Definition
The conversion values help you determine how much each of the CrSTAL milestones is valued with respect to the average rent amount of the property and the conversion rate of each milestone.
Guide to CrSTAL milestones.
Why it Matters?
Conversion values are important because:
a. It gives you the exact ROI numbers associated with different vendors
b. It provides you with the likelihood of conversion to lease for each milestone and vendor
c. It allows you to create data-driven budgeting strategies to maximize conversions
Calculation
Conversion Ratio
The Conversion Ratio is the data-backed number of the milestones conversion.
Let's say that out of 100 leads, 31.6 scheduled a tour, 19.4 toured, 10.4 applied, and 7.96 ended up leasing a unit.
Conversion % w.r.t. Lease
This derived metric describes the number of leases a given lead at a milestone can generate.
For example:
31.6 appointments → 7.96 leases
⇒ 1 appointment → (7.96/31.6) leases
⇒ 25.19%
Conversion Value
The conversion ratio implies how much a lease is valued at every milestone. This percentage can be used to generate the value for each milestone, i.e., derived conversion value.
For example, if the rent for a lease is $2000."
For appointments
25.19% * $2000 = $504