Definition
CVR (conversion rate) is the percent of visitors who complete a goal action. In ads, CVR is often conversions per click; on-site it can be conversions per session.
CVR formula
CVR = conversions / clicks (or sessions)
Click-based vs session-based CVR
- Click-based CVR is best when bidding on clicks (CPC).
- Session-based CVR is best for landing page optimization and UX testing.
- Do not mix the two in the same report or benchmark.
How to calculate CVR (step-by-step)
- Pick the conversion event (purchase, signup, lead).
- Pick the denominator (clicks or sessions) and keep it consistent.
- Count conversions and denominator for the same time window.
- Divide and express as a percent.
CVR example
If you have 50 purchases from 2,000 clicks, click-based CVR = 50 / 2,000 = 2.5%.
How CVR affects CPA
- CPA = CPC / CVR, so higher CVR lowers CPA if CPC is stable.
- CVR drops often explain why CPA worsens as you scale.
- Use CVR together with margin to set realistic CPA targets.
How to improve CVR
- Tighten message match between ad and landing page.
- Reduce friction: fewer fields, faster load, clearer CTA.
- Use proof (reviews, logos, guarantees) to reduce risk.
- Segment by intent and personalize the offer.
Common mistakes
- Mixing click-based CVR with session-based CVR.
- Optimizing CVR by narrowing intent and losing scale.
- Ignoring downstream quality (refunds, churn, LTV).