revenue impact

math-non-whiz

New member
Joined
Feb 22, 2013
Messages
1
i'm trying to calculate what the impact would be to revenue if the conversion rate declined from 2.0% to 1.5%. I know that the percent change from the 2.0% to the 1.5% is -25.0%. If i'm trying to calculate the impact to revenue, i can't say that this is a 25.0% drop in revenue...so how do i know what the actual dollar impact to revenue is? if my current revenue is $5,000, i can't apply the 25% drop to the $5,000...so how do i know what the monetary impact is of the decline in conversion rate?

let me know if i need to clarify...
 
i'm trying to calculate what the impact would be to revenue if the conversion rate declined from 2.0% to 1.5%. I know that the percent change from the 2.0% to the 1.5% is -25.0%. If i'm trying to calculate the impact to revenue, i can't say that this is a 25.0% drop in revenue...so how do i know what the actual dollar impact to revenue is? if my current revenue is $5,000, i can't apply the 25% drop to the $5,000...so how do i know what the monetary impact is of the decline in conversion rate?

let me know if i need to clarify...

Since you are stuck in the beginning, let us start at the begining. Please answer the following questions:

What is revenue and how is it calculated (equation) for the situation described in your problem?

What is conversion rate and how is it related to revenue (equation) for the situation described in your problem?
 
Top