What Are Goals & Conversions?
10th July 2015
What is a conversion?
A conversion when referred to in marketing terms means when a consumer or business makes the decision to buy a product or service from you. In basic terms a conversion is another word for a sale, but due to the face it is referred to as a marketing term it has more advanced uses than just this. A conversion is often spoken about in terms of the conversion rate, and what this means is the ratio of those who visit a website as traffic to those that actually click buy or get a quote etc. a high conversion rate is always desirable, as it shows that your site and products are enticing and well presented.
Conversion rate is something that can considered more or less important depending on the type of website it is on. You can also set a goal where if a certain page is visited, or a user fills out contact us/quote forms and other such interactions so that it will count as a conversion in analytics. Goals and conversions are different though, as goals are not conversions but are instead simply a function that you want a user to go complete. For example a goal could be looking at a gallery on a product page, or looking on the technical specifications after viewing a product.
Why is it a useful statistic?
Keeping track of your conversion rates with analytics tools (like Google Analytics for example) for different goals and sales is always useful for multiple reasons. It gives you a detailed idea of how your traffic engages with your website, and allows you to set goals for certain interactions on your site. It gives you the opportunity to see what’s working on your site, for example your unique content, and what isn't working, for example maybe your PPC campaign drives no conversions. Using this statistic you can invest your budget into the areas that are getting you the most engagement.
Also conversion rate can always be improved, and no matter how many users visit your site you are ensured that most of these will not be converted. It is more than likely that you can always improve the steps traffic has to go through to complete a goal and become a conversion, and if you can improve on your conversion marketing, even if only in tiny increments then you are still going to boost the overall success rate of your businesses online presence.
If you can double your conversion rate then what you are actually doing is halving your acquisition costs, meaning how much it costs your business to capture a new customer. Paid advertisements are becoming more and more expensive, and improving your conversion rate is essentially free. Also if you have a higher conversion rate then you can be assured that you are capturing the right kind of customers, and customers who take an interest in your brand and tell others about it are simply the best form of advertising on the market to this day.
A 50% increase in your conversion rate can result in a 500% increase in profits, so if your conversion rate is particularly low or at least lower than industry average then you could be really missing out on profit margins that your competitors have. The chances are that you already work towards improving your conversion rate, but do not quite know how to improve it. If you can master conversion rates, and also retain a long customer paired with a high average order value then you will be experiencing huge success. Here are a few ways to improve your conversion rate.
How do I improve my conversion rate?
The main way you can improve your conversion rate is by A/B testing (sometimes referred to as split testing) which is the classic method of increasing your conversion rate. Also note that there are two different parties out there when it comes to who can buy your products, and you have to appeal to them differently. One speech does not fit all. If your brand has a high level of engagement and interaction then you will find your brand converting better, as it builds trust with the customers. There are 4 main reasons why a customer won’t buy from you, and these are:
- No need for your product.
- No money at the time.
- Not in a hurry to purchase your product.
- No trust established in your brand.
If you can address these issues, the trust and creating a sense of urgency to consumer targets then you will find your conversion rates go up.