Reverse Engineering a Percentage

[JaymesP]

Hi guys,

This is my first post on here. I'm a marketer and need to pick your brains on how to work out a formula.

Here's my example:

I sell 150 laptops every month. To sell these 150 laptops, I run website ads. I know that I have a 10% conversion rate in selling my laptops as out of the 13,500 people that click on my ads (potential leads), 6,500 show a real interest (actual leads as they fill in a form on the my website), but 1,500 actually buy them.

Now I've created a formula for that, but I need to reverse engineer this. For instance:

Leads = x
Conversion Rate = 6.6%
Sales = 150

How do I work out what x is?

Any help with this would be very much appreciated.

Cheers,
Jaymes

 

[Deleted member 4993]

Hi guys,

This is my first post on here. I'm a marketer and need to pick your brains on how to work out a formula.

Here's my example:

I sell 150 laptops every month. To sell these 150 laptops, I run website ads. I know that I have a 10% conversion rate in selling my laptops as out of the 13,500 people that click on my ads (potential leads), 6,500 show a real interest (actual leads as they fill in a form on the my website), but 1,500 actually buy them.

Now I've created a formula for that, but I need to reverse engineer this. For instance:

Leads = x
Conversion Rate = 6.6%
Sales = 150

How do I work out what x is?

Any help with this would be very much appreciated.

Cheers,
Jaymes

Are we to get a cut as commission?

 

[stapel]

I sell 150 laptops every month. To sell these 150 laptops, I run website ads. I know that I have a 10% conversion rate in selling my laptops as out of the 13,500 people that click on my ads (potential leads), 6,500 show a real interest (actual leads as they fill in a form on the my website), but 1,500 actually buy them.

Do you sell 150, or 1,500? Either way, what is the source of your "10% conversion rate" figure? What is your click-through rate, with respect to total impressions?

Now I've created a formula for that, but I need to reverse engineer this. For instance:

Leads = x
Conversion Rate = 6.6%
Sales = 150

How do I work out what x is?

How are you defining "leads"? As click-throughs? Why has the conversion rate changed from 10% to 6.6%?

Please reply with all of the information, including a clear listing of your thoughts and efforts so far, so we can see where you're getting stuck. Thank you!

 

[JaymesP]

Do you sell 150, or 1,500? Either way, what is the source of your "10% conversion rate" figure? What is your click-through rate, with respect to total impressions?

I basically need to know how many leads I need to generate as my sales need to be "150" for the month of December. From experience, we know that the conversion rate is approximately "6.6%" (which we call the CR2, or the Conversion Rate 2 as this is leads to conversions.

I already know what the approximate CR1 (Conversion Rate 1 = clicks to leads) is (which is about 15%), but for this calculation, all I need to know is "how many leads do I need to generate to get the 150 sales, knowing that my conversion rate is 6.6%".


How are you defining "leads"? As click-throughs? Why has the conversion rate changed from 10% to 6.6%?

The "10%" was an example. The real CR2 is "6.6%". We know this from experience. By "leads", I am referring to users that leave their details (name, email, etc.) in a form on our website, not "click-throughs".

Please reply with all of the information, including a clear listing of your thoughts and efforts so far, so we can see where you're getting stuck. Thank you!

Hi,

See my reply in line above.

 

[JaymesP]

Quite basic stuff, old chap:
x * .066 = 150
x = 150 / .066 = 2272.727....

Cheers Denis.

Now, can I be super cheeky and ask how I put that formula into Excel?

In my spreadsheet, I have the following:

Cell A1 = Leads (the formula needs to be added into this cell)
Cell B1 = Conversion Rate (6.6%)
Cell C1 = Sales (150)

So whenever I amend the conversion rate or the sales figure, the leads field changes.

Thanks so much again.
Jaymes

 

[Ishuda]

Cheers Denis.

Now, can I be super cheeky and ask how I put that formula into Excel?

In my spreadsheet, I have the following:

Cell A1 = Leads (the formula needs to be added into this cell)
Cell B1 = Conversion Rate (6.6%)
Cell C1 = Sales (150)

So whenever I amend the conversion rate or the sales figure, the leads field changes.

Thanks so much again.
Jaymes

Cell A1: = C1/B1