Converting people. Everything you need to know about conversion. Search and advertising traffic

Greetings, my dear readers. Ruslan Galiulin is in touch. Today we’ll talk a little about terms and sales. To evaluate performance, businessmen use various tools and methods. All of them help to understand whether the sales process is well or poorly organized, and what mistakes were made when organizing sales. One of the best methods is to calculate conversion rates.

Every visitor who simply comes into a store to look (including an online store) is considered a potential buyer. But often people leave the store without buying anything. The reason why this happened could be any: insufficient assortment, poor quality service, lack of the right product, or the person really came just to look. But the task of any business is to make a profit, which directly depends on the buyer.

What is sales conversion?

So, conversion is the ratio of actual buyers (those who paid for the product/service) and potential buyers who did not purchase the product/service for any reason.

This parameter is calculated as a percentage (%). There is no general value, no norm here. Each business, website, advertising campaign has its own indicator standards. The latter depends on the specifics of the enterprise, conditions and competition.

Understanding that good conversion is a criterion for a successful business, you need to strive to maximize it. To do this, you need to calculate this indicator as often as possible, at different stages of the company’s (website’s) activity. When the right decisions and actions are taken, the indicator increases.

How to calculate conversion and analyze the indicator

Interestingly, to calculate this you need an accountant or mathematician with a higher education. This is available to the head or manager of each business. The formula for calculation is: K= N / N0 * 100%.

What do the letters mean: N – real customers (who bought the product, used the service), N0 – who visited the website/store/opened a letter in the mailing list/downloaded a file. As you can see, the formula is simple and a minimum of data is required for accurate calculation.

Here's a simple example:

An online store (clothing, accessories, furniture, whatever) is visited by 20 thousand people in 30 calendar days (month). Only 200 people out of all made purchases. Let's count:

Conversion=200/20000*100%, total – 2%.

If the management of this store can carry out the right marketing activities, then the conversion rate can increase to 3% or higher.

If a manager observes that the conversion rate of a website, store or newsletter is too low (up to 1-2% on the website), it is recommended to analyze some of the website’s indicators, namely:

Does the client receive enough information when making a choice?

Before purchasing/using a service, the client must receive comprehensive information about the product. When a user does not stay on the page with a product card for more than 10-15 seconds, this means that he did not find the information he needed.

It’s easy to correct the situation: fill out each product card, tell us about the company’s advantages, and encourage the buyer to make a choice. At retail outlets, this drawback can also be eliminated by placing important information on price tags.

A complex purchasing process on a website is bad.

Many customers leave an online store already at the purchase stage. This is due to difficulties in the ordering process. Often, to make a purchase, you need to enter a lot of information and fill out dozens of empty fields without prompts. Such difficulties are useless on a serious website; they lead to the loss of a client.

The problem can be solved by simplifying the registration and ordering format. Most of the data can be obtained in person over the phone, without forcing the client to waste time filling out forms.

Managers make mistakes too.

Errors in the work of managers often lead to the loss of a client base. A rude attitude, lack of interest in solving the buyer’s problems - all this can push away from the purchase.

Considering specific examples, let's say about a manager. They are very effective and can increase your conversion rate. When a potential buyer starts a dialogue and asks a question, he wants an answer right now. A delay of 2-3 minutes will result in the person closing the tab on your website forever.

To eliminate this disadvantage, it is important to monitor the work of managers. Encourage them for quick answers and prompt response, punish them for delays of more than 2 minutes.

Is conversion really necessary for business?

Sales conversion, what is it? A business tool that can help you find errors in your work and correct them, thereby increasing the flow of customers and profits. With the help of conversion, you can understand how selling a company’s website or its newsletter is, whether something needs to be changed or whether things are going well. It is difficult to overestimate the importance of such a tool as conversion.

If the material was useful, then like it and subscribe to the blog news. Support the blog with reposts.

Sincerely, Galiulin Ruslan.

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 took the required action. For example, a person who visited an advertiser’s resource made a call to a consultant, went to the 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 measures 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 e-commerce sites, there are several factors that significantly affect sales efficiency:

Visitor behavior on the site

Search and advertising traffic

Keyword analysis. To increase conversion, you need to find out which queries people are responding to with the highest number of 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. Because it allows you to reflect the most important indicator of the effectiveness of various activities aimed at attracting new customers.

Conversion example

In conclusion, we can say that achieving a high conversion rate 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 trading 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.

Every owner of a retail outlet, website and marketing enterprise dreams of all his potential clients being real. A person entering a store or an Internet user wandering in search of the product he needs is a priori interested in purchasing.

However, it often happens that he does not perform any action. The decisive role in such situations is played by the quality of service - the professionalism of employees, design, product range and pricing policy, product quality and much more.

For information on conversion and the sales funnel, watch the following video:

The procedure for calculating this indicator

In the vast majority of cases, sales conversion determined as a percentage.

To calculate this indicator, it is enough to use the following formula:

quantity of goods sold*100/total number of visitors

For example, a bookstore sold 20 books per day. During this period of time, 500 people visited the outlet. In this situation we have: 20*100/500=4%.

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Analyzing the sales conversion rate

Sales conversion rate allows you to determine the effectiveness of the organization’s marketing policy: how much efforts to attract clients, visitors and fill the Internet resource with content contribute to sales.

Conversion success is always defined differently. For example, at a retail outlet, the main indicator is the customer making a purchase; for the owner of a portal on the Internet, it is the use of hosted software, subscribing to a mailing list or registering on a website, and for an advertiser, it is the number of people who contacted.

Enhancement Methods

The higher the sales conversion, the better. With high values of this indicator, the effectiveness of the marketing policy is at a decent level, the number of active clients allows you to receive a solid profit.

However, sales conversion is often far from ideal, which raises a number of questions: “Can the situation be corrected? What ways are there for this?”

Currently exists several enhancement methods sales conversion level.

First, let's look at the situation with a retail outlet. In this case, you will need to purchase a customer counter and place it in front of the store entrance.

To increase the level of sales conversion, you must follow several rules:

The first rule of increasing conversion is constant visibility of sellers to potential clients. They should come to the rescue at his first request, and if the outlet sells a technically complex product, for example, computer or household appliances, then they should be the first to offer advice on the issue of choice.
Each product has a price tag and a detailed description. The information must be completely true.
All products are equipped with correctly readable barcodes. Particular attention should be paid to this by the owners of large shopping centers; in this case, price tags are often lost and a potential buyer should always be able to find out the cost of the goods using a special device.
The use of transparent and mirrored display cases, well-thought-out navigation of the hall, where a person can easily find the product he needs.
Mastering the technique of completing a deal, allowing you to turn every potential buyer into a real one.
Organization of several cash desks to reduce queues (no more than 5 people).
Constant control of goods on shelves.

Now let's stop on the online store. The decisive factors here are:

The list presented is not exhaustive. There are many other effective ways for online stores to increase sales conversion, but these are the most basic. Don’t forget also about the role of site optimization and promotion, and then sales will break all records, and you will make a solid profit.

How to increase the number of sales using the example of a window business is described in this video:

CONVERSION

(lat.). 1) transformation, transformation, change. 2) the conversion of interest-bearing securities into others, yielding less interest compared to the previous ones.

Dictionary of foreign words included in the Russian language. - Chudinov A.N., 1910 .

CONVERSION

[lat. conversio - transformation, change] - 1) Finnish. exchange of one currency (CURRENCY) for another at the current price rate; 2) transfer of industry from the production of military products to the production of civilian products or vice versa; 3) linguistic the way a word is formed by changing its grammatical characteristics; transition of a word from one part of speech to another.

Dictionary of foreign words. - Komlev N.G., 2006 .

CONVERSION

a change in the terms of a debt made to relieve the debtor. Government loans are most often converted. State holders. papers are offered to receive money on them or exchange old sheets for new ones, and it is warned that the interest on the loan will be reduced. This usually happens when money becomes noticeably cheaper, so that the new conditions are still beneficial, and the state. papers willingly change hands.

A complete dictionary of foreign words that have come into use in the Russian language. - Popov M., 1907 .

CONVERSION

changing the terms of the loan in the interests of the debtor - with a decrease in the interest paid.

Dictionary of foreign words included in the Russian language. - Pavlenkov F., 1907 .

Conversion

(lat. conversion, transformation)

2) k. gene - a change in one of the allelic (paired) genes under the influence of another member of this pair;

3) internal - the emission of an electron from an atom when excess energy of the atomic nucleus is transferred to it; accompanied by X-ray and optical radiation;

4) linguistic a way of forming a word by changing its grammatical characteristics ( English love love - love love).

New dictionary of foreign words. - by EdwART,, 2009 .

Conversion

conversions, g. [ Latin conversio – turnover, transformation] (econ.). Changing the terms of a government loan in the interests of the debtor state (by lowering interest, deferring payment, etc.). Loan conversion.

Large dictionary of foreign words. - Publishing House "IDDK", 2007 .

Conversion

And, and. (German Conversion fr. conversion lat. conversio conversion, transformation; translation).
1. Finnish Exchange, transformation, recalculation. TO. currencies (exchange one currency to another). TO. loan(replacement of a previously issued loan with a new one in order to change its terms and the amount of borrowed interest).
2. eq. Transfer of industrial enterprises from the production of one product to the production of qualitatively new products. TO. defense industry factories.
|| Wed. reconversion
3. physical Departure electron from atom when transferring excess energy of the atomic nucleus to it.
4. linguistic A method of forming a word by changing its grammatical characteristics, without joining affixes (eg, English to work to work - work work).
Conversion- related to conversion 1-4.

Explanatory dictionary of foreign words by L. P. Krysin. - M: Russian language, 1998 .

Synonyms:

See what "CONVERSION" is in other dictionaries:

- (from Latin conversio CONVERSION transformation) a significant transformation, change in conditions, replacement of some production objects with others or some securities with others. Main types of conversion: Conversion of currencies and securities - exchange of one currency for... ... Economic dictionary

Renewal of an agreement on payment terms for a previously granted loan. renewal of any obligation. exchange of convertible liabilities for shares. revaluation of securities from one currency to another. possibility of exchanging one currency for... ... Financial Dictionary

Conversion- (from Latin conversio transformation, change; English conversion) 1) exchange, transformation, revolution; 2) transfer of industry from military production to civilian production or vice versa (see also Conversion of shares; Conversion of currency; Conversion ... ... Encyclopedia of Law

Conversion- Loan conversion - replacement of previously issued government loans with new ones. Business conversion is the exchange of shares or bonds of one type for securities of another type, but issued by the same company. Currency conversion exchange... ... Librarian's terminological dictionary on socio-economic topics

conversion- (in psycholinguistics) (from Latin conversio change, transformation) the formation of a new meaning of a word either when it moves into a new paradigm of inflection (for example, “oven” in a hut, “bake” bread), or when it is used in a context that is different... ... Great psychological encyclopedia

CONVERSION, conversions, female. (lat. conversio turnover, transformation) (econ.). Changing the terms of a government loan in the interests of the debtor state (by lowering interest, deferring payment, etc.). Loan conversion. Dictionary… … Ushakov's Explanatory Dictionary

CONVERSION, and, female. 1. see convert. 2. conversion of military production; transfer of enterprises of the military industrial complex to the production of consumer goods. Ozhegov's explanatory dictionary. S.I. Ozhegov, N.Yu. Shvedova. 1949 1992 … Ozhegov's Explanatory Dictionary

- (from Latin conversio transformation, change) the policy of fundamental changes in the military, militarized structure of society. Conversion covers the widest spheres of public life. These include political, economic,... Political science. Dictionary.

Transformation, transformation, translation, recalculation; change, processing, securitization, exchange, bioconversion Dictionary of Russian synonyms. conversion noun, number of synonyms: 7 bioconversion (1) ... Synonym dictionary

conversion- and, f. conversion f., German Conversion, lat. conversio turnover, transformation. obsolete, military Turning, entering, changing front. Squadrons generally lose their conversion angle, which is very bad. 1788. Potemkin to Suvorov. // RS 1875 5 33. 1.… … Historical Dictionary of Gallicisms of the Russian Language

Books

Conversion. How to Convert Leads into Sales by Smith K. This is a proven step-by-step plan to attract potential customers online and turn them into actual buyers. The book is dedicated to purposeful...

To assess how effectively a particular product or service is being sold, the seller must use quantitative assessment methods.

It is these methods that will best help you understand whether the sales process is well or poorly organized and what mistakes were made when organizing sales.

One of the most effective quantitative tools for assessing quality is conversion, which will be discussed in this article.

What it is?

Sales Conversion – ratio between the number of potential buyers(people or organizations who have read the proposal) and customers who made a purchase goods or services. The indicator is traditionally measured as a percentage, but for convenience you can use results expressed in ordinary fractions.

The value of the indicator shows how well the organization processes the processes of filling the Internet resource with interesting and meaningful content. It also demonstrates the effectiveness of the company's marketing department.

You can get more detailed information about this concept from the following video:

Why do you need a calculation?

Conversion calculation is a necessary measure when assessing the effectiveness of an organization. Many companies do not understand why the traffic on their resources or the number of store visitors is high (thousands of potential customers visit the product description page or point of sale), but only a few make actual orders and purchases.

In addition, managers do not understand the low effectiveness of marketing campaigns: many organizations invest a lot of money in advertising, but receive practically no return from it. Calculation of the indicator with mandatory subsequent analysis can give management staff food for thought and suggest ways to solve accumulated problems.

How to calculate the indicator correctly?

Conversion for any organization is calculated using the following formula:

K=N/N 0 * 100%, Where

K – conversion rate;
N – the number of real buyers (clients who bought a product or used a service);
N 0 – number of visitors to the store or website.

As can be seen from the above formula, calculating the indicator is very simple, and the calculations require a very small amount of initial data.

For example, for a company whose retail outlets and websites are visited by 10 thousand people a month, and real transactions for the purchase of goods are made by 100 visitors, the indicator will be equal to 1%.

If the same organization, after carrying out all the necessary activities, manages to increase the number of clients by 2 times (while the total number of visitors does not change), then the conversion will already be 2%.

Value Analysis

If the conversion value turns out to be too low (and figures of 1-2% for online stores and 3-4% for regular retail outlets and organizations that have a lead generation form on their web resource are considered low), the company owner or its management should analyze the following:

Lack of information for the client. The buyer always has a choice from which company to purchase a particular product or service, so he wants to have all the information about the product. If a potential customer does not stay long on the product description page or does not stand near the product of interest to him in the store for more than a few seconds, this most likely indicates the fact that he could not find the information he was interested in.
Filling this gap is very simple: you need to place videos and other visual materials on the website about the services provided or goods sold, as well as place selling texts that tell about all the advantages of the company over its competitors and push the buyer to make a choice. In retail outlets, this deficiency can be eliminated by placing brief information about the product on price tags, indicating the method by which more detailed information can be obtained.
Product failure to meet consumer expectations. Most customers go to competitors when they realize that the product offered to them does not have the characteristics that, in their opinion, are mandatory in this case. There is only one way to solve this problem: change the product package or the content of the service in such a way that they fully satisfy the needs of the entire target audience.
Mistakes in the work of managers. Many buyers refuse to purchase even when the sale seems to have been completed. This usually happens due to miscalculations in the activities of managers: for example, if a client sent a completed form in the hope of buying a product as quickly as possible, and the manager responded to this only when the buyer’s ardor had already cooled down. The staff of a real retail outlet can also make mistakes: if the seller did not see that the client was interested in the product and did not approach him with the aim of telling him about all the advantages of the item and the benefits that he would receive from the transaction, he makes one of the most serious miscalculations in your profession.
To avoid such episodes in work, the company’s management must take care of regular training of its staff of managers and training them in the art of interacting with clients (this includes talking on the phone, correspondence via e-mail and many other types of communication).

How to increase the indicator?

To increase the percentage of website or store visitors who bring real profit to the company, it is recommended to take the following actions:

If customers leave the order page without filling out the proposed form, it is necessary to work on the questionnaire or reduce prices.
If a visitor who follows a link to a site spends less than two minutes studying the information offered or visits one or two sections, there are problems with navigation or design. The solution to the problem could be a redesign (changing colors and style) or changing the resource map.
If a direct correlation is identified between the number of visitors quickly leaving the site and the key phrases by which they come to the resource, it is necessary to change the semantic core (the list of keywords used for promotion).
If customers leave the site by clicking on contextual advertising or non-core links, you need to reduce their number. Contextual advertising can lead a potential client to a competitor’s website, and clicking on a non-core link will divert the visitor’s attention from the product or service.
To increase your conversion rate, you need to work not only on your website or marketing strategy, but also think through and constantly improve the uniqueness of your offer, the price of the product or service, and the customer experience.
The store should have easy navigation and a thoughtful arrangement of goods that customers come for most often.
An offline retail outlet must have high-quality equipment (modern cash registers, devices that read the barcode of a product and instantly show its cost).
The management of the outlet must take measures to reduce queues at the checkouts if they reach more than five people.
To give the client the impression that he can buy everything he needs in this store, all shelves and display cases must be completely filled with goods.

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