Post by account_disabled on Mar 9, 2024 4:38:14 GMT
The rate and the price.Price affects the conversion rate the lower it is the more likely the user will convert. By raising prices you increase your margin but you have to take into account a lower conversion rate.Therefore increasing the price and the conversion rate are mutually contradictory goals hence also in this case as in the case of traffic optimization and CPC you should look for the perfect compromise and set the price level at which the click value will be the highest.What happens when the price goes up Look at the charts above. As the price increases the conversion rate decreases. The value of a click initially increases as the price increases but once it reaches a maximum point it begins to decrease.
As the too high price discourages more and more customers. The value of a click is highest at the point where its derivative with respect to margin is zero. This occurs when a small change in margin per transaction results in an equal percentage change India Part Time Job Seekers Phone Number List in the number of transactions or conversion rate. For example if by reducing the margin achieved on a transaction by we obtain a higher conversion rate and therefore more transactions the profit does not change which means that our price is close to the optimal point maximizing the value of a click.
What is the optimal price that maximizes the value of a click and the profits achieved it is necessary to examine how a change in the margin per transaction caused by a price modification will affect the conversion rate and therefore the number of transactions. If the margin per transaction increases by and the conversion rate decreases by the price increase is unprofitable the price is already too high. If a price reduction reduces the margin per transaction by and at the same time increases the number of transactions by only this operation will also.
As the too high price discourages more and more customers. The value of a click is highest at the point where its derivative with respect to margin is zero. This occurs when a small change in margin per transaction results in an equal percentage change India Part Time Job Seekers Phone Number List in the number of transactions or conversion rate. For example if by reducing the margin achieved on a transaction by we obtain a higher conversion rate and therefore more transactions the profit does not change which means that our price is close to the optimal point maximizing the value of a click.
What is the optimal price that maximizes the value of a click and the profits achieved it is necessary to examine how a change in the margin per transaction caused by a price modification will affect the conversion rate and therefore the number of transactions. If the margin per transaction increases by and the conversion rate decreases by the price increase is unprofitable the price is already too high. If a price reduction reduces the margin per transaction by and at the same time increases the number of transactions by only this operation will also.
