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{{redirect|Conversion rate|chemistry term|Reaction rate|currency term|Exchange rate}}


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'''Conversion marketing''' is an [[Electronic commerce|eCommerce]] phrase most commonly used to describe the act of converting site visitors into paying [[customer]]s. Although different sites may consider a "conversion" to be some sort of result other than a sale.<ref name="Marketing Terms">{{cite web|title=Conversion Rate|url=http://www.marketingterms.com/dictionary/conversion_rate/}}</ref> One example of a conversion event other than a sale is if a customer were to abandon an online shopping cart, the company could market a special offer, e.g. free shipping, to convert the visitor into a paying customer. A company may also try to recover the abandoner through an online engagement method such as proactive chat in an attempt to assist the customer through the purchase process.<ref name=Webopedia>{{cite web|title=Conversion Marketing|url=http://www.webopedia.com/TERM/C/conversion_marketing.html}}</ref>
 
== Measures ==
The efficacy of conversion marketing is measured by the conversion rate, i.e. the number of website visitors divided by the actual percentage of customers who have completed a transaction. Since conversion rates for electronic storefronts are usually very low,<ref name="Conversion Marketing The Psychology of Converting Browsers into Buyers">{{cite web|last=Heathman|first=Bryan|title=Conversion Marketing: The Online Marketing Economy|url=http://conversionmarketingbook.com/ConversionMktgChapter-1.pdf|accessdate=18 February 2012}}</ref> conversion marketing can be a useful way to boost this number, online revenue, and overall [[Web traffic|website traffic]].
 
Conversion marketing attempts to solve the issue of low online conversion through optimized [[customer service]]. To accomplish this it requires a complex combination of personalized [[customer experience]] management, web analytics, and the use of customer feedback to contribute to process flow improvement and overall site design.<ref name="Customer Intelligence">{{cite web|last=De Clerck|first=JP|title=Customer intelligence: why and how a data-driven business is a customer-centric business|url=http://www.conversionmarketingforum.com/en/blog/customer-intelligence-why-and-how-data-driven-business-customer-centric-business|accessdate=3 April 2012}}</ref>
 
Conversion marketing is commonly viewed as a long-term investment rather than a quick fix by focusing more on improving site flow, online customer service channels, and online experience.<ref name="Conversion Optimization Is The New SEO">{{cite web|last=Brinker|first=Scott|title=Conversion Optimization Is The New SEO|url=http://searchengineland.com/conversion-optimization-is-the-new-seo-32839|accessdate=5 April 2012}}</ref> Increased [[Web traffic|site traffic]] over the past 10 years has done very little to increase overall conversion rates so conversion marketing focuses not on driving additional traffic but on converting existing traffic. It requires proactive engagement with consumers using real time [[analytics]] to determine if visitors are confused and show likely signs of abandoning the site. Then developing the tools and messages to inform them about available products, and ultimately persuading them to convert online. Ideally, the customer would maintain a relationship post-sale through support or re-engagement campaigns.<ref name="The Art of Re-engagement">{{cite web|last=Longfellow|first=Mike|title=The Art of Re-engagement|url=http://www.engagingtimes.com/2010/10/21/the-art-of-re-engagement/|accessdate=27 March 2012}}</ref> Conversion marketing affects all phases of the customer life-cycle, and several conversion marketing solutions are utilized to help ease the transition from one phase to the next.
 
==Conversion rate==
The conversion rate is the proportion of visits to a website who take action to go beyond a casual content view or website visit, as a result of subtle or direct requests from marketers, advertisers, and content creators.
 
:<math>\mathrm{Conversion\ rate} = \frac{\mathrm{Number\ of\ Goal \ Achievements}}{\mathrm{Visits}}</math>
 
Successful conversions are defined differently by individual marketers, advertisers, and content creators. To online retailers, for example, a successful conversion may be defined as the sale of a product to a consumer whose interest in the item was initially sparked by clicking a banner advertisement. To content creators, a successful conversion may refer to a membership registration, newsletter subscription, software download, or other activity.
 
For websites that seek to generate offline responses, for example telephone calls or foot traffic to a store, measuring conversion rates can be difficult because a phone call or personal visit is not automatically traced to its source, such as the Yellow Pages, website, or referral. Possible solutions include asking each caller or shopper how they heard about the business and using a toll-free number on the website that forwards to the existing line.
 
For websites where the response occurs on the site itself, a [[conversion funnel]] can be set up in a site's analytics package to track user behavior.
 
== Common Conversion Marketing Services ==
*'''Recommendations''' - [[Behaviorism|Behavioral analysis]] that identifies products and content relevant to the customer’s perceived intent.
*'''Targeted Offers''' - Targeting attempts to fit the right [[Promotion (marketing)|promotion]] with the right customer based upon behavioral and [[Demographics|demographic]] information.
*'''Ratings and Reviews''' - Using [[User-generated content|user-generated]] ratings and reviews to increase conversion rates, capture feedback, and engender visitor’s trust.
*'''Email Personalization''' - Email with embedded recommendations and [[Online chat|chat]] that feel tailored personally to the recipient.
*'''Chat''' - As consumers tend to abandon sites after only three clicks, attempts to use proactive chat, reactive chat, exit chat, and click-to-call to convert consumers quickly.
*'''[[Click-to-call|Click-to-Call]]''' - Supports cross-channel conversion without losing the context of the conversation when visitors move from the website to the phone.
*'''[[Voice of the customer|Voice of the Customer]]''' - Feedback about products, services, and online experiences that is captured through carefully analyzed [[Data model|structured and unstructured data]].
*'''Automated Guides''' – predetermined steps that allow a customer to better understand product features, and options to assist with the selection process.
*'''Re-Targeting''' – Identification of visitors interested in particular products or services based on previous site search to offer relevant content through targeted ad placement.'''
 
==Methods of increasing conversion rates in e-commerce==
Among the many actions taken to attempt to increase the conversion rate, these are the most relevant:
* Generate user reviews of the product or service
* clear distinction{{clarifyme|date=November 2012}} of the website for a certain conversion goal (e.g. "increase sign-ins for newsletter")
* Improve and focus the content of the website (which may include text, pictures and video) to target conversion
* Increase [[usability]] to reduce the barriers to conversion
* Improve site navigation structure so that users can find and browse without thinking too much about where to click
* Improve credibility and trust by showing third-party trust logos and by good site design
* use [[AIDA_(marketing)|AIDA]] (attention, interest, desire, action) to move the user through the  [[conversion funnel]]
 
==See also==
* [[Conversion optimization]]
* [[Win-loss analytics]]
* [[Conversion funnel]]
 
==References==
<references />
* Berkeley-Study on Conversion rate in Spam [http://www.icsi.berkeley.edu/pubs/networking/2008-ccs-spamalytics.pdf]
 
[[Category:Internet marketing terminology]]

Latest revision as of 21:19, 26 January 2014

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Conversion marketing is an eCommerce phrase most commonly used to describe the act of converting site visitors into paying customers. Although different sites may consider a "conversion" to be some sort of result other than a sale.[1] One example of a conversion event other than a sale is if a customer were to abandon an online shopping cart, the company could market a special offer, e.g. free shipping, to convert the visitor into a paying customer. A company may also try to recover the abandoner through an online engagement method such as proactive chat in an attempt to assist the customer through the purchase process.[2]

Measures

The efficacy of conversion marketing is measured by the conversion rate, i.e. the number of website visitors divided by the actual percentage of customers who have completed a transaction. Since conversion rates for electronic storefronts are usually very low,[3] conversion marketing can be a useful way to boost this number, online revenue, and overall website traffic.

Conversion marketing attempts to solve the issue of low online conversion through optimized customer service. To accomplish this it requires a complex combination of personalized customer experience management, web analytics, and the use of customer feedback to contribute to process flow improvement and overall site design.[4]

Conversion marketing is commonly viewed as a long-term investment rather than a quick fix by focusing more on improving site flow, online customer service channels, and online experience.[5] Increased site traffic over the past 10 years has done very little to increase overall conversion rates so conversion marketing focuses not on driving additional traffic but on converting existing traffic. It requires proactive engagement with consumers using real time analytics to determine if visitors are confused and show likely signs of abandoning the site. Then developing the tools and messages to inform them about available products, and ultimately persuading them to convert online. Ideally, the customer would maintain a relationship post-sale through support or re-engagement campaigns.[6] Conversion marketing affects all phases of the customer life-cycle, and several conversion marketing solutions are utilized to help ease the transition from one phase to the next.

Conversion rate

The conversion rate is the proportion of visits to a website who take action to go beyond a casual content view or website visit, as a result of subtle or direct requests from marketers, advertisers, and content creators.

Successful conversions are defined differently by individual marketers, advertisers, and content creators. To online retailers, for example, a successful conversion may be defined as the sale of a product to a consumer whose interest in the item was initially sparked by clicking a banner advertisement. To content creators, a successful conversion may refer to a membership registration, newsletter subscription, software download, or other activity.

For websites that seek to generate offline responses, for example telephone calls or foot traffic to a store, measuring conversion rates can be difficult because a phone call or personal visit is not automatically traced to its source, such as the Yellow Pages, website, or referral. Possible solutions include asking each caller or shopper how they heard about the business and using a toll-free number on the website that forwards to the existing line.

For websites where the response occurs on the site itself, a conversion funnel can be set up in a site's analytics package to track user behavior.

Common Conversion Marketing Services

  • Recommendations - Behavioral analysis that identifies products and content relevant to the customer’s perceived intent.
  • Targeted Offers - Targeting attempts to fit the right promotion with the right customer based upon behavioral and demographic information.
  • Ratings and Reviews - Using user-generated ratings and reviews to increase conversion rates, capture feedback, and engender visitor’s trust.
  • Email Personalization - Email with embedded recommendations and chat that feel tailored personally to the recipient.
  • Chat - As consumers tend to abandon sites after only three clicks, attempts to use proactive chat, reactive chat, exit chat, and click-to-call to convert consumers quickly.
  • Click-to-Call - Supports cross-channel conversion without losing the context of the conversation when visitors move from the website to the phone.
  • Voice of the Customer - Feedback about products, services, and online experiences that is captured through carefully analyzed structured and unstructured data.
  • Automated Guides – predetermined steps that allow a customer to better understand product features, and options to assist with the selection process.
  • Re-Targeting – Identification of visitors interested in particular products or services based on previous site search to offer relevant content through targeted ad placement.

Methods of increasing conversion rates in e-commerce

Among the many actions taken to attempt to increase the conversion rate, these are the most relevant:

  • Generate user reviews of the product or service
  • clear distinctionTemplate:Clarifyme of the website for a certain conversion goal (e.g. "increase sign-ins for newsletter")
  • Improve and focus the content of the website (which may include text, pictures and video) to target conversion
  • Increase usability to reduce the barriers to conversion
  • Improve site navigation structure so that users can find and browse without thinking too much about where to click
  • Improve credibility and trust by showing third-party trust logos and by good site design
  • use AIDA (attention, interest, desire, action) to move the user through the conversion funnel

See also

References

  1. ↑ Template:Cite web
  2. ↑ Template:Cite web
  3. ↑ Template:Cite web
  4. ↑ Template:Cite web
  5. ↑ Template:Cite web
  6. ↑ Template:Cite web
  • Berkeley-Study on Conversion rate in Spam [1]
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