What is Customer Conversion Rate?

Customer Conversion Rate is the percentage of target customers who perform a desired action, after engaging with your message. This can include making a purchase, signing up for a newsletter or downloading a digital product.

Pay Less Per Customer
Pay Less Per Customer
What is Customer Conversion Rate?

How to Calculate CCR?

(target customers who took the desired action / total target customers) x 100

Conversion Rate Optimization

customer conversion rate

Conversion Rate Optimization (CRO) shows how customers shop, and what you can improve to increase your odds.

CRO is about e-commerce, but you should try to optimize every sales channel to pay less per customer in the long run.

By tracking and analyzing conversion rates, your business can gain invaluable insights into what works and what doesn’t. This can help you focus your efforts on what is most likely to succeed.

Customer Conversion Rate can help you to compare the performance of different campaigns or product offerings.

Which group (or cohort) of customers is more profitable?

Subscribers and paid traffic visitors (from ads) have an Average Order Value of $100 and make a purchase every three months for the first year. On the second year customers from paid traffic drop to only one purchase, whereas subscribers remain the same.

  1. Subscribers convert at 5%
  2. Paid traffic visitors convert at 1%
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