Conversion tracking is an important step that you should do, especially when you want to boost the performance of your business. It will help you monitor your customers' actions for accomplishing your business goals. Some of these actions may include a newsletter sign up, content download, cart addition, etc. All of these actions from your customers should be monitored regularly, so you can take the best marketing strategies for growing your business.
After you get all of those important details and data, you will be able to allocate the right marketing budget for accomplishing your marketing goals. You will only focus on the best performing marketing campaigns to get a high conversion rate in your business.
How Conversion Tracking Works?
For learning how conversion tracking works, you should define the conversion actions. The conversion actions can be determined in your analytics tools, for example, Google Analytics, or other tools. These actions may include, but not limited to, newsletter sign up, payment confirmation, add to cart, etc.
Most analytics tools are going to give you certain snippet codes that should be inserted into your website. These snippets are also called the conversion tags. These codes will be stored on the website, so they can be used to capture any actions from your visitors. The recorded conversion data can be evaluated in your favorite analytics tools or other advertising networks, such as Facebook Ads or Instagram Ads. Reading all of these details can help you recognize if you are able to achieve your business goals with your marketing campaign or not.
8 Key Performance Indicators for Conversion Tracking
1. Conversion Rate
This is an important indicator that you need to have, especially if you want to have a successful conversion tracking system for your website. This indicator will calculate the total amount of visitors who have already completed any conversion goals you have. A high conversion rate will indicate a successful marketing campaign.
2. Cost Per Acquisition
It is the price you are going to pay for acquiring a new customer. This indicator allows you to measure the impact of your marketing campaign on the revenue of your business. For calculating this CPA number, you can use the formula of total marketing costs that are divided by the total customers acquired.
3. ROI (Return on Investment)
If you want to have a successful conversion tracking for your website, you also need to take a look at this number. This number will prove that your marketing campaign has a good impact on the growth of your company.
The formula for calculating this number is (Gross Profit - Marketing Investment) / Marketing Investment. For example, if you spend $100 on Facebook Ads and you get $200 in profit, your return on investment (ROI) will be 100 percent.
4. Unique or Returning Visitors
This is another important indicator that you should check, especially when you monitor your conversion in your website. You can use certain analytics tools, such as Google Analytics for getting access to this number. The high amount of returning visitors will indicate that they are happy with your content, products, services, or your business.
5. Bounce Rate
When you want to boost the overall conversion rate on your website, you need to learn how you can decrease the bounce rate very significantly. The bounce rate will be calculated from the proportion of any visitors who click away from your website without spending some time or interacting with your content. You should make your page compelling and interesting, so you can keep the visitors to stay for a long time on your website.
6. Points of Exit and Entry
Mapping visitors is helpful for a successful conversion tracking of your website. You need to know where your customers are going to come in and out from your website. It is very important for you to check the most popular pages, so you can use similar content or point of view on the other posts you have.
Lead generation is an important step that you have to do in your business. This step will help you attract and also convert any potential users who are interested in your business. Lead generation will play an important role in growing the performance of your company. Google Analytics allows you to calculate the total leads you can have from any marketing campaigns from your company.
8. Total Traffic
Total traffic will give you an overview of the overall health of your site. It will give you the big picture of your site. Google Analytics allows you to check the total traffic from each platform, for example, Google, Facebook, Instagram, online groups, etc, By looking at these details from the Google Analytics Conversion Tracking feature, you can find out the best marketing campaign that can be used to boost the performance of your business.
How to Set Up Google Conversion Tracking?
Google allows you to use the Google Ads conversion tracking feature from Google. This feature is very useful to help you check all details related to the conversion rate on your website.
First, you are going to integrate the Global Site Tag on all pages from your website. It is easy for you to use the Google Tag Manager for creating a tag. Then, you can simply choose the factors that can trigger the tag on all pages you have on your website. Here are some useful tips on how you can measure the Google Conversion Events.
1. Open the Google Ads account for starting the whole process. Then, you can go to the Tools and Settings, then Conversions;
2. You can start creating a new conversion by choosing the desired type of conversion;
3. Select the right category for your conversion;
4. Click “Create and Continue” for starting the tag setup;
5. Use the Google Tag Manager for copying the conversion ID and also the label into your website. Both numbers will come from your Google Conversion Tracking system. You can enter the conversion value, order number, and even currency code;
6. Create the right trigger or you can also select the existing one. Google will tell you when any conversions are triggered.
Call to Action
Conversion tracking is a powerful process that will bring a lot of benefits for you and your business. When you use this tracking process properly, you can determine the effectiveness of your advertising campaign, create any changes to your marketing campaign, and alter any other marketing components based on your customers' needs.
Conversion tracking is an important step that you have to do, especially if you want to get a lot of benefits from your marketing campaign. It will tell you which part of your campaign needs to be improved, so you can achieve your business goals easily. Google allows you to have a good conversion tracking progress for supporting the overall performance of your business.
Now that you've learned about conversion tracking, it is recommended that you find top-selling products that easily convert. Luckily, with the SaleYee Dropshipping Platform, you'll never be short of such products to dropship.
