What Is a Conversion?

CONVERSION - A specific action defined by us that has been completed by a customer. A conversion takes place when, for example, a customer performs an action on our website that is important to us - signs up for a newsletter or makes a purchase in our store. The factor that will be crucial for us in this case is the conversion rate.Conversion rate - is nothing more than the number of completed desired actions on the site / number of unique visits x 100%. Put simply - conversion is nothing other than a source of revenue that depends on what we focus on as the creators of a given website, online store, or other web service.

Conversion - what next?

As creators, we need to think about what this desired action will be for us. Will it be adding a product to the cart, a user signing up for a newsletter, or enrolling in a course we offer? Or maybe it will be navigating to the contact page and submitting an inquiry form for a quote? For example - a person building an online store wants users visiting the site to make a purchase - and this is exactly what we call a desired action. If 10 out of 100 people visiting our store make a purchase, the conversion rate is 10%.

Conversion examples

1. Micro conversions - these are the remaining actions that do not directly translate into an increase in the conversion rate, but may have a real impact on it in the future. These include, among others:

• signing up for a newsletter,
• registering on the site,
• adding a product to the cart.

2. Macro conversions - these are all desired actions that directly translate into an increase in conversion; they are:

• a user making a purchase,
• requesting a quote,
• signing up for a paid subscription list (e.g., a Netflix subscription)

There is a high probability that a customer interested in our offer will sign up for the newsletter, and after receiving information about, for example, a seasonal sale, will make a purchase specifically in our store.

What should you do?

First of all, you should set a conversion goal for your website. You need to think about what factor will be significant for you, one that will allow you to generate revenue. Maybe it will be sending an inquiry about a service, or purchasing one of your products? Maybe it is enough for a customer to sign up for the newsletter on your website? The conversion rate is a very good metric for the marketing activities we carry out. It allows you to realistically estimate how the effort put into your work translates into actual earnings. Setting a conversion goal will allow you, after some time, to perform an in-depth analysis of your actions and consider how to eliminate so-called empty traffic. Empty traffic - refers to visits to a website that do not generate any of the desired actions, and therefore have no real impact on conversion. There is a risk that users generating this type of traffic arrived at our site by accident, looking for completely different things - it is worth considering choosing more appropriate keywords then. For example, if a female customer is looking for a long red dress and lands on our site where we offer a beautiful, long, but pink dress - she will not be interested in buying and will simply leave the site, thereby increasing our bounce rate. Another example could be ads. If we place links to our site on many external and unrelated websites - of course, customers will land on our site, overall traffic will increase, but no conversion will occur. An example of this would be advertising a dress store on websites strictly dedicated to, for example, automotive topics or fishing.

Is there an ideal conversion rate?

At this point, you would probably like to hear that yes - there is an ideal conversion rate to strive for, and it is exactly 7.24%. Unfortunately, no such metric exists. A satisfactory conversion rate depends far too much on the industry or the nature of the business itself. However, I think we can agree - the higher the conversion rate, the greater our satisfaction should be. If you set a target conversion rate that is still very far out of reach, you should focus on Conversion Rate Optimization.