What Conversion Rate Actually Tells You About Store Performance

Is Conversion Rate (CR) the first metric you look at on your dashboard?

It probably is.

And fair enough. It is one of the most talked-about metrics in eCommerce.

Hell, the service I offer, CRO, is even wrongly named after it.

But on its own, it is a bit of an inflatable dartboard metric.

A higher CR does not mean your store is performing better.

• You can improve CR by pushing more people towards cheaper products.

• You can improve CR by discounting too aggressively, which can drag down margins.

• You can improve CR while tanking your Average Order Value.

• You can even improve CR while attracting customers who never come back.

And the reverse is true too.

A lower CR does not mean your store is performing poorly.

• You can see CR dip after raising prices, even though Revenue per Session improves.

• You can see CR dip when you stop over-discounting, even though the business gets healthier.

• You can see CR dip when you push bundles or larger pack sizes, even though AOV goes up.

• You can see CR dip when you bring in fewer impulse buyers and more valuable customers.

It can move in the right direction for the wrong reasons.

And it can move in the wrong direction for the right ones.

Tomorrow, I’ll send over 5 metrics that will tell you far more about how your store is actually performing than Conversion Rate alone.

Chat soon,

Peter