The conversion rate is a key metric used in marketing and sales to measure the effectiveness of a campaign or website. It is calculated by dividing the number of desired actions taken by the total number of visitors or interactions, then multiplying by 100 to get a percentage. For example, if a website receives 100 visitors and 5 of them make a purchase, the conversion rate would be 5%. A higher conversion rate indicates that a larger percentage of visitors are completing the desired action, such as making a purchase or signing up for a newsletter. Businesses often analyze their conversion rates to identify areas for improvement and optimize their strategies, ultimately aiming to increase revenue and customer engagement.