What does the term 'conversion rate' refer to?

The term 'conversion rate' is a key metric in online marketing that reflects the effectiveness of a website in persuading visitors to take a specific action that is intended by the business. This action could include making a purchase, signing up for a newsletter, downloading a resource, or any other goal that the website is designed to achieve.

The conversion rate is calculated by dividing the number of visitors who complete the desired action by the total number of visitors to the site, then multiplying by 100 to get a percentage. This metric helps businesses understand how well their website is performing in terms of achieving its objectives. A higher conversion rate indicates that a higher proportion of visitors are taking the desired action, suggesting effectiveness in the website's design, content, and user experience.

The other options do not accurately reflect the concept of conversion rate. The total number of visitors to a website provides a sense of traffic volume but does not indicate how many of those visitors are engaging in meaningful actions. The rate of returning customers is related but focuses specifically on customer retention rather than immediate conversions. Lastly, the number of products sold in a specific timeframe gives insight into sales performance but does not account for the overall visitor engagement or how effective the website is at converting those visitors into customers.