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Measurement and metrics

Conversion rate

Also called CR, CVR, conversion ratio, click-to-sale rate.

Short answer

Conversion rate is the share of clicks or visits that end in a conversion, calculated as conversions divided by clicks times 100. 36 sales from 1,200 clicks gives a conversion rate of 3.0 %.

Definition of Conversion rate.

The conversion rate puts the result in relation to the traffic. Without it, 36 sales says nothing: 36 sales from 1,200 clicks is a healthy figure, 36 sales from 60,000 clicks is a problem. That is why the conversion rate is the first metric both store and affiliate look at when a channel has to be assessed.

The denominator decides what the figure means. Clicks, sessions and unique visitors give three different rates from the same data, and the difference can be large, because the same person often clicks several times. In affiliate marketing the rate is usually calculated on clicks, because the click is the unit the network records and settles on.

The period skews the figure. A conversion happens after the click, sometimes days after, so clicks at the end of a month have not yet had time to become sales. If a short period is measured, the rate looks artificially low, and the longer the attribution window, the more pronounced the lag.

Status matters just as much. A rate calculated on all recorded conversions is higher than one calculated on approved conversions, because returns and rejections have not yet been subtracted. Choose one and stick with that choice when you compare periods or affiliates.

How it is calculated

Conversion rate = conversions ÷ clicks × 100

conversions
number of recorded conversions in the period – decide whether this means all of them or only the approved ones, and stick with that choice
clicks
number of counted clicks in the same period, with known bots excluded

Example

Clicks
1,200
Conversions
36
Conversion rate
3.0 %

A rate of 3.0 % means that 36 out of 1,200 clicks became a recorded sale – the other 1,164 left the store without buying.

What moves the conversion rate

Half the work happens before the click. If the content matches the right intent – someone who wants to buy, not someone who wants to read – the rate goes up without a single comma changing on the store's page. A deep link straight to the product being discussed, instead of to the homepage, is usually the biggest single improvement, because the visitor does not have to search.

The other half lies with the store: price, stock status, delivery time, payment methods and the number of steps to checkout. If the rate falls across all of the affiliate's traffic sources at the same time, that is where the cause lies.

Why two dashboards show different figures

The store's web analytics counts sessions, while the affiliate system counts clicks. Analytics includes orders from all channels, the affiliate system only those that carry a click ID. Bots are filtered differently, and periods may be calculated in different time zones. Two figures that measure different things should not be forced to match – use the affiliate system's rate to compare affiliates and programs, and the web analytics rate to assess the store's own checkout experience.

Conversion rate vs. EPC

AspectConversion rateEPC
Measuresshare of clicks that became salesmoney earned per click
Unitpercentcurrency (DKK)
Affected by commission ratenoyes
Affected by order valuenoyes
Used tofind out where in the flow people drop offprioritise which program to send the traffic to

Use the conversion rate to troubleshoot the flow and EPC to choose a program – a high rate on a poorly paid program earns less than a low rate on a good one.

How it goes wrong

  • 01

    Too few clicks to draw conclusions

    2 sales from 40 clicks is 5 %, and the figure means nothing. One sale more or less moves the rate by 2.5 percentage points. Wait until the pool of clicks is large enough that a single event does not change the conclusion.

  • 02

    The denominator changes along the way

    If you switch from calculating on visitors to calculating on clicks, the rate changes without anything having happened in reality. Note down which denominator the figure uses if it is to be compared over time.

  • 03

    Pending sales are included

    A rate calculated on recorded conversions is higher than one calculated on approved ones. On products with many returns, the difference is large enough to reverse the conclusion about a channel.

At Affilyflow

Conversion rate in practice

The denominator is where a conversion figure most often goes wrong, which is why we exclude known bots: they get neither click recording nor attribution, so the pool of clicks is not inflated. The numerator is kept just as conservative – a conversion never credits a balance automatically, everything is created as pending, and the store has the program's approval period (30–90 days) to reject with a reason the affiliate can read. You can therefore calculate the rate on both recorded and approved sales. On the public program pages, metrics are only shown above a minimum of 25 clicks and 3 sales; below that, a percentage is not a signal.

Frequently asked questions

How do you calculate conversion rate?

Divide the number of conversions in the period by the number of clicks in the same period, and multiply by 100. 36 sales from 1,200 clicks gives 3.0 %. Decide in advance whether conversions means all recorded sales or only the approved ones, and stick with it.

What is a good conversion rate in affiliate marketing?

There is no figure that applies across industries. The rate depends on price, product, payment methods and how early in the buying journey the click happens. Use your own history as the benchmark, and only compare programs within the same category.

Why has my conversion rate dropped?

Look at the denominator first: if more clicks have come from a new source, the rate falls without anything being wrong. If the rate falls across all your traffic sources at the same time, the cause typically lies with the store – sold-out products, a price change or broken tracking. Finally, look at the share of rejected sales.

Is conversion rate the same as CTR?

No. CTR measures the share of impressions that become clicks, in other words how well a link or an ad attracts attention. The conversion rate measures the share of clicks that become a conversion. The two figures follow each other in the same flow.

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