What is conversion rate in SAP CRM - Customer Relationship Management?

SAP Term: conversion rate

• Component: CRM

• Component Name: Customer Relationship Management

• Description: Key figure that evaluates the percentage relationship between the number of preceding and follow-up business transactions leads/opportunities, opportunities/orders. The conversion rate can provide you with information about the success of teams or employees in securing new business.

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• Key Concepts: 
  Conversion rate is a metric used in Customer Relationship Management (CRM) to measure the success of marketing campaigns. It is calculated by dividing the number of successful conversions (sales, leads, etc.) by the total number of contacts made. This metric helps to determine the effectiveness of a campaign and can be used to optimize future campaigns.
  
  How to use it: 
  To calculate conversion rate, divide the number of successful conversions by the total number of contacts made. For example, if you have 100 contacts and 10 successful conversions, your conversion rate would be 10%. This metric can be used to measure the success of a marketing campaign and can be used to optimize future campaigns.
  
  Tips & Tricks: 
  It is important to track conversion rate over time in order to identify trends and make adjustments as needed. Additionally, it is important to track conversion rate for different channels (e.g. email, social media, etc.) in order to determine which channels are most effective for your campaigns.
  
  Related Information: 
  Conversion rate is closely related to other metrics such as cost per acquisition (CPA) and return on investment (ROI). These metrics can be used together to gain a better understanding of the effectiveness of a marketing campaign. Additionally, conversion rate can be used in conjunction with other metrics such as customer lifetime value (CLV) and customer acquisition cost (CAC) to gain a better understanding of customer behavior and optimize marketing campaigns accordingly.