What is Conversion Rate?
The conversion rate of a product or site is the percentage of users completing the desired action. I.E., we build an e-com site and the desired action is a successful purchase. The conversion rate will tell us how many users would buy an item.
When UI/UX designers talk about the conversion rate of a product or website, they are referring to the percentage of users who have taken the desired action. The desired action of a site could be a newsletter sign-up or a successful purchase. Conversion rate is one method to measure this.
Conversion rates are an effective method to compare the contrast performance of multiple advertising channels. Conversion rates are especially important for mobile user acquisition because they can measure the success of each campaign and also can be used to set ROI expectations when scaling a campaign.