Welcome to the latest edition of our new weekly blog series, Marketing Definitions. Each week, we will identify an oft-used term or phrase in the marketing community and break down its use and meaning for the broader population.
Last week’s term that we defined was Search Engine Optimization.
Today’s Term = Conversions
Conversions are a common term used by marketers that may just sound like jargon to anyone outside the field. But it’s really a very simple term, used as a catch-all for an almost endless number of actions.
A conversion, at its most basic, is a completed action.
Conversions can be submitted forms, new leads, product purchases, email list signups, etc. They are events that we measure as a metric for success.
For example, if you are building a landing page on your website and its aim is to get people to sign up for your newsletter list, then a successful “conversion” will take place when someone enters their email and hits submit. In this case, we will use the term “conversions” to refer to the number of people who complete that action.
From there, we get to conversion rate. That is simply the percentage of people who visit the page and then convert. Or, conversions divided by visitors.
Since conversions is a catch-all term that can be used to refer to a large number of different events, context is important. When you hear people talking about conversions and conversion rate, they’re talking about a specific action people are taking, which they are measuring as a key indicator for success.
That does it for today’s definition. Have a term you’d like defined in a future post? Email us or post it in the comments below.