The prolonged coronavirus pandemic is having a major impact on all parts of society.
In the business world, industries such as tourism and food and beverages have been hit hard, as negative news such as bankruptcies and store closures are being reported on a daily basis.
On the other hand, the situation differs greatly depending on the industry, with the automobile-related and IT-related industries showing early signs of recovery.
Another industry that is doing well is the web marketing field represented by EC (electronic commerce). Among these, apparel, medical products, and cosmetics recorded growth in EC sales that exceeded the decline in face-to-face consumption. Furthermore, for food and beverages, the rapid shift from face-to-face sales to e-commerce sales offset the decline in face-to-face sales through e-commerce, thereby stemming the impact of the coronavirus pandemic and, on the contrary, growing the market.
This trend can be said to be a tailwind not only for e-commerce but for web marketing as a whole, but there are still many people in charge of sluggish growth or not seeing the results they expected.
If you see signs of sluggish growth or plateauing in your web marketing, you may need to reconsider your CV (conversion) settings from scratch.
Conversion is a term that everyone involved in web marketing has probably heard or actually used at least once, but it is also an important indicator that reveals the final cost-effectiveness of marketing measures. However, there are many cases where people use it without knowing its definition or role, or set it up somehow.
This is because the definition and settings of conversion need to vary depending on the industry, service, and user situation, and the way it is understood may change depending on the position and situation of the marketing party, so it is best to explain it in one sentence. Another reason is that it is difficult.
However, for marketers, it is a concept so important that it can be said that “the biggest mission is to acquire and increase conversions more efficiently,” so they need to understand it thoroughly.
Therefore, in this article, we will explain the definition of conversion, types of effect measurement, how to induce conversion, posting methods, measures to improve conversion, etc.
Definition of conversion and its types
Conversion definition
It can also be used in fields other than web marketing.
, in the field of web
marketing
, refers to the final results such as “purchase” or “application” on a website.
On the other hand, it is also used as a term to refer to the final goal of a general business project or initiative, or in web advertising, simply clicking on an ad is sometimes referred to as a conversion. It is also a word that appears in various fields.
Therefore, in this section, I would like to clarify the definition of conversion by limiting it to the meaning used in the field of web marketing.
Conversion definition
As mentioned above, conversion (CV) literally means “conversion,” and “converting something into something else.” If you think about it that way, there are countless points that can be defined as conversions in the field of web marketing.
For example, all turning points that lead to increased sales are included in conversions, such as purchasing a product or applying for a service, as well as applying to participate in a product information session, registering as a free member, and subscribing to an e-mail newsletter.
In other words,
“New user → request for information → convert to prospective customer [conversion]”
“Considering products on an EC site → Purchase → From potential customer to customer [conversion]”
As such, anything that converts a user to a different status in order to improve sales or performance can be considered a “conversion.”
By the way, when it comes to recruitment strategies in the human resources field, it is possible to set conversions in various situations during recruitment activities, such as submitting an entry sheet or participating in a seminar.
However, if that happens, you may end up wondering where to set your conversion points. So, let’s take a look at conversion settings using a specific example.
Conversion example
In web marketing, the following conversions can be set.
<Example of conversion settings>
- Purchasing products
This is probably the most obvious example of a conversion setup.
In online shopping, the ultimate goal of conversion is to get a visitor to the web to purchase a product.
Even if you do not set up an online shop, conversions can be achieved by contributing to sales by encouraging people to visit your store through your homepage, encouraging them to purchase services or products, and so on.
- Request materials and samples
In some industries, requests for materials or samples are set as conversions.
For example, if you are selling a car, requesting a product catalog is an effective conversion, while if you are dealing with products such as beauty products where ease of use influences the purchase decision, requesting samples can be an effective conversion.
Based on the customer information obtained through the application, the company will follow up with the customer by phone or email at a later date, leading to the actual purchase of the product.
- Consultation applications and inquiries
In industries such as the real estate industry, where products are expensive and it takes time to make purchasing decisions, and industries where face-to-face negotiations are required before making a purchase, inquiries and consultation requests from the homepage are often set as conversions.
- Application for participation in tours etc.
Recruiting people to participate in various events such as tours through the web can also lead to conversions. For example, the following industry-specific event conversion examples (see table) can be considered.
◆Event conversion examples by industry
In this way, you can set conversions to attract customers to various events depending on the industry and situation. Furthermore, by knowing information about participating customers in advance, it is easier to prepare for the event itself, and the ability to respond in accordance with customer
needs
can lead to an increase in sales and subscribers.
Also, if you look at this so far, you will see that you can set multiple conversions. There is no requirement that you set only one conversion in web marketing.
For example, by setting four conversions one after another, such as inquiries, requests for materials, applications for participation in seminars, and submission of entry sheets, it is possible to create
a customer journey
that leads to talent acquisition.
In other words, once you have firmly established your company’s
marketing strategy
, what kind of conversions should you achieve on
your homepage
or product site? It is important to find out.
Conversion type
From the specific example above, you can see that the number to set as a conversion will vary depending on your web marketing strategy and the type of website you are running.
Furthermore, the concept of conversion itself has several types. Let’s organize the types of conversions here.
◆Direct conversion and indirect conversion
Conversions are often compared to “goals” and “scores” in soccer, basketball, etc. In other words, when a player takes a shot and scores a goal, it is counted as one conversion.
Considering this analogy, the score of the person who shot the shot is a “direct conversion,” and the count of the number of passes and assists can be called an “indirect conversion.”
Direct conversions, as the name suggests, count cases where a user who visits a website converts without ever leaving the site.
Taking a listing ad as an example, if a user clicks on the ad and then purchases the product, it is considered a direct conversion, while a case in which a user who visits the site does not convert on the spot, but converts when they return to the site, is an indirect conversion. becomes.
By counting indirect conversions, you can approach potential users as well, rather than focusing only on actual users.
◆Total conversion and unique conversion
“Total conversions” is the idea of counting all the times that a conversion occurred.
For example, if a user purchases products “A” and “B” at an online shop, the purchase of the two products will be counted as a conversion, and the number of conversions will be considered as “2”.
“Unique conversions” refers to the number of conversions per user.
Considering the previous example as a unique conversion, even if one user purchases two products, “A” and “B,” the number of conversions will be counted as “1” because it is the same user’s actions. I will do it.
Total conversions are an effective indicator when you want to increase sales, and unique conversions are an effective indicator when you want to acquire customers.
You can decide which one to use depending on your strategy.
◆Click-through conversion and view-through conversion
Click-through conversion (CTC) refers to the number of users who clicked on an ad, visited a website, and converted there.
On the other hand, “View Through Conversion” (VTC) is
This refers to the number of users who saw an ad but did not click on it, but then visited the website via another route and converted.
Up until now, most sites have used web ads to get users interested, click on the ad, and then visit the site. For this reason, it has become mainstream to consider click-through conversion as an advertising effect.
However, view-through conversion is an indicator that evaluates advertisements that were not clicked on the spot but were later searched for the product or service name and triggered a conversion.
In order to utilize conversions in web marketing, it is important to understand that there are various types of conversions, verify the effectiveness of measures, and run the PDCA cycle to further increase effectiveness.
Key points for conversion settings
Flow leading to conversion
Concepts surrounding conversion
In the previous section, we looked at the definition and types of conversion, but in recent years, when we say “conversion” in web marketing, we are often referring to “conversion rate,” and as a result, the definition of the word has become even more confusing. There are situations where there are.
Therefore, in order to properly understand conversions and the concepts surrounding them, let’s summarize the process by which a user reaches a “conversion” and the related terminology.
1. Number of visits The number of visits to the landing page where users take an action. Also called the number of accesses.
2.CPC (Cost Per Click)
The cost per click in paid online advertising. Sometimes referred to as cost per click.
3. Number of conversions Number of conversions obtained.
4.
CPA (Cost Per Acquisition)
The cost of acquiring one conversion. This is an indicator used to judge how much conversions can be obtained per customer compared to the cost of placing an ad.
5. CVR: Conversion Rate
The ratio of conversions to visits. Also called conversion rate or conversion rate.
When treating CVR as an indicator, it is necessary to clarify which value should be used as the parameter. It usually measures how many people convert out of the total number of visitors to your site.
Instead of focusing on the number of conversions, the number of visits or users may be used as a parameter. Depending on your goal, you might want to see how many people who viewed a particular page converted.
Simulate a conversion
Now, let’s use these words as a base to simulate the flow that leads to conversion.
The following story assumes that you are selling a certain product at an online shop.
First, we define conversion as “conversion = product purchase.”
And of this site
1. 1000 visits
2. CPC is 100 yen per ad click
3. The number of conversions was 50 (50 people purchased the product)
In this case, the total advertising cost will be 100 yen x 100,000 yen for 1000 items *Assuming external placements and advertisements that are charged per click.
Divide this by the number of conversions
4. CPA is 100,000 ÷ 50 = 2000 yen. We will verify whether this number is reasonable by comparing it with the unit price of the product, gross profit, etc.
Also, out of 1000 visitors, 50 converted.
5. Conversion rate is
1000 items ÷ 50 = 5%
By analyzing conversion from various aspects, such as determining whether the conversion rate is high or low in terms of your company’s marketing strategy, you can go back to the design of the entire measure and use it as an important indicator for implementing the PDCA cycle. You can.
◆Calculate CPA from the number of visits and conversions
How to measure conversions
Why is measurement necessary?
Measuring conversions can help your business or website achieve its ultimate goals.
It goes without saying that goal setting and monitoring are important not only for conversion but also for business. By measuring conversions daily, are the numbers getting closer to your goals? Is it likely to be achieved by the set deadline? can be visualized.
Basic conversion measurement methods
One way to measure conversions is Google Analytics.
Google Analytics is an access analysis tool that allows you to see how many users with different attributes visit your website, and what actions they take.
Here are the steps you need to take to measure conversions:
1. Click the “Management” tab at the bottom left of the screen in Google Analytics
2. Click “New Goal” to set a goal
How to maximize conversions
So, what are some effective approaches to maximizing conversions in web marketing?
Here, let’s take a look at logic trees and micro-conversions, which are effective for reviewing marketing efficiency and identifying issues.
Subdivide elements with logic tree
A logic tree is a theoretical approach that breaks down issues and problems into a tree based on a single proposition. This method makes it easier to find problems and solutions, so it is used in a variety of fields.
Below, as an example of its use in the marketing field, I would like to use a logic tree to consider online shop marketing.
◆Logic tree example
By using a logic tree, you can follow the logic while digging into each factor one by one until you reach the final goal of “increasing sales.”
1. First, it can be seen that increasing the “number of customers” or “unit price per customer” is effective for “increasing sales.”
2. Next, if your goal is to increase the number of customers, you can see that you have the option of increasing the number of visitors, or increase the number of customers by improving CVR without changing the number of visitors.
3. To increase “visitors”, strengthen “SEO” and “online advertising”, and to improve “CVR”, analyze “CVR by measure”, take measures, and allocate budget for those measures. Analyze the “CVR by layer” of the website, and if there is a layer with low CVR, implement improvement measures such as considering visitor flow and reviewing content. I can.
I have presented an example that is as simple as possible for the purpose of explanation, but I hope that you can see that by delving into each factor step by step, we can break down the problem into more detail and clarify it.
By using a logic tree, it becomes clear what should be prioritized to improve CVR efficiency. At the same time, marketing costs and resource allocation can be optimized.
When is microconversion effective?
In web marketing, it is common to set conversions such as product purchases and sample requests, depending on the industry.
However, for products such as real estate and high-class jewelry that have a high unit price or take a long time to purchase, the number of conversions is small due to the high barrier to purchase, and it is difficult to analyze websites and advertisements. There are many cases where the PDCA cycle cannot be carried out or its speed is slow due to lack of verification results, such as blurring of verification results and incorrect results.
◆Website content and conversion
In such cases, by setting up microconversions, you can subdivide the path to the final conversion and use “intermediate conversions” as an indicator.
For example, if you are selling high-quality jewelry on an online shop, the number of final conversions such as “purchase completed” is small, so even if it is a small number as a parameter for analysis, it is important to note that the number of final conversions such as “purchase completion” is small. By setting actions such as “viewing” as micro-conversions and verifying them using the indicators, it is possible to establish a PDCA cycle with a sense of speed.
◆Micro conversion
However, if you set up microconversion without any basis, you cannot expect any improvement. Setting up micro-conversions requires a solid understanding of your high-volume user base and their behavioral characteristics.
For example, even if you imagine the flow of viewing “Product Details” from “Product Search”, in reality the brand is already established and the “Product Search” page is rarely viewed; instead, “Product Details” is viewed. If a large number of people add to the “cart” just by reading, you need to decide not to set “product search” as a micro-conversion, but instead to set only “product details”.
When setting up micro-conversions, it is important to clearly understand the user demographic and behavioral characteristics on the site.
How to improve CVR
So, what specific measures can you take to improve CVR and obtain effective conversions?
First, poor CVR means that your website is being viewed but not converting. Therefore, the first thing to check is whether there is a problem with the content of the website. If there are any problems, you need to improve your website to make it easier for users to convert.
In order to take concrete measures, it depends on what is set as a conversion, and it is not possible to analyze every page, so here we will introduce the basic points to keep in mind as effective measures to improve CVR. Let me introduce three.
1. Improving landing pages with LPO The first entry page that users see on a website is called a landing page. This is something you should definitely analyze when improving your site.
The landing page is the first turning point in deciding whether or not to continue browsing the site, so it needs to be content that attracts the user. Landing pages are the “face” of a website, and if the exit rate is high, there will be no subsequent site views, which is the biggest cause of a decline in CVR.
LPO
(Landing Page Optimization) is effective for improving landing pages. This is a measure commonly referred to as “landing page optimization,” which involves optimizing landing pages to meet user needs and increasing the page’s CVR.
By combining various measures such as creating personalized landing pages, testing and evaluating successful landing pages, you can lower the bounce rate and improve the CVR of the page.
2. Improving SEO measures using tools
“Search Engine Optimization” using
SEO
(Search Engine Optimization) has been adopted by many sites, and companies are taking various measures to have their sites displayed higher in organic searches.
SEO measures are very important measures to improve CVR, and are often carried out for the purpose of increasing the amount of search traffic to a website, improving conversion, and increasing sales. SEO measures require frequent information checks and quick search responses that reflect that information.
For this reason, when implementing SEO measures, it is an effective means to utilize tools that have appeared that can obtain the information necessary for SEO measures.
By using such tools, you can achieve results more quickly and efficiently than by gathering information on your own.
Among them, “SEO Check!” is a free and easy-to-use tool. This tool does not require any software installation and can be used immediately on the website. The feature is that just by entering the URL, you can obtain a lot of useful information for SEO measures, such as internal information of the homepage and ranking measurement for each keyword.
For more detailed features and actual usage, please refer to the following.
3. Improving input forms with EFO Lastly, if the exit rate is high on pages before conversion, you need to review your information input forms, inquiry forms, etc.
Even if you are just one step away from converting, if there is too much information to fill in on the information entry page or if the method of filling it out is complicated, it will cause people to leave the site, and as a result, your CVR will drop. It is important to strike a balance between inputting the necessary and sufficient amount of information and an amount that the user does not find bothersome.
EFO
(Entry Form Optimization) is the process of optimizing these input forms. We will implement various measures to prevent users who are about to convert from quitting or leaving the site due to the troublesome input process.
If there is a problem with the input form, the high potential of the user who is just one step away from conversion will suddenly drop just because the input form is difficult to use, and the trust that the user initially had in the company will suddenly turn negative. There is a risk that it will be put away.
User-oriented site design that makes full use of EFO will maximize CVR and increase a company’s credibility.
summary
- Conversion is a term that everyone involved in web marketing has heard or actually used at least once, but even though it is an important indicator, many people use it without knowing its definition or role. , there are many cases where it is set somehow, so in this article we have explained the basics.
- Conversion is a concept that is difficult to understand, as there are many points to be kept in mind, such as the points of setting and the process leading up to it, but there is no doubt that properly setting up conversion will determine the success or failure of web marketing.
- You can expect to improve your CVR by simply doing the following three things: improving your landing page, improving your SEO measures, and improving your input forms so that they don’t lead to abandonment. If your conversions are sluggish or have reached a plateau, I recommend going back to basics and examining your conversions from various angles.