What are Conversion Rates
Conversion rates show the percentage of users who complete a desired action. THey are calculated by taking the total number of converted users (for example those who clicked BUY on an online ad), and dividing it by the total size of the audience.
Why do Conversion Rates matter
Conversion rates show ROI and performance of marketing channels and they measure the success of each campaigns. They can also be used to set future campaign predictions or scale according to each campaign's conversion rate growth.
When analyzed consistently, data from conversion rates is the most effective way to scale prediction models, make decisions across promoting a particular set of ads and guide strategic planning.
On the other side, if data shows conversion rates declining, they can be used to spot issues with either the UX of your website, your content or offer and highlight areas of improvement.