When we engage in digital marketing, one of the main goals is to get users to perform specific actions that align with business objectives. These actions are known as marketing conversions, and they are fundamental for measuring the success and effectiveness of our strategy.
But what exactly does a conversion mean? How are conversions measured? How many different types are there? Let's take a look!
What is a conversion in digital marketing?
In the context of digital marketing, a conversion is any action that a person takes on a website or digital platform that fulfills a specific business objective.
In other words, a conversion occurs when a user performs an action that we have defined as valuable for our marketing strategy. This can range from something as simple as clicking on a link to completing a form, subscribing to a newsletter, or making a purchase.
Conversions are essential because they allow us to measure the effectiveness of our digital marketing campaigns. Each conversion represents a step towards achieving the final goal, which is why it is crucial to define and measure them at all times.
How are conversions measured in marketing?
To understand the effectiveness of our marketing campaigns, it is essential to measure conversions. This is where the conversion rate comes into play.
The conversion rate is a percentage that indicates the ratio between the number of users who complete a desired action and the total number of users who visit a web page or view a specific campaign.
The basic formula for calculating the conversion rate is:
Conversion Rate = (Number of conversions / Number of visitors) x 100
For example, imagine you have a sales-oriented landing page. If the page receives 1,000 visitors and 20 of them make a purchase, the conversion rate would be 2%.
Types of conversions in marketing
There are different types of conversions in digital marketing, each aligned with different business objectives and strategies. Here are some of the most common:
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Micro-conversions: These are small actions that users take, indicating interest in the company's content or offer. For example, clicking on a link, watching a video, or reading a full blog article. While they do not represent a direct business outcome, they are important for “nurturing” users along the sales funnel.
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Lead Generation Conversions: These conversions occur when a user provides personal information in exchange for something of value, such as downloading an e-book, accessing a webinar, or subscribing to a mailing list.
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Sales Conversions: This is one of the most important types of conversion and is directly related to ROI (Return on Investment). Sales conversions happen when a user makes a purchase or hires a service. Measuring these conversions is crucial for understanding the profitability of a marketing campaign.
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Retention Conversions: Although less obvious, retention conversions are also vital. These conversions focus on actions that indicate an existing customer is engaged and satisfied, such as renewing a subscription, making a repeat purchase, or interacting with exclusive customer content.
In summary, conversions are the heart of any successful digital marketing strategy. Understanding what they are, how they are measured, and the different types that exist allows companies to optimize their efforts and maximize their return on investment.