Track, Conversion & Measure


To really know the success of your business you should track its health. To do this you need three sets of information. This could be done for a website or for face to face sales. You will need:

  • Your sales figures
  • Your subscriber and customer statistics (from your website or sales forms)
  • Usage details from your website or records

The most important statistics that you should track and measure are your conversion rates. A conversion rate will measure how successfully you are achieving your goals, such as converting potential customers into buyers or converting first-time buyers into repeat customers. There ill more than likely be several conversion rates that you need to focus on however the below formulas will get you started.

1. How many visitors are you converting into customers? Your potential customer to buyer conversion rate is one of the easiest stats to calculate. This is also one of the most powerful for your business. This formula will give you an indication of how effectively you are winning over your potential customers to buy from you.

Calculation : Divide your total number of sales by the number of visitors to your business or website then multiply by 100. For example, if you have 4,000 visitors a month (to your business or website) and 280 of them purchase from you making them a customer, then your conversion rate is 7%.

2. How Many Visitors Are Signing To Be A Subscriber? This may mean that your potential customer/visitor has signed up to be on your database to receive your monthly newsletter or business promotional offers via your website or direct mail. This is the visitor-to-subscriber conversion rate which will tell you how appealing your subscription offer is. You should keep an eye on this figure as you test and trial different promotions or written copy for your sign-up form or sign-up procedure.

Calculation: Divide the total number of subscribers you have by the total number of visitors to your business or site then multiply by 100. For example, if you get 1,500 new visitors to your site in a week and 700 of them subscribe to your free newsletter, then your conversion rate is 46%.

3. How Many Of Your Subscribers Are Becoming Customers? Your subscriber-to-customer conversion rate is a positive test of how effective your newsletter or other piece of sales material is.

Calculation : Divide the total number of people who purchased something from you by the total number of subscribers to your newsletter then multiply by 100. For example, 105 of your 700 subscribers buy something from you, then your subscriber to customer conversion rate is 15%.

4. How Much Revenue Are You Making From Each Visitor? This statistic will show you how much you are earning from your average visitor to your business or website. This is a valuable statistic as the number will help you to determine how much you can spend to obtain a new visitor or potential customer while still earning a profit. This could be calculated over a month, quarter or a year, depending on how soon you want the figures.

Calculation : Divide the total amount of your sales by the total number of visitors to your business or website. For example, if you sold £12,000 worth of inventory this month and you had 35,000 visitors to your business or website, then your sales per visitor is about £0.34.

5. How many people are responding to what you want them to? This statistic is the response percentage of people who read your newsletter or direct mail piece either posted or on the website and go straight to the order form. In web terms this is the click through rate from your email newsletter to your order form. Same principle applies for posting of direct mail.

Calculation: Postage/Direct Mail Divide the total number of people who respond to Newsletter A by the total number of visitors to your business then multiply by 100. For example you have 4,000 potential customers and 420 respond to your mail via the order form, then your Newsletter has a response rate of 10.5%. Internet Divide the total number of clicks on link X by the total number of visitors to the page with link X then multiply by 100. For example, if you have 4,000 visitors to your emailed newsletter and 420 click on the link to your order form, then your newsletter has a click-through rate of 10.5%. All of these calculations are important for you to understand how your potential and existing customers are reacting to your business and sales promotions.

Get in touch and ask us to conduct a FREE Business Evaluation Meeting and find out about our unique way of designing and implementing strategies to generate sustainable business improvement.

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