A conversion is defined as the time when a consumer completes the marketer's desired action. The action varies in which it could include something as simple as sending an email, clicking on a call to action, completing a form, or requesting more information. Or it could be more complex like buying something (conversion into a customer), scanning a QR code to complete a task, etc.
Conversions are measured by the conversion rate. The conversion rate is calculated by dividing the total number of conversions (actions taken) by the total number of visitors who arrived on your e-commerce website. The conversion rate helps to illustrate if your conversion and marketing strategies are working.
Conversions also help to calculate the Conversion optimization, which helps address what’s stopping people from converting and completing your action. This can be looked into through A/B testing, user research, and analysis of website data. Finally, conversions also affect the cost per conversion metric. This calculates how much was spent on each conversion. This is important to note because if the CPC is too high it's probably not worth it to continue running that channel.
Conversions are super important because they make your business profit through sales. The other smaller conversions while seeming less significant, are the crucial steps that lead up to a person becoming a consumer of your business. Some of these conversions may seem insignificant, but if you add up all of those tiny steps, they can equal a purchase/new consumer. So make sure you are tracking all of your conversions and working on optimizing them so that more people complete your desired marketing action.
How can I improve my Conversion Rate?
You can improve your conversion rate by optimizing your website design, providing clear calls-to-action, improving page load speed, and offering incentives to customers.
What is a good Conversion Rate?
A good conversion rate varies depending on the industry and type of product or service being offered. Generally speaking, an average conversion rate of 2-3% is considered to be good.
Fun Fact:
"The average conversion rate for e-commerce websites is 2.86%, according to a 2019 study by Statista."