Power of Customer Conversion
What is the Customer Conversion Ratio (CCR)?
In the contact center, Customer Conversion Ratio is the number of customers that buy, divided by the number of customers/prospects that make contact with the center. In its simplest form, think of a marketing campaign designed to have potential customers contact your center.
Here is an example:
(1000 sales last month/50,000 contacts last month) = 2% Conversion Ratio
Average Sale = $500
$500 x 1000 sales = $500,000 in revenue
2% Conversion Ratio = $500,000 in revenue
Now imagine if the following happened:
(2000 sales last month/50,000 contacts last month) = 4% Conversion Ratio
Average Sale = $500
$500 x 2000 sales = $1,000,000 in revenue
4% Conversion Ratio = $1,000,000 in revenue
Why is this important?
Axiom: If you double your customer conversion, you will double revenue without increasing your customer capture costs. Think about this: the organization is already spending the money on marketing and advertising to create the 50,000 contacts per month. This cost remains the same.