Sales efficiency is one of the components of the well-being of an enterprise. Business owners, company directors and sales managers are interested in increasing the company's income and profit.

What are these indicators for?

To ensure profit growth, they direct their resources to control sales. It is important not only to create and debug the sales process, but also to constantly monitor how well certain goods and services are sold.

There are various factors behind successful sales;

• quality of goods/services;
• pricing policy;
• point of sale/website design;
• quality of service;
• professionalism of contact zone personnel;
• assortment and usefulness of the offer, as well as other indicators.

All these must be taken into account and controlled. You should analyze sales in a campaign based on specific numbers. To obtain these numbers, various methods are used to measure the effectiveness and efficiency of sales.

Conversion is one of the fundamental indicators of sales success

Using sales conversion, you can track the relationship between potential and actual customers. Real buyers are those visitors (of a store or online resource) whose visit resulted in a purchase. Potential customers are all those people who visited a company's website or retail outlet but did not make a purchase. They were all interested and could have purchased the product or service that the company was offering, but something prevented them from doing so.

Each visitor who does not make a purchase is a lost sales opportunity (income). Conversion allows you to track the number of missed opportunities and provides digital material for analyzing the reasons.

Conversion calculation is the basis for development and improvements

Focusing on an indicator such as sales conversion, the manager receives a kind of “feedback” from consumers. If out of a hundred visitors to a retail outlet or online store, only one made a purchase, this may indicate that 99 potential customers were dissatisfied with something. The manager has the opportunity to monitor the indicator, analyze its level and implement changes.

Thanks to conversion, you can evaluate the effectiveness of the company’s marketing policy as a whole and the effectiveness of each sales manager individually (if there are individual sales).

Conversion will allow you to track customer reactions to:

• marketing promotions;
• price changes;
• updating the assortment;
• increasing the professionalism of employees, etc.

By regularly using the tool, you can change your sales situation for the better and track these changes even within one working day.

Rules for calculating the indicator

To calculate conversion, you need to keep track of not only completed sales, but also track the number of potential transactions. For Internet resources, the number of site visitors is tracked. The call center takes into account the number of all unique incoming calls (for active telephone sales, the number of unique outgoing calls is also recorded). At a retail outlet, the number of visitors is recorded by special counters installed at the entrance, or using a questionnaire.

Conversion is determined as a percentage and is calculated using the following formula:

(number of actual buyers/number of potential buyers)* 100You can take almost any period for calculation: 1 day, 1 week, 1 month.

Conversion can be identified not only by overall sales in a company, but also by a specific product, service, promotion or special offer.

Activities to increase conversion

Increasing conversion is turning a company's potential income into real income. Calculating and tracking the indicator is the starting point for increasing sales. The result depends on how sensitively the manager reacts to the dynamics of the indicator and what steps he takes.

Since there are many factors that determine sales effectiveness, measures to increase conversion are also varied. It is important that actions are thoughtful, targeted and systematic.

For example, if a manager assumes that the reason for low conversion is the professionalism of the staff, then a comprehensive analysis should be carried out: are the staff sufficiently motivated, do the employees have the proper level of sales technology, do they have enough special knowledge of the product, is the available number of employees capable of processing the existing flow clients, etc. Based on the analysis, a decision is made to conduct training, revise motivation or expand staff.

Methods for improving indicators at a point of sale

Methods for increasing conversion in online stores

1. The main page of the site should contain the basic information that the client needs: the entire range with photographs and prices, payment options, delivery terms, contact information;
2. The site should be made convenient and intuitive;
3. The product catalog must contain the entire range and be equipped with various filters so that the client can find the product he is interested in in a matter of seconds;
4. An opportunity for the client to quickly and easily make a purchase and complete it in one click without a lengthy registration procedure in the system and specifying detailed information about himself. The simpler the procedure for ordering a product or service through the website, the higher the likelihood that the client will make a purchase;
5. The website must contain information about the competitive advantages of the company (store). This will help motivate the client to place an order;
6. When viewing the catalog and going to a particular product, the client should always be able to access information about payment and delivery without additional transitions to separate pages about delivery conditions and payment methods;
7. When placing an order, the client should see a list of the goods he has selected, the cost of each product separately and the total amount of the order;
8. Communication with company employees should not be difficult. The ideal option is the availability of all communication methods: telephone, toll-free number 8-800, various instant messengers (whatsapp, telegram, skype), online consultant, the ability to order a call back;
9. Online store employees must be trained in sales technology. It is necessary that they have telephone conversation skills and know all the necessary information on the range of goods and services.

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Conversion is the number of users who completed the target action relative to the number of visitors during a certain period of time.

The figure itself is completely unrepresentative, but when analyzed over a long distance, compared with indicators for previous days, weeks and competitors’ data, it allows you to understand how successfully things are going and in which direction it is worth developing.

Conversion Types

Typically marketers divide conversion into two types:

Macro- the direct target action that the visitor performed, something that brings direct benefits to the owner of the site and makes him happy. When talking about conversion and its increase, this is the type that is meant.

Micro conversion- an action that brings the user closer to macro conversion, for example, subscribing to a newsletter, ordering a call back or registering on a website - whatever. It all depends on the marketer’s diagnosis. Microconversion is an integral part of the sales funnel and will be discussed in another article.

How is website conversion calculated?

The simplest formula for calculating conversion is “the percentage ratio of the number of targeted actions to the total number of visitors to the resource.”

Example: 10,000 unique visitors to an online store per day, of which 100 made a purchase, gives (100/10,000 * 100%) 1% efficiency.

More often than not, site performance is calculated over a longer period of time and, when compared to previous performance, is a great litmus test. The easiest way is to take monthly indicators and compare them with the reporting periods of previous months.

Comparison of indicators over the period of an advertising campaign is also practiced, which allows you to determine its effectiveness and make a few notes for the future.

How to find out website conversion using services?

Example: a man was solving the problem of a leaking pipe, he did not want to buy anything. On a website selling plastic pipes, I read an article (“How to fix a leaking metal pipe without getting into trouble”), which solved his problem. If he still wants to change outdated communications, he is more likely to go to the site that has already helped him.

• Value for money

Another factor from Captain Obvious. The better and cheaper the service provided or the product sold, the more orders there will be.

How to increase website conversion?

To increase conversion it is not at all necessary to dance with a tambourine in Altai. There are several obvious ways to influence buyers.

I'll warn you: some of them are invisible when done well. And they cause bloody tears when they are made very poorly. Let's get started.

• Adaptive design

The resource must be displayed correctly in all browsers and gadgets, not just modern ones. Not everyone uses the latest version of Safari, not everyone knows what a browser is. And making a purchase in the mobile version on some sites is done in such a way that it is easier to grab a laptop at the nearest coworking space and complete the order through it.

• Contact details

Each page of the site must contain a link to contacts and opening hours of the store/operators. This information must be prominent and comprehensive.

This information must be accessible and up to date. Access to store prices using a downloadable price list or through center operators significantly reduces conversion, unless it is a yacht boutique. For other stores, you can leave it as an additional option for those who need everything at once.

• Decor

In addition to prices, you need to design the product page well. It should contain a description of the product with reviews and photographs. It is advisable to add the ability to compare with analogues and reviews.

• Certificates and awards

Building trust in a resource by flaunting awards gives you a loyal audience. This is also a powerful argument in disputes with competitors.

• Navigation

The number of clicks from entering the site to making a purchase should be as few as possible. Nobody likes to play Cookie Clicker while purchasing a T-shirt. If this cannot be fixed in any way, it is better to place breadcrumbs so that at any time the visitor can immediately go to the right place.

Conversion rate– a special indicator that reflects the ratio of positive results in any process to general indicators for a specific period of time.

Scope and essence of conversion rate

The conversion rate parameter is used in various fields of activity:

1. Stock Market Conversion Rate used for convertible securities, such as preferred shares or bonds. Here is the total number of common shares that the owner of the security will receive upon expiration of the call option on the convertible assets. Often the conversion rate is presented as the exchange rate for the assets being converted.

The essence of converted securities (most often bonds) is that they can be exchanged for common shares of the issuing company. The conversion rate may vary depending on the type of securities, the success of the issuer and other factors.

The agreement specifies a number of conditions for convertible assets, for example, the total number of shares, the method of calculating the number of assets for which the bond will be exchanged. For example, a conversion ratio of 30:1 means that each bond can be exchanged for 30 blocks of shares. There are situations when the contract includes a provision regarding the likely change in the conversion rate. Although, in practice this is rare.

The main risk of convertible assets is that the issuing company can withdraw its assets at any time, that is, force the owners to convert into shares or vice versa. In this case, the current conversion rate is always used in the calculation, and the procedure itself is called forced conversion.

2. Trade conversion rate is used much more often. With its help, you can compare the results obtained (in financial reflection) in comparison with the total flow of clients. At the same time, the achieved result is assessed taking into account the goals that the company sets for itself.

Conversion rate is relevant today :

- for shopping centers and shops. Here the parameter shows the ratio of the total number of purchases and the total number of store visitors. Using this indicator, one can indirectly judge how well the display case is organized, how the staff works, whether it is convenient for the buyer to choose a product, and so on;

- for commercial sites and online stores a positive result is an increase in the number of visitors who become regular subscribers and readers. Moreover, the more people wrote a letter or made a product, the better the performance of the site itself and the higher the conversion rate.

The key indicator for calculating the coefficient is the number of interested customers, that is, people who are interested in the product but have not yet made a purchase. Thus, by the conversion rate you can judge how well the site works, and not specifically the service managers or sales department. For example, a person may be interested in a product and even call the manager, but for some reason refuse to purchase. However, the conversion rate still remains unchanged.

In practice, the conversion parameter is of key importance for Internet resources. With its help, you can calculate the real efficiency of the site and take timely measures to improve its quality;

- for non-commercial sites. Here, the conversion rate shows how many people solved their problems by visiting the site. To calculate this parameter, as a rule, the following parameters are taken into account - the volume of comments on the site, the number of subscribers, the number of people who downloaded certain files, the number of users who tested all the capabilities of the resource.

In general terms, the conversion rate is influenced by a number of factors. :

- resource competitiveness. This takes into account delivery conditions, price levels, uniqueness, form of payment, popularity of goods or services, and so on. The level of competition and the total number of participants offering similar products are of immediate importance;

- functionality– page loading speed, ease of use of the site’s capabilities, interface accessibility, navigation quality, and so on;

- number of audience. This aspect takes into account the intentions of clients and their motivation.

Calculation and ways to increase the conversion rate

In practice, the conversion rate is most often considered in the field of trade. With its help, you can determine the efficiency of a retail outlet.

You can select several ways to calculate the conversion rate (depending on the area of ​​activity) :

1. Conversion rate in a real store. This parameter allows you to evaluate how well the display window is designed, whether the basic principles of merchandising are followed, and whether the atmosphere of the sales floor is conveniently organized. In this case, special visitor counters are used to calculate the conversion rate.

With their help, you can calculate how many people passing by were interested in the design of the window display. Next, the readings from the external meter are compared with the meter at the entrance to the store. It's very easy to summarize. For example, if hundreds of people walked past a storefront, but only a few people went inside, then this is an unsatisfactory result. In this case, you need to think about making significant changes.

Next, it is estimated what percentage of visitors who entered the store made actual purchases. For example, 500 people visited the store during the day. Of these, 10 bought something. In this case, the conversion rate is calculated using the formula - (10/500) * 100% = 2%.

In practice, for retail outlets in large centers, the optimal conversion rate is 10% or more. In this case, the parameter may change depending on a number of parameters - the item of trade, the location of the shopping center and even the floor.

To increase the conversion rate, a whole range of work is carried out to improve the quality of the design of the retail space, the correct placement of goods, the correctness of the display window, and so on. To attract attention, any promotions, bonuses, and so on can be organized.

2. Conversion rate in an online store allows you to determine the proportion of visitors who take any action on the site or make purchases. Here, calculating the conversion rate can be done using several methods:

- general conversion formula, which is used by most analysts is as follows:

Conversion rate = (Number of visits with conversions / Total number of visits) * 100% = 42/1880*100% = 2.23%.

The disadvantage of the formula mentioned above is that it gives too average indicators and may not be suitable for all sites. By calculating the conversion rate in this way, it is difficult to determine the real state of affairs of the site;

- second calculation option is made taking into account the fact that conversions can be one-time or repeated for a specific visitor. For example, registering on a resource is a one-time conversion that can only happen for one user.

Therefore, instead of the above formula, it is better to use another one:

Conversion rate = (Number of one-time conversions / Number of visitors) * 100% = 42/1311*100% = 3.2%.

In practice, this calculation allows you to obtain a higher conversion rate;

- in-depth calculation is possible only with a detailed analysis of the accounting of resource visits through Google Analytics. For example, every time you access a resource page, special “cookies” files are generated. The most important of them is “__utmb”. Its task is to track the number of visits and users. This file “lives” for about thirty minutes. If a visitor does not take any action on the site for more than this time, then he “dies.” Thus, when calculating the conversion rate, it is not advisable to use direct links to a site that have a further failure. As a rule, the number of such transitions is about 10-15%;

- method of analyzing sessions without failure. In this case, calculating the conversion rate allows you to conclude how good the selling site is overall. To highlight the required parameter, you can use a special segment - “sessions without failures”. The calculation in this case is as follows:

Conversion rate = (Number of visits with conversion / Number of visits without abandonment)*100%.

Increasing the conversion rate allows you to increase the number of visitors who will perform a certain action on the site, for example, buying a product or taking another action.

Wherein the conversion rate optimization process is carried out in several stages :

1. Research is being carried out. Here it is important to collect data about the company and the operation of the site, understand the problems that the organization is trying to solve, highlight the unique features of the offer, understand the intricacies of sales, and analyze traffic.

2. A hypothesis is formulated. At this stage, you need to understand what parameters are being checked and why, who and where to check. Based on the data obtained, a decision is made to implement certain changes.

3. Experiment. Here you can not only plan changes, but also calculate their potential effectiveness. In particular, it is important to decide whether the adjustments will be effective, whether they will bring more benefit than harm, and whether they can actually be implemented.

4. Implementation. Here all plans come to life.

5. Evaluation. All that remains is to evaluate how effective the increase in conversion rate was.

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Hi all. Today we'll talk about how to calculate website conversion. I was recently asked about this and I was quite surprised. I thought that everyone already knew about this, since everyone around was operating with this concept.

And it’s not surprising, knowing the conversion at each stage, you understand what you should pay attention to, where there are shortcomings and at what stage potential clients “merge”.

We will talk about what a sales funnel is in the next article.

But there really isn’t this information on the blog, and with this article I want to fill the gap. Yes, many people are no longer interested in this, but the query appears in searches quite often, which means that the topic of calculating conversion is not obvious to everyone. So there will be a micro-note on my resource.

What is website conversion

Conversion is an indicator that displays the percentage of site visitors who completed the target action we need. That is, the number of people and a given sample that on the site did what we expect from them (left a request, bought, ordered a service, called, etc.).

How to calculate conversion

You probably already guessed from the previous paragraph. Let's look at the simplest example. Let's say we want to calculate the website conversion for today.

Let's say 1000 people visit the site. Of these, 100 completed the target action we needed - they bought. To calculate the conversion to purchase, you need to divide the number of people who made a purchase by the total number of visitors and multiply by 100%. That is:

• (100/1000)*100%
• We will get a conversion of 10%

I think this is clear.

But in reality, such a number will not tell us anything. It’s not clear what to do with him next. Therefore, it is important to consider the conversion chain and track it at each stage constantly. After all, not everyone bought at once, someone left a request but did not pick up the phone, someone answered and agreed to come to the meeting, someone after the meeting decided not to work with you, with someone you signed an agreement and you finally have then bought it.

Counting conversions at each stage is called a sales funnel. By measuring your conversion rate at each stage, you can understand your weak areas and try to improve your performance at each of them.

We’ll talk more about the sales funnel and the conclusions that can be drawn by analyzing conversion at each stage in the next article.