It is essential to understand the concept of conversion in order to excel in the marketing world. It occurs when a visitor completes an action on the website that was predetermined by the system. It may not always be related to money for example placing an order, clicking a button, submission of a lead generation form, or even reaching a particular page comes under conversion as well.
What is the importance of conversion?
Conversion is a way of keeping a record of number of people visiting the website. Conversions are important to estimate the conversion rate so that conversion rate optimization can be achieved effectively. A/B tests will lose their significance without conversions. There are two types of conversions:
Micro conversion includes almost any type of metric that the system is tracking. These can be anything from clicking on to a CTA to watching a marketing video. They are not powerful enough to predict the success of a particular product but these can help with generation of hypothesis. However, for more concrete results the type of conversion one should be concerned with is the macro conversion.
What is Macro Conversion
A macro conversion is the most important part of any sale procedure on any website. It usually deals with the end goal of the website that the visitor will be clicking. In fact, macro conversion is almost the final step before a sale is sealed. Tracking the macro conversions on any website allows the user to find out the success and popularity of any product.
Examples macro conversion includes subscriptions and transactions. Since completion of these goals translates to revenue generation for a business, they can be taken as the deciding factor when monitoring the success rate of any experiment. Therefore, it is of crucial importance to monitor macro conversions very closely.