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Performance

Conversion rate

Also known as: CVR

Definition

Conversion rate is the percentage of visitors or sessions that complete a defined action — a purchase, form submission or booking — within a measurement period.

A conversion rate is only interpretable alongside its denominator and its traffic source. Branded search converts several times better than cold prospecting, so a blended site-wide figure mostly reflects traffic mix rather than site quality. Segment by source before drawing conclusions.

Improving conversion rate is usually the cheapest available growth lever because it multiplies the value of traffic already paid for. Speed, form friction, clarity of offer and trust signals typically deliver more than redesigns.

Formula

Conversion rate = Conversions ÷ Sessions × 100

More in Performance

Attribution window

An attribution window is the period after an ad interaction during which a resulting conversion is credited to that ad — commonly 1, 7 or 28 days for clicks and 1 day for views.

CAC (Customer Acquisition Cost)

CAC is the total sales and marketing cost required to acquire one new paying customer over a given period, including media spend, agency fees, tooling and salaries.

Cohort analysis

Cohort analysis groups customers by a shared starting characteristic — usually acquisition month — and tracks their behaviour over time, revealing retention and value patterns that blended averages hide.

Consent mode

Consent mode is a mechanism that adjusts how analytics and advertising tags behave based on a user's consent choices, allowing modelled measurement when tracking consent is withheld.

Contribution margin

Contribution margin is revenue minus all variable costs — cost of goods, shipping, payment fees, returns and marketing — showing what each sale actually contributes toward fixed costs and profit.

CPL (Cost Per Lead)

CPL is advertising spend divided by the number of leads generated. It measures top-of-funnel efficiency but says nothing about whether those leads are qualified or ever convert.

All 87 terms
Put it to work

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