What is Conversion Rate? CVR Meaning, Formula, and Reason to Track (2024)

When you dive into the world of marketing, you’ll hear a lot of terms thrown around that you need to know. As you sift through the sea of marketing jargon, you come across one term repeatedly: Conversion rate (CVR).

So what is CVR?

The CVR meaning is simple — it focuses on the percentage of people who complete a pre-determined action. It’s a critical metric to track because it indicates whether you’re obtaining leads and driving sales for your business.

On this page, we’ll tell you everything you need to know, including:

• CVR meaning in marketing
• CVR formula
• What is a good conversion rate?
• Why tracking CVR is important
• How to improve CVR

Keep reading to learn more!

P.S. Want to learn more about topics like CVR in marketing? Subscribe to our email newsletter to get the latest tips and tricks for improving your conversion rate!

What does CVR stand for? CVR meaning in marketing

CVR focuses on tracking the percentage of people who complete a pre-determined action. So, what does CVR stand for? It’s an abbreviation of the term “conversion rate.”

The CVR meaning in marketing applies to multiple strategies, from pay-per-click (PPC) advertising to email marketing.

When most people talk about conversion rate, they look at the percentage of people who make a purchase. Tracking your CVR isn’t limited to purchases — you can track conversion actions like:

• Phone calls
• Email subscriptions
• Form completions
• App downloads
• Button clicks
• And more

Your CVR metric will vary depending on what your business wants to track in terms of conversions. You may also track multiple types of CVR metrics at once. For example, a business that wants to sell more products may track its email subscription rate (a CVR metric) in addition to its sales conversion rate.

CVR formula: How to calculate CVR

You have the answer to, “What is CVR” so now let’s look at the CVR formula. If you want to know what your CVR is, use the following formula:

(Number of conversions / impressions) x 100 = CVR

So, let’s say you’re running an ad for one of your products. 2000 people see your ad, and 200 of them decide to buy your product. If you plug it into the formula, it’d look like this:

(200/2000) x 100 = 10%

So, in this example, your CVR would be 10%.

Want an easy way to calculate conversion rate instead of using the CVR formula? Use our free conversion rate calculator!

Calculate Your Conversion Rate

What is a good conversion rate?

You’ll find your conversion rate whether you use the CVR formula or the calculator. Once you find your CVR metric, you want to know whether it’s good. So, what is a good conversion rate?

A good conversion rate is above 10%.

You can set this as your minimum goal and aim to get above 10% with your conversion rate.

Why tracking your conversion rate is important

So, why does tracking your conversion rate matter? Here are three reasons you’ll want to track CVR in marketing:

1. It helps you understand your business’s return on investment (ROI)

Your CVR metric is important because it helps you understand your business’s return on investment (ROI). When you invest in marketing, you want to invest in strategies that help you grow your business. By tracking your CVR metric, you’ll know whether you drive the results you desire.

2. It helps you adjust your marketing

Another reason to track CVR in marketing is that it helps you adjust your marketing strategy. Tracking this metric enables you to see which marketing tactics help you achieve your goals and drive results. If your PPC campaign has a low conversion rate, for example, you may need to adjust your strategy to drive better results.

3. It helps you adjust your sales strategy

In addition to adjusting your marketing strategy, tracking your CVR also helps you adjust your sales strategy. You can better understand which sales strategies drive conversions for your business. Then, you can adjust your sales strategy to drive better results.

How to improve the CVR metric

Want to improve your conversion rate? Here are three quick tips to see better results with CVR in marketing:

1. Adjust your marketing copy

If you want to improve your CVR metric, start by adjusting your marketing copy. Whether your run ads or send emails, your marketing copy impacts whether prospects convert. If you find your CVR in marketing isn’t up to par, consider adjusting your marketing copy.

Take a look at the strategies and campaigns that produce a low conversion rate. You’ll want to think about your goal for that campaign and think about where your copy may fall short in helping you achieve that goal.

For example, let’s say you analyze your email campaigns and find that the conversion rate is low. You look at other metrics, like your click-through rate (CTR), and find that it’s also low. As a result, you may adjust your email copy with stronger selling points to entice more people to click.

By adjusting your marketing copy, you can entice more people to convert.

2. Refine your targeting

Another way to improve your CVR metric is to refine your targeting. Whether you use keyword or audience targeting, your targeting impacts your marketing performance and CVR. If you see a low conversion rate, it may mean you need to adjust your targeting.

If you use keyword targeting, you may need to adjust the keywords you target. You’ll need to analyze your individual campaigns to determine what is best for your strategy. You may need to stop targeting certain keywords, put more of your budget behind keywords already driving results, or something similar.

With audience targeting, you may need to adjust the parameters of your demographics to help you reach the right people.

By adjusting and improving your targeting, you’ll achieve a better conversion rate for your business.

3. Make your call to action (CTA) prominent

When we talk about the CVR meaning in marketing, a term you’ll often hear tied to it is call to action (CTA). Your CTA plays a significant role in determining whether people act. Your call to action tells your audience what you want them to do.

When someone is shopping online, for example, a CTA button that says “Add to cart” tells them what to do and what will happen if they click the button.

If you have a low conversion rate, you may need to reevaluate your call to action. When you create a call to action, make it:

• Direct: Tell your audience exactly what you want them to do. Don’t be vague and leave them guessing what will happen if they act.
• Concise: If your call to action is too long, you risk deterring your audience from clicking. A CTA like “Download Your FREE Guide” will generate more conversions than a CTA like “Click Here to Download Your Free Guide to Fall Fashion in 2024”
• Clear: If you want your audience to convert, they need to know what you’re asking them to do. Your CTA should be clear, whether they add to cart, download, or sign-up.

Your CTA should balance all these aspects to help you increase your conversion rate.

Additionally, don’t be afraid to test different CTAs to find the right one! Conducting an A/B test can help you figure out which call to action drives the conversions you desire.

Ready to boost your conversion rate?

Now that you know the CVR meaning, CVR formula, and how to improve your conversion rate, you’re ready to start driving more revenue for your business. If you need help improving your CVR metric, the team at WebFX can lend a hand.

With over 28 years of experience in digital marketing, we know how to optimize your marketing campaigns to boost your CVR.

In fact, we’ve already driven over $10 billion in revenue and over 24 million leads for our clients. You can feel confident we’ll help you boost your conversion rate and grow your business.

Ready to ramp up your revenue? Contact us online or call us today at 888-601-5359 to speak with a strategist about our conversion rate optimization services!