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Performance measurement

This topic has 3 replies, 2 voices, and was last updated 5 months ago by John Moffat.

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January 28, 2022 at 6:45 pm #647658
maximus07
- Topics: 374
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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
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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
- Topics: 374
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Correct answer is 3%? I did correct it mean?
January 30, 2022 at 4:51 pm #647751
John Moffat
Keymaster
- Topics: 57
- Replies: 49602
Yes, 3% is correct.
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