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In a hypothetical caser a rm is able to increase its website conversion rate bv 1% keeping other costs constant. Different metrics before and after
In a hypothetical caser a rm is able to increase its website conversion rate bv 1% keeping other costs constant. Different metrics before and after are provided in the Figure. You have to calculate X1,K2,Y1.Y2r21.22,W1.W2,M1,M2. R1. and R2 based on the method given for calculation. What is the increase in marketing ROI, i.e., what is the value of {RER1]? Visitor Cost per visit Cost of all visits Conversion rate Conversions Revenue per conversion Total revenue Marketing cost Non-marketing cost Total prot Total marketing return on investment (:3 315 C) 4n (3. on (3. so Eselnlstion Bolero 100000 1 Visitor * cost per visit X] 3% Conversion rate * 'v'isitor Y] 75 Revenue per conversion * Conversions 2] Cost of all visits W] 1 12500 Tots] revenue - If Marketing cost + Non-marketing cost} Ml {Total prot I Marketing cost] "' 100 R] Increase in RC}! it-R] Alter 100000 4% Y2 75 W2 1 500-00
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