion rate?

It varies by industry and funnel stage. SaaS trial signups often see 2-5%; landing page conversions might be 10-30%.

Q: Should I track micro or macro conversions?

Track both. Macro conversions are end goals (purchases); micro conversions are steps toward them (signups, activations).

Q: How often should I measure conversion rate?

Weekly for high-traffic funnels, monthly for lower volumes. Ensure statistically significant sample sizes.

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