Conversion rate alone can mislead you: a discount can raise it while revenue falls. Reading it beside revenue per session and average order value gives the full story, and all three come from the same three numbers.
How it works
Conversion rate = orders / sessions x 100. Revenue per session = total revenue / sessions. Average order value = revenue / orders. These link exactly: revenue per session = conversion rate (as a decimal) x average order value. Sessions and visitors differ: one visitor can create several sessions, so state which denominator you use and use it consistently.
Step by step
- Pick a period and one traffic source, such as all sessions or one channel.
- Write down sessions, orders, and revenue for that period.
- Divide orders by sessions and multiply by 100 for conversion rate.
- Divide revenue by sessions for revenue per session.
- Divide revenue by orders for average order value.
- Check the link: conversion rate x average order value should equal revenue per session.
Worked example
A store has 10,000 sessions, 200 orders, and $16,000 revenue in a month. Conversion rate = 200 / 10,000 x 100 = 2.0 percent. Revenue per session = 16,000 / 10,000 = $1.60. Average order value = 16,000 / 200 = $80. Check: 0.02 x 80 = $1.60, correct. If a discount lifts conversion to 2.5 percent but drops order value to $60, revenue per session becomes 0.025 x 60 = $1.50, lower than before, so the discount hurt despite the higher conversion rate.
Common mistakes
- Mixing sessions and unique visitors in one calculation, which changes the rate.
- Comparing conversion rates across channels without segmenting. Email traffic converts far above cold social traffic.
- Celebrating a conversion rise that came from cheaper products and lower revenue per session.
- Using different periods for orders and sessions.
Try it with the free tool
You can follow every step above by hand, but the free tool below does the same calculation instantly. Try your own numbers in it, then check one result by hand so you trust the method as well as the answer. Open the full tool here: open the tool.
Checklist before you finish
- Write down every input number first, with its unit, before you calculate anything.
- Work through the steps in order, and do not skip the unit conversions.
- Check the answer against the worked example above: is it the right size, and does the direction make sense?
- Round only at the end, and keep the unrounded figure for any follow-up calculation.
Practice with your own numbers
Pick three cases of your own and work each one by hand. First, try a simple round-number case you can check mentally. Second, try a realistic case with awkward numbers, the kind you will actually meet. Third, try an edge case, such as a very small or very large input, and confirm the answer still behaves sensibly. If any case gives a surprising result, re-check the units and the formula step by step before you trust it.
If your answer looks wrong
Most errors come from a small set of causes. Check that you used the same units throughout, that you divided where the formula divides and multiplied where it multiplies, and that you applied any percentage as a decimal. Check the order of operations: powers and brackets come before multiplication and division, which come before addition and subtraction. Finally, test the method on the worked example in this guide. If your method reproduces the example answer, the method is right and the inputs deserve a second look.
Quick tips
Segment by device and channel before acting. A sitewide rate averages a fast desktop store with a slow mobile checkout and hides the real problem. Fix the segment that is weakest, not the average.