Conversion rate = (Number of conversions / Number of visitors) × 100. Simple formula, endlessly debated interpretation.
The average landing page converts at 2-5% depending on industry and traffic source. But averages are misleading. A $5/month SaaS tool might convert at 8% while a $50,000 enterprise contract converts at 0.5% — and both can be healthy. The right benchmark depends on your price point, audience, and what counts as a "conversion."
Why most conversion rates are miscalculated
Three common mistakes: (1) Counting all website traffic instead of landing page traffic — your blog visitors aren't conversion prospects, (2) Not segmenting by traffic source — paid traffic should convert differently than organic, (3) Measuring the wrong conversion event — newsletter signups and product purchases are not equivalent metrics.
A more useful approach: segment your conversion rate by traffic source and funnel stage. Your Google Ads landing page rate, your organic homepage rate, and your pricing page rate are three different metrics that tell three different stories. Blending them tells you nothing actionable.