In today’s business environment, the conversion rate for businesses is one of the crucial steps in a successful marketing strategy. It is a critical analysis, especially in comparing the overall success of advertising activities among competitors and indicating the general situation of brand preference, interpreted from the perspective of the target audience.

Conversion analysis, which is not commonly used in market research reports but provides significant insights when used, offers an important benefit by demonstrating how much conversion rate a brand achieves compared to its awareness among competitors.

Formula: (Owners / Brand Awareness)*100

It is calculated by dividing the number of those who own the product or service of each brand or those who purchased during a certain period by the number of people who are aware of each brand. The result is interpreted as a percentage (%). In this way, the conversion rate analysis of competitors and the main brand in the sector is conducted. The result is interpreted relative to the competitors.

The interpretation of the result depends on its relation to the question asked; it allows interpretation based on factors such as advertising effectiveness, brand perception, price, product features, etc. However, this rate only provides a general assessment. For example, let’s assume that Brand A’s awareness is 50%, but the conversion rate is 20%. Brand B’s awareness is 5%, but the conversion rate is 70%. In this case, we can say that Brand B achieves more conversion compared to its awareness than Brand A. Considering that these two competing companies serve similar customer segments in the same sector, if Brand B increases its awareness, it could be a future external threat for Brand A. In this case, Brand A needs to reassess all aspects that need improvement regarding the product or service it offers and take the necessary steps to become superior to its competitor.

Although calculating this analysis may seem simple, it needs to meet certain standard conditions. Firstly, the questions to be asked and the types of data to be collected must be suitable for this analysis. Additionally, it is important that the calculations are interpreted by a professional in this analysis field. Otherwise, miscalculations or misinterpretations can do more harm than good for the brand in the future.