Conversion in sales: what is it?

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Conversion is one of the key indicators of business efficiency, determining the success of the company. Alexander Aleshin, CEO of the digital agency Roicontext, an expert in building sales departments and system management, spoke about the calculation, analysis, reasons for low conversion and ways to increase it.

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Content :

Types of Conversion
Why do you need to know conversion?
Conversion calculation formula
Features of sales funnel conversion
Conversion Value Analysis
What is the average conversion rate?
Reasons for low conversion
How to Increase Conversion? Attracting Attention, Arousing Interest, and Creating Desire

Conversion in sales: what is it
Conversion in sales is the percentage of bolivia whatsapp phone number customers (leads) who have completed a target action (purchase, subscription, registration, etc.) to the total number of visitors or potential customers. In other words, conversion shows how successfully your business turns potential customers into actual buyers. This metric is the most important indicator of the effectiveness of marketing and sales efforts.



Types of Conversion
There are several main types of conversion that play a role in marketing strategy.

Conversion rate (CVR) . This type of conversion measures the percentage of visitors who have completed the desired action (e.g., a purchase) relative to the total number of visitors. CVR is one of the key indicators of the success of an online store or website.
Pageview Conversion (CR): This metric measures the percentage of people who viewed a certain number of pages on a website or blog. A high pageview conversion rate can indicate engaging and interesting content that can keep visitors on the site.
Form fill conversion (FVR). This type of conversion evaluates the percentage of visitors who filled out a form on the site to obtain information or leave contacts. This indicator is important for assessing the effectiveness of landing pages and marketing campaigns.
Lead conversion rate (LVR). This indicator reflects the percentage of visitors who became leads, i.e. expressed interest in the product or service (for example, left contact information). LVR is important for assessing the effectiveness of lead generation and the work of the sales department.
Repeat Purchase Conversion Rate (RCR). This conversion rate measures the percentage of customers who make a repeat purchase or continue to use the company's services. RCR is an important indicator of customer loyalty and the effectiveness of loyalty programs.
Each of the listed conversion types has its own significance in the context of evaluating the results of marketing and advertising campaigns. Understanding and analyzing different conversion types helps marketers and advertising specialists optimize their activities and improve the efficiency of business processes.


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Where to find clients and how to increase sales? Find out in the course "How to make money on sales" .
Why do you need to know conversion?
Conversion rates need to be known to understand deviations at a particular stage of the sales funnel. It's like measuring the temperature of the human body: if the temperature is 36.6°C, then we understand that everything is fine with the body, and if it is higher than normal, this is a reason to be wary and take measures to prevent illness. Such a "disease" in business can be, for example, a decrease in sales or target customers.

In general, knowledge of conversion is necessary for the following actions.

Optimize Marketing Efforts. Understanding conversions allows you to evaluate the effectiveness of marketing campaigns. Using conversion data, a business can determine which channels are driving the most sales and thus optimize promotional efforts by directing more resources to the most successful channels and strategies.
Improved user experience. Conversion analysis helps identify obstacles to completing a purchase. By identifying weak points in the sales funnel, companies can make changes to improve the user experience and increase conversion.
Website and content optimization. Conversion research helps determine which elements of a website or content attract attention and motivate users to take action. Based on this data, companies test different design, content, and marketing options to improve conversion.
Maximizing profits. Increasing conversion directly affects profits. The higher the conversion, the more customers will make a purchase, which in turn will lead to increased earnings.
Making informed decisions. Understanding conversion helps companies make informed decisions based on actual data rather than assumptions. This allows them to be results-oriented and change strategies according to actual customer needs and preferences.
There are examples when everything is fine with profit in business and money comes into accounts in large volumes, even despite the relatively low conversion. Of course, the owner of the company may be quite happy with this state of affairs, but if you work hard to increase conversion, then the profit can be increased many times over.