Calculate conversion rates for your online business
Creating traffic to your online shop is one thing and converting them to customers is another. You can have 500 potential clients but nurturing them into clients can be difficult. However, you should know that you cannot nurture everyone to be a customer. Knowing the conversions you make is easy using this calculator. Are you supposed to divide, subtract or add? You don’t know, and that is ok. The calculator does the conversion for you. Under this calculator, you are able to get two other tools. One of them is to calculate cost per conversion. The other tool calculates the rate of conversion.
Filling two fields is enough to give you the cost per conversion. Cost per conversion is calculated by entering the advertising expenses and conversions. Conversions is the number of people you have managed to convert into clients. Spending a lot of money on advertisement without making any conversions is a loss. You should get back the money you are using on advertisement.
Apart from knowing about the cost the conversion, the rate of the conversion is important. The rate of conversion helps you make better decisions. If you have a high rate of conversion, you will feel motivated to invest. On the other hand, poor conversion rate is not encouraging. This calculator enables you to know about. For instance, having 20 visitors and converting 14 of them is great.
In the first tool, you will enter the cost of advertisement and the conversions. For example, if advertising cost $40 and you have 10 conversions, those are the details. Entering the cost and the conversion will give you cost per conversion. Under the conversion rate tool, you will enter the number of conversions and the number of visitors.
Keeping record of the number of leads you get is good. It helps you track the direction your business is taking. Higher conversions mean that you are progressing well. This motivates you to put more effort in creating more leads. On the other hand, low conversion rates are discouraging. They might make you exit the market. As a business person, you have to bear all the risks. If you find that the cost per conversion is high, you should check where the problem is.
Another importance is for record keeping. The government has a financial year, does your business have one? If yes, you will need the records to evaluate the performance of the business. You would like to know how many customers you made in a year. You would like to know whether or not your online community is growing. If it is growing, at what rate? This information is important in ecommerce.
Conversion calculator is the most important calculator. It is a tool that should not miss in your calculations. It is a tool that gives you a huge picture of your business’ performance and growth.