In the world of marketing, a conversion occurs when a customer does something as a response to call-to-action (CTA) in campaigns. Let us see about Conversion Analysis.
The term conversion can differ for mobile which could mean installing, download, sign-up, or purchase. Brand owners and marketers make use of conversion analysis to measure the success of their marketing campaigns. The measurements are generally termed as Conversion Rates which is the percentage of customers who have finished action and dividing it by the overall size of the users exposed for the campaign.
For instance, a marketer runs an ad campaign with a target audience of over 30,000 users, out of which, if 900 users clicked on the ad (converted) then the conversation rate is calculated as
900/30000 = 0.03 or a 3% conversion rate
This blog post covers all about Conversion Analysis and different ways to implement it.
Conversion Analysis is one way of tracking the website’s visitor’s behavior and activities to monitor whether they do what is expected or will drop off. Furthermore, the key advantage of using the conversion analysis is to identify the types of customers, and types of activities that correspond to conversion. It can also measure the actual impact of your trials and tell you what exactly works for your brand to increase conversion and what isn’t working.
To conduct a conversion analysis, a marketer should first understand their customer’s journey. The ideal way to do it is by mapping each step of the customer who takes in the conversion funnel, so the ideal steps required to convert the website visitors into potential users can be identified.
Conversion Analysis can be conducted on any part of the website or a product where marketers expect users to get converted. Three common sectors for conversion analysis includes the landing page, shopping cart, and blog posts.
How do you identify that your website is performing well? Is it really helping you to achieve overall business goals? And what should you be doing to grow your business? All these can be answered with Google Analytics conversion tracking. With the help of Google Analytics, you track a conversion which is the completion of an activity by a user on your website. Conversion Analysis has two purposes:
1. It measures the website’s overall business success and business performance.
2. The conversion analysis can also be used to gauge whether your site performance is on track and reaches its business objectives. It also helps in making necessary adjustments to reach the objective.
The KPIs related to the conversion is important to assess the effectiveness of the marketing campaigns. The ROI can be determined only if you measure the number of users who had been converted as a cause of the as spend. It is important to monitor the conversion that is in line with your brand goals before establishing your KPIs. For an effective conversion analysis, you should consider both the conversion rate and the in-app purchases.
For instance, Brand A is spending $1000 for ad campaigns, a higher conversion rate is certainly a positive outcome but not all the conversion would have necessarily transformed as in-app purchases. In this scenario, you should consider both the conversion rate for installs and in-app purchases to understand how the users convert from installs to purchases.
If you are an e-commerce site owner and directly sell products and services on the website, it is important that you should set up e-commerce tracking. The e-commerce tracking will directly enable Google Analytics to collect and measure the data from site transactions such as purchase amounts, product performance, billing location, and much more. These generated reports will give you insights on how your business is doing and provides you a measure on the return of your marketing spend.
The e-commerce reports provide a complete analysis of the website sales and its related information such as the number of purchases, conversion rate, revenue, quantity purchased, average order amount, and top sellers and revenue sources.
Product Performance: This report shows exactly which services or products your users buy the most, the revenue generated by those products, and quantities purchased.
Sales Performance: This report shows the breakdown of any specific product sales performance by date so it will be useful to review the best- and worst-performing days.
Transactions: This report shows the breakdown by order total, tax, shipping, and quantity information for each transaction.
Time to Purchase: This report gives you insight into the average number of days and number of visits it takes your customers to make a purchase (counting from the moment they arrived at the website initially to the moment of purchase).
A landing page is a separate web page where you direct multiple visitors from various channels. The web page should ask visitors to complete an action like signing up for a free trial, downloading an ebook, or subscribing to a newsletter. A Conversion Analysis of the landing page will define the number of users who completed the action and measure the progress as you try to increase the number.
Here are the three ways to use conversion analysis on the landing page.
1. Seamless signup flow by removing the friction:
The term friction states that the resistance felt by your website visitors experience when attempting to complete an action. For a seamless signup process, marketers should take all the efforts to lessen the resistance by making the signup as easy and simple as possible.
– Make sure to include the page design elements that are understandable and clear
– Limit the details that need to be filled by the users, ask only for the information that is highly necessary
For instance, when you are planning your communication through email, do not ask additional details like company, name, job title, etc.
– Analyze each iteration and monitor which one increases your conversion rate
2. Test different messages.
How you define or depict your call to action elements can have a huge impact on whether customers see the value of participating. If you want users to download an ebook, then frame the book content in multiple ways and utilize the A/B testing method to understand which message gives a better impact. The same applies to the content for free trial offers.
3. Compare different platforms.
Execute a conversion analysis separated by the platform that people utilize to visit your website. If there are substantial differences between various platforms, analyze why. You require a platform-specific issue which is preventing visitors from converting.
If you wish for a well-performing website, then using conversion analysis can help you in enhancing the performance by tracking the entities that performed a specific activity in a specific way in a given timeframe.