Conversion Rate Formula
CR = Conversions / Clicks * 100
This is the most simple and significant formula for advertisers, the conversion rate it means just how many people that click in your ad finally made a purchase. This is an example:
Let’s see 1000 people click in your online Ad, and out of those 1,000 just 25 finally made a purchased or any other action that you considered conversion (download a brochure, sign up for a newsletter or more), on this case your conversion rate is 0.01%
CR = (25/1000) * 100 = 2.5%
Website Success Formula
B = V x C x L
Where:
B = amount of business done by the site
V = unique visitors coming to the site
C = conversion rate (the percentage of visitors who become customers); note that the concept of conversion applies not only to ecommerce sites, but to any site where there is something you want users to do)
L = loyalty rate (the degree to which customers return to conduct repeat business)
Landing Page Conversion Formula
C= 4m + 3v + 2(i-f) – 2a
Where:
C = Conversion
M = Motivation (what is the motivation of the user when he/she gets to your page? Do they have a level of interest?)
V = Clarity of Value Proposition (what is the valuable offer to your clients)
I = Incentive (sense of urgency, offer valuable exchange for an action)
F = Friction (elements to process, difficult forms can cause friction)
A = Anxiety (entering sensitive or personal information)
- Value Prop and Incentive are Value Contributors
- Friction and Anxiety are Value Inhibitors
- You need the Contributors to outweigh the Inhibitors
The value of this formula is that it represents each factor that directly affects the conversion of a visitor on a landing page.
Potential Lost Revenues from Landing Pages
(RPV * NVL) * BR = LRPV
Where:
RPV = Revenue per visitor
LRPV = Lost Revenue Per Visitor
NVL = Number of visitors who land on landing page
BR = Bounce rate
(RPV * NVL) is also known as RETS = Revenue Estimate For The Traffic Source
Viral Marketing Formula
Where:
Custs = Initial set of costumers
K = Invitations send by each new customer * Conversions %
ct = Viral cycle time
t = time
SeoSem’s Twitter Stream
Basic Online Marketing Math
Conversion Rate Formula
CR = Conversions / Clicks * 100
This is the most simple and significant formula for advertisers, the conversion rate it means just how many people that click in your ad finally made a purchase. This is an example:
Let’s see 1000 people click in your online Ad, and out of those 1,000 just 25 finally made a purchased or any other action that you considered conversion (download a brochure, sign up for a newsletter or more), on this case your conversion rate is 0.01%
CR = (25/1000) * 100 = 2.5%
Website Success Formula
B = V x C x L
Where:
B = amount of business done by the site
V = unique visitors coming to the site
C = conversion rate (the percentage of visitors who become customers); note that the concept of conversion applies not only to ecommerce sites, but to any site where there is something you want users to do)
L = loyalty rate (the degree to which customers return to conduct repeat business)
C= 4m + 3v + 2(i-f) – 2a
Where:
C = Conversion
M = Motivation (what is the motivation of the user when he/she gets to your page? Do they have a level of interest?)
V = Clarity of Value Proposition (what is the valuable offer to your clients)
I = Incentive (sense of urgency, offer valuable exchange for an action)
F = Friction (elements to process, difficult forms can cause friction)
A = Anxiety (entering sensitive or personal information)
The value of this formula is that it represents each factor that directly affects the conversion of a visitor on a landing page.
Potential Lost Revenues from Landing Pages
(RPV * NVL) * BR = LRPV
Where:
RPV = Revenue per visitor
LRPV = Lost Revenue Per Visitor
NVL = Number of visitors who land on landing page
BR = Bounce rate
(RPV * NVL) is also known as RETS = Revenue Estimate For The Traffic Source
Viral Marketing Formula
Where:
Custs = Initial set of costumers
K = Invitations send by each new customer * Conversions %
ct = Viral cycle time
t = time