In marketing, conversion indicates when a user performs a desired action or goal. Depending on the business or campaign, there are various possible actions marketers want users to perform, ranging from app installs, subscriptions, to in-app purchases. Conversions can be measured by quantifying the number of users who took the desired action or through conversion rates, which is key to evaluating the effectiveness of campaigns and ad platforms.
Conversions can be a powerful tool for your business’s overall growth:
First of all, conversions help marketers decipher the effectiveness of each marketing campaign and platform. Depending on the conversion rate of campaigns, marketers will be able to gauge which strategies were most successful and the do’s/don’ts for the future. Similarly, within a single campaign, marketers can compare the conversion rate of each advertising platform (i.e. mobile app, website, TV, etc.) and evaluate channels that can be further leveraged.
Conversions also help marketers see how customers are interacting with the call-to-action component embedded in ad platforms, including accessing a link, signing in, or installing an app. Low conversion rates may indicate that the user experience (UX) is underdeveloped, and adjustments may be necessary.
Conversions allow marketers to keep track of user engagement levels, especially those who have actively responded to an app’s marketing strategies. In the long run, marketers can bring these potential customers down the funnel to convert them into actual paying ones and increase their overall customer retention rate.
Ultimately, because conversions are a tool to quantify the success of their marketing campaigns, producing high conversion rates contributes to higher profitability. Since conversions measure a campaign’s level of success, this value correlates directly with the revenue generated from the campaign, or the return on ad spends (ROAS). Conversion rates will also help businesses identify the possible range of return on investment (ROI) for future campaigns.
Conversions may vastly differ depending on the business’s campaign strategies, goals, target audience, etc. Below are some examples of conversions marketers may consider: