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Conversion

The percentage of customers who actually purchase, out of all of those respond to an ad or click on a link. 
Example: 1,892 prospects respond to a direct mail piece or click on an ad. Of those 1,892 prospects, just 71 of them actually purchase the product. The conversion rate is 71 divided by 1,892 or 3.8%. Or put another way, 3.8% converted.

When the act of clicking or responding results in a sale without an interim step, then the conversion rate is calculated by dividing the number of prospects who purchase by the universe of coupons, ads, etc., that were distributed.

For example, a restaurant mails out 5,000 coupons that offer a free dessert with purchase of a dinner entrée. 353 coupons are redeemed. The conversion rate is 353 divided by 5,000, or 7%.

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