What is conversion and why should it be measured?
What is conversion?
Conversion is a specific action taken by users when interacting with your online store. The conversion rate, in turn, speaks of Percentage of userswho performed a specific action on your site. It may turn out key factorwhich will determine the effectiveness of your business. In the case of online stores, this usually refers to people who have made a transaction. Then it is the ratio of the number of people who made a purchase by the number of all people who visited the page converted as a percentage. This means that if your store was visited by 1000 people and 10 people made the transaction, the conversion rate will be 1%.
However, the coversion index can also apply to:
- clicks on a specific element on the store page (e.g. floating button),
- collecting the ticket after payment,
- the allocation of a certain amount for the purchase.
The conversion should be planned by you, not random. Moreover, it must be defined and determined in time to be a source of reliable information about your business.
Why measure conversion?
The correct determination of the conversion rate allows you to estimate the effectiveness of your actions. Thanks to this, you will be able to draw conclusions, compare results and optimize your activities. This will allow you to achieve the expected results, and as a result Maximize the chances of users buying your services.
Example
You sell vouchers. You have installed “Buy Now” on Facebook and there is a button on your website that encourages you to make purchases. However, despite the redirection you prepared to the online store, the number of people making purchases in the store has not increased. Looking at the data, you notice that 1000 people visited your store, but only 5 people made a purchase. The conversion rate is only 0.5%. With this information, you can take actions that will make the number of people who decide to buy increase. Maybe the reason for the low conversion is too high a ticket price? Then you can adjust it by comparing the effects. If it is an unattractive photo or a not very reliable description, then by correcting them you will see if they give the expected results.
Whether the conversion rate is high depends to a large extent on the ease of making a purchase in the online store. The more clear and readable the offer and the terms of the transaction, the greater the chance that the client will complete the transaction.
Improving your conversion rate is an important and difficult task. The constant improvement of the store and the development of new solutions is extremely important, because it affects the generated revenue of the store. Moreover, the higher the conversion rate, the There will be less costs, which the company allocates to marketing, because they are distributed over a larger number of purchases. The traffic on the site remains the same, while the number of purchases made will increase.
Example
You spend 500 PLN on marketing, and the number of people making transactions in your online store is 50. The average cost of marketing per transaction is therefore 10 PLN. If the conversion is 2 times higher, the number of transactions made by one person in your store will increase to 100. With the same marketing costs, the unit cost of marketing the transaction will decrease to 5 PLN. With better conversion, you reduce marketing costs and maximize profits.
Useful tools to measure conversions
A valuable source of information about the site is, among others. Facebook Pixel. Another popular tool to help you measure conversions is Google Analytics.It allows you to collect data from the site and analyze it by providing comprehensive information about user activities on your site.