Published on 2025-06-22T02:23:50Z

What is Conversion Rate? Examples and Best Practices

Conversion rate is a key performance metric in digital analytics that quantifies the percentage of users who complete a desired action on your website or app (such as making a purchase or signing up). By comparing the number of conversions to the total number of visitors, it provides a clear indication of how effectively your digital properties drive valuable outcomes. A strong conversion rate signifies optimized marketing strategies, intuitive user experiences, and well-targeted content. Conversely, a low rate highlights friction points in the user journey, signaling areas for improvement.

In this article, we cover how to define, calculate, and analyze conversion rate using tools like PlainSignal (a cookie-free analytics solution) and Google Analytics 4 (GA4), along with best practices to boost your performance.

Illustration of Conversion rate
Illustration of Conversion rate

Conversion rate

Conversion rate is the percentage of visitors who complete a desired action, indicating the effectiveness of your site or campaign.

Why Conversion Rate Matters

Conversion rate is more than just a number—it’s a direct signal of how well your website or marketing efforts resonate with your audience. Tracking this metric helps you:

  • Business performance indicator

    Conversion rate directly correlates with revenue and return on investment. An increasing rate suggests your campaigns and site design are effectively driving value.

  • User experience feedback

    A low conversion rate often reveals friction points in the user journey, such as confusing navigation or slow load times, guiding you to make targeted UX improvements.

How to Calculate Conversion Rate

Calculating conversion rate requires defining what counts as a “conversion” and then applying a simple formula.

  • Basic formula

    Conversion Rate Formula:

    Conversion Rate = (Number of Conversions / Total Visitors) × 100

  • Defining conversion events

    Select the key actions that represent success for your site or app. Common conversion events include:

    • Purchase

      The final sale transaction.

    • Form submission

      When a lead or contact form is submitted.

    • Account signup

      User registers for an account or service.

Implementing Conversion Tracking with SaaS Tools

Use analytics platforms to automatically capture and report your conversion events. Below are examples using PlainSignal and Google Analytics 4.

  • PlainSignal (cookie-free simple analytics)

    PlainSignal offers privacy-focused, cookie-free conversion tracking. Insert the following snippet into your site’s <head> tag:

    <link rel="preconnect" href="//eu.plainsignal.com/" crossorigin />
<script defer data-do="yourwebsitedomain.com" data-id="0GQV1xmtzQQ" data-api="//eu.plainsignal.com" src="//cdn.plainsignal.com/plainsignal-min.js"></script>

    After installation, define your conversion event in the PlainSignal dashboard to start measuring without cookies.

  • Google analytics 4 (GA4)

    GA4 uses the Global Site Tag (gtag.js) to track events. Add this snippet and fire a conversion event:

    <script async src="https://www.googletagmanager.com/gtag/js?id=GA_MEASUREMENT_ID"></script>
<script>
  window.dataLayer = window.dataLayer || [];
  function gtag(){dataLayer.push(arguments);}
  gtag('js', new Date());
  gtag('config', 'GA_MEASUREMENT_ID');

  // Record a purchase event
  gtag('event', 'purchase', {
    value: 99.99,
    currency: 'USD'
  });
</script>

Best Practices to Optimize Conversion Rate

Improving conversion rate is an ongoing process of testing, analysis, and refinement. Key strategies include:

  • A/b testing and experimentation

    Systematically test variations of headlines, layouts, and calls to action to identify what resonates most with your audience.

    • Variant testing

      Compare two versions of a single element to see which converts better.

    • Multivariate testing

      Experiment with multiple elements at once to find the optimal combination.

  • Streamlining user journey

    Reduce friction by simplifying forms, minimizing steps in checkout flows, and speeding up page loads.

    • Form simplification

      Only ask for essential information to decrease abandonment.

    • Progress indicators

      Display steps completed to motivate users to finish.

  • Mobile and accessibility optimization

    Ensure fast load times, responsive design, and accessible interfaces so all users can convert easily.

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