CVR Variance in the SQP Report

We've covered a lot of the basics of the SQP Report recently (if you want to learn more, check out our related blog posts below), but we haven't talked about arguably the most powerful hidden metric within the SQP report: Conversion Rate (CVR) Variance. For this blog post, we sat down with Athena Casarotto, one of our brilliant data engineers, to learn more about this metric and how sellers can use it effectively. Check out our conversation below!

Stoke: Thanks so much for sitting down with us to talk CVR variance. Before we get into that, though, can you explain what CVR is exactly? It's not a metric in the SQP Report in Seller Central - is it the same as the Purchase Rate?

Athena: CVR is not the same as the Purchase Rate you see in Seller Central. The SQP Report defines its efficiency metrics (CTR, Add-to-Cart Rate, Purchase Rate) in relation to the total search volume for that keyword. Put another way, total search volume is always the denominator in the efficiency metric equations. The purchase rate is the number of purchases divided by the total number of searches for a particular keyword.  This is good to know, but it doesn't tell you much about the lower-funnel consumer behavior. Once users get to your PDP, how frequently are they purchasing (how many clicks turn into a purchase)? We call this metric Conversion Rate (CVR), and it can give you insight into how strong your PDP and product offering are, especially when compared to the Market CVR. Currently, you need to download the SQP report into Excel or Sheets to calculate both of these metrics.

CVR = Purchases/Clicks

Purchase Rate = Purchases/Search Volume

Stoke: Got it. So what is the CVR variance?

Athena: At Stoke, we define the CVR variance as the difference in percentage points between your product's CVR and the market CVR. For example, let's assume your brand sells at-home spa packages. Using the SQP data, you find that around 8.3% of clicks on your product listing end up leading to a purchase for the search term "mother's day gifts". The market average, however, is only around 6.7% for that term. In that case, your CVR variance would be 1.6pp (percentage points).

8.3% (Your CVR) - 6.7% (Market CVR) = 1.6pp (CVR Variance)

Stoke: Why is CVR variance important to track?

Athena: CVR variance can give you valuable insights into your product's performance. If CVR variance is positive, it indicates that your product listing is strong and effective at converting clicks into sales. However, if the variance is negative, it may indicate that your product listing needs improvement, or that there is strong competition for that search term. Tracking CVR variance over time can help you identify trends and make data-driven decisions to improve your product's performance.

Stoke: Understood - that sounds pretty powerful.

Athena: It is! That's why we're working on an upcoming feature that will allow you to easily monitor and analyze this data. With Stoke, you'll be able to track your product's performance over time, identify areas for improvement, and make data-driven decisions to optimize your product listings.

Stoke: We love a good product sneak peek!

Subscribe to our blog and follow us on social to learn more about this upcoming feature and be one of the first to get access!

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