# What is Conversion Rate (CR)?

What is Conversion Rate (CR)? The percentage of visitors who completed a desired action. Average: 1-4% for purchases, depending on category.

## How it works 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.

## Related metrics

- CPA — improving CR directly lowers CPA
- ROAS — good CR means high ROAS
- Bounce Rate — high bounce means low CR
- AOV — CR and AOV are the two revenue components

## 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.

## Real-world 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%.

## Where to start

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

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Category: Analytics · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/conversion-rate-cr