What is ‘conversion measurement’ in digital marketing?
Definition: Conversion Measurement
In very simple terms, a ‘conversion’ is when you get someone to respond to your call-to-action. It indicates that someone took an action moving closer to becoming a customer, or did actually become a customer online. Conversion measurement is the process of counting these actions.
Conversion Measurement And Your Business
Conversions come in all shapes and sizes, depending on your business and unique goals. Some businesses only measure very important conversions such as phone calls, customer data (email address, name, phone number, etc.) gathered from a lead generation form on their website, or actual purchases made online.
Others dig in deeper and measure conversions along each step of the sales funnel: email campaign opens, website visits, white paper downloads, sign ups, and so forth.
What actions taken by potential customers are important to your business? Are you ready to begin conversion measurement for them?
How To Measure Conversions
No need for pencil and paper, or even cumbersome excel spreadsheets.
Conversions can be tracked and measured in all sorts of different software solutions. A great place to start is in your Google Analytics account. With a little help from a marketing professional, you can set up conversion measurement for any type of action taken online that your business wants to track.
If you want to get real fancy with measuring phone call conversions, you can use a call tracking software like LogMyCalls. Most of these solutions are relatively inexpensive too. They allow you to record each phone call that comes in and play it back later!
Other Related Conversion Measurements
Now that you understand what a conversion is, let’s take it one step further and identify other related metrics.
Cost per conversion: If you know how much money you spent on a certain campaign, and how many conversions you received for that dollar amount you can calculate the average cost-per-conversion. (Example: You spent $500 on an ad campaign a received 10 phone calls. Your cost-per-conversion is therefore $50/phone call)
Conversion rate: If you know how many people your ad campaign reached, and also how many conversions you received, you can calculate the conversion rate. (Example: Your ad campaign reached 1500 people and you had 300 conversions. Thus, your conversion rate is 20%)
…there are a lot more ways to measure and calculate, but we’ll stop here for now. If you’re as excited about this as we are, and want to learn more about setting conversion measurement for your business, we’d love to help! Conversion measurement is the first step (and the most important!) in any online marketing your business does.
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About The Author: EAM Blogger, Mark Chapman, works with clients across all industries; helping them acquire more leads, who are excited to buy the products and services they offer. His ongoing work in pay-per-click marketing gives him endless amounts of insight for writing great blog posts and speaking to audiences nationwide.