Let's look at an example. Let's say you launched an ad for a product. 100 users clicked on it, but only 5 bought it. Thus, the conversion rate of your product sales will be 5%.
If you want to know the coefficient at a separate stage of the funnel, you can calculate it like this:
Visitors who performed the target action / All visitors * 100%
Conversion can also be calculated automatically and free of charge via Google Analytics or Yandex.Metrica - connect the services to the site, set up goals and report downloads.
When to contact CR
In short, always. Conversion is needed to make a business stronger and, through indicators, track the effectiveness of sales processes, and also understand how and at what stage of the customer's contact with the product's advertising, revenue can be significantly increased. In addition, it helps to correct a number of important points:
Find a weak spot in the funnel and understand how to rebuild it more effectively . For example, at one of the stages, a user drops out. As a result of analytics, it turns out that the reason is not in the ad or the quality of the product, but in bugs in the application form. Therefore, when tracking conversion, you will be able to respond more quickly to changes in the funnel - this will allow you to quickly correct the situation and not waste time.
Affect ROI (profitability or loss level) . If you increase conversion why would you choose our database at each stage of the sale, then the income from advertising will be higher with the same costs. We will discuss this point in more detail below.
Test innovations . For example, when you change the design of the site or introduce a new product for sale. The coefficient will show how much these innovations can benefit the business.
Make more accurate forecasts and build media plans . This can be done if you constantly monitor changes in indicators and understand at what costs you will have a certain number of clients, and how much money you need to invest to get the maximum profit.
Change in CR - change in profit
Let's imagine that in our example about a T-shirt store, the client gets to the site from an advertisement. The average price per click is 30 rubles, the advertising budget is 30,000 rubles.
With a conversion rate of 2%, a business can make a profit of 30,000 rubles. But what if you increase this figure to 10%? See how much the profit value changes: