Conversion Rate

While metrics like AHT measure speed, Conversion Rate measures success. It is primarily used in Sales, Collections, and Retention departments.

It calculates the percentage of interactions where the agent successfully convinced the customer to take a specific action. This action could be buying a product, paying a debt, agreeing to an upgrade, or completing a survey.

Why is it important?

• Revenue: In a sales campaign, Conversion Rate is the most direct link to how much money the company makes.
• Commissions: For agents, this is the "money metric." High conversion rates usually mean bigger bonus checks at the end of the month.
• Lead Quality: It helps managers understand if the list of phone numbers (leads) they are calling is good or bad, or how good at conversion their agents are.

To calculate the conversion rate, you simply divide the number of successful outcomes by the total number of attempts made, using the following formula:

Conversion Rate = (Total Sales made ÷ Total Calls Answered) x 100.

Let's do a quick example to calculate the conversion rate of an agent:

• Imagine you are working in a campaign selling internet upgrades.
• You talked to 50 customers today.
• Most of them said "no," but 5 customers agreed to buy the upgrade.
• Conversion = (5 ÷ 50) x 100 = 10%.

In this example, your Conversion Rate is 10%. This means for every 10 people you talk to, you make 1 sale, or for every 50 people you talk to, you make 5 sales.

Let's see some more examples using a visual approach. Do the math on your own first and then compare the results: