Which term refers to the percentage of customers who complete a desired action, such as making a purchase?

The term that refers to the percentage of customers who complete a desired action, such as making a purchase, is the conversion rate. This metric is essential in evaluating the effectiveness of marketing efforts, website design, or overall sales strategies. A higher conversion rate indicates that a larger proportion of visitors are engaged and inclined to take the intended action, which is often to make a purchase.

Understanding conversion rates helps businesses identify successful tactics and areas for improvement. For instance, if a retailer sees a lower conversion rate, they might examine factors such as product display, pricing, or customer service to enhance the shopping experience and ultimately drive more sales. This focus on customer behavior and purchasing patterns is critical in retail merchandising.

In contrast, traffic rate typically refers to the number of people visiting a store or website and does not measure the percentage that converts to purchases. Market share focuses on the percentage of total sales in a market that a company controls, while sales volume refers to the total quantity of products sold, both of which do not directly relate to the effectiveness of turning visitors into buyers.