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What does "Conversion" actually mean ?

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I think it's how many clicks and/or custom offers are converted into orders, but I'm not sure. I've never paid much attention to these stats. One week I can hit 12 thousand impressions, the next I'm lucky to get 1000 and my conversion rate has never gone above 1%. I get orders though and make my money so I leave to conversion gremlins to their own business. 

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