CTR (click-to-install rate, or install rate) - the number of downloads per click
CTR demonstrates how clicks on links or clicks on your banner ad are converted into actual app installs. It is calculated as the ratio of the number of successful installs to the total number of clicks. The resulting value is multiplied by 100 to see the result as a percentage.
The average CTR in the industry is between 1-4%: if you are running an advertising campaign with pay per click, keep in mind that it will take 25-100 clicks for one successful installation.
Sometimes it is more profitable to pay not for a click, but for showing (more precisely, for a thousand impressions) an ad. But in this case, you definitely need to track the Click Through Rate, that is, the ratio of the number of clicks to the total number of ad impressions.
CR (conversion rate) - the degree of conversion
CR shows the percentage of app users who completed the target action. For expensive goods that are rarely bought without prior offline consultations, or for the banking sector, the target action may be an application.
In mobile eCommerce, the target action is a purchase. From the moment of installation to placing an order, the user needs to go through a series of steps - the stages of the sales funnel. At each of them, a part of potential buyers is eliminated. Some do not even enter the catalog, others are limited to viewing products, others add something to the cart, but do not complete the purchase process.
The average conversion rate to purchase varies by sales area (it is higher for books than for electronics), so it's best to compare it with the figures for your industry. To calculate CR, you need to divide the number of users who completed the target action by the total number of users and multiply by 100%.
If your online store has a wide assortment, it makes sense to calculate the conversion separately for different product groups. And in order to find a weak point and understand at what stage the bulk of users are eliminated, calculate the conversion for each step.