Which describes the difference between response rate and conversion rate?

• A. Response rate is the proportion who respond to an offer.
• B. Conversion rate is the proportion who respond to an offer.
• C. Response rate measures total market sales.
• D. Conversion rate measures how many emails were opened.

Answer: (A)

The difference being tested is how engagement with the offer is tracked versus the final outcome. Response rate measures how many people actually respond to the offer, expressed as a percentage of those reached. It captures initial interest and action. Conversion rate looks at the ultimate action completed, such as a purchase, usually measured from those who engaged (or from all recipients, depending on the convention). So the best description is that response rate is the proportion who respond to an offer. For context, if you mail 1,000 invitations and 100 respond, the response rate is 10%. If 20 of those 100 then buy, the conversion rate would be 20% of the respondents (or 2% of all recipients, depending on how you define it). The other statements mix up these concepts: conversion rate isn’t merely the proportion who respond, and response rate isn’t about total sales or about how many emails were opened.