Conversions and Why is it Important for Your Business?

Nov 3, 2017 | Blog

Online conversion is one of the most important measures of success for all businesses, but what is it? It’s simple. A conversion occurs when a visitor to your website completes a desired action, such as filling out a form or making a purchase. The percentage of total visitors who convert is called your conversion rate. You want to monetize the traffic that is coming to your site. These are not all the ways consumers can convert online but are some of the most popular forms of conversion.

Conversion rate (the percentage of users who take the desired action) is one of the most important Key Performance Indicators (KPIs) because the ultimate goal of a business is to make a profit. These desired actions should essentially drive consumers down the purchase funnel (pictured below) so they will eventually make a purchase. The purchase funnel includes different stages of conversion consumers have with brands before they purchase or become brand loyal. For example, during the awareness or familiarity stages, conversion goals could be to:

  • Secure X number of email signups
  • Increase engagement on social media by X%

It’s important to have an effective conversion strategy in each area of the purchase funnel which will ultimately lead to purchase and then most importantly, loyalty. During the awareness stage, you want push website visitors to view your products and become familiar with your brand. Driving consumers to customize products and add them to their carts is essential in the consideration phase. Your brand then has the opportunity to become top of mind in consumer’s consideration set. These phases should eventually lead to purchase and then loyalty. Loyalty is crucial in conversion because you want consumers to keep coming back to make more purchases.

Why is Conversion Important for Your Business?

Conversion is important for any business for one key reason: as conversion rate increases, profit increases. This can mean driving consumers directly to purchase or driving them down the funnel towards purchase and loyalty. Either scenario will eventually lead to a profit benefiting your business.

Could your company benefit from a strong conversion strategy? Give us a call for a free consultation.

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