Trevor is the owner of Sportelo and is wondering what impact Sportelo's mobile experience is having on revenue. Trevor understands that they can calculate this with the mobile conversion rate (mCvR). Sportelo receives 200,000 clicks with a mCvR of 1%. The average order value is $200. How much revenue does Sportelo's mobile experience create?
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Correct answer: $400,000.
Why this is the answer
$400,000 is correct because revenue from the mobile experience can be calculated by multiplying the number of conversions by the average order value. With 200,000 clicks and a 1% mobile conversion rate, there are 2,000 conversions (200,000 × 0.01), and multiplying 2,000 conversions by the $200 average order value results in $400,000 in revenue.
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