GLOSSARY logo

GLOSSARY

THE TECHNICAL LANGUAGE OF DIGITAL B2B INFRASTRUCTURE

METRIC
PERFORMANCE ADVERTISING

Conversion Rate (CVR)

The proportion of eligible visits, users, interactions, leads, or opportunities that complete a defined conversion during a stated period.


BUSINESS RELEVANCE

CVR helps teams evaluate how effectively a journey turns eligible opportunities into desired outcomes. Segmented by audience, channel, device, stage, and conversion type, it can reveal friction or poor fit and connect acquisition performance with revenue operations.


IMPLEMENTATION EXAMPLE

A landing page records 120 qualified form submissions from 6,000 eligible sessions, giving a session conversion rate of 2%. The team reports the denominator and qualification rule, then compares opportunity creation and revenue rather than optimising form volume alone.


LIMITATIONS

Rates are not comparable when denominators, counting rules, attribution, traffic mix, or time windows differ. A higher CVR can result from narrower targeting or low-quality micro-conversions and does not by itself demonstrate incrementality, profitability, or a better user experience.


TECHNICAL EXPLANATION

The general formula is conversions divided by the chosen eligible denominator, multiplied by 100. The denominator, conversion definition, counting method, attribution window, and unit of analysis must be stated. In Google Ads, conversion rate is conversions divided by eligible ad interactions and may exceed 100% when multiple conversions can be counted per interaction.


Secondary Topics

Experience Design, Revenue Operations

Sources

Google Ads Help — Conversion rate definition — https://support.google.com/google-ads/answer/2684489; Nielsen Norman Group — Conversion rate — https://www.nngroup.com/articles/conversion-rates

Related terms

Customer Satisfaction (CSAT)

METRIC
EXPERIENCE DESIGN

A transactional metric measuring short-term customer sentiment and satisfaction following a specific interaction or purchase.

Quality Score

METRIC
PERFORMANCE ADVERTISING

Google Ads’ diagnostic metric evaluating keyword relevance, ad copy resonance, and landing page quality for auction rank.

Customer Acquisition Cost (CAC)

METRIC
REVENUE OPERATIONS

A core financial metric measuring the total sales and marketing expenditure required to win a single new customer.

Gross Profit Margin (GPM)

METRIC
REVENUE OPERATIONS

A profitability ratio expressing the percentage of revenue retained after deducting the direct cost of goods sold.

Cost per Click (CPC)

METRIC
PERFORMANCE ADVERTISING

A paid media pricing metric reflecting the precise or average expenditure incurred for each registered user ad interaction.