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Sales & Retail vocabulary · Targets, Metrics & Commission

Conversion rate

Meaning in sales & retail, with examples

/kənˈvɜːrʒən ˌreɪt/nounCore term

In sales & retail, conversion rate means: The percentage of people who take a desired next step, such as store visitors who buy something or leads who become customers.

In Turkish: dönüşüm oranı

How it is used

Used in both retail and B2B sales reports. In a shop, conversion rate is usually the number of sales transactions divided by the number of visitors. In B2B, it is measured between stages of the pipeline. You track, measure, improve or boost it.

Example sentences

  1. Footfall was high on Saturday, but the store's conversion rate was only 12 percent.

  2. Our conversion rate from demo to contract went up after we simplified the pricing.

Common collocations

  • improve the conversion rate
  • low conversion rate
  • lead-to-customer conversion rate
  • store conversion rate
  • footfallThe number of people who enter a shop or a shopping area during a given period.
  • win rateThe percentage of sales opportunities that end in a won deal, out of all the opportunities closed as won or lost in a period.
  • KPIKey performance indicator: a number that shows how well a person, team or store is doing against an important goal, such as daily sales or conversion rate.
  • leadA person or company that may become a customer, for example someone who downloaded a brochure, called for information or was found through research.
  • sales funnelA model that shows the stages buyers go through, from first hearing about a product to buying it, with fewer people at each stage, like the shape of a funnel.

This word in other fields

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

More terms: Targets, Metrics & Commission

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