GITNUX MARKETDATA REPORT 2023
Must-Know Conversion Metrics
Highlights: The Most Important Conversion Metrics
- 1. Conversion Rate
- 2. Click-Through Rate (CTR)
- 3. Cost per Acquisition (CPA)
- 4. Cost per Click (CPC)
- 5. Cost per Lead (CPL)
- 6. Cost per Thousand Impressions (CPM)
- 7. Bounce Rate
- 8. Abandonment Rate
- 9. Return on Investment (ROI)
- 10. Return on Ad Spend (ROAS)
- 11. Average Order Value (AOV)
- 12. Lead-to-Customer Rate
- 13. Customer Lifetime Value (CLV)
- 14. Time to Conversion
- 15. Customer Retention Rate
Table of Contents
Conversion Metrics: Our Guide
Understanding conversion metrics is pivotal to fine-tuning your website’s performance and enhancing customer experiences. In this blog post, we’ll demystify the most important conversion metrics that every website owner must know. By the end, you’ll be equipped with the knowledge to analyze your digital marketing efforts effectively, and transform your website’s visitors into loyal customers.
The percentage of users who complete a desired action (e.g., making a purchase, signing up for a newsletter) out of the total number of visitors to a website or app.
The percentage of users who click on an advertisement or link and arrive at the target page, divided by the total number of impressions (views) the ad receives.
Cost Per Acquisition
The amount of money spent on acquiring a new customer through marketing efforts, calculated by dividing the total marketing spend by the number of new customers acquired.
Cost Per Click
The amount of money spent per click on an advertisement, calculated by dividing the total ad spend by the total number of clicks.
Cost Per Lead
The amount of money spent on acquiring a new lead, calculated by dividing the total marketing spend by the total number of leads generated.
Cost Per Thousand Impressions
The cost of 1,000 ad impressions, calculated by dividing the total amount spent on an ad campaign by the number of impressions generated, then multiplying by 1,000.
The percentage of users who leave a website after only viewing a single page, indicating a lack of engagement or relevance.
The percentage of users who initiate a desired action (e.g,, adding an item to the shopping cart) but do not complete it. This metric helps identify potential issues in the conversion funnel.
Return On Investment
A measure of the effectiveness of marketing efforts, calculated by dividing the revenue generated from a campaign by the cost of the campaign.
Return On Ad Spend
The revenue generated by an ad campaign, divided by the cost of the campaign, indicating the return on investment for advertising efforts.
Average Order Value
The average amount spent by each customer in a single transaction, calculated by dividing the total revenue by the total number of orders.
The percentage of leads that convert to customers, calculated by dividing the number of new customers by the total number of leads generated.
Customer Lifetime Value
The estimated net profit attributed to a customer during their entire relationship with a business.
Time To Conversion
The average time it takes for a user to convert from their first interaction with a brand (e.g, visiting a website) to completing the desired action.
Customer Retention Rate
The percentage of customers who make a repeat purchase within a given time frame, indicating the effectiveness of a business’s customer retention strategies.
Frequently Asked Questions
What are conversion metrics?
Why are conversion metrics important?
What are some common conversion metrics to track?
How can businesses improve their conversion metrics?
What tools can help in tracking and analyzing conversion metrics?
How we write these articles
We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.