In digital marketing, a conversion is an important event that is recorded and tracked when a campaign interaction or goal is complete. There are a lot of cases in which this will mean a sale. For instance, if a user clicks on a pay-per-click search advertisement and buys a product or service from landing on the advertiser page then that would count as a sales conversion. A conversion is tracked via a conversion pixel which tells the advertisement server that a conversion has taken place.
What is Conversion in Digital Marketing?
This conversion will then be attributed to the advertisement that influenced the conversion. Other conversion types could include clicks on a URL, a landing page visit, a newsletter sign-up, a telephone call via a number that is linked to the digital campaign or a white brochure or paper download. Any trackable action or event that the market can add a conversion pixel to can count as a conversion. In analytics systems, these are often referred to as goals or events rather than conversions.
To get the estimated number of conversions, you have to need the following metrics-
- Impressions or click delivered
- Conversion rate
Importance of Track Conversions
The major reason for tracking conversions is to understand the efficacy of your campaign. For instance- if you run an e-commerce website and do not know which of your advertisements are driving sales then you could be potentially making poor use of your budget. Once conversion tracking is set up then you will be able to understand which strategy or tactic is driving the highest or most efficient value conversions. As you test and learn only then you can confidently shift your budget to better performing areas to make the most effective use of your marketing spend. Alongside conversion, it is also important to measure the conversion rate to fully understand and know how hard your activity is working. You must set up and track conversions in a way that reflects your marketing funnel and once you have your funnel fully tracked then you will understand where people are dropping off as they are pushed down the funnel and create a lookalike audience from high-value converters.
Conversions can also help your businesses identify problems with their website or marketing funnels. By analyzing the customer journey and finding the customer journey and finding bottlenecks, marketers can see what is or is not working, what sources of traffic bring the most customer and which ones should be dropped. Even though conversions are important and they are just a piece of the puzzle. You have to make sure that the customer journey is seamless without any objections or friction and this is the key to increasing sales of your business.
Having a conversion strategy in place is important and essential for increasing sales and the process of finding ways to increase conversions is known as conversion rate optimization (CRO).
Why is Conversion Rate Optimization Important?
You might be thinking that businesses in retail do not need to optimize their conversion rates because customers will always buy the products or services they need, if they have clicked on a product or service advertisement and arrived on the landing page then the sale is almost guaranteed. This could not be further from the truth and there is a number of reasons users bounce out of a page without purchasing. Conversion Rate Optimization (CRO) is very important because it allows online stores to make the most of the traffic they already have so that they do not need to invest more in customer acquisition.
The demand for online advertisements is growing day by day as are pay-per-click costs. Businesses are constantly increasing their advertisement budgets but not all clicks turn into conversion. Conversion Rate Optimization (CRO) becomes an indispensable way to keep prices low while increasing revenue per visitor.
How to calculate the Conversion Rate?
The conversation rate is the percentage of visitors to a page that complete a specific goal or action. Some common conversion goals include-
- Signing up for a newsletter
- Creating an account
- Form completions
- Engaging with a website
- Submitting information
- Calling a given number
- Downloading resource
- Making a purchase
Selecting a particular conversion goal will depend on the nature of the business and the purpose of the business. Moreover, conversions can be divided into micro-conversions and micro-conversions. Macro0 conversions are primary goals like sales o quote requests, while micro-conversions only facilitate the oath to macro-conversions. It all depends on how you want to define a conversion and how you measure website traffic and there are a number of ways to calculate the conversion rate.
Conversion Rate formula-
- Conversion Rate= (Number of conversions/Number of sessions)*100
- Conversion Rate=(Number of conversions/Number of leads)*100
- Conversion Rate=(Number of conversions/Number of unique visitors)*100
Conversion Rate Optimization
Every website is unique and there are a number of things that online stores can improve to boost conversion rates for selling products or services. A conversion rate optimization tool is indispensable. Here we are discussing some key factors for every online retailer-
- Focus on a segment at a time- The landing pages that perform best are those that offer immediate answers. Instead of filling your website pages with general information to appeal to an audience, you should pick a segment where you provide answers.
- Get rid of flash- In this digital world, online shops get most of their traffic from mobile phones and mobile advertisements, So using flash, an outdated technology that is built with desktop users in mind and harms users’ experience on one’s website, not to mention the fact that search engines cannot crawl flash elements so it does not help in SEO (search engine optimization). Online retailers will see a considerable improvement or enhancement in their conversion rate only by removing all flash elements from your website.
- Make conversion-oriented content- The copy is one of the most important elements of a website and great marketing content that can seamlessly blend conversion opportunities. Online stores often fill their copy with keywords that are designed to appeal to search engines but doing this only puts customers off, which in turn harms the conversion rate. Instead, retailers should make their copy appeal to customers’ emotions and use fewer but more powerful keywords with intent. Content marketing is one of the trending topics in digital marketing, similar to social media and becomes more important in getting better conversion rates.
- Perform regular tests- If you want to improve a conversion rate then you have to set some benchmarks on form completions, contact forms, product orders and phone calls. Performing regular tests and monitoring performance can help online stores to establish marketing strategies that are going forward. Improving website content, advertisements campaigns and call to action leads to better click-through rates obtaining successful lead generation campaigns. By identifying the top landing pages and comparing them to other pages with high exit rates, businesses can identify the elements that they need to improve to boost their conversion rate. Performing A/B testing on regular basis to improve website content or refine strategies whenever possible is also important.
Testing allows online stores to measure the improvements that changes bring about in the website and landing pages. Conversion testing is all about presenting different content to different website visitors and measuring the impact of the change on conversions and the conversion rate.
Importance of Conversion testing- You can use Google Analytics to track conversions by setting goals or complex conversion funnels. Increasing traffic will need more money being spend on advertisements and probably a lot of time being wanted, increasing the conversion rate. However, is most cost0eefctive and faster, once you decide you want to optimize for conversions so you can use two methods- multivariate testing and A/B testing. During A/B testing, you can split your traffic in half and show half of your visitors your original homepage and half of the new variation. At the end of the test, you will see which one performs better and A/B testing is better suited to online stores that do not get a lot of traffic or when a fast conclusion is needed. Alternatively, you can experiment with more variations at a time but to get an exact result you will require a large amount of traffic and more time.
Top Conversion Marketing Strategies-
- Focus on designing killer calls to action
There are some of the most vital on-site conversion marketing elements as they lead directly to the bottom of the conversion funnel, offering a great shortcut to increase conversion rates. Attractive calls to action with a completing copy can motivate the users to take this shortcut.
- Utilize Smart Pop-Ups
In general, contribute to the significant increase in email lists and improve e-commerce conversion rates. They do this by offering attractive deals, discounts and special offers, This is one of the most commonly used conversion marketing methods and smart pop-ups are usually divided into several categories-
(a)Pushdown and pushup pop-ups
(d)Sign-up pop-up forms
- Make a convincing, attention-seeking, authority-building content
Content marketing is one of the things of the present and the future. Having quality, relevant content that is helpful to your visits creates useful leads and good traffic that contains people who are actually interested in what you have to say and offer. Apart from increasing your conversion rates, quality content will also drive user engagement, incase site dwell time, boost search rankings and decrease bounce rate. Content that is both different in its value and commands authority increases the level of trust in your business, services or products. Building this trust is the best way that your users will eventually convert.
- Focus your social media strategy on engagement
Social media network presence in this digital era is compulsory. Your social media success will depend on the strategic choice of channels and organic or paid tactics. The best performing social media profiles are those that are seamlessly into your brand’s business voice, strategy and communication.