When I try to explain the topic of my thesis and mention conversions, people sometimes ask “conversion to what?”. The word conversion can be many things, and so I have tried to devise a definition for the purpose of my thesis.
There are many definitions of a conversion in the online marketing context – what most of these definitions share is that a conversion is an “action” which is tied to “business goals” or “business value”. This underlines the importance of tying the website to the overall goals of the business. Some examples of specific actions could be: buy, download, opt-in, register, refer a friend, make a phone call and click to chat.
Brian Clifton chose to define “goals” and “KPIs” separately:
“Goal conversions, also referred to as simply goals or conversions, are any actions or engagements that build a relationship with your visitors.”
“… a key performance indicator is a web metric that is essential for your organization’s online success.”
With goals, Clifton is talking about micro conversions. However, for the purpose of this thesis, I would like to lean on the definitions where conversions are tied directly to the company’s business goals. This is because we here focus on conversion rate optimisation in a way that helps companies improve their performance online – a focus on a greater level than micro conversions, though these are steps on the way. So Clifton’s definition of KPIs, which would be closer to macro conversions, becomes more relevant. What is interesting about this definition is that instead of “action”, Clifton uses “web metrics”. This adds a dimension to the definition: actions must be measurable. Tim Ash confirms this: “A conversion happens when a visitor to your landing page takes a desired conversion action that has a measurable value to you business.”
So, for the purpose of this thesis, a conversion is defined as follows:
“A conversion is a measurable action, taken by the visitor and defined by the company, which is crucial to the company’s business goals.”
Any constructive comments are welcome.