CVR Formula – How to Calculate
A conversion, the numerator of the CVR formula, is generally a progression of a customer’s journey in your sales funnel, and the denominator is any preceding step in that sales funnel. Conversion Rate is your conversion event divided by the number of users, sessions, clicks, visitors, leads, email opens, customers, etc.
CVR = Conversions / Users
What Conversion Should I Measure?
Marketers often refer to conversion as a certain website event such as leads or ecommerce sales.
In reality, conversion can refer to any event progressing further along in the journey and one organization can measure multiple different conversions. However many organizations refer to conversions as well-defined valuable events such as sales. In a multiple-step sales funnel, conversion often refers to the final sales event.
For analysis purposes it’s good to measure the most important steps as far along in the customer journey as possible. If you can measure sales and attribute it directly back as far up in the funnel as possible (with near 100% accuracy), that is the best scenario for making the optimal decisions.