GMAT Focus EditionData InsightsEasy
A marketing team is tracking the performance of two email campaigns, Campaign A and Campaign B. They want to determine which campaign has a higher conversion rate. The data for the last week is: Campaign A: Emails Sent = 10,000, Clicks = 500, Conversions = 50 Campaign B: Emails Sent = 12,000, Clicks = 600, Conversions = 72 Which campaign has a higher conversion rate (Conversions / Clicks)?
- ACampaign A
- BCannot be determined without knowing the total revenue.
- CCampaign B
- DBoth campaigns have the same conversion rate.
Show answer & explanationAnswer & explanation
Correct answer: C. Campaign B
The conversion rate is calculated as (Conversions / Clicks). Campaign A: 50 conversions / 500 clicks = 0.10 or 10%. Campaign B: 72 conversions / 600 clicks = 0.12 or 12%. Campaign B has a higher conversion rate.
Why the other options are wrong
- A. Campaign A has a conversion rate of 10%.
- B. Total revenue is not needed to calculate the conversion rate from clicks to conversions.
- D. The conversion rates are different.
Conversion Rate (Clicks to Conversions)
This conversion rate measures the percentage of clicks that result in a desired action, such as a purchase or signup.
- Calculated as (Conversions / Clicks) * 100%.
- Higher rate indicates more effective landing pages or offers.
- A key metric for evaluating the efficiency of marketing efforts post-click.
Memory trick: Conversions over Clicks, then times a hundred for the mix!