What does the term 'conversion rate' refer to?

The term 'conversion rate' specifically refers to the percentage of visitors who complete a desired action on a website. This action can vary depending on the goals of a business and might include making a purchase, signing up for a newsletter, filling out a contact form, or downloading a resource. Calculating the conversion rate involves taking the number of people who completed the desired action and dividing it by the total number of visitors, then multiplying by 100 to get a percentage. This metric is crucial in digital marketing as it helps businesses understand how effectively their website or landing pages are turning visitors into leads or customers, thereby gauging the success of their marketing strategies.

The other options, while related to customer interaction and online behavior, do not accurately represent the definition of conversion rate. For instance, the percentage of customers who leave feedback does not necessarily indicate a completed conversion in the context of sales or conversion goals. The ratio of returning visitors to new visitors provides insights into visitor behavior but does not pertain directly to specific actions being completed. Lastly, the rate at which ads lead to sales is more about performance and effectiveness of advertising, not the overall action completion among website visitors, hence it doesn’t define conversion rate within the broader context of website performance metrics.