Skip main navigation

Conversion rates

This step introduces learners to conversion rates and what they can be used to measure.

Conversion rates usually measure specific marketing activities that involve moving customers or prospects from one state to another.

Conversion rates can be used to measure many things including: Number of people who have completed an action on a website – for example, downloaded a white paper or subscribed to a newsletter. Number of people that have bought something. The number of people digital advertising has driven to a specific web page or social media site.

The formula is calculated as follows:

An example of a conversion formula.

For example, if you run an online campaign and get: Unique impressions (number of people that viewed the ad) = 8,456 The click-through (number of people who clicked on the ad) = 233 You’ll have a conversion rate of 2.8%.

Using this formula to work out your future marketing spend can be really useful. Ask yourself, based on past knowledge or industry trends, can you achieve the results you need through this channel?

Alt text

Say that you have an email list of 5,000 live marketable addresses, and have been tasked with getting 350 orders. Your conversation rate would be 0.7%.
This article is from the free online

Introduction to Marketing: Fundamentals of Marketing

Created by
FutureLearn - Learning For Life

Our purpose is to transform access to education.

We offer a diverse selection of courses from leading universities and cultural institutions from around the world. These are delivered one step at a time, and are accessible on mobile, tablet and desktop, so you can fit learning around your life.

We believe learning should be an enjoyable, social experience, so our courses offer the opportunity to discuss what you’re learning with others as you go, helping you make fresh discoveries and form new ideas.
You can unlock new opportunities with unlimited access to hundreds of online short courses for a year by subscribing to our Unlimited package. Build your knowledge with top universities and organisations.

Learn more about how FutureLearn is transforming access to education