Points vs. percent

2% → 3% is +1 point, but +50%.

This one quietly causes a lot of bad decisions. When a conversion rate goes from 2% to 3%, someone will call it "up 1%" and someone else "up 50%". Both are talking about the same thing, and only one of them is saying it clearly.

The move

Percentage points = plain subtraction of two percentages (3 − 2 = 1 pt). Percent change = that difference ÷ the starting rate (1 ÷ 2 = +50%).

Worked example

Conversion went from 4% to 5%

  1. Points: 5 − 4 = 1 point
  2. Percent: 1 ÷ 4 = +25%
  • Vendors love quoting "percent" when the base is small, because it makes the lift sound huge.
  • Say "points" out loud in meetings. People will think you’re sharp, and they’ll be right.