‘My key KPI’ is a weekly content series where we ask CFOs, FDs and founders about what metrics and measures they use to drive their businesses forward.
The aim is to understand how different finance professionals across a broad array of industries and sectors use data to inform their decision making.
In this week's edition, we speak to Benjy Meyer of Venue Scanner about conversion (the non-religious kind, that is).
My Key KPI: Conversion rate
Startup language often has a religious tenor to it: angel investors, evangelism; even the unicorn has its origins in folklore and faith.
Perhaps the most outrightly religious bit of startup jargon is 'conversion' and it's concomitant metric: conversion rate.Conversion, these days, is less about spreading the good word to heathens; it's about turning a non-user into a user. Or, more broadly, a conversion can refer to any desired action that you want the user to take.
So the principal of conversion remains, it's just sans baptism. One startup that focuses on conversion rate is VenueScanner: a self-service platform where event organisers and venue hosts arrange and negotiate the venue hire through their VenueScanner Inbox.
Benjy Meyer, VenueScanner's co-founder, defines conversion rate simply as "the proportion of visitors to the website that confirm a booking". Measuring it is elementary as well: count the number of unique visitors on the website each period and the number of bookings and then divide one by the other.
The significance of conversion rate, Meyer explained, is that "It gives us monthly read on how the daily improvements we make to the online experience are creating value to our users: delivering bookings to venue hosts from customers they couldn’t otherwise reach and solving the headache of venue finding for the maximum number of event organisers."
"If we continue to grow conversion at its current rate, we’ll more than exceed our 12 month goals and be able to take VenueScanner to an infinite number of markets. A strong conversion rate makes our product and experience repeatable and scalable. In addition, the better the online experience, the better our chances of securing repeat business from event organisers and, in turn, delivering further incremental value for venue hosts."