Why is it important to track conversions and how to measure them correctly?

Conversions are one of the most important indicators of the success of your online business. Without a clear picture of what's happening on your website or online store, you can't know which activities are getting you real results. In this article, we'll take an in-depth look at why it's important to track conversions, how to measure them properly, and how to make the most of this data.

What is conversion and why is it important?

A conversion represents the target action you want your visitor to take on your website. This could be, for example:

• Creating an order
• Signing up for a newsletter
• Filling out a contact form
• Downloading an e-book
• Registering on the website

Conversions, then, translate website traffic into real results that are valuable to your business. While a high number of visits may look great, if none of your visitors buy anything or take the next step, your marketing budget may not be effectively used.

Main reasons to track conversions

1. To measure the effectiveness of your campaigns

If you track conversions, you'll know which channels (SEO, PPC, social, email marketing) are bringing you the most value. For example: do Facebook Ads bring more conversions than Google Ads?

2. You optimize your budget

From your conversion data, you can reduce your investment in campaigns that aren't working and increase your budget where you're getting great results.

3. You improve user experience

Conversion path analysis shows where visitors are most likely to "bounce". For example, you may find that people are leaving your store when filling out a long form and simplify that step.

4. You track return on investment (ROI)

By tracking conversions, you can clearly calculate how your marketing budget is benefiting and how you're getting a return on your investment.

How to measure conversions properly?

1. Define your conversion goals

First, get clear on exactly what you want to track. You want to measure:

• Number of completed purchases?
• New user registrations?
• Clicks on a specific button?

Clearly defined goals will make it easier for you to evaluate afterwards.

2. Use the right analytical tools

There are several tools that can help you measure conversions:

• Google Analytics: A basic tool for tracking both traffic and conversions. It allows detailed analysis of user behaviour on the site.
• Facebook Pixel: If you advertise on Facebook, Pixel allows you to track conversions directly from ads.
• UTM Parameters: These tags in the URL of the link let you know where the visitor came from and what content they were interested in.

3. Set up a conversion path (funnel)

A conversion path includes all the steps a user goes through before completing a conversion. For example:

• Arriving on the website → Viewing products → Adding to cart → Completing the purchase.

If you find that users often abandon their cart before checkout, you can start looking for the reason (e.g. high shipping fees or a complicated checkout process).

4. Test and optimize

A/B testing is a great way to find out what works best. Test different versions of your pages, ads, or CTA buttons and evaluate which variant delivers more conversions.

Our tip: Don't underestimate small changes! Sometimes just changing the color of a button, adding more compelling text, or simplifying a form can increase conversion rates by tens of percent.

How to use conversion data?

Tracking conversions is just the beginning. The key is to analyze this data properly and use it to drive further growth.

• Focus on the channels that work best.
• Improve content on low-converting pages.
• Optimize campaign budgets based on performance.

Regularly evaluating data and adjusting strategies will not only help you increase conversions, but also your overall ROI.

Conclusion

Conversion tracking is essential for any business that wants to grow effectively. With proper measurement and analysis, you can better understand your customers, optimize your marketing efforts, and achieve better results.

‍