Different conversion rate calculation methods
Hi guys
I was wondering if you can help me out understanding the benefits of different conversion rates in my sales funnel.
Little background:I have a sales funnel with 4 stages (Incoming contacts, met contacts, won contacts & lost contacts).
Currently I have defined 3 different ways of measuring a conversion rate:
Open conversion 2 - Taking all contacts in pipeline (without lost contacts) within a certain time frame
Open conversion 3 - Taking all contacts in pipeline (without lost contacts) within a certain time frame
I'm struggling to decide which method I should choose. Thanks for your feedback.
I was wondering if you can help me out understanding the benefits of different conversion rates in my sales funnel.
Little background:I have a sales funnel with 4 stages (Incoming contacts, met contacts, won contacts & lost contacts).
Currently I have defined 3 different ways of measuring a conversion rate:
- Closed conversion 1
- Taking all closed contacts (=all won + lost contacts)
- Calculation: Won contacts divided by closed contacts (regardless of the incoming date - so the contact could have been created in 2017 but got converted to won in 2020)
- Example: 10/100 = 10%
Open conversion 2 - Taking all contacts in pipeline (without lost contacts) within a certain time frame
- Calculation:
- Conversion Incoming to won contacts: Won contacts divided by incoming contacts
- Conversion Met contacts to won contacts: Won contacts divided by Met contacts divided
- Example: 100 incoming contacts, 50 met contacts,10 won contacts within last 90 days
- Inc to won: 10/100 = 10% (only contacts that came in within the last 90 days AND we met within the last 90 days)
- Met to won: 10/50 = 20% (only contacts that we met within the last 90 days AND we won within the last 90 days)
Open conversion 3 - Taking all contacts in pipeline (without lost contacts) within a certain time frame
- Calculation: Incoming to met to won contacts within a certain time frame
- Example: Inc to met to won (100 incoming contacts, 50 met contacts,10 won contacts within last 90 days). It's basically the same as Open conversion 2 but would only consider contacts that came in AND we met AND we won within the last 90 days)
I'm struggling to decide which method I should choose. Thanks for your feedback.
