In continuation from part one, let us focus our attention on
the metric category “conversion.” As previously discussed, the primary
goal of web analytics is to track fiscal return on investment (ROI) for
companies. Because of this, the conversion metric plays a key role in web
analytics and business goals.
According to Reed College of Media at West Virginia University
(2016), the conversion category contains two metrics: conversion and conversion
rate. The Web
Analytics Association (WAA) explains that the conversion metric records
“special activities on a site, such as purchases, that have particular business
value for the analyst” (2008). Conversion and conversion rate are especially
important to businesses, as they typically unveil and “represent the
bottom-line ‘success’ for a visit” (WAA, 2008).
In
the world of web analytics, the conversion metric is quite popular and for good
reason. Out of the number of people visiting your website, those that
ultimately make a purchase, subscribe to receive emails, make comments, register
(create a login profile) or simply contact you for more information allows businesses
to effectively track ROI and maximize their bottom line.
So
what exactly is conversion and conversion rate? Conversion is the number of
times a visitor performs a desired action, such as making a purchase or inquiring
about more information. Conversion rate is the percentage of site visitors who
perform a desired action. Businesses can use web analytics and these specific
metrics to identify and monitor obstacles to increase conversion. After all, we
all want higher conversion rates as this represents maximized engagement with
users and customers.
Focusing
on the power of conversions, specifically purchasing conversions, customers are
known for browsing a site, putting items into a “shopping cart” and then
abandoning the cart. This can be attributed to getting distracted, suddenly
becoming disinterested or noncommittal, having to consult with a loved one or
deciding to simply buy it in-store instead so the product can be seen in
person. By using web analytics and the conversion metric, businesses can use
this data to turn those non-purchasers into purchasers. By knowing what
visitors are already interested in, businesses can then make informed decisions
to either change the layout of a page, design better offer content to engage
visitors, etc., in order to diagnose the issue and increase the bottom line
(which we all know is a top goal for businesses).
Furthermore,
instead
of focusing on the overall website conversion rate (or macro conversions), it
is just as important to focus on micro conversions, as well. Micro conversions
go beyond e-commerce actions on a website. Visitors browse websites for
multiple reasons, and it is those micro reasons that need attention, too, when
analyzing user and customer behavior. As Kaushik (2010) recommends, “...focus
on measuring your Macro (overall) Conversions, but for optimal awesomeness,
identify and measure your Micro Conversions as well.”
Looking
at conversion and conversion rates put into practice, Maciej
Fita, SEO director at Brandignity, focuses his companies efforts on “micro
conversions” in order to help other brands grow (Drell, 2013). He explains, “If
our goal is a ‘thank you’ page from a lead form submission, we need to know how
they are getting there from organic referral sources. Knowing this
allows us to focus and refine every step of the marketing process” (Drell,
2013). In addition, if Fita knows conversions are derived from a paid ad
source, this signals whether or not to increase or decrease spending due to the
ROI of the paid ad. Fita adds, “Without seeing that metric you simply can’t
make that decision. It is the blind leading the blind” (Drell, 2013).
While
conversion and conversion rate metrics are crucial to any business investing in
web analytics, remember that these metrics alone do not paint a complete
picture of a business’s online presence. As Drell (2013) notes, “Conversion
rates don’t measure time spent or pages per visit or how much a user is engaged
with your site, and those are three very important behaviors that develop brand
affinity, boost brand sentiment and could lead to conversion down the road.”
References
Drell,
L. (2013, November 21). Marketing 101: The importance of conversion.
Mashable.com. Retrieved from http://mashable.com/2013/11/21/conversions-metrics/#IvnXapinESqr
Kaushik,
A. (2010). Web analytics
2.0: The art of online accountability & science of customer centricity.
Indianapolis, IN: Wiley Publishing, Inc.
Reed College of Media, WVU. (2016). Lesson 1: Intro to web analytics and the basics of web analytics. eCampus.WVU.edu. Retrieved on May 21, 2016, from: https://ecampus.wvu.edu/webapps/blackboard/execute/displayLearningUnit?course_id=_64077_1&content_id=_2976590_1&framesetWrapped=true
Web Analytics Association (WAA). (2008, September 22). Web analytics definitions. Retrieved on May 22, 2016, from: http://www.digitalanalyticsassociation.org/Files/PDF_standards/WebAnalyticsDefinitions.pdf
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