The shift from traditional marketing to digital marketing opened the door to greater opportunities for small and medium businesses.
Thanks to digital marketing, small businesses like yours can reach new audiences with minimal marketing budgets.
However, your digital marketing efforts may be reaching new audiences – but not converting them into customers.
The good news is that there is a way you can improve your digital marketing efforts and increase your potential for more conversions.
The process is called conversion tracking.
In the following article, we’ll explain conversion tracking, highlight its key benefits and discuss how it helps you maximize your return on investment (ROI).
What Is Conversion Tracking?
Before we highlight the advantages that conversion tracking offers you, let’s explain what it is.
In the simplest form, conversion tracking is the process of monitoring the actions audiences take to complete a specific goal, including:
- Filling out a form
- Downloading a white paper
- Adding an item to a cart
- Making a purchase
Using a third-party tool such as Google Analytics, your business can track the effectiveness of its marketing campaigns by measuring the number of conversions that occur as a result of each campaign. This is accomplished by using Google Tag Manager or another conversion tracking tool to add a small piece of code to your website or each page your business wants to track conversions.
What Goals And KPIs Should Be Tracked?
For Google Analytics or any conversion tracking tool to provide accurate information, your business must define measurable goals for conversions.
Examples of such measurable goals include:
- Call a business number
- Fill out a contact form
- Send an email to the business’s contact center
- Sign up for a email newsletter
- Play an instructional video
- Schedule a service appointment or consultation
- Add an item to the shopping cart/bag
- Purchase a product
Additionally, your business should also track the key performance indicators (KPIs) associated with your desired conversions. Tracking the following metrics provide additional insight into the effectiveness of your conversion efforts:
- Total number of conversions
- Conversion rate
- Cost per conversion
- Total number of events (content downloads, videos played, forms filled)
- Session durations
- Pages per visit
- Bounce rate
How Does Conversion Tracking Help Your Digital Marketing?
There are multiple benefits of implementing conversion tracking into your digital marketing channels.
For now, we’re going to focus on four key benefits of this process:
- Identifying most effective marketing channels
- Understanding customer behavior
- Measuring performance
- Optimizing ROI
Let’s take a closer look at these four benefits.
Conversion Tracking Helps Identify Your Most Effective Marketing Channels
First and foremost, tools like Google Analytics allow your business to see which marketing channels are driving the most conversions.
With this information, you now know where to allocate your marketing efforts and budget.
For instance, if your Google Ads campaigns are generating more conversions than your paid ads on social media platforms, you can halt your social media campaigns to save time and money. Now you can focus your efforts on your Google Ads campaigns and invest your resources into them to drive even more conversions.
When you know which marketing channels are driving the most conversion, your business can maximize its return on its marketing investment.
Conversion Tracking Helps You Understand Your Customers’ Behavior
Another invaluable benefit of conversion tracking is the insight it provides into your audiences’ behavior.
By setting up goals in Google Analytics, your business can see which:
- Website pages and marketing campaigns are receiving the most traffic and driving the most conversions
- Products or services are the most popular with your audiences.
- Devices (mobile, desktop, tablet) your audiences are using to visit your website and complete a goal.
Using these insights, your business can better optimize its website, landing pages, ads, email, and various marketing channels to enhance the user experience and generate more conversions.
Conversion Tracking Allows You To Measure Performance
Measuring the performance of each of your marketing campaigns is another key benefit of conversion tracking.
Comparing the number of conversions each campaign generated helps your company identify the campaigns that are most effective – and which ones are underperforming.
Rather than chasing good money after bad, you can make more data-driven decisions for your future marketing strategies with the information provided by the conversion tracking tool.
Conversion Tracking Helps You Optimize Your ROI
Perhaps the most significant benefit of conversion tracking is that it allows your business to maximize its return on investment.
By measuring the number of conversions generated by your various marketing channels, your business can identify areas of opportunity, campaigns that need improving and efforts that are not worth pursuing.
Knowing which marketing efforts are working and which ones need some additional attention, gives your business the chance to optimize its marketing campaigns to increase conversions and enjoy a more favorable ROI.
Tracking Your Conversions Is Essential For Success
As you can see, conversion tracking is a powerful marketing tool that provides you with valuable insights into the effectiveness of your marketing campaigns, the way users access and interact with your marketing channels, and your overall ROI.
Although conversion tracking tools such as Google Analytics are free to use, setting them up and implementing code on your site can be complicated if you’re not familiar with the process. If not implemented properly, the information the tools are providing may not be accurate, leading to missed conversions and lost opportunities.
Your company can avoid these pitfalls by allowing a professional digital marketing agency to set up conversion tracking for your marketing efforts.
Results Repeat’s marketing experts can help you define your measurable goals and KPIS, set up conversion tracking on your website and help you collect and analyze a wealth of data to make more effective decisions with your current and future marketing efforts.
Additionally, our team can set up your Google Analytics 4 (GA4) account if you haven’t done so already. This will help ensure that your business doesn’t lose any crucial data or experience any roadblocks when GA4 replaces Google’s Universal Analytics tool in July 2023.
If you have any questions about the benefits of conversion tracking or how Results Repeat can help you optimize your digital marketing to generate more conversions, please contact our team today!