What is Conversion?
A conversion is any desired action a user completes—purchase, signup, demo request, or other defined outcome. It’s the moment your analytics system counts success against an objective. Conversions can be counted on the event, session, or user level depending on your tool’s settings and reporting model. Related concepts: Event, Session, Pageview.
Types
- Macro-Conversion: Primary business outcomes (order placed, paid plan started).
- Micro-Conversion: Signals that nudge toward the macro goal (add to cart, email subscribe).
How conversions work
Analytics tools listen for user interactions and evaluate them against rules you define (e.g., event name, parameters, URL path). In GA4 you mark an event as a conversion; in Matomo you configure Goals; in Plausible and Simple Analytics you flag events/goals. Good setups consider:
- Attribution: Credit is assigned via an Attribution Model such as First Touch or Last Touch. Campaign context typically comes from UTM tags, plus Source and Campaign dimensions.
- Identity & scope: Cross-site journeys may require Cross-Domain Tracking and Cross-Device Tracking to avoid duplicate or missing conversions.
- Counting rules: Decide if repeat actions should count multiple times or once per user/session. Align this with real business logic (e.g., one trial per user).
Measurement & KPIs
Key metrics tied to conversions include Conversion Rate (efficiency), CPA (cost to acquire a conversion), ROI (return on spend), and LTV (long-term value). Complement with engagement quality signals like Engaged Sessions and Engagement Time.
Implementation checklist
- Define crystal-clear conversion events/goals and document parameters.
- Map onsite/offsite steps; handle identity, consent, and redirects.
- Use Custom Events for product-specific actions.
- Validate with test traffic, confirm deduplication, and verify attribution.
- Review reports after every marketing change and A/B test to improve paths.