
Marka grabbed a piece of coal and begin scribbling on her whiteboard.
1) Conversion Rate.
“This is obviously an important metric,” Marka explained. “We can easily calculate our campaign’s conversion rate using this formula:
(unique visitors) / (sales transactions) = Conversion Rate
“First, we set a conversion rate goal,” Marka continued. “If we meet this goal, we consider the campaign a success by this measurement. If 2 or 3 precent of prospects buy a torch, we’re doing pretty well. But if our goal was to obtain qualified leads, we might expect a higher conversion rate—perhaps 5 or 6 percent.”
2) Landing Page Abandonment Rate.
“If a lot of prospects who visit our landing page drop out before reaching the order page, the page itself may be flawed,” Marka said. “Calculating the abandonment rate will help us determine if our page design or layout need to be changed for later campaigns. Here’s how we do that:”
(unique visitors to landing page) - (visitors to order page) / (unique visitors) = Abandonment Rate
“Again, our measure of success derives from our goal,” Marka said. “It’s important to stay realistic. Remember, for instance, that unqualified buyers will usually account for at least 10 percent of dropouts.”
3) Cost Per Sale.
“Numo will be most interested in this figure,” Marka said. “Its importance is self-explanatory. Calculating it could hardly be simpler.”
(Cost of campaign) / (Amount of sales) = Cost Per Sale.
“The goal we set depends on how much a customer is worth to us,” Marka added. “A frequent customer is valuable. Of course, only a small percentage of first-time buyers will buy again, and only a percentage of those will turn into ongoing customers. First, we arrive at this figure. Then, we calculate the cost per sale of this campaign to see if we met our goal.”
- Categories:
- Business Management - Marketing/Sales

Very much alive and now officially an industry curmudgeon, strategic growth expert T. J. Tedesco can be reached at tj@tjtedesco.com or 301-404-2244.