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Performance measurement

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Performance measurement

  • This topic has 3 replies, 2 voices, and was last updated 12 months ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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    Posts
  • January 28, 2022 at 6:45 pm #647658
    maximus07
    Participant
    • Topics: 407
    • Replies: 398
    • ☆☆☆☆

    Find Conversion rate of website visits into orders.

    I have written some data relevant to question
    Website visit 5,000,000
    Value of customer order placed $30,000,000
    Average value per order $20

    Solution = number of orders =30000000/20= 1500000
    Then conversion (1500000/5000000)x100= 30%

    I was dividing (5000000/1500000)x100=3%
    How can we know which ratio to put as denominator and nominator. Can you help me?
    Like I was dividing website visits/orders while here orders/website visits.

    January 29, 2022 at 4:31 pm #647703
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    It effectively is asking what % of visits turn into orders. Therefore you divide the orders by the visits – this gives you the % of the visits that turn into orders (and is indeed 3% of them).

    January 30, 2022 at 12:02 pm #647739
    maximus07
    Participant
    • Topics: 407
    • Replies: 398
    • ☆☆☆☆

    Correct answer is 3%? I did correct it mean?

    January 30, 2022 at 4:51 pm #647751
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    Yes, 3% is correct.

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