Conversion rate (CR)
Conversion Rate (CR): the conversion rate that determines profit Every e-shop has traffic, ads, and campaigns. But only one thing shows whether all that effort is delivering results – and that is the conversion rate (Conversion Rate, CR). CR makes it clear: how many visitors
Conversion Rate (CR): the conversion rate that determines profit
Every e-shop has traffic, ads, and campaigns.
CR makes it clear: how many visitors became customers. And this number is exactly what determines whether marketing makes money or only spends budget.
What is Conversion Rate (CR)
Conversion Rate (CR) – translated as conversion rate – expresses the percentage of people who completed the desired action: a purchase, registration, form submission, link click, app download, etc.
Formula:
CR = number of conversions / number of visits x 100
Example: If 1,000 people visited your e-shop and 30 of them made a purchase, your conversion rate = 3%.
Why CR is so important
CR is one of the most important metrics in marketing, because it directly affects profit.
Increasing CR by 1% can mean hundreds to thousands of euros in additional revenue, without needing a larger advertising budget.
Why it matters:
- it shows how well your website or ad persuades customers,
- it helps identify weak points in the marketing funnel,
- it enables you to improve return on investment (ROAS, ROI),
- it saves money – higher conversion = lower CPA and CAC.
Average CR values by type
| Business type | Average CR | Excellent CR |
|---|---|---|
| E-shops (general) | 1.5–3% | 4–6% |
| Cosmetics, supplements, drugstore | 2–5% | 6–8% |
| Services / B2B | 3–7% | 8–10% |
| Subscription / memberships | 4–8% | 10%+ |
| Luxury segment | 0.5–2% | 3–4% |
UGC ads increase the average CR of campaigns by 20–80%, because they are perceived as authentic and trustworthy.
Factors that influence CR
Conversion rate depends on a combination of several factors – from content quality to the product itself:
- The ad and its credibility – does it feel natural, or like pressure?
- The target page (landing page) – speed, design, CTA, trust.
- Product and price – a clear offer, clear value.
- Brand credibility – reviews, ratings, authentic content.
- Type of content – the biggest difference comes from whether you use UGC videos or classic advertising.
How UGC increases Conversion Rate
UGC (User Generated Content) is currently the most effective form of content for increasing conversions. It works because it:
- feels authentic and trustworthy,
- shows real product use,
- reduces concerns (“will it work for me too?”),
- and creates an emotional connection – the customer sees a person, not an ad.
In practice, UGC videos:
- increase the CR of social media ads by 20–60%,
- improve CR on an e-shop when embedded as reviews,
- increase trust in remarketing (when the customer is deciding).
Brands that use UGC content do not have to increase traffic, because they get more orders from the traffic they already have.
How to improve CR in your e-shop or campaign
- Use UGC videos in your ads. Authentic videos with real people persuade better than studio spots.
- Improve your CTA (Call to Action). A prompt like “Buy now” or “Try for free” has a major impact.
- Simplify the purchase process. Fewer steps = more completed orders.
- Add social proof. Reviews, photos, and videos from customers.
- Test (A/B testing). Small changes in the text, button, or video can double CR.
How UGC.sk helps brands increase conversions
At UGC.sk, we help brands create videos that not only capture attention but also persuade. Our creators prepare content with a focus on:
- authenticity, which builds trust,
- a clear structure (problem → solution → result),
- a persuasive CTA,
- and realistic storytelling, which increases CR.
We help companies:
- test different video variants,
- analyze performance and optimize creatives,
- integrate UGC videos into e-shops and landing pages as well.
Result: more conversions, lower costs, higher profit.
CR and other metrics: how they relate
| Metric | What it measures | How it affects CR |
|---|---|---|
| CTR (Click-Through Rate) | How many people click | Higher CTR = more chances to convert |
| CPC (Cost per Click) | Cost per click | Lower CPC = cheaper access to customers |
| CPA (Cost per Acquisition) | Cost of acquiring a customer | Lower CR → higher CPA |
| ROAS (Return on Ad Spend) | Return on advertising | Higher CR = higher ROAS |
Improving CR means improving all these metrics – and that is exactly why UGC content is such a powerful performance tool.
Conclusion: Conversion Rate is the result of trust
Conversion rate is not just about buttons and design. It is about whether people trust your brand enough to take the next step.
And this trust is created by real people in videos, not logos and slogans.
If you want your ads and e-shop to generate more orders from the same number of visitors, UGC.sk will help you create videos that convert – because they feel human, natural, and persuasive.
Because in today’s digital world, it is not “advertising” that sells – trust sells.