Any business uses various promotion tools. This can be outdoor or contextual advertising, the use of branded products, e-mail marketing, advertising on social networks. The goals of all of the above are: providing information about a product or service, increasing customer loyalty and brand awareness, stimulating purchases. In order for advertising to work like clockwork and not waste money, it is important to know how many people who saw the advertisement actually buy the product. To do this, you need to regularly analyze sales conversion. Simply put, conversion shows how effectively advertising turns visitors into buyers. This will help you understand which advertising tools are working effectively, and which need to be improved or turned off altogether. In the article, experts from the digital agency 360 MEDIA explain what sales conversion is, how to calculate sales conversion and how to increase it.
Conversion in sales – what is it in simple words
The beautiful term “conversion”, derived from the English word conversion (“transition”), denotes the consumer’s movement to the next stage of the telemarketing data sales funnel. In practice, this usually means the last stage, i.e. making a purchase or ordering a service. Sales conversion is always measured as a percentage.
When talking about what sales conversion is in simple terms, it is worth giving an example.
Over the course of a month, 500 people came to the computer store. Of these, 150 people performed the target action — purchased a computer. The conversion rate in this situation will be 30%.
Depending on the type of activity of the company, some other steps may also be considered target actions (a website visitor put an item in the shopping cart, attended a free trial lesson on paid online courses). Since these actions to a certain extent affect the volume of sales, it is also recommended to track their conversion.
How to calculate sales conversion
Now let’s find out how sales conversion is calculated. The calculation formula looks simple: it is the ratio of the number of sales to the number of visitors, multiplied by 100.
Accordingly, the daily conversion rate was 10.55%. Calculations can also be made for another time period: week, month, quarter, year.
The only difficulty may arise when calculating the number of motivated clients. Different methods can be used to determine this indicator. For example, in online sales, users who left a request on the site through a specially designed form are counted.
Ways to Increase Sales Conversion
Once you have figured out how to calculate sales conversion, you will need to think about ways to increase it. They can be very different.
- Website optimization aimed at improving functionality. If the interface is inconvenient, contact information is difficult to find, and the b2c reviews photos in the product catalog cards are of poor quality, it is not surprising that most customers leave without making purchases.
- Improving the work of the sales department.In such situations, the result is, unfortunately, obvious. Professional courses and trainings help to get rid of such mistakes.
So systematic work on studying conversion rates and increasing them is very important for the successful operation of the company. To significantly fl number increase sales rates, it is worth using the services of professionals. The team of the digital agency 360 MEDIA will conduct a detailed audit of your situation and offer an effective solution that will help achieve the most ambitious business goals.