Most likely your Conversion Rate is Wrong

I am sorry to break this news to you but chances are that your conversion numbers are all messed up. Let me demonstrate it with an example.

Let’s take a simple conversion process, see the figure below. Let’s assume that you get 100,000 visitors on your site, and 20,000 start the checkout process, 15,000 make it the next step and finally 5,000 end up converting.

Based on your web analytics tool your conversion rate will be 5,000/100,000 = 5% . So far everything looks good.

But what if your checkout path looks something like this?

Do you see the phone number? I bet many customers are using that phone number to complete the purchase. Are you taking those, who call and convert, into consideration when calculating the conversion rate? Do you know that when someone picks up the phone to call he/she has a higher likelihood of converting?

Taking the example above, here is how your conversion funnel looks like:

Most of the web analytics tools just allow you to see a view of single channel conversion rate i.e. web conversion rate. However, as I discussed in my post "Are you Optimizing the Wrong Steps of the Conversion Process?", customers don’t care how your channels are divided or who is responsible for what channel at your organization. They care about their money and will use whatever channel they feel most comfortable with.

Are you going beyond single channel when calculating your conversion rate? If your answer is no then your conversion rate is wrong.

Thoughts? Comments?


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