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Introduction
1. Welcome
Conversion rates
Time to first order
Conversion charts
Summary

Instruction

Hello and welcome to the second part of our course! This time, we're going to talk about customer conversion.

Customer conversion is defined as "any desired event or action that is related to customers." A conversion occurs when a customer completes a desired action, such as signing up for the newsletter, social media share, filling out a form, or making a purchase. We typically talk about conversion rates, which are the percentages of prospective customers who take a specific action that we want.

In our data model, we'll take a look at registered customers. How many of them make their first purchase within one week of registration, two weeks of registration, etc.? Customers may register without making any purchase simply to get our newsletter; they'll make their first purchase only when they get a newsletter with an offer that appeals to them. In this case, analyzing conversion rates can help us find out which newsletter campaigns perform better than the others.

We'll learn how to compute the total conversion rate in a given period. Then, we'll analyze how long – for each weekly registration cohort – it takes our customers to make their first order. Finally, we'll learn how to prepare a customer conversion chart which shows weekly registration cohorts in rows and the number of conversions (i.e., first purchases) within one week, two weeks, etc. A customer conversion chart can look like this:

year week registered no_sale first_week second_week after_second_week
2016 7 20 0 20 0 0
2016 8 14 0 14 0 0
2016 9 10 0 9 1 0
... ... ... ... ... ... ...

Are you ready to get started?

Exercise

Click Next exercise to continue.