Since several readers were intrigued by the conversion rate email from yesterday, here’s more food for thought.

I was reading the webpage Measuring Conversion Rates in Salesforce and Gabrielle has another perspective on this topic.

She defines the conversion rate as a transition. Using yesterdays example,

The conversion rate of A to B is the number of opportunities who used to be A and are now B, divided by the total number of opportunities in A and B. e.g. B* / (A + B) where B* used to be A.

To set this up, you need to track the stage history, and she only considers an adjacent step. She doesn’t track conversions from A to C, although I suppose you could use the same formula to do so.

I’m just not quite sure whether I would call this as a conversion rate or something else. Would you?

For your information, in my situation, I asked my client questions such as

  • What is the purpose of this metric?
  • How will it be used and who needs it?
  • Which decisions will be made as a result?
  • Which transitions need to be tracked? (I didn’t want to do all)
  • What if you didn’t have this metric?

The takeaway
It seems conversion rates can be defined in multiple ways. So make sure your definition and your client’s definition are aligned.

Category:
Salesforce