Conversion
Quick definition
A conversion is a completed action that a business has defined as valuable, such as a purchase, a sign-up, a form submission or a download. What counts as a conversion is decided by the marketer, not by the analytics tool.
Macro and micro conversions
A macro conversion is a main business goal, such as a sale or a booked demo. A micro conversion is a smaller step that signals progress toward it, such as adding an item to a cart, watching a product video or subscribing to a newsletter.
Defining conversions
- Tie each conversion to a business goal.
- Set up the event, tag or pixel that records it before the campaign launches.
- Decide the counting rule, for example once per session or every time.
- Keep names consistent across tools and reports.
- Keep conversions separate from visits and clicks, which are earlier steps.
Conversion and conversion rate
A conversion is the event itself. The conversion rate is the share of visitors or interactions that complete it, which is a metric with its own formula.
Example
A software company defines two conversions: a free-trial sign-up (micro) and a paid subscription (macro). A visitor who starts a trial and subscribes two weeks later produces both, and each is credited to a source according to the attribution model in use.