What is a Conversion ?

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What Is A Conversion ?

What is  a conversion ? This is the question almost everyone asks when they are stepping into online marketing and working on their first online campaign. A conversion happens when you make a visitor to do some action, This action can be anything from completing a sale to just visiting a page. It completely depends on what you want your visitor to do on your website and when he does it, That’s a Conversion. 

 

Why We Use The Term ‘Conversion’ ?

In the realm of online marketing using less resources and gaining more outcome is the only way to survive. To get best outcomes we need to analyze the data, we need to understand what works and what doesn’t. We use conversion to analyze various things in a campaign, Conversions is the only unit we can use to compare the changes we make.

A person who runs a pet shop wants to understand what kind of products his customers likes to use for their pets. He sets up an online survey form and emails it to his thousand customers. but only gets 15 responses. What could be wrong ?

Next time he send out a single question only, asking “What is the problem you are facing in X product”. Guess what, this time he has received 120 responses from people and now he can calculate number of people using specific products and he can add better product on his website to sell to these potential customers.

In this case the Conversion was the responses from customers, And by just changing the question he increased his conversions  drastically and wouldn’t have to repeat the same mistake.

 

How To Calculate Conversion Rate ?

Conversion rate can be calculated using a simple formula. ( Number of Conversions / Number of Visitors ) x 100.  Let’s apply this formula on pet shop analogy to calculate the conversion rate.

In case #1

Number of Emails Sent =  1000

Number of responses =  15

Conversion Rate = 15/1000 x 100 =  1.5%

This is a very low conversion rate.

In case #2 

Number of Emails Sent =  1000

Number of responses =  120

Conversion Rate = 120/1000 x 100 =  12%

 

 

 

 

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