Conversion

palabra86

Senior Member
Spanish
I'm familiar with the term "conversion" when it comes to food, to what it might refer in this context? :)

Many products have a consumable element – fuel, oil, filters, etc. It’s common for the consumable to be a big money-maker for the company (like razors and razor blades, where the razors are sold as a loss-leader to get a revenue stream of razor blade sales). However, what if your products could automatically order their consumables when they’re needed? Automatic fulfillment of consumables improves conversion, locks in recurring sales, and makes it easier to forecast demand.
(Private article sent by email)
 
  • suzi br

    Senior Member
    English / England
    I have never seen this.

    It’s obviously used in a specific business/ marketing way here.
    My guess is: converting customers from other brands to your own brand.
    Like HP wants me to buy their expensive ink refills, not cheaper supermarket version.
     

    moonbeams

    New Member
    UK
    English
    Conversion in business/marketing means turning potential customers who are just looking at your products into actual customers who buy your products. When you look at an item online but click away without buying, then that item follows you around the internet in adverts, the company is trying to convert you.
     

    manfy

    Senior Member
    German - Austria
    Conversion in business/marketing means turning potential customers who are just looking at your products into actual customers who buy your products. When you look at an item online but click away without buying, then that item follows you around the internet in adverts, the company is trying to convert you.
    That's a sensible interpretation, but in this specific context they're talking about conversion from potential sales/income to actual sales/income, I think.

    Look at the specific context:
    ... However, what if your products could automatically order their consumables when they’re needed?
    Think of an auto maker that sells 100,000 cars a year in one country. If the air filter needs changing once a year, they know/budget/forecast that they will sell 100k of this spare part a year.
    However, some car owners might not follow the recommendation to change the filter, others might look for cheap substitute parts from China, aso. asf.
    End result: the actual sales of filters does not match the predicted sales. But if the car's board computer automatically orders this spare part from the original maker then the conversion from potential sales to actual sales is practically guaranteed.

    ...and that's why I don't like to buy cars or electronics that do too much thinking on my behalf... :rolleyes:
     

    moonbeams

    New Member
    UK
    English
    That's a sensible interpretation, but in this specific context they're talking about conversion from potential sales/income to actual sales/income, I think.
    Yes, that's exactly what I was trying to explain. It doesn't necessarily have to be a potential client looking at products, but I was using an example of conversion that we're all familiar with from spending time online.

    In any case, conversion = potential client --> actual client
     
    < Previous | Next >
    Top