Why Calculate Sales Conversion
Posted: Sat Feb 01, 2025 7:44 am
Let's consider the tasks that can be accomplished by measuring this indicator:
Evaluating the effectiveness of marketing strategies
Measuring this indicator plays a key role in assessing the success of marketing tools and campaigns. Low sales conversion rates indicate the need to review the strategy and methods of attracting customers.
Optimization of advertising costs
Measuring the indicator in question makes it possible to determine the cost of attracting each buyer. This contributes to more efficient use of the advertising budget, determining the most cost-effective and effective channels of attraction, and improving the marketing campaigns being implemented.
Identifying vulnerabilities in the sales process
Conversion analysis is an effective panama email list way to identify weak points in the bidding process, determine the factors that influence rejections or losses of potential clients. The data obtained provides the basis for conducting in-depth analysis and making necessary adjustments to the department's activities.
Improving customer service
Measuring conversion is a way to assess how well your sales team is meeting customer needs.
Monitoring and control of sales processes
Regular conversion analysis provides the ability to continuously monitor changes in sales processes. This method allows you to predict results, as well as take timely measures to improve the department's performance.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153438
3 Ways to Calculate Sales Conversion
Sales conversion is calculated using a formula manually or automatically in special services. Let's look at three ways to calculate this indicator.
Calculation by formula
To calculate sales conversion (CV), you need to know two important metrics:
CV = Number of target actions ÷ Total traffic × 100%.
The sales conversion rate, expressed as a percentage, must be multiplied by 100%.
Let's clarify the key terms:
Number of target actions . This refers to the “movements” a brand expects users to take after they visit a website or see an ad. For example, subscribing to a newsletter, registering for a course, or making a purchase.
Total traffic represents the entire flow of the audience interacting with the organization during the promotion process (landing page visitors, people who saw the advertising banner, potential clients who contacted managers).
To determine conversion, you need to select a specific period and indicators for further research.
Let's look at this using an online store as an example: 2,500 people visited the company's page in one day, of which 800 made a payment. Thus, the conversion is: 800 ÷ 2,500 × 100% = 32%.
Let's analyze another example of calculating sales conversion. A marketer conducted advertising campaigns in Yandex.Direct and VKontakte. On the first platform, the ad was seen by 3,000 people, 10 of whom decided to leave requests. On VKontakte, 2,000 users viewed the ad, and five of them contacted the company. Thus, the conversion in Yandex.Direct was: 10 ÷ 3,000 × 100% = 0.3%. On VKontakte, the indicator was lower: 5 ÷ 2,000 × 100% = 0.2%. Consequently, advertising in the first service was more effective.
Evaluating the effectiveness of marketing strategies
Measuring this indicator plays a key role in assessing the success of marketing tools and campaigns. Low sales conversion rates indicate the need to review the strategy and methods of attracting customers.
Optimization of advertising costs
Measuring the indicator in question makes it possible to determine the cost of attracting each buyer. This contributes to more efficient use of the advertising budget, determining the most cost-effective and effective channels of attraction, and improving the marketing campaigns being implemented.
Identifying vulnerabilities in the sales process
Conversion analysis is an effective panama email list way to identify weak points in the bidding process, determine the factors that influence rejections or losses of potential clients. The data obtained provides the basis for conducting in-depth analysis and making necessary adjustments to the department's activities.
Improving customer service
Measuring conversion is a way to assess how well your sales team is meeting customer needs.
Monitoring and control of sales processes
Regular conversion analysis provides the ability to continuously monitor changes in sales processes. This method allows you to predict results, as well as take timely measures to improve the department's performance.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153438
3 Ways to Calculate Sales Conversion
Sales conversion is calculated using a formula manually or automatically in special services. Let's look at three ways to calculate this indicator.
Calculation by formula
To calculate sales conversion (CV), you need to know two important metrics:
CV = Number of target actions ÷ Total traffic × 100%.
The sales conversion rate, expressed as a percentage, must be multiplied by 100%.
Let's clarify the key terms:
Number of target actions . This refers to the “movements” a brand expects users to take after they visit a website or see an ad. For example, subscribing to a newsletter, registering for a course, or making a purchase.
Total traffic represents the entire flow of the audience interacting with the organization during the promotion process (landing page visitors, people who saw the advertising banner, potential clients who contacted managers).
To determine conversion, you need to select a specific period and indicators for further research.
Let's look at this using an online store as an example: 2,500 people visited the company's page in one day, of which 800 made a payment. Thus, the conversion is: 800 ÷ 2,500 × 100% = 32%.
Let's analyze another example of calculating sales conversion. A marketer conducted advertising campaigns in Yandex.Direct and VKontakte. On the first platform, the ad was seen by 3,000 people, 10 of whom decided to leave requests. On VKontakte, 2,000 users viewed the ad, and five of them contacted the company. Thus, the conversion in Yandex.Direct was: 10 ÷ 3,000 × 100% = 0.3%. On VKontakte, the indicator was lower: 5 ÷ 2,000 × 100% = 0.2%. Consequently, advertising in the first service was more effective.