A conversion is a measurable activity that has tangible value to your business. Phone calls, quote requests, e-commerce sales are all measurable conversions. Conversion tracking adds decision making value to your reporting and analysis tools. It also provides information to automated ad bidding strategies.
Some conversions are very precisely measured and others are more subjective. For example, on an ecommerce site the total value of a sale can be measured exactly however for a phone call the attributed value is not as accurate and frequent reviews of the call quality and the rate at which you close calls needs to be factored in.
Our goal is to fine-tune these metrics to keep them as accurate as possible. First we only set conversions for activities that truly have a business result. We don’t want to skew the data to make things look better than they truly are.
There is no easier metric to track than form submissions. When a client/customer/patient completed a form and submits it we can immediately track a conversion and review the submission to determine the business value.
This can include bookings, quote requests, or other skillfully crafted forms. The challenge is determining the right value to attribute to the conversion. Reviewing things like the close rate and the average sale value can help.
It is important to segment the conversion rate by the traffic source to figure out which traffic sources are the most valuable. For example, traffic from Facebook might have a conversion rate of 1.5%, and traffic from Google Ads may be 3%.
Example 1: Finding the conversion value of consultation request form submissions at a laser eye surgery clinic
You run an eye surgery franchise. On your website you have a consultation request form that collects potential patient data and helps you prepare for a free consultation meeting. You want to determine the value of these submissions to your business to help identify your return on investment (ROI) on advertising spend.
Currently, you turn about half of these submissions into actual patients. Your average gross margin on these patients is $200. You require $100 of that to cover overhead costs. Your profit averages $100 per patient.
Because you need, two form submissions to get $100 in profit, each form submission brings $50. This means that your ROI will be positive so long as it never costs you more than $50 per conversion.
This conversion value empowers you to evaluate many different advertising channels and SEO efforts. You are spending $1,000 per month in wages for your staff to provide customer service on your website. You spend $1,000 in Facebook advertising and wages to participate in Facebook.
You open your Analytics, and you find that your conversion rates are different. On Facebook you are converting 5% of all traffic and on Google Organic you are converting about 1%. However, the volume of traffic coming from Facebook is 1,000 users and from Google Organic you are getting 10,000 users. In total you can see 50 conversions from Facebook and 100 from Google Organic.
Right away, you can attribute an ROI value to each effort. Google provides you with a return of $5,000 at a cost of $1,000. Facebook provides half of that at $2,500 at a cost of $1,000. Knowing this will lead to better decision making.
The Conversion is a metric that you can use to make better decisions. Consider the example above. Would you rather spend another $1000 on Facebook or Google Organic? What if you could spend $1000 on your website to double your conversion rate?
Understanding how a conversion are calculated is critical. What if you find out that your overhead has gone up? Or that your getting a lot of nonsense requests which are not worth anything. We can look into these and isolate the problem. Leads can be discarded as spam. Sometimes submission forms break, sites go down, or competitors play dirty. When we are tracking your conversions, we monitor for issues like this (and many more).
Are you ready to work with us?