Sales conversion - what is it and what is it for? Everything you need to know about conversion What is conversion in trading.

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 conversion rates, it is not advisable to use direct links to a site that have 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.

At the same time 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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Constant analysis of current activities is the key to successful business development. This applies to every strategically important process, from the effectiveness of an advertising campaign to the level of sales and profitability of the enterprise. Conversion deserves special attention when analyzing sales. Therefore, it is worth getting acquainted with this term and learning to apply it in practice.

What is conversion in sales?

Conversion is the ratio of actual buyers to potential ones. This indicator is used to build a strategy in Internet marketing, since it allows you to identify serious mistakes in sales that negatively affect the profitability of the company.

In other words, conversion shows the real percentage of buyers out of the total number of store visitors. The higher this indicator, the more correctly the business process is structured. After all, if hundreds of people visit an online store every day and only a few make purchases, then something is stopping potential customers.

The cause can only be identified after in-depth analysis. This can be either an inflated price level or an unsuccessful design of a web resource. But in any case, with low sales conversion rates, you will have to work out the company’s weaknesses.

What is website conversion

The term “conversion” is also used to analyze the effectiveness of a website. Only in this case, the definition indicates the ratio of site visitors to users who performed the target action. These include:

subscription to ;
filling out an application;
sending goods to the cart;
purchase;
entering contact information into the feedback form, etc.

Conversion is one of the most important KPI indicators. With its help, a complete analysis of the sales funnel is carried out and it is determined at what stage customer leakage occurs. This allows you to accurately identify problem areas on the site.

Basic methods of conversion control

To control the conversion level, two universal services are used: metrika yandex. and google analytics. They allow you to get rid of endless calculations and charting. All necessary information is displayed offline.

Yandex Metrica

To start working with this service from Yandex, you need to install a visitor counter on the site, with the help of which the service receives initial data for analysis. After the counter has been installed, the purpose of maintaining statistics in Yandex Metrica is set. The goal is understood as the type of targeted action of the user who went to the site. Yandex.Metrica provides 3 types of goals:

events that are success indicators for the resource owner;
the number of views of a specific website page;
the number of pages viewed by the user in one visit.

If a person visits a website and completes the actions specified in the Yandex Metrics parameters, then such a visit is called a targeted visit. Moreover, during one target visit, the user can complete several goals at once.

In addition to the conditions for achieving the goal, they are also classified by complexity. They are simple and compound.

Simple - one goal and one user step to achieve it, compound - two or more steps towards the target action. Composite goals provide the most valuable information for analysis. Because they allow you to understand at what step the user begins to have difficulties that prevent him from completing the target action.

The information collected by the service can be viewed in the report. This data is also available in standard and custom reports based on visits.

Google analytics

There is no significant difference in working with Google analytics and Yandex Metrics. Both of these tools are similar. But to make work easier, Google service developers have made ready-made templates based on the most frequently asked analysis goals. For example:

registration on the site;
purchase of goods;
watching videos;
placing an order, etc.

To make it easier to process information, you can customize conversion reports in accordance with your goals. Online store owners can take advantage of a separate group of e-commerce reports.

Reasons for low conversion rates

If the actual conversion rate is far behind normal indicators, you need to identify the cause of this phenomenon. At the start, many businessmen make typical mistakes typical of beginners. The most common of them include:

Misconception about the target audience

If the site owner has incorrectly identified the target audience, another error immediately arises - incorrect contextual advertising settings. The seller must clearly represent his buyer. To do this, a detailed portrait of him is compiled and only then advertising is launched in search engines. For the highest quality filtering of non-target users, negative keywords are specified in detail in the contextual advertising settings.

Weak design

The appearance of a site is a decisive factor in how long a user will stay on its pages. Frankly bad design causes distrust among customers and, as a result, pushes them away from purchasing. Therefore, it is better to entrust website development to a professional agency.

Low quality photos or no photos

In both real and virtual trading, customers are attracted by the store window. Few people decide to buy, seeing only the name and description of the product. Therefore, each card should have pictures of the product and it is advisable that they be taken from several angles.

Usability

The easier it is to navigate the site, the better. Only useful information should be in front of the user’s eyes, and the necessary buttons should be within a second’s reach. Otherwise, the client will simply get lost in the pages of the site and leave it without completing the action.

Semantic core

To promote the site in the right direction, an appropriate semantic core is compiled. If the site is optimized incorrectly or not for the right key queries, the wrong audience will come to the site. SEO optimization will help fix this problem.

Too many pop-ups

To recruit a client base, the site owner is forced to obtain information about users. But when forms pop up in multiple parts of the page and have an endless number of fields to fill out, it only irritates new visitors.

Low competitiveness

For new sites, it is important to highlight their advantages over competitors. They must be presented clearly and be of benefit to potential buyers. To attract regular customers of other online stores, a tempting promotion or discount for the first order is used.

This is not a complete list of reasons that may affect low conversion rates. Only a thorough analysis of site visitors and their actions on it will help identify the true problem.

Methods to increase conversion in e-commerce

To increase the conversion rate, a marketing strategy is developed and a clear action plan is drawn up. It is better to apply methods for improving performance in stages so that it is possible to track the dynamics of sales development.

Methods to increase conversion:

Work through product cards. They must contain a detailed description, characteristics and pictures of the product. Information about the product should be useful and cover all questions that the buyer may have.
Post customer reviews. Real customer reviews increase the level of trust in the company. It is easier for potential clients to make a purchasing decision based on the opinions of people with existing cooperation experience.
Create an “About the Company” page. A detailed description of the company, its specifics and achievements also have a beneficial effect on customer trust. In the description of the company, there is no need to praise itself. It should contain only facts useful to the buyer. Therefore, the description is written not in an advertising, but in an informational style.
Simplify the purchasing process. The one-click purchasing feature has a positive effect on increasing conversions. Quick ordering deprives the user of time to change his mind. Therefore, you need to give him the opportunity to avoid the long registration process on the site.
Add contact information. Contact information includes email address, phone numbers of several operators, Skype, etc. The more ways you can contact the seller directly, the better. Access to contact information is placed on all pages of the site so that the client can quickly get advice or solve problems with one click.

There are quite a lot of ways to increase the performance indicators of an Internet resource in e-commerce and they all operate on the same principle - everything is for the client. This means that the entrepreneur’s task is to find out the current needs and wishes of customers and try to fulfill them in full.

How to calculate a funnel to increase sales conversion?

To find the weak point of an online store, a sales funnel is compiled and calculated. As already mentioned, the sales funnel is the client’s path to the target action. It contains 4 stages:

Attracting attention.
Arousing interest.
Making a decision.
Action.

To make it clearer, we should consider a sales funnel using a real example. Let's say you need to calculate the effectiveness of a website providing auto repair services. Sales funnel:

After the launch of contextual advertising, 1000 users saw it (Ӏ stage);
Of these, 500 people followed the link to the site (ӀӀ stage);
250 people received preliminary consultation (ӀӀӀ stage);
100 people signed an agreement for the provision of services (ӀV stage).

For this information to be useful, you need to understand how to calculate conversion for each stage of the funnel. Calculations are made using a general formula.

For the first stage, the conversion is – 500*100/1000=50%

For the second – 250*100/500=50%

For the third – 100*100/250=40%

Total – 100*100/1000=10%

For a detailed analysis, the sales funnel can be represented by a large number of stages, including payment intent, budgeting, and repeat requests.

Stages of correct sales building taking into account conversion rates

To get started correctly, you need to take into account the indicators (direct and indirect) that affect conversion. It is much easier to build a strategic plan from the beginning than to try to increase conversion rates from scratch later.

Stages of proper sales building:

Decide on a trade offer - what product or service the company will represent, its cost.
Identify the target audience, create a portrait of a potential buyer.
Get the audience interested.
Achieve your first successful sales.
Analyze concluded transactions.
Increase conversion using classic marketing tools.

How to achieve maximum conversion from Internet traffic?

There is no universal recipe for achieving maximum performance indicators. Each individual case is considered individually. The only rule that applies to everyone without exception is to constantly work on the site, refine and improve it.

When visiting the site, the user should not have any problems or ambiguities. This applies to navigation, content and ergonomic design. It is important to maintain constant communication with the client. To do this, an online consultant is installed on the website pages. It has been observed that such an addition increases sales by an average of 34%. Constant interaction with clients, as well as work to create a comfortable environment for users, is the key to successful growth in conversion rates.

Warning: longread, multiple letters.

Conversion reflects your retail business's ability to handle incoming traffic. “According to the mind,” it is calculated as the share of buyers in the total number of visitors. But most companies simply divide the number of checks per day by the number of visitors per day according to counter indicators, which, in fact, is not true. Therefore, before thinking about increasing conversion, I suggest first correctly calculating this indicator. And then you can think about ways to increase it. So how can you increase your conversion?

Method 1. More receipts – higher conversion

The first method is fraudulent, breaking checks. You can do nothing, but instead of processing 3 purchased goods with one receipt, enter each of them separately, and the conversion will “increase”. This can happen either due to the malicious intent of the staff or at the initiative of management. Often, under the terms of a promotion, checks are forced to be broken, for example, when accounting asks for “promotional” goods to be stamped with a separate check. Naturally, this method of increasing conversion is completely unprofitable for the company and is “compensated” by a decrease in the “average bill”. Therefore, it is worth making sure that checks are never broken.

Method 2. Cut off unnecessary visitors

Method 3. Introduce a motivation system based on “personal selling”

Transfer staff to “personal sales”. No matter how much they say that team sales provide a higher level of service, that the client is served by several shift workers at once, no matter how much they warn about the negative consequences in the form of competition between sellers and a tense atmosphere in the team, I still believe that personal sales As a result, they give better conversion. Of course, provided that you can manage the team in the right way. In my practice, there was an example of an increase in conversion from 5 to 11% when changing motivation from collective to personal. True, at the same time it was necessary to replace almost the entire original composition of salespeople, who responded extremely poorly to the change in the motivation system. But, as you can see, it was economically justified.

Method 4. Low price strategy – every day Arrange “Everyday low prices”.

This pricing strategy, first tested in supermarkets in the United States, allows customers to increase their desire to buy something by focusing on the best deals. It consists of displaying products with a very attractive price in the most visible place. You can see it in action, for example, in stores, New Yorker or H&M. The very first sweatshirt on the hanger is at a ridiculous price of 599 rubles (the rest, however, are already 2 times more expensive). This creates the illusion of very affordable prices for the buyer and removes the psychological barrier that prevents them from spending money.

Method 5. - Entry products

Placement in the focal zone (“market zone”) of so-called “entry products” - inexpensive “little things” that do not require major expenses and stimulate spontaneous purchases. For example, a luxury brand has designer phone cases for 39 euros in its focal area and this offer attracts many buyers who are not ready to spend more significant amounts of money right now. If the boutique administration had placed bags for 3,999 euros in the same area, it would have cut off spontaneous purchases and the conversion would have been much lower.

Method 6. – “Active” sales

Get “Active Sales” from sellers. The idea of active sales is for sales consultants to independently offer their services to buyers, without waiting for them to ask for it. Despite the fact that many buyers really don’t like it when sellers impose themselves and “don’t give them a pass,” it is a proven fact that active sales increase conversion. Here I propose to implement the minimum, which, however, is difficult to achieve for most companies. Make sure that your salespeople, after waiting the required 3-minute pause, come up and talk to the buyer on their own. This seems quite easy, but is actually not that easy to implement. You will need either regular mystery shopping (mystery shopping research) or the implementation of video surveillance systems and recording analysis. It’s good when sellers, after starting a dialogue with a buyer, know how to continue it, but this is a topic for a separate article.

Method 7. – The product sells itself

Merchandising. If sellers fail, merchandising is a reliable safety net. Many large format stores do not rely on the professionalism of their consultants (their number is simply not enough for a huge area) and place attractive POS (Point of Sales) materials and are very attentive to the placement of goods. If your sales floor contains bright and noticeable: promotional price tags, “hot offer” zones, thematic compositions and groups of mannequins, attractive sets on tables in the entrance or checkout area, then all this will imperceptibly add up to a higher conversion rate.

Method 8. - Psychological pricing.

Take care to correctly format price tags. Firstly, use correct rounding: 3950 rubles is perceived better than 4050 rubles with a negligible difference in the markup. When applying for discounts, always follow the rule, indicate: “starting price, % discount, final price.” If the % discount is small, then stick to the “starting price, final price” scheme or use the additional “special price” label.

Method 9. – Hold promotions and sales more often

Promotions and sales. Most promotions involve time-limited discounts. And there are several techniques that can significantly increase conversion during their implementation. The first way is to fuel the “urgency” effect: buyers must be sure that the offer will end soon, and they need to buy here and now. Second: to create a stir; for this purpose, merchandising techniques are used that introduce slight chaos into the presentation of the product, and some stores even hire “fake” buyers who create queues and crowds. If successful, buyers will buy up even the most stale and seemingly useless inventory leftovers. By the way, an increase in conversion or a lack of positive dynamics is a clear indication of whether your promotion worked or not. Good promotions and sales should increase conversion by 30-40%.

Method 10. Keep track of inventory.

Sort items into stores more often, and “transfer” items between stores. It’s strange to expect an increase in conversion if the size charts are “broken” and the most popular items are sold out. A common situation: conversion failure on Sunday, after successful Saturday sales. All office employees are resting, the goods will be sorted by Monday evening at best. And instead of having a good trade on the second day off, the store greets visitors with empty shelves. Deliver seasonal goods in advance, do not allow a situation where the frost hits, everyone runs to warm up, and your store will receive knitwear and outerwear in 2 weeks.

Method 11. Create a comfortable atmosphere.

Keep the customer in the store. There are many studies that find a correlation between time spent in a store and the likelihood of purchasing - the longer a customer spends on the sales floor, the more likely he is to buy something. But how can we stop him? Provide a comfortable atmosphere. Everything is important here from proper lighting to ventilation, pleasant smells, background music, friendliness of employees, security guards, product placement, etc. Something as trivial as an unpleasant odor or stuffiness in the summer can cause visitors to leave your store faster, ruining any hopes of increasing conversions. The technology of analyzing touch points (“Points of Contact”) with the buyer helps to track all irritating factors.

Method 12. Hone your purchases

Buy what the visitor requires. This is of course easier said than done, but in fact, proper purchasing is the main factor in ensuring high conversion and, ultimately, the success of your retail business. To understand the tastes and preferences of your customers, pay attention to analyzing your customer base. The “Customer Profiling” technique and analysis of unmet demand will come to the rescue. Keep a formal record of requests from customers that your stores could not satisfy, make it the responsibility of buyers to respond to them (note, of course, you should not try to purchase everything that is asked). - conduct interviews with buyers. Buyers must, from time to time, interact with customers directly on the sales floor or during special events.

Afterword

In conclusion, I would like to say a few words about the usefulness of monitoring the conversion rate. It is not necessary or important for all stores. The rule here is: the higher the store traffic, the more important it is to monitor conversion. If your boutique has 20-30 visitors a day, then forget about conversion and pay more attention to working with the client base and VIP service. If several thousand visitors come to your department store every day, then this indicator will be one of the most significant for you.

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 a 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.

The sales funnel is the customer's path from the moment he learned about your offer until the moment of purchase. The funnel consists of several stages that you set yourself and through which your potential client moves towards completing the transaction.

Sales conversion: how to build a funnel

To track sales conversion, you need to build a funnel correctly. A funnel reflects the stages of a business process. Therefore, the first thing you need to do is describe your business process. The second is to track it using the employee’s working day card. Third, optimize the business process if necessary. Fourth, move it to .

You will end up with something like:

Cold call/request from the website
Sending a commercial proposal
Follow-up call/meeting/presentation
Signing the contract and issuing an invoice
Payment

In this funnel, it is important to control not only the conversion rate, but also the input - the number of leads, the output results - the number of successful transactions, the intermediate conversion between stages, the length of the transaction - the number of days spent on; the length of each stage is the number of days spent on intermediate actions.

Sales conversion: calculation formula

Conversion is the very first indicator that is important to be able to calculate and analyze in order to set up sales control. Let's look at an example of how to calculate the conversion rate of a sales funnel:

Conversion = Positively Closed Trades / (Positively Closed Trades + Negatively Closed Trades) * 100%

In our example, despite the different number of new customers in each month, the conversion rate remained virtually unchanged. And this is a reason to think about what happens at different stages of the sales funnel, where you lose customers.

Conversion in the funnel allows you to see the real situation in sales. Positively closed transactions can only be divided into transactions for which a clear decision was made to buy or refuse. Probable clients do not influence this indicator in any way.

Please note that in this case, there are 8 closed transactions in January, 14 in February, and 24 in March. The remaining clients, who are classified as “new”, move to the next month. That is, 17 January transactions moved to February, in February the manager has 72 transactions in progress: 55 February and 17 January. From 72 transactions, we subtract 14 closed ones, and we get 58 transactions that moved to March. In March, the manager already had 158 transactions in his work, and the sales result has not changed at all. This means it’s time to analyze at what stage your clients get stuck.

Sales Conversion: Sales Channel Report

We analyze the sales funnel in terms of channels for attracting new customers. Let's say we calculated that the conversion rate for one sales channel is 8%, and for another - 38%.

Now you need to make the right management decision that will affect sales growth. It is worth considering that both channels are run by the same specialists, warm leads are processed by the same sales managers.

The only difference is the sources of attraction. Let's say you compare funnel sections for cold calling and Yandex.Direct.

The right solution for sales would be to strengthen the channel in which the conversion is higher. There is no need to invest effort where the result is worse. We need to improve what already works well. That is, you need to develop a channel with a conversion of 38% and abandon a channel with a conversion of 8%.

This is why it is necessary to measure sales conversion in the funnel. Then you will be able to improve your results not by recruiting more managers, but by making smart management decisions.

Sales Conversion: Reference Manager

We analyze the sales funnel in terms of the work of managers.

Based on the data, this salesperson has a worse sales conversion rate than managers with the results shown on the previous two slides.

What conclusion can be drawn from this example? First of all, we see that this manager is qualifying leads strangely. He believes that almost all clients are not targeted. Judging by the conversion rate of the funnel, only 8% of them move on to the next stage of the funnel. For the manager from previous sections of the funnel, this conversion rate is 57% and 80%.