After you determine the desired actions you want users or customers to take, tracking the number of conversions completed is crucial to the success of any marketing campaign. In addition to tracking the number of conversions, conversion tracking can include other relevant data such as the ad clicked, search term used, value of the customer, and so on.
Implementing conversion tracking is key to extracting insightful data that will help you determine which marketing activities are driving desired actions. After setting up the right conversion tracking tools, this gives marketers the data they need to optimize performance by allocating more budget to the campaigns or marketing activities that are actually resulting in conversions. By optimizing the performance of each campaign, this helps to improve other key metrics such as the cost per conversion, conversion value, and many other key performance indicators (KPIs).
Another key part of tracking conversion rate is conversion rate optimization (CRO), which as HubSpot highlights:
… is the process of enhancing your website to increase the number of leads you generate. CRO is achieved through content enhancements, split testing, and workflow improvements. Conversion rate optimization results in highly-qualified leads, increased revenue, and lower acquisition costs.
Ultimately, if you’re not tracking conversions, this means you’re spending marketing dollars without being able to determine if they delivered any tangible results. With conversion tracking in place, you can optimize ad spend, improve your ad copy, change your creative, and many other actions to improve the ROI of your marketing efforts.