Conversion rate is the percentage of people who complete a desired action after being exposed to a brand's sales and/or marketing channels. To calculate it, you divide the number of conversions in a given time frame by the total number of users who visited or engaged with your service, then multiply by 100%. A conversion rate can range from 1% to 5% for e-commerce brands and around 2% for B2B brands. Conversion rates matter because they measure the success of marketing or sales campaigns, help assess how to appeal to prospective customers, and drive improvement where needed. Understanding a baseline conversion rate is essential in monitoring changes made to a website or channel. Conversion rate optimization (CRO) involves analyzing a channel's baseline conversion rate, making changes, and monitoring their impact on conversions to enhance the user experience and achieve better results for brands.