What is conversion? A complete guide for beginners

The concept of conversion plays an important role in the changing e-commerce industry and marketing strategies. It is a fundamental indicator of success for any online business, defining whether website visitors take the desired action, such as purchase, registration or subscription. For those new to online marketing, the concept of conversion can be confusing. That's why it's useful to understand what conversion is and why it's important for business development. 

Conversion - what is it?

Conversion, in the context of online marketing, refers to the desired action a user takes on a website or mobile application. This could be buying a product, subscribing to a newsletter, registering on a website or any other action a business wants to achieve. Conversion is a measure of the effectiveness of marketing efforts because it shows the extent to which website visitors take a specific, expected action. By understanding and analysing conversions, companies can optimise their strategies to increase these desired actions and achieve better business results.

Understanding the different types of conversion

The types of conversions can vary depending on business objectives and the specifics of the business. The most common are macro and micro conversions:

Macro conversions:

• Buy a product
• Register on the website
• Fill in the contact form
• Subscribe to the newsletter

Macro conversions are a direct indicator of the success of marketing efforts as they relate to the main objectives of the website.

Micro conversions:

• Click on the links
• Adding products to your basket
• Watch product videos
• Register for a free webinar

Micro-conversions refer to smaller but equally important activities that can lead to macro-conversions.

Differentiating between these two types of conversion helps companies better understand user behaviour and progressively optimise the path to purchase.

Why is conversion important?

Conversion is extremely important for any online business as it has a direct impact on business results. The conversion rate shows how effective a website or marketing campaign is at converting visitors into customers or subscribers. A high conversion rate means that more users take the desired action, resulting in more sales, more loyal customers and a better return on marketing investment. Conversion analysis also helps identify and remove barriers that may be preventing users from making a purchase or signing up for a newsletter. As a result, companies can continually optimise their strategies and improve the user experience, leading to long-term sustainable market success.

Conversion tracking tools

Tracking conversions is key to understanding the effectiveness of marketing activities and optimising strategies. There are many tools available to help you monitor and analyse conversions. Below are some of them.

Google Analytics

Google Analytics is one of the most popular tools for analysing website traffic. It allows you to track traffic sources, user behaviour and conversion rates. With detailed reports, you can easily identify which marketing campaigns are delivering the best results and which areas of your website need to be optimised.

Facebook Pixel

Facebook Pixel is a tool that allows you to track conversions from Facebook ads. By integrating with the site, you can monitor users' actions after they click on an ad, helping you to adjust your ad campaigns and improve their effectiveness. Facebook Pixel is invaluable for businesses with active social media campaigns.

Hotjar

Hotjar provides tools for analysing user behaviour, such as heatmaps and session records. This allows you to see how users interact with your site, what elements are attracting the most attention and where problems may be occurring. By analysing this data, you can identify areas for improvement and increase conversion rates.

By using these tools, companies can better understand their customers' path to purchase and make informed marketing and sales decisions.

What data is required for conversion analysis?

Conversion analysis requires the collection and processing of a variety of data to fully understand user behaviour and the effectiveness of marketing activities. Key data includes demographic information such as user age, gender and location, which helps to segment audiences and tailor marketing messages. Also important is traffic source data, which shows where users came to the site - whether from a search engine, social media, email campaigns or paid advertising. By analysing the user's path, i.e. their successive steps on the site, it is possible to identify key points of interaction and possible barriers to conversion. Data on time spent on the site, number of pages visited and abandonment rates are also important in assessing user engagement. In addition, tracking specific actions such as clicking on CTA buttons, adding products to shopping carts, filling out forms or making purchases is essential to assessing the effectiveness of the site in converting visitors into customers. By collecting and analysing this data, marketing strategies can be continually improved and the path to purchase optimised, resulting in higher conversion rates.

The secret of successful conversion: How to succeed in online marketing

Conversion is a key online marketing metric that measures the effectiveness of converting website visitors into customers or subscribers. To manage conversion effectively, it is important to understand the different types of conversion, use the right tracking tools and avoid common mistakes such as a complicated purchase process or a website that is not responsive on mobile devices. It is also important to collect and analyse data to continually improve marketing strategies and optimise the path to purchase. Regular A/B testing, clear calls to action and intuitive site navigation can significantly improve conversion rates. It is important to remember that conversion success is not just about increasing the number of transactions, but also about building long-term customer relationships and creating a positive user experience.

Conversion is a dynamic process that requires constant attention and adaptation to changing market conditions and user behaviour. Therefore, every business should regularly analyse and optimise its operations to achieve the best possible results.