How To Define Conversions For Your Business
Understanding The Holistic View of Conversions and How They Fit Into Your Business
Hey everyone, my name is Morgan Sanderson and I am the Digital Marketing Specialist here at Pinckney. Today, we are going to talk about defining conversions.
When you think about conversions, you likely think back to a sales or marketing meeting where you heard people toss around the word “conversion” and “cost-per-acquisition” side-by-side.
“A conversion is any action the user takes on your website once they visit your paid ad.”
While it’s easy for marketers to assume that a term like “conversion” is universal, it’s actually the opposite. Conversions are unique to your business, meaning that you can determine what qualifies as a conversion based on your goals. By understanding the holistic approach to conversions, you can better understand what conversions are and how to utilize them for your business to not only generate leads, but also make a profit!
What To Do Before Defining Conversions
Before you define your conversions, you need to know two key things:
- Who you want to reach
- What specific actions you want the user to take once they reach your website
So, why is this important? Well, if you’re a B2C business selling shoelaces on Facebook for example, your most important conversion is going to be a macro conversion, such as a website purchase. Now this is vastly different than a B2B client who will rely on micro conversions, or lead nurturing, throughout the buyer’s journey.
The Difference Between Micro and Macro Conversions
A micro conversion is something like an email open, a CTA or website click, a phone call, etc. Essentially, a micro conversion is something that will lead the user through the the buyer’s journey towards a macro conversion. A macro conversion, on the other hand, could be a purchase, the completion of a a lead generation form, or any type of action that results in a user becoming a lead.
“Something that nurtures someone into a lead is a micro conversion, something that qualifies someone as a lead is a macro conversion.”
It’s important to understand the difference between these two types of conversions when determining:
- what your goals are,
- what you want your conversions to be, and
- how you’re going to spend your marketing budget.
Defining Conversions and Cost-Per-Acquisition
Let’s take a step back to define cost-per-mo (CPA) and why it’s important. Your cost-per-acquisition is the number of conversions you get divided by the amount you spend for your marketing efforts.
“Number of Conversions / Spend Amount = Cost-Per-Acquisition”
So, how do you decrease your CPA and maximize your profits? Well, you want to maximize your conversions.
How To Maximize Conversions
How do you do this? Start by:
- Optimizing your website
- Improving the user experience
- Optimizing your conversion paths
A conversion path is the route the user takes from landing on your website to the desired conversion. The easier the path is, the more conversions you will have. More conversions means a decreased CPA and a maximization of profit — talk about a win-win!
As a business owner, it’s important to understand the holistic view of conversions. A working knowledge of conversions, how they play into your business, and how they work to decrease the amount of money you are paying per lead in order to maximize your business efforts as a whole will pay off in more ways than one.
However, we understand that setting realistic goals and therefore defining conversions is usually easier said than done! If you would like to explore the opportunities a strategic conversion strategy could bring to your business, reach out to us. We’re here to help!
Plus, we have some kick-ass content to get started. Download your free copy of our 25 Website Must Haves for Driving Traffic to learn more ways to generate quality traffic that converts.