Conversion Rate (CVR): What Is It & How To Calculate

by Frankie Karrer

5 Min Read

Understanding and optimizing conversion rates is crucial for any successful marketing strategy. Among the many marketing metrics available, conversion rate (CVR) stands out as a key indicator of how effectively your marketing efforts are turning potential customers into actual buyers.

In this article, we’ll explore the significance of CVR and provide a step-by-step guide on how to accurately calculate this essential metric.

What Is Conversion Rate (CVR)?

Conversion rate is a measure of the percentage of users who complete a desired action. This action will vary depending on industry and business, and will possibly even change as a marketer moves from one campaign to the next.

By looking at your performance marketing or demand generation campaign goals, a marketer can better determine the best action to compare against the total number of users. Some examples of conversions that you can measure for both ecommerce and non-ecommerce businesses are purchases, clicks, leads, and downloads.

Importance of Conversion Rate

A higher conversion rate means your marketing efforts are effective and resonate well with your audience. Here’s why it’s so important to track.

Measures Marketing Effectiveness: Conversion rate allows businesses to assess the success of their marketing efforts by quantifying the number of visitors that took desired actions.
Enhances Customer Insight: It provides valuable insights into customer behavior and preferences, helping tailor strategies for targeted segments.
Increases Return on Investment (ROI): High conversion rates result in more revenue without the need for additional ad spend, thereby increasing marketing return on investment (ROI).
Facilitates Growth and Profitability: With more conversions, businesses can see an increase in sales and profits, aiding in overall growth.
Encourages Optimized User Experience: Tracking conversion rates pushes businesses to continually improve their website or landing page experience to convert more visitors.

How to Calculate Conversion Rate

To calculate conversion rate, divide the number of conversions by the total number of visitors, then multiply by 100 to get a percentage. This metric helps businesses evaluate the effectiveness of their marketing efforts in converting visitors into customers.

Conversion Rate Formula

CVR = (Conversions / Total Visitors) * 100

Conversion Rate Calculator

Total Conversions Total Visitors

An Example of How It’s Used

As an example of using this formula, let’s say that 100 people saw your ad and visited your site, and 10 of those users converted. Your campaign’s conversion rate would be 10%. This formula is pretty straightforward, so just make sure you are plugging in the correct data.

What is a Good Conversion Rate?

Just like anything else involved in measuring your marketing success, determining whether you have an optimal lead conversion rate will depend on your business. The easiest way to know your conversion rate is indicating a successful campaign is by measuring it against past work. To do this, look at your marketing metrics before running a new campaign and use them as a baseline.

For example, let’s say you are a clothing company running an advertising campaign for a new sweater line and want to determine whether your ad campaign is successfully driving conversions. By comparing the new conversion rate to any campaign run in the past, you will get a baseline for measuring the success of your new conversion rate. And if you have no past campaigns to measure or benchmark against, just know that the higher the percentage, the better your campaign is performing.

Strategies to Improve Conversion Rate

Improving conversion rate involves strategic enhancements to various aspects of your marketing and user experience. Here are five effective strategies:

Optimize Landing Pages: Ensure your landing pages are visually appealing, relevant, and designed with clear calls to action to drive conversions.
Enhance User Experience: Make your website easy to navigate, fast-loading, and mobile-friendly, providing a seamless experience for users.
A/B Testing: Regularly test different versions of your web pages and ads to identify the most effective designs and messaging.
Personalized Marketing: Utilize customer data to tailor marketing messages and offers to individual preferences, increasing engagement and conversion likelihood.
Clear Call-to-Action (CTA): Design prominent and compelling CTAs that guide visitors towards desired actions, improving conversion rates.

Metrics Matter. That’s Why You Need Performance TV

Want to improve CVR and turn more viewers into customers? MNTN’s platform helps you go beyond impressions, optimizing CTV campaigns in real time to drive measurable conversions. With AI-powered targeting, premium inventory, and full-funnel attribution, every ad is built for performance.

Here’s how MNTN Performance TV helps marketers maximize CVR:

Premium CTV Inventory – Get guaranteed placements on top streaming networks, ensuring your ads reach engaged audiences.
MNTN Matched – AI-driven targeting finds high-intent viewers, increasing the likelihood of post-ad conversions.
Verified Visits™ Attribution – Tracks site visits and conversions directly tied to ad exposure, providing clear performance insights.
Automated Optimization – AI continuously fine-tunes your campaign to improve efficiency and maximize conversion potential.
Reporting Suite – Access real-time data on audience behavior, campaign impact, and CVR trends to refine your strategy.

Boost your conversion rates with performance-driven CTV advertising—sign up today to get started with MNTN’s self-serve software.

Conversion Rate (CVR): Final Thoughts

At MNTN, we understand that calculating conversion rates is a fundamental element in crafting a successful marketing strategy. It provides a direct measure of your marketing effectiveness, helping you fine-tune your campaigns, maximize ROI, and ultimately drive business growth.

Learn more about CTV advertising and OTT advertising to see how MNTN can help you achieve your business goals.

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