What is Conversion Tracking & Why is it important?

Have you ever wondered how businesses know if their ads are actually working? Conversion tracking is the answer!

Conversion tracking is a way to measure your website’s success and online marketing.  It allows them to track the actions that users take on your website after they click on your ads or visit your site.

These actions can be anything from buying a product to filling out a form or downloading a file.

If your website is converting visitors into buyers. Then we can say that your marketing strategy is effective.

That’s where conversion tracking comes in. Now, we can achieve this through sources like Google Ads, Facebook Ads, and email marketing.

Can we track the active time on your page? Yes, this is where conversion tracking comes we can track the time of day they are most active.

Identify patterns and trends in customer behavior, pages you visit, and items bought. 

What is Conversion tracking?

Why is it important?

It helps businesses understand the effectiveness of their marketing campaigns and website performance.

It can determine the return on investment (ROI) of their marketing efforts.  By analyzing conversion data, and adjusting marketing strategies according to it.

You can identify which channels are generating the most leads, sales, and revenue. Analyzing data in real time gives you a clear picture of your marketing performance.

Conversion tracking can also help you understand your customers better. By tracking actions, you can see which pages they visit, which products they buy, and even the time used. By this, we can personalize the user experience and improve customer satisfaction.

Can you explain it with an example?  If you’re running ads on different platforms, by conversion tracking.

We can see which platform is bringing the most customers. It can help you to focus on your marketing efforts, time to spend, and budget.

There are many tools available to analyze conversion data in real time. By this, we can provide valuable insights to businesses in their marketing campaigns.

Benefits of Conversion tracking

The process of monitoring and analyzing, whether the desired actions are performed. The benefits of conversion tracking include:

Benefits of Conversion tracking

1. Identifying areas to improve

This can help to determine which parts of your website are working well and which are not.

By analyzing, you can identify areas to improve and can make necessary changes. This can provide a good user experience and more conversions.

2. Maximizing ROI

Conversion tracking allows you to track which campaigns are driving the most conversions.

This information can help to optimize campaigns for the largest ROI. We can make optimal decisions and budget allocation according to it.  

3. Enhancing customer insights

This helps you to understand your customers by providing insights into their preferences.

You can personalize your marketing and improve your customer experience.

4. Budget allocation

Conversion tracking can tests different variations of your website to observe the performance.

By proper testing and optimizing, you can improve your conversion rates over time. This can result in allocating the budget as per conversions.

5. Measuring success

Conversion tracking provides a  measurable way to track the success of your website. This can help you to set goals according to them and achieve progress in return.

Conversion tracking helps businesses to understand the behavior of their customers.  It helps to identify and fix issues on their website that may be preventing conversions.

Businesses can observe if there are any issues from their side tries to fix them. We can give our feedback if there are any usability issues or technical problems to resolve.

Types of conversion KPIs to track

Conversion Key Performance Indicators (KPIs) are metrics used to track their success. Let’s understand some common types of conversion KPIs to track:

Types of conversion KPIs to track

1. Conversion rate

This KPI shows the ratio of conversions to the number of visitors. Actions can be form-filling, buying a product, or signing up for a page. 

A greater conversion rate shows that more people are taking the desired action, which is a good thing. 

2. Session duration

This KPI shows the average time user spends on your website during a visit. You can calculate how often they are active on your page.

This can make your visitors count as more time spends on it.

3. Average order value

This KPI shows the average amount of money a customer spends in a single transaction. More average order value shows that they are buying more from you, which means more income.

4. Pages per visit

This KPI shows the number of web pages that the user visits in one session. A user can visit their home page, details of the product even feedback.

While some can visit your page via ad retargeting, can navigate to this site and can view your products.

5. Customer lifetime value

The average amount of money a customer will spend on your brand with your company, from the beginning to the end.

We can say that lifetime value is one of the conversion metrics for measuring your success over time. 

6. Cost per acquisition

This KPI shows the amount of money spent to get one conversion.

For example, if you spend $100 on promoting and get 10 conversions, your cost per conversion is $10. It tells you the average money spent to get a new customer.

By tracking this, Businesses can gain valuable insights to know their sales growth. This can help to make optimal decisions and generate more revenue.

Does conversion tracking generate income?

We can generate income not in a direct way by conversion tracking.

It is a tool that businesses optimize their marketing strategies, earning revenue. We need to analyze and maximize the return on investment (ROI) from it. We need to calculate conversions and adjust our strategies according to them. 

If a business observes a particular ad campaign is generating a high number of conversions at a low cost. So, we can invest more resources in that campaign to generate even more revenue. 

So, it shows that conversion tracking does not generate income in a direct manner.  An essential tool for businesses to understand the effectiveness of their marketing campaigns. We can make data-driven decisions to optimize their strategies and drive more revenue.

How to calculate the conversion rate?

Calculating conversion rate in conversion tracking is quite simple. For this, you need to consider two numbers:

1. The number of visitors who completed the desired action on your website (e.g., form filling or items bought).

2. Count the number of visitors to your website during the same time period.

To do this, divide your total conversions by the total visitors and multiply by 100.

For example, if you had 10 conversions and 1,000 visitors, your conversion rate would be 1% (10/1,000 x 100).

This means that for every 100 visitors to your website, one of them completed the desired action. It’s a useful metric for measuring the effectiveness of your marketing efforts.


Ques 1: Why is conversion tracking important in Google Ads?

Ans. By tracking the specific actions users take on their website after clicking on an ad. It allows advertisers to measure the success of their campaigns.

Ques 2: Do I need conversion tracking?

Ans. Yes, It optimizes your marketing campaigns and maximizes your return on investment (ROI). 

Ques 3: Why is conversion important in business?

Ans. It helps in reducing customer acquisition costs by increasing revenue per visitor. So, it shows that businesses are acquiring more customers.

Ques 4: How can conversion tracking help users?

Ans. Conversion tracking can help users by providing a better understanding of their website. It leads to improvement in user experience and increasing daily visitors. 

Ques 5: How do you use conversion tracking?

Ans. By placing a tracking code on the website or landing page that records specific user actions. We can analyze it and optimize it for better performance.


Conversion tracking is a tool for online businesses that need measuring of success.

By setting up conversion tracking, You can track the actions that users take on your website.

Actions can be Clicking ads, purchasing, or filling out a form. This data enables us to achieve better results by optimizing campaigns.

It can be a powerful tool that can increase your revenue. If you’re running an online marketing campaign. Then, you can apply conversion tracking to get the most out of your efforts.

Orvill Samanta
Orvill Samanta

An app marketer with over 6 years of experience in the tech industry. I have developed a strong passion for apps and love to create engaging and informative content around it. When not talking about marketing, I binge-watch anime series and read comic books. My keen eye for technology has helped me captivate my audience and increase engagement with my work.