Algolia's analytics dashboard calculates the Conversion Rate (CVR) / Click-Through Rate (CTR) for a given time period with the following formula:
CVR = Tracked Searches That Have Led To A Conversion ÷ Total Tracked Searches
CTR = Tracked Searches That Have Led To At Least One Click ÷ Total Tracked Searches
*Tracked searches are searches where clickAnalytics=true
To provide an example, let's say we have the following scenario:
- Day 1: 5 conversions out of 10 total tracked searches
- Day 2: 4 conversions out of 5 total tracked searches
- Day 3: 2 conversions out of 20 total tracked searches
If we were to take the average of each daily CVR ((50% + 80% + 10%) ÷ 3), we have a 46.67% conversion rate.
If we use the method from Algolia's analytics dashboard (11 conversions ÷ 35 total tracked searches), we have a 31.43% conversion rate.
This essentially safeguards against giving too much "weight" to days that might have very high or low CVR/CTR but not as many tracked searches. The formula over the total period provides a more representative metric for most use cases