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To learn what conversion rate is about and how to calculate it, click below.
Understanding of Terms
What It Is: This is the percentage of visitors to your website who take the desired action, such as making a purchase or signing up.
How to Calculate: Conversion Rate = ( Total Conversions/Total Visitors) )×100
Steps:
Define the goal (e.g., purchases, form submissions).
Track the total number of visitors and the total conversions over a specific time.
Use analytics tools like Google Analytics, Hotjar, or HubSpot to measure this.
What It Is: This measures the percentage of visitors who transition into leads (e.g., fill out a form or sign up for a newsletter).
How to Calculate: Visit to Lead Conversion Rate = ( Total Leads /Total Visitors )×100
Steps:
Identify pages that capture leads (e.g., landing pages or blog posts).
Track the number of visits and leads generated from these pages.
Use tools like Google Analytics or your CRM system to collect this data.
Define Your Funnel:
Understand the customer journey from visitor → lead → customer.
Improve Your Pages:
Optimize call-to-actions, headlines, and page layouts for better lead capture.
Regularly Audit Analytics:
Check your conversion rates weekly or monthly to identify trends.
Purpose:
To show the potential return on investment from building or redesigning a website.
Inputs:
• Current monthly website traffic
• Conversion rate (%)
• Average order value (₦/$)
• Monthly website maintenance cost (₦/$)
Outputs:
• Projected increase in traffic (based on improvements)
• New conversion rate after redesign (%)
• Projected revenue growth (₦/$)
• ROI: (Projected revenue – Costs) / Costs
Purpose:
To estimate the ROI of implementing SEO strategies.
Inputs:
• Current website traffic
• Average organic traffic growth (%)
• Conversion rate (%)
• Average order value (₦/$)
• SEO investment (monthly cost)
Outputs:
• Projected increase in organic traffic
• Additional revenue from SEO efforts (₦/$)
• ROI over a specified period (e.g., 6 months or 1 year)
Purpose:
To evaluate the potential ROI of PPC campaigns (Google Ads, Facebook Ads, etc.).
Inputs:
• Ad spend budget (₦/$)
• Cost per click (₦/$)
• Conversion rate (%)
• Average order value (₦/$)
Outputs:
• Estimated number of clicks
• Estimated leads or sales
• Total revenue from campaign (₦/$)
• ROI: (Revenue – Ad Spend) / Ad Spend
Purpose:
To measure ROI from social media campaigns or organic growth efforts.
Inputs:
• Current follower base
• Engagement rate (%)
• Click-through rate (CTR) (%)
• Conversion rate (%)
• Average order value (₦/$)
Outputs:
• Projected increase in followers and engagement
• Additional website traffic from social media
• Revenue generated from social campaigns (₦/$)
• ROI: (Revenue – Social Media Costs) / Social Media Costs
Purpose:
To estimate the revenue generated through email campaigns.
Inputs:
• Email list size
• Open rate (%)
• Click-through rate (CTR) (%)
• Conversion rate (%)
• Average order value (₦/$)
• Monthly email marketing cost (₦/$)
Outputs:
• Estimated revenue from campaigns (₦/$)
• ROI: (Revenue – Costs) / Costs
Purpose:
To combine multiple marketing channels (SEO, PPC, social media, email, etc.) and provide an overall ROI projection.
Inputs:
• Marketing budget allocation per channel (₦/$)
• Expected traffic, conversions, or sales from each channel
• Average order value (₦/$)
• Total marketing budget (₦/$)
Outputs:
• Revenue from each channel
• Total revenue from all channels
• Overall ROI for the marketing strategy
Purpose:
To demonstrate the value of investing in blogs, videos, and other content marketing strategies.
Inputs:
• Current monthly traffic
• Expected traffic growth (%)
• Conversion rate (%)
• Average order value (₦/$)
• Content creation cost (₦/$)
Outputs:
• Traffic increase from content
• Revenue generated through content (₦/$)
• ROI: (Revenue – Costs) / Costs