Macro vs Micro Conversions
Recent studies have proven that firms which implement marketing analytical processes are more likely to have an increased understanding of the behavior of their online consumers as well as improved organisational performance. The increasing intensity of industry competition and rapidly changing consumer and market trends only heighten the importance of digital marketing analytics.
In order for firms to improve the effectiveness of their online advertising campaigns and strategies they first have to evaluate their current performance by measuring online conversions. A conversion is defined as “an activity on your site that is important to the success of your business”. These are broken down into two core elements: Macro conversions and micro conversions. A macro conversion is a key action which ties back to a businesses core objective. It is essentially the single biggest reason or purpose for the websites existence. It is imperative however that before a macro conversion can be assessed the organisation must first be aware of what their key objectives actually are. For example the key objective for online electronics retailer Kogan would be the purchase of a product, and a macro conversion would be the point of purchase of a product by a consumer, a new TV for example.
A micro conversion on the other hand is a metric which indicates the potential for success but doesn’t fully satisfy the core objective. For example a consumer might register their details on a website or sign up for product notifications, they might also compare and contrast different information or even write a review. In this instance progress is being made to achieving the final objective however it is not quite there yet. Micro conversions are critical to measure as they enable an organisation to evaluate which experiences are driving to consumers to the final desired outcome. This will in turn enable organisations to amend their online marketing strategies and more effectively educate and engage consumers which can eventually lead to a macro conversion. It is crucial to note here that the ultimate goal for an organisation should always be achieving a macro conversion, as at the end of the day it is this which ultimately leads to the bottom line.
SO…YOU HAVE ACTUALLY ALL BEEN SECRETLY CONVERTED! If you were to consider the example of this blog: The macro objective was to educate you on the topic of Macro vs Micro Conversions (As was explicitly indicated in the blog title!). In order to help me achieve this I included hyperlinks referring you to additional readings where you could compare and contrast further information (Micro conversion!). To further assist you in your learning I now encourage you all to comment and discuss below. What are your thoughts on the theory? Do you have any other relevant examples that you would like to share? (Micro conversion!)
So finally, what do you think? How did I go? Did I achieve a macro conversion? Do you feel adequately educated on the topic with a comprehensive understanding of the theory and its application? If so -YOU HAVE BEEN CONVERTED!
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