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KPI for Measuring of the % of Product Trials that Convert into Customers posted in category Sales

WinningKPI - Sales - KPI for Measuring of the % of Product Trials that Convert into Customers posted in category Sales

KPI details:KPI Expert Oana Boteanu

This indicator is for measuring the % of successful product trials, which convert into customers.

More details:

The time period would depend on when the trials take place (some companies may only do product trials at the launch of a new line, whilst other companies may consistently do product trials).

This KPI is essential for a business using Product Trials as part of their marketing campaign. Measuring the % of these trials converting into customers can help the company to monitor and improve, where necessary, the marketing efforts. For instance, a company with a low conversion rate may choose to improve staff training, segment a different market etc.

In the case that the products in trial are different, this KPI would become more measurable and accurate if the company identifies the product type that has the best conversion rate of trials into customers.

Formula

Total product trials converted into customers / total number of product trials x100

KPI Units: %

KPI Time Frame: update at the end of product trial period

Posted by Oana Boteanu | Help to protect community: Flag for moderation

Ideas suggested by WinningKPI community:

Here are comments:

KPI Expert This is a very useful KPI to measure marketing efforts, however, sometimes it can be challenging to measure what % of the new customers was actually gained due to product trials.

Many software companies now offer a trial period (e.g. Norton Antivirus) and the company can easily monitor how many of those trials convert into customers.

For example, if over a month period 200 people started a trial, however, only 30 of those bought the full price product, the KPI % is:

30/200 x 100 = 15%

Product trials can sometimes be hard to measure. For instance, a cosmetics company (face cream) that offers free samples in the daily newspaper will find it difficult to measure how many exact customers where gained due to that specific product trial campaign.

Oana Boteanu | September 6, 2012 at 8:07 am

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