conversion rate (CVR)
The term conversion rate stands for conversion rate in online advertising. However, the English term is also used for the conversion rate of A/D converters.
In web technology, the conversion rate is a criterion for the success of online advertising. The conversion rate is the percentage of visitors to a website who complete an action. As opposed to those who start and stop the action. What action or process is involved is defined beforehand. For example, a conversion rate could be determined for the buying process in an online store. In other words, the ratio of shoppers to those who enter a buying process but do not end it by purchasing a product.
The conversion rate can be about clicks with which interested parties are forwarded to another web page, about the entry in a list, the subscription to a newsletter, or the purchase of a product. The cost per click ( CPC), cost per lead ( CPL) or cost per order ( CPO) can be calculated from the conversion rate.
If the conversion rate means the number of sales, it is calculated from the ratio of buyers to visitors, expressed as a percentage: buyers/visitors x 100 in percent. If 5 out of 1,000 visitors buy the offered product, then the conversion rate is 0.5%.