What a conversion is

A conversion is a completed target action. In e-commerce the headline conversion is the purchase. But conversion in analytics is a broader idea, and the exact definition depends on the measurement context.

Examples of target actions:

  • Placing an order (macro conversion)
  • Adding to cart
  • Adding to a wishlist
  • Clicking a recommendation
  • Registering or signing in
  • Subscribing to a newsletter

Macro and micro conversions

A macro conversion is the end goal of the visit — the purchase. That is what the conversion rate measures.

Micro conversions are intermediate actions that move toward it. They matter for two reasons:

  1. They accumulate faster, which allows earlier decisions in A/B tests.
  2. They diagnose which funnel stage is losing the audience.
Visits: 100,000
→ add-to-cart rate: 4.2%  → 4,200 adds
→ CR (purchase): 2.1%     → 2,100 orders

Checkout CR: 2,100 / 4,200 = 50%

In that example half the shoppers who added an item never completed the purchase — a clear optimisation point.

CR or RPV as the A/B test metric

Conversion rate is intuitive but incomplete. If variation B lowers the rate from 2.0% to 1.8% and raises the average order value by half, revenue per visitor still grows. That is why revenue per visitor is the usual primary metric in e-commerce tests — it accounts for both factors.

Tip: define what counts as a conversion in your analytics before any test starts. If one order is counted twice — at placement and at payment — the rate is inflated.

Common mistakes

  • Mixing session-based and user-based rates — different metrics, different numbers. Record which one you are using.
  • Ignoring attribution — if someone clicks a recommendation, leaves and returns a week later, does the recommendation get the credit?
  • Comparing channels directly — traffic from different sources carries different intent and converts differently by definition.