Sales Conversion

Sales Conversion is the process of turning a potential customer into actual customers who make a purchase.

It’s when someone decides to buy your product or service after considering it.

It is calculated by dividing the total number of sales by the total number of qualified leads and multiplying by 100.

This metric helps in evaluating sales performance, identifying the success of campaigns, and determining the health of a business1

Visual Representation:

sales conversion visual representation

How It Works:

Sales conversion involves several steps, from the initial customer contact or lead generation to the final purchase decision.

Every interaction with a potential customer—through advertising, direct contact, or your website—contributes to moving them through the sales funnel toward conversion.2


The primary purpose of tracking and analyzing sales conversion is to gauge the effectiveness of your sales funnel and marketing strategies.

By understanding how well your website converts visitors into customers or leads, you can identify areas for improvement, optimize your sales process, and ultimately drive more revenue.

How to Measure Sales Conversion:

The sales conversion rate can be calculated using the formula:

sales conversion formula

For example, if a website receives 1,000 visitors and makes 20 sales, the sales conversion rate would be 2%.3


  1. Increased Revenue: Businesses can significantly increase their revenue without increasing website traffic by optimizing for higher conversion rates.
  2. Better ROI: Higher conversion rates lead to a better return on investment for marketing and advertising efforts.
  3. Improved User Experience: Focusing on sales conversion often involves improving the overall user experience, leading to happier customers and potentially more repeat business.
  4. Data-Driven Decisions: Sales conversion data provides tangible metrics to guide business decisions and strategy adjustments.


Sales conversion metrics are used by marketers, sales teams, and business owners to evaluate the performance of their online presence and marketing campaigns.

They are also used to benchmark performance against industry standards or competitors and to set targets for future growth.


Imagine an online store that sells fitness equipment.

After implementing a targeted advertising campaign and optimizing their product pages, they notice an increase in their sales conversion rate from 2% to 4%.

This means that for every 100 visitors to their site, 4 now make a purchase, compared to 2 before the optimizations.

This improvement in sales conversion directly translates to increased revenue and a better return on their advertising investment.

Related Terms:


1. Purnomo, Y. J. (2023). Digital marketing strategy to increase sales conversion on e-commerce platforms. Journal of Contemporary Administration and Management (ADMAN)1(2), 54-62.

2. Sales conversion rate: How to calculate & improve it. Klipfolio. (n.d.).

3. How to calculate, and improve, your sales conversion rate. Toucan. (n.d.).

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