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What is commercial conversion?

What is commercial conversion?

Conversion and its optimization are a topic of heated debate nowadays. It is one of the most essential parts of operating a firm. You must convert in order to profit, and simply measuring and enhancing conversion can result in increased revenues and a great deal of joy. Change refers to the transformation of one thing into another. This transition is possible in many commercial domains. We frequently encounter entire systems of processes and factors, so there is always something to work on.

How is the conversion performed?

Consider the most basic example of an internet store.

Initial observations reveal the presence of a user who came to us for whatever purpose. Sometimes we owe it to well-placed advertising and clever positioning, and other times to a friend or spouse’s advice. The conversion road began with our store’s address. Initially, we do not know the visitor’s goals, just as a customer service representative in a traditional business does not know what a new customer needs while he browses his sector.

We can only speculate based on the online viewer’s behaviour: what is he looking for? What is the issue? Will it be simple enough for him to reach the desired item? In a conventional store, the salesperson, upon detecting the customer’s embarrassment, would have stood by him or her and questioned him or her for quite some time (I drop out at such moments, “no, no, I can do it”). Typically, such communication does not operate in the digital environment.

At this stage of a customer’s visit to our store, their status may be “Viewer.” In the last phase, we would like for him to be promoted to “Buyer.” This transformation, i.e. conversion, occurs as a result of a specific decision – preferably adding a product to the shopping cart, followed by the “pay” action. This is the simplest and most straightforward conversion, occurring under perfect conditions, i.e. when the visitor understands precisely what he or she wants, locates it, accepts the terms, and pays. Rarely will the scenario be so straightforward, thus it is worthwhile to plan alternative activities that will keep the visitor within our grasp in these other situations. They will also be counted as conversions, albeit on a lengthier path to potential purchases.

Therefore, as an alternative to direct purchases, visitors can subscribe to the newsletter, allowing us to develop long-term relationships. Similarly, we can consider downloading our programme, supplying your information, or opening an advertising email a conversion. This shift can be comprehended in a variety of ways. Important is that it finally leads to “Customer” or “Buyer” status.

How do I begin converting?

It is essential to keep in mind, from the outset, how broad this notion is and that the meaning of conversion is entirely up to you. It is worthwhile to verbalise and document it, as it will be necessary for any discussions with business partners who will help increase it.

In any respectable advertising agency, the response to “good morning” will be “how do you comprehend the conversion, what does it mean for you?” Every business has priorities, so it is necessary to pose this question. In conversion talks, both internally and in agreements with optimization firms, a brand’s existing priorities are evaluated. Examples of replies include growing sales, increasing the number of subscribers (e.g., for a YouTube channel), increasing the mailing database, increasing the number of e-mails opened, and developing the user base of the application by raising the number of people that create accounts in it. These possibilities do not always exclude one another.

It may turn out that they can be utilised in numerous ways to construct a conversion process or several processes leading to sales. Nothing precludes someone, for instance, from transforming their visit to the business into a newsletter subscription. Then, you will provide him recommendations for the most personalised offerings. By viewing these emails and receiving another conversion opportunity, he will convert a second time (e.g., from “Not interested” to “Interested”). For instance, via an email or a link in the newsletter, he will travel to the store to purchase a specific item. Instead of two steps (Viewers -> Customers), there are now four (Viewers -> Not interested -> Interested -> Customers), but the end result – sales – remains the same.

Another example of a multistep conversion is the case of B2B enterprises that “live” by getting internet queries. There, the first step in changing a “Observer” into a “Requester” is to employ a form that transforms him into one. A merchant will next contact him and, at best, convert him into a “Contract Signer.” Consequently, the conversion procedure will be completed. It is important to remember that conversion requires ongoing optimization, even if it is sufficient. Optimization affects survival in the marketplace and puts you in a stronger position against the competition, which exerts greater effort to escape the situation the further it falls behind.

How to optimise the current conversion rate?

You can complete the task in a variety of methods, but you must choose them carefully and avoid shortcuts. Increasing the quantity of site visitors is likely to be one of your initial considerations. Statistically speaking, the likelihood of making a sale will improve if our counter shoots 1,000 more persons, say 10,000, in the same time period. However, there is a brutal reality behind it. This movement will continue to attract random “Viewers” who may never convert, or not as many as they could.

This is when user experience comes in helpful. Comparing optimization from the user experience (UX) standpoint to squeezing a lemon, the fruit of our activities catching the attention of Internet users should include as much purchase potential as feasible. If there are 1,000 visitors and 150 transactions for that group, it is preferable to focus on increasing the number of transactions, or conversions, as opposed to drawing additional viewers.

Why?

When attempting to obtain one litre of pure juice, we have two options: press the fruits we already have with greater force, or purchase additional fruits and squeeze them with the same force. But for one litre each of these solutions makes some sense, for 100 litres, the second option will no longer be cost-effective because lemons cost money while squeezing harder does not.

A specific lesson emerges from this: sooner or later, we will need to maximise the purchasing potential of visitors and optimise the conversion of what we now have accessible.

However, keep in mind that optimising and boosting traffic are not mutually exclusive, therefore the best way would be to combine these two techniques by enhancing the quality of service for all visitors.

In summing up today’s lesson, it is important to recall that conversion is the transformation of “only present user” into “user following the prescribed path.” Will it be a simple sales process or a multi-stage journey, beginning with signing up for a newsletter, providing an e-mail address in exchange for a lead magnet, or entering a different, positive interaction that will keep the potential customer in your environment and give him the opportunity to take additional conversion steps? This is a secondary concern. It is crucial that the conclusion matches your expectations.

Finally, I will leave you with a question that is present throughout the space of this text: what does this conversion mean for you and your company?

Thanks for your consideration!

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