This is a business growth metric. It is defined as the ratio of successful deals to their total number, the number of attempts. The ratio grows - the business grows. Conversion rate can be calculated for anything.
Conversion formula
Compare CPA and CPO, and you will see the conversion by leads. Compare the number of visitors who performed the target action on the site to their total number - you will get the conversion by visitors. The indicator is calculated in %.
Norm:
There are no standards. It is why choose our service common to compare conversion for one period with the previous one: if it has grown, then the campaign was successful.
You can track CR in Google Analytics.
Read also!
"How to Calculate Conversion: 3 Proven Options"
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LCR (Lead-Close Rate or Lead Conversion Rate) — lead closing rate
This is the ratio of the number of real customers to the total number of leads.
You sell an online cake-making seminar and have collected 100 leads. You sent them an email with the program and a link to pay for the lesson. 20 out of 100 people paid for the lesson — the LCR is 20%. If 80 people paid for the lesson, the LCR would be 80%.
Lead Close Rate
Norm:
There is no conditional norm for this indicator, but the rule is: the higher the LCR, the more efficient the company is in terms of closing leads.
How can it be improved:
Review sales scripts, improve the quality of lead processing, work on the quality of traffic - attract the warmest leads possible.
LPO (Leads generated Per Offer) — the number of leads from a specific type of advertising
This metric will be useful if you have placed ads on several platforms. It shows which ads took off — brought in the most leads.
But you shouldn't rely only on the number of leads. Consider sales from each advertising platform. One may bring in a lot of leads that won't bring in sales, while another may bring in a few potential customers, but they will all buy from you. In this case, the last platform will take off.
The LPO indicator is reflected in the analytics system. To use this metric, you need to mark each advertisement with a UTM tag.
CAC (Customer Acquisition Cost) — the cost of attracting one client
Calculated as the ratio of advertising campaign costs to the number of real clients.
Norm:
Compare the cost of attracting one client and the profit from it - this will allow you to assess the profitability of the campaign. If the profit from the client is greater than the cost of attracting him, then you are in the black. Also compare LTV and CAC - the lifetime value from the client to the cost of attracting him.
LTV (Lifetime value) - lifetime value from the client
We have already mentioned this coefficient on the first pages of this material.
By calculating LTV for several customers, you will understand which of them bring more profit and remain loyal to your company. The further strategy can be turned to pay more attention to customers who bring more profit.
Norm:
If the metric is stable or growing, then your business is stable or growing.
How can it be improved:
Improve all previous indicators.
You can also use KPI metrics to evaluate the effectiveness of an advertising campaign conducted by your marketing department.
Marketing metrics allow you to see your campaign in numbers and are needed for further analysis and reporting.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
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I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
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