Conversion rates
Conversion rates usually measure specific marketing activities that involve moving customers or prospects from one state to another.
Conversion rates can be used to measure many things including: Number of people who have completed an action on a website – for example, downloaded a white paper or subscribed to a newsletter. Number of people that have bought something. The number of people digital advertising has driven to a specific web page or social media site.
The formula is calculated as follows:
For example, if you run an online campaign and get: Unique impressions (number of people that viewed the ad) = 8,456 The click-through (number of people who clicked on the ad) = 233 You’ll have a conversion rate of 2.8%.
Using this formula to work out your future marketing spend can be really useful. Ask yourself, based on past knowledge or industry trends, can you achieve the results you need through this channel?
Say that you have an email list of 5,000 live marketable addresses, and have been tasked with getting 350 orders. Your conversation rate would be 0.7%.
Introduction to Marketing: Fundamentals of Marketing
Introduction to Marketing: Fundamentals of Marketing
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