Conversion Rate

Conversion Rate (CR) is the percentage of users who completed the target action at a specific funnel step. The most common calculations: - Visit-to-lead conversion: % of site visitors who left a contact. The norm is 1–5% for cold traffic. - Lead-to-sale conversion: % of leads converted into paying customers. The norm is 5–20% depending on the niche. - Click-to-lead conversion: % of people who clicked on the ad and filled out the form. The norm is 3–8%.

Conversion Rate is an accurate diagnostic tool. If overall revenue is falling, I lay out the funnel and see exactly where CR is falling. For example, there was a problem in the E-com project: there was traffic, but sales were falling. The layout showed: visit-to-lead remained 3.5%, but lead-to-sale fell from 4.2% to 3.4% - the problem was not in marketing, but in the sales department (response time increased due to vacations).

What CR isn't: A metric of audience quality. You can make a high CR on an “easy” audience (for example, give a product for free), but this does not mean that the business is healthy. CR always looks in conjunction with average bill and LTV.