Conversion is a very important concept when it comes to internet marketing or any online business.
Conversion refers to visitors taking the desired action on your site. Of course, the purchase of a product by a customer is often the target.
On an online store, a conversion is triggered once the visitor has passed through the purchase funnel.
However, marketing actions to convert your visitors can also be implemented for other purposes: filling in a contact form to gather leads, downloading a document in exchange for an email address, or even reading an article in its entirety as part of an inbound marketing strategy.
As soon as the person performs a desired action, the conversion is successful.
Conversions are measured as a value or percentage. Conversion rate analysis is used to measure the effectiveness and profitability of a marketing campaign or web page.
For the calculation of a conversion rate, you’ll need to obtain the ratio between the individuals who have performed an action and the total number of individuals reached.
Different conversion rates can be used to analyze the performance of a marketing action. The most commonly used rates are as follows:
- conversion rate of your in-store or ecommerce traffic,
- conversion rate on your landing page,
- rate of registrations for an event,
- rate of participation in a competition,
- rate of buyers following a marketing campaign,
- rate of people installing an application,
- rate of customer appointments,
- rate of visitors who download a lead magnet,
- rate of visitors who read the entire content,
- etc.
All this information enables us to observe the number of leads acquired as a result of an action.
Of course, the type of conversion taken into account depends on the initial campaign objectives.
The new tracking tools linked to the development of digital marketing are very precise indicators that now make it possible to perfectly analyze the conversion rate.
In this sense, conversion is an excellent indicator of efficiency for your business and your various marketing actions.
It should be noted, however, that the conversion rate alone is not a measure of profitability. It is only an indicator of efficiency.
For example, to determine the real profitability of a campaign and implement optimization actions, it's best to compare the cost of the campaign with the sales generated and the margin obtained.
