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What is conversion and how to calculate it in your business

When people say “ads don’t work”, they usually mean conversion. They just don’t know it. Learn to calculate conversion, and you will see at which stage the money is lost.

What is conversion and how to calculate it in your business

Conversion is the share of people who moved from one stage to the next. 1,000 people saw an ad, 20 went to the page: conversion is 2%. Of those 20 visitors, 2 sent a message: 10%. Of those 2, 1 bought: 50%.

There is one formula: conversion = people who moved to the next stage ÷ everyone at the previous stage × 100%.

Which conversions a business has

For a business that sells through Instagram, the chain usually looks like this:

  • Ad conversion (CTR): how many people who saw the ad clicked. Shows how well the creative and the offer caught attention.
  • Page conversion: how many visitors to the page or landing page left a request (sent a message, called, filled in a form). This shows whether the page builds trust and whether the offer is clear.
  • Request to sale: how many people who reached out became clients. This is a sales team metric: response speed, quality of the conversation, price.
  • Repeat purchase: how many buyers came back. A measure of product and service quality.

Each stage “belongs” to a specific person: the first to the ads specialist, the second to content and the website, the third to the salesperson. That is why “ads don’t work” is often said to the wrong person.

How to calculate it: a simple example

In one month:

  • The ad was shown to 100,000 people, 2,000 clicked → CTR 2%
  • Of 2,000 visitors, 100 sent a message → page conversion 5%
  • Of 100 requests, 15 bought → sales conversion 15%
  • Ad spend was 10 million UZS → one request cost 100,000 UZS, one client cost 667,000 UZS

The last two numbers matter most to the owner. If a client costs 667,000 UZS and brings 2 million in profit, the ads work. If the client brings 500,000, they don’t, even with a good CTR.

Look at conversion in money, not only in percentages: cost per request and cost per client. Percentages are the diagnosis, money is the decision.

Where the loss is and how to find it

Write out the chain, and the weakest stage becomes visible. Typical situations:

  • Low CTR (below 1%), everything else normal: a creative or audience problem. Change the video, the headline, the offer.
  • Good CTR, no requests on the page: the page doesn’t build trust. Empty profile, unclear price, no clear place to message. Most often an issue with SMM or the landing page.
  • Many requests, no sales: the sales stage. Late replies (after an hour), no script, the price is named and the conversation ends. Scaling ads won’t help here. You will just lose even more requests.
  • Sales, but no repeat buyers: an issue with the product or with follow-up after purchase.

One rule: fix the weakest stage first, then increase the budget. Pouring more water into a leaky bucket doesn’t fix the hole.

What is a “normal” conversion rate?

It depends heavily on the industry, price and channel, so don’t compare yourself with other businesses’ numbers. The reliable way is to compare with your own previous month: page conversion went from 5% to 7%, that’s growth. It dropped to 3%, you need to find the cause.

To start counting, you need three things: impressions and clicks from the ad account, the number of requests on Instagram or the website (Direct, calls, form), and a list of sales. Use a spreadsheet in Excel or a CRM. Automation can come later. Start with simple counting.

How to increase conversion

Each stage has its own method:

  • Ads: test 3–4 creatives at the same time and switch off the ones that don’t work. Make the offer specific (not “20% off”, but “order this week and installation is free”).
  • Page: on the first screen, show what you sell and the price range. Use real photos and videos. Make it possible to send a request in two taps. For targeted ads, a separate quiz landing page often works well: the person answers 3–4 questions and leaves their number.
  • Sales: reply to a request within 15 minutes. Use a question script. After naming the price, offer the next step (a meeting, a measurement, a sample).
  • Repeat sales: one message after the purchase, a Telegram channel, a seasonal offer.

Summary

Conversion is not a complicated term. It’s simple division: how many people came, and how many moved to the next step. Write out the chain once, and the next question comes on its own: which stage is the weakest and who fixes it.

Want to calculate your chain together? Bring the numbers from your ad account and your requests to a free consultation, and in 30 minutes we’ll show you where the loss is.

FAQ

CTR is one type of conversion: how many people who saw the ad clicked. For a business, conversion to request and to sale matters more, because that is where the money is decided.

Impressions and clicks are in the ad account. Requests need to be counted manually: new chats in Direct, calls, forms. On a website, Meta Pixel and GA4 do this automatically.

First find out which stage is low. If you get requests but no sales, the problem is not the ads. Stopping them will only cut off the requests too.

Yes. At Damar, the end-of-month report includes ad metrics, the number of requests and the cost per request. For sales conversion, we ask the client for the number of sales.

Shall we look at your ads together?

The first consultation is free: we look at where you are now and suggest the next step.

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