What is the Average Time to Convert Metric?
The Average Time to Convert metric represents the average time taken for a user account to convert to an offer. It's calculated as the time difference between the user account's activation and their first transaction, whether paid or free. This metric provides insight into the efficiency of your conversion funnel and how quickly users are engaging with your offers.
This metric is available for the clients who have access to ChurnIQ. You can find it in the Cleeng Dashboard under ChurnIQ.
How is it Calculated?
The calculation involves finding the average time difference:
Average Time to Convert = Sum of time differences between account activation and first transaction / Total number of converted users
- Time difference: The duration between the user's account activation date and the date of their first transaction (paid or free).
- Total number of converted users: The count of unique user accounts that completed a first transaction within the specified period.
How to Use the Average Time to Convert Metric in a Subscription Business
The Average Time to Convert metric is crucial for understanding the speed of your user conversion process. You can use it to:
- Assess Onboarding Effectiveness: Monitor the average time to convert to evaluate the efficiency of your onboarding process and identify potential bottlenecks.
- Optimize Conversion Funnel: Analyze the time to convert across different user segments or acquisition channels to identify areas for improvement in your conversion funnel.
- Evaluate Campaign Performance: Measure the impact of marketing campaigns or promotional activities on the time to convert.
- Forecast Conversion Rates: Use the average time to convert to predict future conversion rates and plan for resource allocation.