There are only a few marketers out there who would proudly say that they love numbers and analytics. Sorry to disappoint some of you, but I am one of them! I just love the insights conversion tracking tools give us.
I find them very useful in the modern landscape of marketing. As a consumer as well, we are surrounded by brands trying to reach us through the online medium. Post-2020, digital campaigns have increased even more since it is one of the most used mediums by the masses.
According to HubSpot, 68 percent of marketers consider digital advertising to be immensely important.
It is easy to understand why. After all, Google itself reports that its Display Network reaches up to 90 percent of the internet users! Considering that over half the world population has internet, as per Statista, this is quite a feat.
So, coming back to tracking conversions. You will be surprised that despite the benefits analytics and data provides marketers with; there are some who don’t use them!
An audit conducted by Disruptive Advertising revealed that a whopping 42 percent of AdWords managers don’t know if their online campaigns are successful or not! And the average conversion rate of these campaigns stood at 2.4 percent.
Personally, I am appalled by this. This is why I have developed a guide for all budding marketers to help them realize the importance of tracking their online campaigns.
Back to the Basics: Conversion Tracking Defined
I stand by one principle – to realize something’s importance, you must first understand the thing, to begin with!
So, let’s begin with the basics. What is conversion? It is by far the most significant metric for a marketer. It refers to a measurable action that you want your website visitors or consumers to take.
For instance, I was perusing the Fashion section of Vogue, and this pop up came.
If I were to subscribe to the offer, I would have “converted” from a visitor to a subscriber.
Similarly, when you use an Ecommerce platform, you convert when you complete the transaction. So, conversion can encompass a variety of actions. Which conversion is important to the brand, and hence worth tracking, depends on their marketing goal.
Now, what is conversion tracking? As the name may suggest, this refers to the ability to track these measurable actions and analyze the outcome to see whether the conversion rate of your online campaign (whether it be email, ad, or social media campaign) is up to your desired level or not.
Apart from merely giving you a quantifiable number of people who converted, such tools help marketers identify the conversion points of a website or campaign. This allows you to see which parts of your campaign or online presence work and which don’t.
How does it work?
Tracking tools can help a brand in tracking the following actions:
- Website Metrics: Newsletter signups, content sharing, and transactions.
- Phone Calls: Information about people that are redirected to calling a brand owing to an ad or promo code on ads.
- App usage: In-app purchase actions, installs, and uninstall data is tracked to gauge how people engage with apps.
- Importing: Tracking of consumers throughout the purchase journey, whether it be online or offline.
Why you must care?
Now that you know what conversion tracking is, it is time to understand why you need it. Here are the top five reasons you need to track your conversions in real-time.
Know your campaign ROI
Generally, as per HubSpot, Facebook, along with Google Search Advertising, offers the best ROI for paid advertising. As a marketer, you might be tempted to think that the two platforms will work best for your digital campaign too.
However, you can’t truly know whether this is true for your brand unless you track your online campaign’s return on investment. And unless you know your ROI, you won’t know whether the money you are spending on digital advertising is worth it.
Improve and alter campaigns
Stemming from the first point, tracking your conversions allow you to identify which channels and campaigns work best for your brand. You can then alter your future efforts accordingly.
Let’s assume you run a PPC strategy for your Ecommerce brand where you place ads on different types of websites. By analyzing the PPC metrics, you noticed that the ads placed on fashion websites have higher conversion rates than those placed on entertainment sites. Next time, you know which platforms to place your ads on!
Targeting the right audience
By using the demographics of your converted customers, marketers can improve their audience segmentation for future efforts.
For instance, Nike’s email marketing is very personalized. It sends seasonal emails and alters its CTA button based on the demographic of its audience.
In such campaigns, knowing which of the email subscribers convert and at what time can allow a brand to successfully target consumers at a time when they are most likely to complete a purchase.
Effective marketing budget allocation
A survey conducted by eMarketer in 2019 revealed that most companies plan on allocating a staggering 62.3 percent of their ad budget to digital in 2021! And by 2023, this is likely to increase to 66.8 percent.
But, even if marketers are well aware of the general trends about marketing budget allocation, the fact remains that digital media is an umbrella term. Allocating budget to the different types of digital advertising and marketing can be quite hard unless you have data to back up your choice.
And this is what tracking conversion points allow you to do. Let’s say you find out that most of your conversions come from search results. Then you are likely to allocate more on search engine advertising.
Boosting UX of your website
Facilitating user experience through your website is an important step for ensuring optimum conversions. Yet, many landing pages discourage people from completing the required action.
However, unless you know exactly where you lose visitors, you won’t be able to identify or solve the problem.
NuFace discovered that they were losing out on customers because of the shipment cost. The brand took this insight and offered free shipping for orders above the cumulative price of $75. The A/B test subsequently done revealed that the number of orders improved by 90 percent.
Tools to use
Now, there are a lot of tools that you can use for tracking different conversion metrics. If we were to delve into each of them, you would be reading this guide for a very long time.
So, I have narrowed down the list to one tool per type of tracking.
Web Tracking with Google Analytics
There is no better method to track the web than by using the service that hosts the most traffic on its search engine. Google Analytics is a free-to-use tool that offers excellent data visualization via motion charts, dashboards, and scorecards. It allows you to measure:
- Site traffic from a variety of sources, ranging from social media to Google search engine
- Overall and page-specific site traffic
- Campaign performance via Urchin Tracking Module codes
- Click-through-rates of the website through Google search result
Mobile Tracking with Google Mobile Analytics
What can I say? I am a fan of Google analytics tools! And you would be too if you use them. After all, for free tools, they provide excellent insights.
For all the app developers out there, you can track your app performance and conversion metrics through the Google Mobile Analytics solution. It also allows you to set a benchmark to see how well your app is performing in the long-run.
Heatmap identification with CrazyEgg
When developing a website that converts, it is imperative to have insights about how consumers interact with a website. This is where customer intelligence tools like CrazyEgg come in handy.
This tool can be used to identify the elements of your webpage that feature the most engagement. CrazyEgg gives you information about the elements within a webpage that people are clicking, the scroll rate of visitors, and where most of your traffic is concentrated.
Hence, you can decide how to best alter the design of your website for optimum conversion. For instance, it may tell you that your CTA button is not placed where visitors are likely to see it. You can then use this insight to change the positioning to a location that features maximum interaction with visitors.
Parting Advice: Track Your Conversions!
Long story short, there is a lot your business can gain from tracking your conversions! And there is a lot (of potential customers) you may lose if you don’t.
Considering that there are a lot of free tools available for tracking your online campaigns, don’t let your mere fear of numbers and big data stop you. The dashboards and numbers may seem daunting, but they are actually very helpful!
So, hire a resource for reporting and managing campaign analytics if you have the budget for it. If not, take a deep breath and dive into it yourself. Who knows, maybe by the end of your first campaign tracking, you will become like me!