Conversion rate is the percentage of prospects or visitors who complete a desired action, such as signing up, booking a demo, replying to an email, or making a purchase, out of the total number of people reached.

It’s a key performance metric in both sales and marketing, used to measure how effectively a campaign, funnel step, or outreach strategy turns interest into action.

Formula:

Conversion rate = (Number of conversions ÷ Total number of leads or visitors) × 100

Example:

If 100 people attend a demo call, and 12 sign up for a free trial, the conversion rate is 12%.