Paul is the owner of Tennio and is wondering what impact Tennio’s mobile experience is having on revenue. Paul understands that they can calculate the mobile conversion rate (mCvR). Tennio receives 200,000 clicks with a mCvR of 1%. The average order value is $200. How much revenue does Tennio’s mobile experience create?
- $200,000
- $500,000
- $400,000
- $20,000
Explanation:
Tennio’s mobile experience creates **$400,000** in revenue because the mobile conversion rate (mCvR) indicates that 1% of the 200,000 clicks result in a purchase. To calculate the number of conversions, you multiply 200,000 clicks by 1%, which equals 2,000 conversions. Since the average order value is $200, you then multiply the number of conversions (2,000) by the average order value ($200), resulting in $400,000 in revenue. This calculation highlights the significant impact of the mobile experience on overall sales.
If you want efficiently monitor your website or app performance, you have to measure it. One of the metrics commonly used to compare desktop and mobile performance is a relative mobile conversion rate (rel mCvR).
The formula below illustrates how improving mCVR results in increased conversions and revenue.
(clicks x mCvR) x order value = revenue