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Product Management vocabulary · Metrics & KPIs

Conversion rate

Meaning in product management, with examples

nounCore term

In product management, conversion rate means: The percentage of users who complete a desired action, such as signing up or buying, out of all users who had the chance to do it.

In Turkish: dönüşüm oranı

How it is used

One of the most watched numbers in digital products. Teams measure, improve and increase conversion rates, usually for each step of a funnel. Always say what converts into what, for example visitor-to-trial or trial-to-paid conversion.

Example sentences

  1. The conversion rate on mobile is half of what we see on desktop.

  2. After we removed the extra form fields, the conversion rate went from 3% to 4.2%.

Common collocations

  • improve the conversion rate
  • conversion rate optimization
  • low conversion rate
  • checkout conversion rate
  • funnelThe series of steps users go through toward a goal, such as visit, sign up, activate and pay, with fewer users remaining at each step.
  • A/B testAn experiment in which users are randomly split into groups that see different versions of a page or feature, so the team can measure which version performs better.
  • KPIShort for key performance indicator: one of the few numbers a team watches closely to judge whether a product or business is doing well.
  • metricA number that measures something about a product or its users, such as sign-ups per day, average session length or the share of users who return.
  • baselineThe starting value of a metric before a change is made, used as a reference point to measure whether the change improved anything.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Metrics & KPIs

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