Post by account_disabled on Jan 23, 2024 5:15:20 GMT
Conversion in sales: basic concepts Sales conversion (CTR, conversion rate, CV) is an indicator of the number of leads that have changed to the status of a real buyer. In other words, it is the ratio of the number of people who bought your product/service to the number of potential customers who "broke off" the deal at one of its stages. There are many types of conversion in marketing, but among them the most relevant are: Conversion in online advertising is an indicator of the share of conversions on an advertisement in relation to the total number of views of this advertisement; Offline conversion - the share of real buyers of the point of sale from all incoming visitors; Conversion on the site is an indicator of the number of users who performed the targeted action in relation to the total number of site visitors. If the company uses several platforms to attract customers (online store, office, boutique), the number of conversions will also increase. At the same time, the data on them will differ. In addition, you can separately calculate the conversion for each individual segment within the company.
These include: managers; product or service; sales C Level Executive List channel; location; stages of the sales funnel. Business success in sales is built on real numbers. The obtained indicators help in managing the company, it will be easier to control and develop it. If you have complete information, it will allow you to evaluate the efficiency of work and making a profit. Sales conversion formula Conversion is calculated as a percentage for a specific period of time. There are two main ways to get the indicator correctly. Sales conversion formula Read also : The Ultimate Guide to Conversion Rate Optimization An example of calculating sales conversion using the basic formula manually The conversion calculation formula is very simple. To calculate it, you need to divide the total number of sales by the number of all leads for the selected period, and then multiply the result by 100%.
The formula looks like this: CV = (N1/N0)*100 Let's try to calculate in practice the percentage of sales conversion of contextual advertising for an online store. Let's assume that with contextual advertising costs of 30,000 rubles, which brought 800 visitors, 40 people called the company and 10 made a purchase in a week. In this case, the conversion of the advertising campaign itself with the targeted action in the form of a call will be 5% ((40 calls/800 leads) * 100%), and the conversion of sales from the context will be 1.25% ((10 sales through the context/800 leads) * 100%) This was the simplest version of the sales conversion calculation, but this formula works well with more variables. For clarity, consider the conversion of the site: total number of visitors – 800 people; the product was viewed by 150 users, 30 of whom made a call; 70 goods/services were added to the cart, after which 20 more people called the company; in the end, 35 users paid for the contents of the cart. At the same time, out of 50 people who called, 15 users decided to purchase the product.
These include: managers; product or service; sales C Level Executive List channel; location; stages of the sales funnel. Business success in sales is built on real numbers. The obtained indicators help in managing the company, it will be easier to control and develop it. If you have complete information, it will allow you to evaluate the efficiency of work and making a profit. Sales conversion formula Conversion is calculated as a percentage for a specific period of time. There are two main ways to get the indicator correctly. Sales conversion formula Read also : The Ultimate Guide to Conversion Rate Optimization An example of calculating sales conversion using the basic formula manually The conversion calculation formula is very simple. To calculate it, you need to divide the total number of sales by the number of all leads for the selected period, and then multiply the result by 100%.
The formula looks like this: CV = (N1/N0)*100 Let's try to calculate in practice the percentage of sales conversion of contextual advertising for an online store. Let's assume that with contextual advertising costs of 30,000 rubles, which brought 800 visitors, 40 people called the company and 10 made a purchase in a week. In this case, the conversion of the advertising campaign itself with the targeted action in the form of a call will be 5% ((40 calls/800 leads) * 100%), and the conversion of sales from the context will be 1.25% ((10 sales through the context/800 leads) * 100%) This was the simplest version of the sales conversion calculation, but this formula works well with more variables. For clarity, consider the conversion of the site: total number of visitors – 800 people; the product was viewed by 150 users, 30 of whom made a call; 70 goods/services were added to the cart, after which 20 more people called the company; in the end, 35 users paid for the contents of the cart. At the same time, out of 50 people who called, 15 users decided to purchase the product.