Understanding and Configuring Average Conversion Rate (ACR)

What is Average Conversion Rate?

Average Conversion Rate (ACR) measures the percentage of visitors to your online store who complete a purchase.
It’s calculated using the formula:

ACR = (Number of Orders ÷ Number of Website Visitors) × 100

For example, if you had 5,000 visitors and 150 orders in a month, your conversion rate would be 3%.

Why is Average Conversion Rate Important?

Average Conversion Rate is one of the most crucial metrics for any e-commerce business. It directly reflects the effectiveness of your website in turning visitors into paying customers.

Key reasons ACR matters:

• Sales Efficiency: A higher conversion rate means you’re making more sales from the same amount of traffic.

• Marketing ROI: You can maximise the return on your advertising and marketing spend by improving your conversion rates.

• Customer Experience: A strong ACR often indicates that your website, product offerings, pricing, and checkout process are aligned with customer expectations.

• Growth Insights: Identifying trends in conversion rates helps diagnose problems like poor landing page performance, pricing issues, or friction in the checkout process.

How ACR Helps Your E-commerce Business

By monitoring and improving ACR, you can:

• Increase sales without needing to drive more traffic.

• Identify and fix issues that may be preventing customers from purchasing.

• Test and optimise elements like website design, product pages, and promotions.

• Set achievable, data-driven targets for marketing and operational improvements.

How ACR is Set Up in the App

To make it easier for you, the app automatically provides an industry benchmark for Average Conversion Rate based on common standards.
However, because every business is unique, you can adjust this benchmark to better suit your goals or changing conditions.

How to Configure Your ACR Benchmark in the App

Follow these steps to review or adjust your target ACR:

1. Navigate to Your Dashboard:
   Log into the app and open your main dashboard.

2. Go to Settings:
   Find and click on the Settings menu from the left-hand navigation panel.

3. Select Organisation Configs:
   Under Settings, choose Organisation Configs.

4. Configure Monthly Configs:
   Click on Configure Monthly Configs.

5. Adjust Your ACR Benchmark:

   • Locate the field for Average Conversion Rate.

   • You’ll see a default benchmark already populated (e.g., 2%).

   • You can adjust this benchmark to match your internal targets by entering a new value.

   • Save your changes.

The app will now measure your store's performance against the benchmark you’ve set, providing insights and recommendations accordingly.

Tip:  Regularly review your ACR benchmark — particularly after major website updates, promotions, or marketing campaigns — to ensure your targets remain realistic and motivating.