What Is ‘Conversion’ and Why Is It Important In Digital Marketing?

In online marketing, there are many tools to help you analyse and manage your activity, but the main point of most online marketing tools is to analyse the efficiency of your online campaigns and content pieces by tracking your conversions. 

What Are Conversions and How Do They Impact Businesses?

In everyday life, conversion is the process of changing something from one form to another. In digital marketing, a conversion is the point at which a user performs an action that is profitable to the website owner. Your conversion will depend on your objectives. 

Conversion examples:

  • Register as a member
  • Subscribe for news
  • Fill in the survey
  • Downloads
  • Contact for information
  • Visit the website 
  • Check out an order

Conversion types are adaptable, customizable, and divided into two categories:

  • A Macro-conversion is the primary conversion goal of a business, such as a completed online transaction 
  • Micro-conversions are the actions that lead to macro-conversions, such as adding a product to a cart

What Is A Conversion Rate?

Once you decide what the conversions will be for your business, the next step is to calculate your results so you can work out what success means for you and tweak your website to help drive up your conversion rate.


How to Calculate Conversion Rates

The number of conversions/the number of visitors or engagements x 100 = conversion rate.

For example, if a skincare company hires an influencer and uses their photo on their website to act as a click-through, they can calculate:

Total sales = 5,000 pieces/the number of click-throughs the influencer’s photo generated = 100,000 times) x 100 = conversion rate of 5%.

Why Are Conversion Rates Important to Businesses?

Conversion rates are important as they give you insight into what is working so that you can adjust your marketing plan accordingly. By tracking conversion rates, you can ensure you’re targeting the audience that will give you the best chance of success and value for your investments.