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The Conversion Rate formula - redefined!

By Anup S • August 5, 2008 • Filed in: Business, Reviews

We found an interesting formula from searchengineland recently:

The Online Business Formula

B = V x C x L


Where:

B = amount of business done by the site
V = unique visitors coming to the site
C = conversion rate (the percentage of visitors who become customers); note that the concept of conversion applies not only to ecommerce sites, but to any site where there is something you want users to do
L = loyalty rate (the degree to which customers return to conduct repeat business)

I am going to add to this formula to tell you what the online conversion rate formula is:

The Online Conversion Formula

C = VL * RI

Where:

VL = how valuable the product is in relation to what the customer is paying for and what his/ her needs are
RI = if he/she has all the relevant information to make an informed purchase

Comments

By ecommerce on January 10th, 2009 at 9:27 am
Great post. added to my favourites list. ecommerce has been one of the best businesses today.
 

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