Calculating Conversion Rate To Measure Success Of A Digital Marketing Campaign

Are you a digital marketing professional who is confused about conversion optimization? If yes, then you should be on a panel of experts discussing your views about optimization. Every online marketing professional is entitled to have their own views regarding the measurement, testing and analysis of their optimization cycle. In fact, most digital marketing firms believe that an expert should be able to predict the results of their tests more than half the time.

Rather than learning about what variations beat the control, your tests should help you find out what was achieved and why. If you wish to learn, duplicate, and evolve in the digital marketing sphere, you will need to develop an understanding of your targeted consumers, and become more proficient in using real-time marketing strategies to get ahead of your rivals in the business marketplace.

Let us begin by identifying conversion rate in a better way:

Conversion rate = The total number of people who take the required action; divided by the total number of potential customers, who may have wished to take the required action.

What is the 'number of customers'?

People who visit your website have varying demographics and behavioural patterns. They come from different geographies, through different digital marketing channels like paid search, emails or affiliates, as well as through different websites. It is important to note that there is no such thing as an 'average' customer, hence, a metric like 'average conversion rate' can only be a rough indicator of the performance of your digital marketing strategy. If you want an accurate idea about your success, it is important to calculate a separate conversion rate for each segment of visitors/marketing efforts, which should be prioritized according to the value they bring.

What is the 'required action'?

Depending on the type of business being conducted by a client, 'required action' generally includes either purchasing a product or generating a lead. It may also consist of actions such as signing up for a newsletter, adding products to a wish list, or signing up for a demo. Think of the different actions you will need to take to ensure that the customer does not bounce away, and calculate a conversion rate for each micro or macro action taken to optimize a particular client's website.

All digital marketing professionals know that not every website visitor will convert. However, with the exception of bad traffic, most people have some intention towards purchasing a product or service of a client. The main task of a digital marketing company is to offer website visitors a smooth and captivating online experience, so that they find what they are looking for, and offer a conversion that can be measured.

Qudos Digital is a leading digital marketing agency and can be contacted on 020 8891 2077 or info@qudosdigital.co.uk.

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