What is conversion?
Conversion is a central element in online marketing and digital advertising. It refers to an action taken by users on a website that aligns with a company’s goals. These actions can include purchases, registrations, ad clicks, subscriptions, or even viewing specific content. According to Google, a conversion occurs when a user completes a predefined valuable action for the business.
Why is it important?
By understanding conversion, you can determine which offline or online channels are the most effective for promoting a product or service. If data shows a low conversion rate, it may indicate issues with the service or product or suggest that the content is not convincing enough to engage potential buyers or prompt interaction.
Without conversion tracking, it’s difficult to know which strategies are working and which aren’t, potentially leading to resource investment in ineffective online marketing activities.
How to calculate conversion rate?
The conversion rate can be calculated using this formula:
Conversion Rate = (Conversions / Total Visitors) * 100%
For example, if your website had 15,426 visitors and 1,823 conversions in the last month, the conversion rate would be: 11,81%
The importance of conversion
- Business Success: Conversions provide measurable outcomes that help businesses achieve a successful online presence.
- Measuring ROI: The conversion rate allows you to measure return on investment (ROI).
- User Engagement: It shows how effectively you reach and engage your target audience.
Conversion rate optimization (CRO)
Conversion Rate Optimization (CRO) is the process of increasing a website or app’s conversion rate. It involves:
- User experience: Creating a user-friendly website design.
- A/B testing: Testing different versions to find the best-performing one.
- Data analysis: Analyzing and interpreting user data.
Key types of conversions
- Purchase: The main goal for e-commerce websites.
- Registration: Collecting user information.
- Download: Downloads of apps, e-books, or other materials.
- Subscription: Signing up for email marketing lists.
How to improve conversion?
- Targeted content: Providing relevant content that captures interest.
- User experience: Ensuring simple and intuitive navigation.
- Call to action (CTA): Clear and persuasive calls to action that encourage visitors to take the desired steps.