Analytics

    Conversion Rate (CR)

    Term #12

    The percentage of visitors who completed a desired action. Average: 1-4% for purchases, depending on category.

    In practice

    CR is the 'health' of the store. Doubling CR from 1% to 2% doubles revenue from the same traffic, with no extra advertising spend.

    Common misconception

    'A CR of 1% is always bad.' A $2,000 luxury jewelry item might have a CR of 0.3% and still be profitable. Always compare against category and price.

    How to fix it

    Low CR? (1) Watch Hotjar recordings of 10 visitors who didn't buy, (2) CR by source — organic usually converts 2x better than Facebook, (3) CR on mobile vs. desktop.

    Example

    A flower shop: overall CR 1.4%. Segmented by source: Organic 3.2%, Facebook 0.6%, Shopping 2.1%. Directed ad spend to mimic Shopping — overall CR rose to 2.3%.

    Priority

    Improving CR comes before increasing budget. Below 1% CR, every extra ad dollar is a loss.

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