Conversion is the ratio of the number of visitors who have completed any target action inspired by advertisers, marketers, merchants, and content creators to the total number of visitors to the site. It's expressed as a percentage.
These target actions may be:
- making a purchase;
- subscription for emails;
- downloading files;
- going to the landing page;
- visiting particular pages of the site; and
- clicking on an advertising link.
Conversion in email marketing depends on the number of actions your subscribers make. That's why you need to know the answers to the following questions:
- How many registration forms do users fill out?
- How many opens and clicks does your email have?
- How many orders did subscribers place in their shopping cart after you sent the email campaign?
This is one of the methods to calculate conversion in email marketing.
An example would be if you implemented email marketing for your online store. Let's assume that your email campaign has 500 unique clicks and due to the coupon of this email, subscribers made 14 purchases. In this particular case the conversion is counted this way:
14 purchases/500 clicks*100=2.8%.
Why should you analyze conversion?
As email marketing was invented to increase profits and acquire new leads, you need to track the conversion after you sent a successful series of letters. If the click-through rate (CTR) of your email campaign is high, it's more likely that you will have more purchases and a high rate of conversion on the site. Compare the conversion coming from another channel (instead of emails) and you'll see the effectiveness of every marketing channel you use.