Conversion
A conversion refers to a specific action or goal that a website owner wants visitors to complete.
This action is typically aligned with the business objectives of the website and is considered valuable. Conversions can vary widely depending on the nature of the website and its goals.
Examples of conversions
Common examples of conversions include:
- Making a purchase on an e-commerce site
- Filling out a contact form
- Signing up for a newsletter
- Downloading a white paper or e-book
- Creating an account
- Booking an appointment or service
Why conversion rate is critical to measure
Conversion rate is a key metric in web analytics, calculated by dividing the number of conversions by the total number of visitors or sessions. For instance, if a website has 1,000 visitors and 50 of them make a purchase, the conversion rate would be 5%.
Tracking conversions is crucial for several reasons:
- Measuring ROI: It helps businesses understand the return on investment for their marketing efforts.
- Identifying successful strategies: By analysing which channels or campaigns lead to more conversions, businesses can focus on what works best.
- Improving user experience: Understanding the path to conversion can highlight areas of the website that need improvement.
- Setting benchmarks: Conversion rates provide a baseline for future performance comparisons.
In web analytics tools, conversions are often set up as goals. These can be configured to track specific page views, events, or even more complex scenarios involving multiple steps (funnel goals).
Conversion rate optimisation (CRO) is a significant focus for many businesses. This involves systematically testing and improving various elements of a website to increase the likelihood of visitors completing the desired action. Techniques may include A/B testing, improving call-to-action buttons, streamlining forms, and enhancing overall user experience.
It’s important to note that not all conversions are equal in value. For instance, a newsletter signup might be less valuable than a product purchase. To account for this, many businesses assign monetary values to different types of conversions, allowing for more nuanced analysis of their website’s performance.
Advanced analytics setups may also track micro-conversions - smaller actions that indicate interest or engagement but aren’t the primary goal. These can include actions like viewing a product page or adding an item to a cart.
Understanding and optimising conversions is a continuous process in web analytics, requiring ongoing analysis, testing, and refinement to improve website performance and achieve business objectives.