4 Simple Formulas to Measure Online Success
Conversion Rate
Number of Visits / Number of Goals Complete = Conversion Rate
Goals are actions by the visitor that continue the conversation. Some examples include; a phone call, form submission, or subscription sign up. If your website receives 100 visits and those visits resulted in 2 phone calls, your conversion rate is 2%. Out of 100 attempts, 2 visitors made a call.
100 visitors / 2 goals = 2%
*The national average is 1-3% but with good strong calls to action you can reach results of 10-20%
Cost Per Conversion
Budget / Completed Goals = Cost Per Conversion
When buying traffic from Google, or Facebook you can easily figure out how much each new lead costs. If you boost a Facebook post for $50 and it generates 2 phone calls, each new lead cost you $25. The $50 drove enough traffic to your website to generate 2 calls.
$50 Spent / 2 Goals = $25 Cost Per Conversion
Close Rate
Number of Leads / Number of Sales = Close Rate
Once in contact, how often does your prospect complete a purchase? If each phone call cost $25, how many calls would you need in order to complete a sale? If you close 1 out of every 4 phone call your close rate would be 1/4 or 25%.
4 Phone Calls / 1 Sale = 25%
Cost Per Sale Acquisition
Budget / # of Sales = Cost Per Sale Acquisition
After you took the four calls, you made one sale. The $100 budget spend on Facebook sent enough traffic to your website to generate the 4 phone calls. Each call costing $25. It took 4 calls in order to complete one sale. The cost to acquire this one sale was $100.
$100 Budget / 1 Sale = $100 per Sale Acquisition
(Four, $25 Phone Calls resulted in 1 Sale)
How Does That Number Work With Your Pricing?
Need any help figuring these numbers out? Already know your numbers but want strategies to lower your Cost per Sales Acquisition? Hawk also has strategies to increase close rates, and reducing costs per lead.
