Conversion Rate
Conversion & UXAlso: CVR · Conversion Percentage
Quick definition
Conversion rate is the share of visitors who complete a defined action like a purchase, signup, or form submission. Calculated as conversions divided by total sessions (or visitors), expressed as a percentage.
Compare against your own historical baseline, not against published industry averages. Industry averages use loose conversion definitions that probably don't match yours.
How it varies across Australia
Conversion rates vary by an order of magnitude across Australian industries. Ecommerce checkouts typically sit in single digits. Lead-gen forms can run much higher when intent is qualified. Comparing your CVR against an industry average usually tells you less than comparing it against your own trend.
See conversion benchmarks across Australian industries →What it actually means
Conversion rate is the most context-dependent metric in marketing. The same percentage means radically different things depending on what counts as a conversion, what counts as a session, what kind of traffic you have, and what your average order value is.
A 1% conversion rate on $50,000 enterprise demos is a different business than a 1% conversion rate on $30 ecommerce orders. The number on its own tells you nothing about the health of the funnel.
The useful question is rarely 'is this CVR good?' The useful question is 'is this CVR moving, and what are the drivers?' Trend beats benchmark for conversion-rate decisions almost every time.
A two-percent conversion rate isn't good or bad. It's a number waiting for context.
How to calculate it
CVR = Conversions ÷ Sessions × 100
Worked example. Your landing page got 4,200 sessions last month. 84 visitors submitted the lead form. CVR = 84 ÷ 4,200 × 100 = 2.00%.
The Australian context
Australian conversion rates often look weak when compared against US benchmarks, partly because Australian traffic skews more toward direct and branded sources (which usually convert at higher rates), and partly because Australian audiences are smaller and noisier. A direct US-to-Australia CVR comparison is rarely apples-to-apples.
Where people get this wrong
Related terms
Common questions
What's a good conversion rate?
There's no universal answer. It depends on industry, traffic source, what counts as a conversion, and average order value. A 2% CVR is great in some categories and a disaster in others. Compare against your own trend.
Why does my CVR drop when I increase traffic?
New traffic is usually less qualified than the traffic you started with. Scaling acquisition almost always dilutes intent. Watch absolute conversions as well as the rate.
Should I optimise for CVR or for revenue?
Revenue. CVR is a tool to get there. A funnel with lower CVR but higher average order value can be more valuable than the inverse. Optimise for the ratio that pays the bills.
How is CVR different from engagement rate?
Engagement rate measures interaction (clicks, scrolls, dwell). CVR measures completion of a defined goal. Engagement is necessary but not sufficient for conversion.
Keep exploring
About New Rebellion
New Rebellion is a marketing intelligence consultancy. We build tools, score Australian businesses on how their marketing actually performs, and publish Debrief every day. This dictionary is part of how we work in the open.
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