What ‘A Conversion’ Means in Digital Marketing 

A conversion is the occurrence of the desired action on your company’s website. An example would be a phone call from your website. 

A conversion is, for example, a customer visiting your website on their mobile phone and clicking on your contact number while on the go. Conversion is, therefore, the most common measure of the productivity of advertising on your company’s website.

What is the importance of tracking conversions on a business website?

Typically, conversion refers to some commercially viable activity on your website. For this reason, it is important to measure every conversion. It’s the only way to get more results in a systematic and calculated approach. 

Thus, conversion is an important marketing driver for any business, allowing it to direct marketing dollars to the most profitable channels.

Below are examples of the most important conversion rates:

• Form submissions
• Online purchase completed
• Fill out a form or complete a purchase for a specific product or service.
• Calling a phone number on the website (this is most common for mobile users, but computer users can also do this)
• Sending an email by clicking on a link from your website
• Watching a video
• Adding a product to the shopping cart (online shop)
• Subscribe to the newsletter
• Making an appointment

A company’s specific needs determine the conversion rate of each company. Few businesses have their online shops, and the most important metrics are contact forms, emails sent, and phone calls. So, if you’re unable to directly measure your e-commerce revenue, it’s OK. 

How to measure conversions?

Conversions are measured in Google Analytics, and each conversion is defined separately in the analytics. So if you want to track form submissions and phone calls made through your pages, your business will have two conversions defined in Analytics. 

In addition to these two, you can add, for example, newsletter subscriptions and video views to your tracking. This would give your business four conversions to track.

Google Analytics allows you to track conversions on your website, and typically, your website administrator does this. It only takes a few minutes to track each conversion on your website, so don’t delay and begin tracking every important conversion right away.

Also, I recommend tracking every conversion you make every month. Without tracking which marketing channel converts the most for your company, you can’t determine which is the most effective. So, closely monitor the effectiveness of your advertising monthly and invest in the most productive channels, and your marketing budget will stay lower.

What is a good conversion rate?

For example, a good conversion rate for e-commerce is 1-3%. However, it is worth remembering that few businesses have an online store. For example, if you do business-to-business (B2B), a good conversion rate is less than 1%.

The key is always to get a return on your marketing investment, but it is important to remember that you cannot measure every contact. 

In practice, online sales are the only way to determine the direct productivity of marketing. In other cases, it is important to include a sales manager or salesperson in the marketing meetings. You can also obtain information about the effectiveness of marketing directly from the customer interface.

How can you increase conversions, and why is it an important metric?

In practice, conversions measure the direct connection of your marketing to your company’s future contacts and sales. So it’s important to measure conversion because this is how you will consistently get better results from your marketing.

You can get more conversions through the traditional marketing and sales promotion of your salespeople, as well as through digital marketing. Concerning results and cost, digital marketing is by far the easier and cheapest option to scale.

The most common and fastest way to get more conversions are Google Ads advertising and social media advertising. 

Between the two, it’s fairly quick to check which one suits your business better. For example, Google Ads search volumes for products in your industry can be checked using Google’s own tool.

You can use this to check how often your services are searched for each month and how much it costs to get one customer to your website. In general, one new customer on your website costs between $1 and $5. 

You can get visitors to your website for as little as a few cents with social media. Compared to Google Ads, you can reach a much larger proportion of your customers through social media such as Facebook, Instagram, and LinkedIn.

Contact us