This video, the second in a series on conversion rate optimisation, looks at how to calculate the lift in conversion rate that you can expect to achieve through conversion rate optimisation. It covers the methods and techniques used to measure the effectiveness of conversion rate optimisation campaigns, including A/B testing and multi–variate testing. It also provides practical advice on how to interpret the results of these tests and use them to make informed decisions about your conversion rate optimisation strategy.
Conversion rate is the percentage of visitors to a website or app that convert into customers. To calculate the conversion rate for an A/B test, divide the number of visitors who took the desired action (converted) by the total number of visitors in the test. For example, if 100 visitors were in the test and 25 of them converted, the conversion rate would be 25%. To calculate the Return on Investment (ROI) for an A/B test, you will need to know the total cost of the test (including any advertising costs, development costs, or other costs associated with the test) and the total revenue generated from the test. The ROI is calculated by subtracting the total cost from the total revenue and then dividing by the total cost. For example, if the total cost of the test was $500 and the total revenue generated was $1000, the ROI would be 100% (1000 – 500 / 500 = 100%).