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 an 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
To calculate the revenue, first determine the number of mobile conversions. With 200,000 clicks and a 1% mobile conversion rate (mCvR), the number of conversions is 200,000 0.01 = 2,000 conversions. Next, multiply the number of conversions by the average order value (AOV) to find the total revenue. So, 2,000 conversions £200 AOV = £400,000. Therefore, Sportelo's mobile experience generates £400,000 in revenue. The other options are incorrect because they result from miscalculations of either the number of conversions or the final revenue figure.
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