Conversion Rate

The conversion rate states which share of users completed a desired action, measured against a defined base such as visitors, clicks or recipients. The action can be a purchase, sign up, download or enquiry. It is one of the most central metrics in performance marketing because it speaks directly to the effectiveness of a move.

How it is calculated

The formula is conversions divided by the total number of contacts, times 100. Whoever has 1,000 visitors on a landing page and 25 orders has a conversion rate of 2.5 percent. A clean definition of which base and which conversion counts matters. Different definitions yield very different numbers and only compare within themselves.

What influences the conversion rate

Offer relevance for the audience, landing page quality, technical performance, trust, price and competition all play in. Load time, an intelligible form and a prominent call to action are the classic levers. A/B tests quickly show which variant works better. A very high conversion rate can be a sign that reach is too narrow and you are leaving potential on the table.

Reference to JD Mail and JD Partner

In JD Mail you measure conversion rate per newsletter from recipient to click and, with tracking connected, from click to purchase. In JD Partner the campaign reporting delivers conversion rate per ad placement to advertisers, allowing direct comparison of different AdSpaces. Optimisation typically follows through better list selection, fresher creative and cleaner landing pages.