Conversion

Conversions in online marketing are processes that lead to a specific outcome. This is the process by which a user transforms from a visitor or potential customer into a buyer. Technically, this is called a user "conversion." Conversion is an important KPI for commercial websites. To evaluate the effectiveness of advertising or SEO, the conversion rate is often determined. Conversion can occur in a variety of ways and, in addition to a purchase in an online store, can include signing up for a newsletter. An important aspect of search engine optimization is conversion optimization.

Types of Conversions in Online Marketing

There are many types of conversions on a website. A conversion isn't necessarily about turning a prospect into a customer. Converting a visitor into a lead is also considered a conversion.

• Converting a search engine user into a website visitor: in this case, each visit to the website is considered a conversion.
• Converting a visitor into a newsletter subscriber.
• Converting a newsletter recipient into a customer.
• Converting a casual buyer into a repeat customer.
• Converting a visitor into a potential customer by filling out a contact or inquiry form. Here, a conversion intersects with a lead, which is the initial contact for a potential buyer.
• Converting a user who searches for a phone number on a website and makes a call.

Defining which action is considered a conversion depends on the company's goals.

Calculating a Conversion Rate

A conversion rate is the ratio of specific actions to the number of actual website visitors, multiplied by 100. Therefore, a conversion rate is always expressed as a percentage.

For example: A company receives 1,000 visitors to its website. A conversion is defined as a user purchasing a product. Of these 1,000 visitors, 10 make a purchase online. The conversion rate is calculated as follows:

10 actions / 1,000 visitors * 100 = 1.0 percent. Thus, the conversion rate is 1.0 percent.

Whether a good or bad conversion rate is considered depends on the conversion type, industry, and offer. For example, an online store with expensive products will have a lower purchase rate.

A site with relevant content and a link to a free ebook will have a significantly higher conversion rate if a download is counted as a conversion.

Conversion Rate Optimization

Conversion rate optimization plays a vital role in e-commerce. The main goal is to attract as much targeted traffic to the website as possible. This is the first key element in improving the conversion rate. Next, existing content should convince visitors to convert.

Other factors that influence the visitor-to-conversion ratio:

• Loading Speed: The faster a website loads, the better the user experience. The longer a visitor stays on the site, the higher the likelihood of conversion.
• Content Marketing: Publishing high-quality content is important for improving the conversion rate. The better the content matches the user's intent, the higher the likelihood of conversion.
• Call to Action: When site visitors are called to action, the likelihood of completing the desired action increases. For example, invitations such as "buy now" or "download the survey" can encourage action.
• Secure and Simple Checkout Processes: In e-commerce, the checkout process is one of the most complex areas of the user journey. The higher the level of trust in the site and the simpler the process, the higher the likelihood of a purchase.
• A/B Testing: The practice of testing multiple similar landing pages. Typically, the differences between the pages are limited to one or two elements. Pages A and B "compete," and the one with the best results is considered the winner.

Tools for Measuring Conversions

Conversions can be measured using web analytics tools such as Google Analytics. To track purchases, you must first set up e-commerce tracking. Otherwise, you can define "goals" in the program's backend. Tracking "events" is also possible. If your Google Analytics account is linked to a Google Ads account, goals can be converted into Ads conversions. Using the Ads program, you can generate additional conversions, such as phone calls or contact form submissions. This typically requires adding a separate tracking code to the landing page source code.