What is Conversion Rate (CVR)?

Calculating the CVR depends on what you define as a conversion and it is generally reported on a monthly basis. Generally, the conversion rate results from dividing the total number of conversions by the total number of website visits in a given period of time and multiplying the result by 100. Let’s say your newsletter generated 20 orders and 5,000 website visits. In this case, your conversion rate will be 0.4%.

20/5,000 * 100 = 0.4%

Since the formula for CVR depends on your goals, here are some of its variants:

• (Total no. conversions in a time period / total no. unique visitors in a time period)* 100 = CVR
• (Total no. conversions in a time period/ total no. of sessions)* 100 = CVR
• (Total no. conversions in a time period/ total no. of leads)* 100 = CVR

Unlike other online marketing metrics (cost per click or click-through rate), CVR is a strong indicator of how successful your marketing campaigns are. The higher your CVR is, the more effective your marketing strategy is and it basically means that you are spending less while earning more.

First of all, you need to know where you stand in order to start improving. What is a good conversion rate? It depends on each industry, but generally, it ranges between 2% - 5%.

Here are some examples of what you can do to improve your CVR:

• Use a conversion rate optimization tool.
• Increase the user time spent on your website by improving your overall customer experience.
• Improve your landing pages.
• Perform A/B tests
• Recover abandoned carts.
• Improve the mobile optimization score of your website.
• Perfect your purchasing process.
• Highlight social proof by including customer testimonials and reviews.