Marketing and sales perspective
Key performance question this indicator helps to answer
To what extent are we able to convert potential customers into actual customers?
The conversion rate basically looks at the success rate of turning leads or potential customers into actual customers. For example, once you have attracted visitors or potential customers (be this into your physical shop or to your website), your next challenge is to convert the visitors (or potential customers) into actual customers.
What constitutes a conversion can depend a little on your objectives. In a physical environment it might mean a visitor entering a shop and then purchasing a good or ...