Glossary · Business metrics
Conversion Rate
The share of users who take a desired action, such as upgrading to paid.
What is Conversion Rate?
Conversion rate is the percentage of users who complete a target action — commonly, free users who become paying subscribers.
Consumer AI apps often see low free-to-paid conversion, which is why monetizing the unconverted majority with ads can matter so much.
Conversion Rate in context
To understand Conversion Rate fully, it helps to know the concepts around it. Paywall, a gate that requires payment to access an app or its features. Freemium, a free base tier with paid upgrades for more features or higher limits. ARPU, average revenue per user over a period.
Together these describe how business metrics works in practice for an AI app, and where Conversion Rate fits among them.
Frequently asked questions
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