A marketer wants to know how often, on average, an interaction leads to a conversion. What metric should the marketer use to get that information?
- The marketer should use conversion value-per-click.
- The marketer should use conversion rate.
- The marketer should use conversion value-per-cost.
- The marketer should use cost-per-conversion.
Explanation:
To understand how frequently an interaction results in a conversion, the most suitable metric for the marketer to use is **conversion rate**. Conversion rate measures the percentage of interactions that result in a desired outcome, such as a purchase, sign-up, or download. By dividing the total number of conversions by the total number of interactions and multiplying by 100, marketers can determine the conversion rate. This metric provides valuable insights into the effectiveness of marketing campaigns and the ability of various channels, ads, or landing pages to drive conversions. A higher conversion rate indicates that a larger proportion of interactions are leading to desired outcomes, while a lower conversion rate suggests that improvements may be needed to optimize the conversion process. Therefore, conversion rate serves as a key performance indicator (KPI) for marketers to assess the efficiency and success of their marketing efforts in converting interactions into valuable actions.