Difference between Reach, Conversion Rate, and Referral Rate

The meaning and application of reach rate, conversion rate and referral rate are different.

1, Reach Rate (ReachRate): refers to the proportion of the population covered by marketing activities or advertising, i.e., the exposure of advertising. The formula for calculation is: number of people reached/overall audience x 100%. ReachRate is mainly used to measure the communication effect of an advertisement or marketing campaign.

2, conversion rate (ConversionRate): refers to the completion of a pre-determined goal of the number of users accounted for the proportion of the total number of visitors, for example, how many of the shopping cart of the website to add the goods, that is, the conversion rate of additional purchases, or the proportion of registered paid users, that is, the registration conversion rate. The formula is: number of conversions / total number of visitors x 100%. Conversion rate is mainly used to measure the effect and value of marketing activities.

3. NetPromoterScore: A measure of brand loyalty, NetPromoterScore is a survey of whether consumers are willing to recommend a product or service to their friends or family members by dividing the respondents into recommenders, neutrals and critics, and calculating the percentage of recommenders minus the percentage of critics to arrive at the result. Referral rate results typically range from -100% to +100%, with higher values indicating greater loyalty. Referral rates are primarily used to measure brand and product satisfaction and loyalty.