What Is Conversion Rate Marketing?

What Is Conversion Rate Marketing?

Conversion rate marketing is the optimization of your marketing activities that results in an increase in your conversion rate. In the marketing world, different metrics and processes can be optimized to increase ROI, profit, and marketing success. From cost-per-action to qualifying marketing leads, every action can be improved upon. Conversion rate marketing involves improving on sales conversions. Conversions can refer to sales, but they can also refer to any action you want a viewer or visitor to complete, including signing up to a newsletter or downloading a white paper. 

One of the most reliable ways of determining marketing efficacy is by looking at the conversion rate that results from a marketing activity or campaign. You can calculate the conversion rate of a marketing campaign by taking the number of people who converted and dividing this by the number of people who could have converted. That number is then multiplied by 100 to result in a percentage. 

A high conversion rate percentage indicates that the marketing activity has been successful, whereas a low conversion rate indicates potential customers could have run into problems navigating your landing pages or that the messaging wasn’t resonating with the target audience. 

However, no set number indicates a particular level of success. This is because each industry, campaign, and activity will have different levels of success. You can figure out whether the conversion rate for your marketing campaign could be optimized using conversion rate marketing tactics in one of two ways. You can research to find out what similar competitor campaigns achieved, or you can look at similar campaigns you have run in the past and compare them against current marketing activity.