What is Conversion Rate?

Conversion Rate is the percentage of users who complete a desired action compared to the total number of users who had the opportunity to do so.

For example, if 1,000 users install your app and 50 of them start a trial, your conversion rate is 5%. It helps quantify how well your app turns interest into results, like signups, purchases, or subscriptions.

In mobile marketing, different conversion points can be tracked: install-to-signup, signup-to-purchase, or even trial-to-paid subscription.

How does it work?

Conversion Rate is calculated with a simple formula:

(Number of conversions ÷ Total number of opportunities) × 100

What counts as a “conversion” depends on your goal. It could be:

• A sign-up after opening the app
  
  

• A completed tutorial
  
  

• A purchase after a free trial

This metric is often segmented by channel (organic vs paid), creative, or cohort (e.g., users acquired last week). That makes it a core input for performance analysis, A/B testing, and CRO (conversion rate optimization) efforts.

Why it matters

Conversion Rate is one of the most direct indicators of app performance.

A high conversion rate means your messaging, targeting, onboarding, and value proposition are working. A low one could point to friction in the funnel, poor alignment between the ad and the app experience, or pricing issues.

It’s especially important when running paid ads, because even small improvements in conversion rate can drastically lower your Customer Acquisition Cost (CAC) and boost Return on Ad Spend (ROAS).