Sales conversion: how to calculate using the formula and why is it necessary? Examples of super conversions in online sales. Conversion depends on the customer acquisition channel

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Conversion is an indicator that characterizes the success of any commercial and non-commercial project. Typically, this term refers to the number of visitors who performed a certain action.

Conversion concept

Store conversion is the ratio of people who made a purchase, i.e., who became customers of the store, to the total number of visitors.

For online commerce - this number is expressed as the ratio of people who visited the site to the number of people who made required action. For example, a person who visited an advertiser’s resource made a call to a consultant and went to desired page, subscribed to the newsletter, made a purchase, and so on.

For non-commercial projects, as in the case of commercial projects, conversion is the ratio of visitors who performed a certain action to their total number.

E-commerce conversion

We can conclude that website conversion is one of the most important indicators of the success of any Internet business. It is also a kind of indicator of the quality of the Internet resource and all stages of work with the client.

To increase it, it is necessary to work not only on the number of people who visited the site, but also on tools that allow you to turn a visitor into a client. That is, both qualitative and quantitative characteristics should improve.

In this case, the goal will be to identify site flaws, sources of non-target traffic, poor usability, and so on. Based on conversion data, identified deficiencies should be addressed.

Sales conversion - what is it?

The optimal conversion level is considered to be 2-3%, which means 20-30 achievements of set goals for every 1000 site visitors. However, depending on the type of business, this indicator may differ significantly. In any case, having statistical data, you can carry out very effective activities aimed at increasing impact and increasing conversion.

The goal of increasing conversion is to improve efficiency and impact. If every 1000 of your visitors brings you 2 sales, then this is an extremely low figure. An acceptable average level is considered to be 2-3%, i.e. 20-30 sales for every 1000 visitors. However, this indicator may vary significantly for different lines of business.

E-commerce efficiency

For websites ecommerce There are several factors that significantly influence sales efficiency:

Visitor behavior on the site

Search and advertising traffic

Analysis keywords. To increase conversion, you need to find out what queries people come for the largest number refusals. If there are a lot of them, it is quite possible that the semantic core of the site is composed incorrectly or is not sufficiently developed.
Contextual advertising and transitions from search engines. Just as in the previous paragraph, it is necessary to identify the most effective key queries. And also work on the content of ads in contextual advertising.

Of course, these are not all the characteristics, and this list can be continued for quite a long time. You just have to understand: website conversion is a value that depends on many conditions. And it is necessary to obtain as much statistical data as possible and use it to improve efficiency.

Other concepts of conversion

This concept is also applied in foreign exchange transactions. Currency conversion is the exchange of one currency for another at the current exchange rate at the time of exchange.

The term is also applicable to the military industry. In this area, conversion is the transition of a plant that produces products for the military complex, for example, tanks, to products for the civilian sector, for example, tractors.
By the way, most machine-building plants built during the USSR were designed for the possibility of rapid reorientation of production.

This term is also used in chemistry and linguistics. In fact, conversion is the transition of one substance or concept to another. Of course, the concept of conversion has gained the greatest popularity in commerce. Since it allows you to reflect the most important indicator the effectiveness of various activities aimed at attracting new customers.

Conversion example

In conclusion, we can say that the achievement high level Conversion should not become an end in itself. The following example can be given as an illustration. Let's say there is a website for a commercial organization. 100 people visit it per day, 5 of them place an order. In this case, the conversion rate will be 5%.

And there is another organization, it also has a website. Its daily attendance is 1000 people. Of these, 30 visitors achieve their goal. In this case, the conversion will be 3%.

From this simple example You can understand that high conversion in trade is not an indicator of the success of the project. This is a parameter that needs to be constantly analyzed and, based on the findings obtained, increase both the number of visitors and the number of customers received. Moreover, there are many ways to increase these indicators.

Any businessman, regardless of the type of activity, participates in sales, these can be goods for the population or services, the definition of the potential development of his production is ─ sales conversion, what is this, if not an indicator by which the success of a business can be determined.

A store visitor or Internet user always comes for some reason, it turns out that he is a potential buyer. Often people, having examined the counters of a retail outlet, leave without making a purchase, so it is important to select products according to the assortment and provide high-quality service. The task of any business is to make a profit, and its development depends on the number of clients attracted. How correctly a businessman runs his own business determines the marketing indicator ─ conversion. Let's look at it and give a full definition of this parameter and how to improve it.

What is sales conversion?, ─ and this is a parameter of a marketing strategy that shows the ratio among real buyers (people who paid for the service) and potential clients who can buy the product, but for some reason do not.

Experts believe that a novice entrepreneur should become familiar with this definition as early as possible; it is this indicator that provides an in-depth analysis of the business and identifies mistakes made in sales. The parameter (conversion) is calculated in %; there is no general, single conversion value; each business has its own indicator, which depends on the conditions and specifics of small business production.

In business, it is always necessary to improve the growth of sales conversion; the higher the percentage, the better. It is possible and necessary to calculate conversion; as an example, we can cite 100 visitors to a small business outlet who came after seeing regional advertising, out of none, only 30 people made a purchase of the product, one might say. That the sales conversion was 30% after marketing actions.

The conversion rate is also the main one in the information business for assessing Internet resources. Which common mistakes What a business owner does, according to marketing experts, is:

The client is potentially ready to purchase the goods complete information on it, to make a decision about its purchase. In this case, it is recommended to review promotional activities and supplement the information field about the products. You can make video materials about how the products work or what benefits they have. Use information on Internet resources to reveal the usefulness of products.

The product quality is not as advertised as stated in the advertisement. For some reason, the buyer is not satisfied with the quality. It is necessary to work on the quality of products and services. Bring the product to a new, higher quality level.

The seller or manager approaches the fact of selling the goods incorrectly. Working with the client at this stage is very important, when the buyer is ready to buy, and the seller does not respond to his readiness, he may lose the client. To prevent this from happening, it is necessary to constantly conduct training, sales training and work with visitors.

Sales conversion by definition ─ percentage the relationship between visitors ready to purchase products and visitors: those who entered a store, an outlet in a service studio, but did not make a purchase.

What is conversion rate

When considering the question of what conversion is in sales, it is necessary to dwell on the conversion level, ─ which is also determined by the percentage of visitors who did not make a purchase to visitors who bought the product.

How to master these terms using conversion examples is:

conversion level in Internet resources, ─ the ratio determined by the number of people who visited the site to the number of people who performed certain actions, transitions, searching for information, leaving comments.

Conversion rate is an indicator that determines the success of an entrepreneur in a marketing strategy that attracts customers to make purchases.

The interpreted actions of a successful conversion are different for different types areas of entrepreneurship, namely:

For a businessman engaged in trade, the conversion level is the criterion for purchasing products.

For people in the information business, this indicator means the number of visitors to the Internet resource.

It is necessary to emphasize that the conversion rate does not only apply to electronic means of distribution information product, as an ultimate goal, ─ but as an indicator for performing actions and obtaining benefits according to the formula: show-interest-sell.

The word conversion comes from the Latin expression “convercio” ─ how to calculate conversion, which means transformation, in other words, turning a potential buyer into real client making a purchase. A regular customer is the one on whom sales are based and brings profit to the entrepreneur.

The conversion rate indicator is always calculated as a percentage, which shows how much a novice businessman or small business owner follows the correct policy in working with the client base.

Conversion calculation examples:

when to the point retail owned by you, 100 people come every day for a month, and only 5 of them make a purchase, then your conversion at the point of sale will be 5%;

for wholesale trade workers, the conversion indicator is the number of calls you made, say 100, and 4 companies became clients for regular purchases, your conversion is 4%.

With the help of conversion, you can simply determine how the competition for a buyer is going on with competitors; for this, experts suggest general concept divided into intermediate indicators. They also look at conversion rate as necessary definition sales funnels.

Let's consider the proposed model, what it consists of general meaning conversion parameter:

Indicator No. 1, which determines the quantity random people who passed by and, thanks to outdoor advertising, entered it. Determines efficiency appearance retail outlet, store, studio.

Indicator No. 2, which determines the number of those who came in and began to look at the products, try them on, and ask about the usefulness of the product. Determines how your managers work with clients, how competently they use sales technologies.

Indicator No. 3, it determines the people who tried on the product or were interested in it from indicator No. 2 to become a real buyer.

Indicator #4 indicates customers who liked your products or services and made a purchase again. This is a criterion for the professional efforts of your company’s personnel to attract direct buyers.

With the improvement of intermediate indicators, which can be increased by working on advertising and carrying out certain events, the overall percentage of conversion increases, which increases your sales.

Conversion and sales funnel

Many novice entrepreneurs have little understanding of the question of how to calculate sales conversion, ─ what is a sales funnel and how they are connected, even more so. Let’s define a sales funnel: it is not an indicator like conversion, but a tool for a businessman’s action. This is when a potential consumer of your product goes through the transformation from attracting attention by advertising your product to deciding to purchase it.

An entrepreneur who owns a business tool, a sales funnel, using conversion parameters, can significantly increase the sales of his own products.

There are often situations when the supply in the region for a certain group of goods exceeds the real demand for them, for this reason direct attraction of customers becomes less effective; it is necessary to influence the client indirectly, determining his needs.

In sales marketing, this is expressed by the following stages of client transformation (conversion)::

you need to take the necessary actions to get him interested in your products;

working with the buyer, the manager, using sales tools, achieves the client’s desire to purchase products;

as a consequence of the previous stage, the purchase of goods by the client.

The seller’s task in this entire issue is to do everything so that the client’s attention develops into the actual purchase of the product. The tool is called a funnel figuratively when the buyer “falls” into it and reaches final result, purchasing goods. Factors that influence the increase in potential consumers are:

How is a product or service promoted on the regional market: advertising materials, organizing promotions with product demonstrations.

Give a full understanding to the future client of the need to purchase goods only in your network of stores, show clear advantages.

Many ongoing staff trainings do not fully disclose such a tool as a sales funnel.

Every entrepreneur who can own a marketing tool can find out ─ sales conversion, what it is, how to calculate it for the entire enterprise and individual departments as a whole. Using these indicators and the action tool, you can understand at what stage the store is losing greatest number potential buyers.

The sales funnel is calculated taking into account sales conversion rates. The use of Internet resources and its analysis, marketing activities, this indicator is the most important. It’s no secret that many people do business on the Internet; indicators such as website conversion can understand its effectiveness.

As an example, we can consider the creation of an Internet portal, the required amount of money was spent on advertising.

Eventually :

According to the counter, 4,500 people visited the site in a month;

According to contact information, only 150 people called to complete the purchase, which means the conversion was only 3%;

This is not the same result, but it can be raised to 30% conversion.

There is such an indicator as refusals, ─ this is when the user spent less than 10 seconds on the resource and did not take any actions. Often visitors, not finding what they need, immediately close the site window. In this case, there is a formula for sales conversion, this is: Conversion = the number of visitors who made a call (X), divided by the difference between visitors and refusals (Y -Z) multiplied by 100. K =Y /(Y -Z)*100

Stages of correct sales building taking into account conversion rates

Let's consider several variations of building a sales funnel, which will give predictable profits in a small business, and business activity will not be chaotic. The stages of creation are:

The initial stage, at which proposals such as what product you will sell or what service you will provide are worked out in detail. A sales proposal must be compiled taking into account various parameters to reflect the buyer’s benefit. Examples of correct attraction:

interest in cost: “If you find a product cheaper, we will compensate you for your search and give a 25% discount for those who buy from us today”;

attraction by deadlines: “Our company will provide the goods directly to the office immediately upon conclusion of the contract, if this does not happen, every minute of delay will cost 1 ruble as compensation for the wait”;

a reflection of the quality of your products: “If the product does not meet the stated parameters, we will give you an additional set as a gift.”

Identification of potential clients. To achieve a good customer base, you need to pay attention to factors such as:

how the seller communicates with the buyer;

how competently the seller communicates with the client;

how he uses gestures and touch correctly;

how he can make acquaintance with a potential client.

We create interest.

We work on the client's objections.

We successfully complete the sale.

We analyze successful sales.

We try to increase conversion using marketing tools, these are:

We offer free delivery of products;

the ability to add a new type of product at the request of the client;

consultative communication with the client;

providing information support.

The basic rule for increasing the conversion rate ─ and making purchases by the client is that the seller should always see the buyer, at the first hitch in choosing a product, he should immediately come to the buyer’s aid and answer all questions.

Understanding that conversion rate is a sign successful business If he is tall, you should always strive for his height. To do this, it is enough to consider intermediate conversion indicators. Analyze the company's activities by stages. When accepted correct actions, then the conversion level will increase, which means there will be more sales, and the profit of the business will be higher.

Your business can perform better and bring in more money. You already know this. But! He can do this right now.

That is, with the initial data that we have now. All you need is to increase your sales conversion. What it is and how to get the most out of it, we’ll look at it in this article without cats or complicated words.

It is sales conversion and its increase that influences more buyers to turn from potential to real.

This indicator is included in the TOP 5 required for calculation. And how to do this in a store, sales office, showroom or even an online store, read on.

Oh those concepts

Since I don’t really like theory, I propose to call it a day. The only thing I want to talk about is that there are currently many types of conversions.

However, I will highlight three main types, which are the most common, and which any businessman must know as a prayer:

Conversion in advertising. This is the ratio of the number of hits/clicks on an advertisement to the impressions of that advertising message.
Offline conversion. This is the ratio of the number of buyers to the number of people who entered the shopping area.
Conversion on the site. This is the ratio of people who performed the target action on the site to the number of all visitors.

Based on this, you can do main conclusion. If your company uses several platforms (store, online store and office), then there will be several sales conversions and the data on them will vary.

Also, how will the conversion differ in the context of: product, target audience, region, etc. But first, start counting the minimum and simple steps, and only then go deeper.

Important addition. In business, when we talk about conversion, we usually talk about it as part of the sales funnel. Therefore, be sure to study our article. Believe me, all this together will change the way you look at your business.

We count and forget

In our materials we constantly repeat that business is, first of all, numbers, not feelings.

There is a small part of luck, but everything else is based on very real facts. And the more indicators you own, the easier it is to manage, control and develop it.

https://youtu.be/N9VEJmoYMJI

For example, how well target clients come to your advertising company or how well your salespeople work.

But! I'll be honest with you, conversion rate is not the main indicator in marketing. He is important, but not the main one.

The most important thing is profit. And if every second person buys from you, but the average check is three kopecks, then there is no point in calculating the conversion in this case.

https://youtu.be/yt_UFfjUCLw

Therefore, as I already said, it is imperative to calculate sales conversion, as you will see a lot useful information. But conversion can be deceiving.

Always check the purity of the analysis with such additional indicators as: transaction length, net profit.

THE CLEAREST Formula

https://youtu.be/sCLAeikUmUs

Therefore, there is no ideal conversion rate in the market. Everyone will have their own. And to determine it, you take the first metrics from your business in a month, after which you make it a minimum plan and look for ways to develop.

Introduce innovations and then look at the results. If everything goes up, then you have a new minimum bar. And so on in a cycle.

Enhancement Methods

IN Lately We get a lot of people thanking us for saying that our articles contain a lot of useful information thanks to practical information that people can take and apply here and now.

By tradition, this article will not be an exception. And I will give some universal tips for all types of contacts. They will not cover the topic fully, but will be a nice addition.

Count the number of people. Both those who came in and those who bought. Do this daily. This can be done manually or using special systems and services.
For complete beginners, you can use online table in Google.Docs, which your soldiers will conduct and you will see and check daily.
Simplify your sales. Make navigation, good, selling price tags and. For some this will sound banal and perhaps even mockery, but most businesses still don’t have this.
Simplify your purchase. Add the option to purchase using a card, credit or installment plan. This will be especially true if it is an installment plan from a store.
For example, one of our clients introduced a similar installment plan for 4 months. The results exceeded all expectations. Non-refundability barely exceeds 10%, but the sales conversion rate (especially for expensive products) has increased by 20%.
Organize a competition. If you have 2-3 shifts or 2-3 sales managers, then organize a competition between them for the highest conversion.
The point of the competition is that whoever has the highest conversion rate over a certain period of time will receive a prize.
The only thing is to make sure that there is no collusion between these comrades, otherwise your whole idea will go to waste. More details in our article “”.
Add more contacts. You must not only have a telephone number for the region in which the office/warehouse is located, but also a toll-free 8-800 number, Email.
You want to make this journey as easy as possible at every step. For example, on the site remove great amount fields in the application form or make a call to your company without unnecessary actions with an answering machine.
Implement sales scripts. Sales conversion in staff work is easily increased through training effective communication with clients.
But you most likely don’t have this. But in vain. When an employee works according to the structure of an ideal salesperson, conversion increases.

Briefly about the main thing

When we talk about a new blog article, we spend quite a long time choosing what exactly to write. In the case of sales conversion, we didn’t think long about it.

It is necessary to count the conversion. Without any conversations, objections, etc. No matter what the staff says, no matter how much you hate this innovation, implement, monitor and constantly work to increase sales conversion.

But remember the text you read above, namely the section “conversion can be deceiving.”

This indicator is amazing and if you haven’t calculated anything before, you will be surprised by the results. And if you already think, then quickly go deeper and see this indicator in the context of people, products, advertising channels, time, place, etc.

We are glad to welcome you to the pages of our website. The editors of IM magazine are in touch. Since the launch of our project in November 2016, we have managed to talk about many areas of Internet marketing. The time has come, dear reader, to open another very interesting branch - website conversion.

Today we are in general outline Let's look at this concept, learn how to count conversion, and also talk about the main ways to increase it. Are you ready? Well, then go ahead!

Conversion is the ratio of the number of customers to the total number of visitors. In particular, if we consider the site, this can be the number of leads (applications left on the site) to the total number of site visitors, for certain period time. But you shouldn’t count the conversion for one day; it’s better to count it for fixed fixed periods - by weeks.

For information resources, such as our site, for example, conversion is the “transformation” of site visitors into regular readers and subscribers who comment, share articles on in social networks and if blogging is possible, she creates the content herself. For some online stores, the conversion will be a repeat purchase. There are many examples that can be given, but I think you get the point. Requests for which a purchase or targeted action is made are called . They also need to be tracked.

How to calculate website conversion?

As we said above, in order to calculate the conversion, you need to divide the number of hits from the site by the total number of visitors and multiply by 100%. For example, if 76 applications are received from the site per week, and 1301 visitors visit the site during the week, then the site conversion will be 76/1301*100%=5.84%. Not a bad indicator at all.

Conversion can be calculated not only for a website, but also, for example, for a retail outlet. For example, by installing a counter at the entrance, you can count how many people enter the store every day. And then calculate the conversion using the same principle. Conversion can also be calculated for individual traffic sources: , , social. networks, and so on. But in this case, it is better to do a more in-depth analysis using web analytics tools. For example, a user came to your website for the first time after seeing an advertisement in YAN, and made a purchase a month later and entered the site address in the browser (Direct access).

What affects conversion?

Conversion is influenced by many factors, from advertising banner or the title of the advertisement, to the color and location of the order button. And now on the list.

1. Packaging or design. They greet you, as they say, by their clothes. If you go to business meetings in a tracksuit, then most likely the maximum that you will be able to convert into a deal is 1-2 meetings, but if you are wearing a good suit, then the conversion from a meeting to a deal will increase significantly.

The same applies to websites, especially in highly competitive topics. Everything must be perfect and verified down to the smallest detail: fonts, background, colors and the overall appearance of the site as a whole.

2. Ease of use or usability. Imagine yourself in the user’s place, if when you get to the site before submitting an application or necessary information, you need to go through the “9 circles of hell”, then everything is very bad. Therefore, the site should have convenient menu, logical structure, the ability to quickly send a request or order a call, service calculator, question-answer section, etc. And the most important thing is that all this should be organically combined with the design.

The main criteria that should be met for the content of a site are information content, beautiful design, competent structure and correct writing. You can also use explanatory videos or infographics.

4. Website accessibility. The site must be available 24 hours a day, seven days a week. Maybe you forgot to pay for hosting? Then most likely you have lost clients. Maybe the server has crashed? Tell a couple more buyers in the meantime. Always monitor the availability of the site, set up notifications in case the site is unavailable, and if this happens, change the hosting or server.

In addition to this, the site must open correctly on mobile devices, in all browsers, pages load quickly, and all links work correctly.

5. Advertising company. Yes, the way visitors come to your site also influences conversion in a certain way. At the same time, different traffic sources can convert in completely different ways. And this depends primarily on compliance with what is stated in advertisement, the content of the site itself. If you write that you sell windows for 3,000 rubles, then when you go to the site, the user should see this offer. Otherwise, he will think that they are trying to deceive him and will simply close the site.

How to increase conversion?

It is logical that in order to increase conversion, it is necessary to work with the factors influencing conversion listed above. But it’s easy to say, but what to do, you ask. In response, we provide a list of specific actions that will help increase website conversion.

1. Place contact number phone number in the site header. Place buttons for directions, contacts and operating modes in close proximity.

2. If the company has licenses, certificates, letters of gratitude, customer reviews ( better video), then create for them separate sections or place it on the main page.

3. Make more gripping shapes. Ideally, on each page there should be an opportunity to leave a request for a consultation or purchase.

4. Check that the site is displayed correctly on all devices and in all browsers. Even if your site is displayed well everywhere, but in Internet Explorer crooked, this means you can lose those clients who use this browser.

5. Catalog of goods with current prices.

6. Possibility to download a price list or commercial offer.

7. Minimum barriers for the client. For example, in the form feedback Just one field is enough - phone number or e-mail to contact the client.

Even by implementing these seemingly simple recommendations, you can get very good result and a significant increase in conversions. Later, after completing the basics, you can move on to more subtle aspects that also affect conversion: the size and color of buttons, page titles, location of capture forms, etc. But this is a separate topic on A/B testing.