Conversion Rate
The percentage of users who complete a defined conversion event (trial-to-paid, signup-to-purchase, free-to-paid) out of all users who entered that funnel step.
“What share of people who start the funnel actually complete the intended action?”
How efficiently a specific funnel converts intent into the target action.
Why users drop off — conversion rate flags the problem but requires qualitative research or session replay to diagnose the cause.
Numerator
Users Who Converted
Denominator
Users Who Entered the Funnel Step
Example
2,000 users start a free trial; 260 convert to a paid plan within 14 days. Conversion Rate = 260 / 2,000 = 13%.
Recommended visualization: Funnel chart with step-by-step drop-off
Always specify the exact funnel (trial→paid vs. visit→signup vs. cart→purchase) in the metric name — 'conversion rate' without a defined funnel is a common source of dashboard confusion.
- Confirm the funnel window (e.g., 14-day trial) matches the actual product policy
- Check for outlier bulk/bot signups skewing the denominator
- Reporting a single 'conversion rate' across multiple different funnels without labeling which one
- Ignoring funnel step-level drop-off in favor of only the end-to-end rate, hiding where the real problem is
Get a conversational, stakeholder-friendly explanation of this KPI, generated on demand.