Conversion rate

In practice, the conversion rate is often calculated in brand awareness surveys. When asked which organizations/brands they are considering, it is logical that people will not consider an organization/brand if they are not familiar with it. In this case, it is interesting to know what proportion of the target group is both familiar with the organization/brand and also considers it. This can be calculated by applying the following formula:

Conversion rate = consideration intent / aided awareness

A higher conversion rate means that an organization/brand is more successful in converting its awareness into consideration. For example, it is possible that both brand awareness and consideration intention have increased compared to a previous measurement, while the conversion rate has decreased. This means that brand awareness has increased more rapidly than consideration intention, and that the newly acquired brand awareness is less successful in converting into consideration intention.

Conversion rate applications

In addition to the conversion rate for consideration intention/aided awareness, other conversion rates can also be calculated. In line with the latter is the preference/consideration intent conversion rate. This conversion rate reflects the proportion of the target group that considers a brand/organization and has a preference for this organization/brand. Below are some other examples of conversion rates:

Calculation example

Product X has an aided brand awareness of 85% and a consideration intention of 30%. When product Y has an aided brand awareness of 61% and a consideration intention of 25%, it appears that product X is performing better (after all, it has higher brand awareness and a higher consideration intention) than product Y. However, this is not necessarily the case.

When we look at the conversion rate of both products, we see that product Y is better at converting aided brand awareness into consideration than product X.

Formula:

Product X: 30/85*100 = 35%

Product Y: 25/61*100 = 41%

In other words, 35% of respondents who are familiar with product X are also considering it, compared to 41% of respondents for product Y.