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Analytics

What is Conversion Rate?

The percentage of visitors to your site who complete the desired action (a purchase, a form submission).

Detailed definition

In e-commerce, conversion rate = number of orders ÷ visitors × 100. Sector averages: e-commerce 1-3%, B2B SaaS 2-5%, B2B lead forms 3-7%. Conversion rate optimisation (CRO) depends on A/B testing, UX improvements, abandoned basket emails and speed optimisation.

Examples

  • 10K visitors × 2% conversion = 200 sales.

Related terms

CAC (Customer Acquisition Cost) The total cost of winning one new customer — CAC = marketing spend ÷ number of new customers. ROAS (Return on Ad Spend) The revenue returned by an advertising investment — ROAS = revenue ÷ ad spend. Attribution Model The model that shares out a sale or conversion across the channels and touchpoints behind it. AOV (Average Order Value) Average basket value — total revenue ÷ number of orders. Cart Abandonment When products are added to the basket but never bought. On average 70% of e-commerce baskets are abandoned.
From the same category

Other terms in the Analytics category

Attribution Model The model that shares out a sale or conversion across the channels and touchpoints behind it. LTV (Lifetime Value) The total revenue a customer generates for the brand over their lifetime. A critical metric in subscription and e-commerce models. GA4 (Google Analytics 4) Google's next-generation analytics platform — an event-based data model that replaced GA Universal. GTM (Google Tag Manager) Google's tag management system for adding analytics and advertising tags without touching your site code. Enhanced Conversions Raising the conversion match rate by sending first-party data such as email and phone number to Google Ads in hashed form.
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