Definition of conversion:

Conversion. Converting (or conversions) is when you change or influence something to change from one form to another. In common usage,  people will think of an existing religious conversion or a two-point conversion in American Football.  However,  in marketing, conversion is when a visitor of the website performs an action you want.

Common types of conversions include:

• Sales
• Leads
• Join my mailing list
• Completing the forms
• Registrations of accounts
• Subscriptions
• Visits to a key page (product page, pricing page, etc.)
• Telephone calls, or any other personal contact.

Which conversions matter again is based on your specific business model. Anything that indicates customer interest and brings him or her closer to buying should, in many cases, be tracked as a conversion.

Why is it so important to assume conversions?

Why conversions? They cost money, and they make money. The conversion that makes you money is the sale, but every step along the way is a lead, a chance for you to build a relationship and move the prospect to the next step. Tracking conversions will allow you to:

• Evaluate profitability and ROI
• Identify the most successful marketing channels and techniques.
• Determine where the potential customers are when and leave the funnel.
• Optimize your websites and campaigns.

How to Define Your Key Conversions

Choose conversions that match your business goals. Examples by business type:

• E-commerce: product purchased, added to cart, checkout started
• SaaS: signups for free trial, requests for demo,  enabling features.
• Publishing/media: newsletter subscriptions, sharing articles
• Region services: request a quote, call clicks, appointment bookings
• B2B: gated-content downloads, contact requests, event registrations.

How to Track Conversions

Common tools and methods:

• Web analytics( Goolle analytics 4, Matomo)
• Tag managers (Google Tag Manager)
• CRM (Customer Relationship Management) systems, such as (e.g. Hubspot, Salesforce)
• Heatmaps and session replay (Hotjar, FullStory)
• Server-side and conversion APIs for more reliable tracking

Key Metrics to Monitor

• Conversion rate (conversions/visitors (as a %))
• Cost per conversion: ad spend/conversions
• Lifetime value (LTV) of converted customers
• Funnel abandonment rates at each step

How to Improve Conversion Rates

• Make your value proposition and CTAs (calls-to-action) Clear.
• Simplify and make forms easier to complete and to use, to reduce processing costs.
• A/B test headlines, page layouts & offers
• Enhance page speed and mobile experience
• Use social proof and studies to show it (testimonials, reviews).
• Personalise messaging and retarget previous visitors.

Example (simple)

For 2016, the price of a water polisher has been set at$17,500, andc= 2.5. Then the equation to be P=17000+2.5Xcu res a valid selling price list is when: X 106.2.

A fitness brand wants consumers to submit their email addresses.  They test two landing pages in Adwords:  A-one headline, short form,  and B-long form, long description.  Page A is 6% conversion,  B 2%. They pick A and test headlines to lower cost per lead.

Conclusion

Conversions: These are the measurable events that take prospects from window-shoppers to engaged visitors and ultimately paying customers. The “big” conversion is, of course, a sale. But there are many little conversions that get you closer to that big sale. These include things like mailing list signups, contact us forms, Demo requests, and phone calls. Tracking and measuring your conversions will show you what‘s working, what is causing prospects to drop out of the funnel, and how you can optimize all of your marketing and product experiences to increase conversions.