Barbara is the owner of ClubCup and is wondering what impact ClubCup's mobile experience is having on revenue. Barbara understands that they can calculate the mobile conversion rate (mCvR). ClubCup receives 200,000 clicks with a mCvR of 1%. The average order value is $200. How much revenue does ClubCup's mobile experience create?
$250,000
$10,000
$400,000
$300,000
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Explanation: Barbara is the owner of ClubCup and is wondering what impact ClubCup’s mobile experience is having on revenue. Barbara understands that they can calculate the mobile conversion rate (mCvR). ClubCup receives 200,000 clicks with a mCvR of 1%. The average order value is $200. How much revenue does ClubCup’s mobile experience create?
Explanation: The correct answer is **$400,000**. To calculate the revenue generated from ClubCup's mobile experience, we use the formula: Revenue = Clicks × mCvR × Average Order Value. Given that ClubCup receives 200,000 clicks and has a mobile conversion rate (mCvR) of 1%, and the average order value is $200, we can compute the revenue as follows: Revenue = 200,000 clicks × 1% mCvR × $200 average order value = 200,000 × 0.01 × 200 = $400,000. Therefore, ClubCup's mobile experience creates $400,000 in revenue. This calculation reflects the total monetary impact of converting mobile clicks into actual sales, taking into account both the volume of clicks and the conversion rate on mobile devices.
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