Blog | Modern Driven Media

5 Measurements That Prove Conversion Optimization Works

Written by Oleksandra Vereshchak | Aug 10, 2017 2:05:13 PM

You’ve been told that optimizing conversion ensures great benefits—greater return on ROI, cost-effectiveness, increase in market share, but how do you know if it really worked? Continuously utilize these measurements to help you visualize your efforts, determine which techniques worked and which areas need more improvement!

 

Conversion Rate

Conversion optimization aims to increase the conversion rate, allowing you to gain more customers, increase revenue per visitor, and promote business growth. There are few different ways to calculate conversion rate—choose the one that fits you most.

To calculate # of all leads:

           Conversion Rate = total # of sales/number of leads x 100

To calculate # of website leads:

            Conversion Rate = total # of sales/# of unique visitors x 100

To calculate conversion rate by person:

            Conversion Rate = unique orders/sessions x 100

 

Cost per Lead

This metric shows you how much you spend to acquire one new lead, which enables you to set sales goals as well as an advertising budget and allows you to benchmark your effectiveness. Conversion optimization helps you lower this number.

            Cost per Lead = total project costs/# of qualified leads

If you have more than one project, add costs per lead and then average them. 
If you're noticing that your cost per lead is high because of a lack of conversions, it's possible there's a fixable reason behind it. If you're not sure what might be going wrong, then you might need these 4 Reasons Why Your Visitors Aren't Converting into Leads.

 

Lead Value

Lead value shows what one qualified lead is worth to your company.

            Lead Value = average value of a sale/# of leads

 

Conversions Needed

Calculate how many conversions you need to maintain your business and to calculate the costs of advertising.

            Conversions Needed = desired revenue/lead value

 

Conversion Value

Conversions value demonstrates how your optimization efforts pay off.

            Conversion Value = conversion rate x total qualified leads

 

Now that you know how to effectively track your conversion efforts, you're all set to be able to benchmark and watch your growth! Still curious about how to improve conversions? Need some more inspiration?
Check out our infographic for 20 ways you can improve your conversions.