Conversion refers to the desired end goal or outcome a marketer wants the users to reach based on the campaign’s objectives.

What is conversion in marketing? 

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. 

Why do conversions matter?

Conversions can be a powerful tool for your business’s overall growth: 

1. Conversions help refine marketing strategies and user experience (UX) on various brand platforms

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. 

2. Conversions are related to user retention

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.

3. Conversions will help raise your business’s profitability (i.e. ROAS, ROI) 

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. 

Examples of conversions 

Conversions may vastly differ depending on the business’s campaign strategies, goals, target audience, etc. Below are some examples of conversions marketers may consider:

  • Installs: Marketers can indicate the number of app installs to measure conversion. 
  • Sales: Users purchasing clothes from an online clothing retail app can be a point of conversion.
  • Newsletter subscriptions: Users signing up for newsletter subscriptions on publication sources like magazine apps can be a point of conversion. 
  • In-app purchases: Users making in-app purchases within a gaming app can be another notable point of conversion.   

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