Conversion Metrics You Need to Track Better Strategy Management


How do you know that your digital marketing strategy is yielding results? Are you sure if the Ads campaign you are running is reaching the right audience? Why is the traffic so low on your website? How can you improve the online reach of your business and ensure higher conversion?

These are some of the frequently asked questions by businesses today. The digital world is expanding fast, and with more businesses scoping out various digital marketing strategies- the correct metrics to identify the performance of websites, applications, and advertisements has become a necessity. Let’s learn about these metrics and find out what can be concluded from each.

Conversion Metrics That Define Business KPIs

Before you can improve your digital marketing strategy, you need to know the current performances. That’s where the conversion metrics come in. They help you analyse your business KPIs and assist you in better strategic management.


For any business, revenue is the lifeblood. You need to know exactly how much you are making from individual channels. Your gross revenue is what your business is making without considering your expenses. If you are into online sales of goods or services, the calculation becomes easy as you can easily set up Google Analytics to track every sale. However, if you are using a digital marketing strategy to bring in clients, then you will need to rely on conversions, which we will be discussing next.

Conversion Rate

Online conversion is calculated by tracking the number of visitors to your website who have performed a predefined action, such as signing up or filling up a contact form or other such actions. These actions are called goals, and you can easily set Google Analytics to track these activities on your website. To get the conversion rate, you will need to use the following formula: (Conversion / Total number of visitors) * 100.

The conversion rate is measured in percentage.



ROI, or return on investment, is one of the favourite metrics among those calculating business performance. In simplest terms, it is the return you get from the investment you have made. However, the metrics can become quite unreliable, especially for small businesses and start-ups. During the initial years, there can be just investments without much return. Hence, this is a metric that should be considered while taking into consideration all other factors. The formula used to calculate this is:

(Gross Profit – Marketing Expenses) / Marketing Expenses


ROAS stands for Return On Ads Spends. This is useful for those who are including advertisements into digital marketing plans and have assigned an Ads budget. You will need to calculate the revenue generated against the Ads spending. The general rule suggests that you should be receiving thrice of what you are spending, but this will depend upon the industry.


CPA is Cost Per Acquisition and it is the exact measure of the direct impact of any marketing campaign. To calculate it, you simply need to divide the total marketing expense under any campaign by the total number of leads generated or the number of sales, whichever was the final goal of the marketing campaign. It is best to have a lower CPA as this means higher profit.


AOV is the average order value. It is specifically related to eCommerce businesses. The figure is calculated by dividing the total sales revenue by the number of sales. This value is the average revenue generated by the sales and can be calculated for a day, week, month, quarter, half-year, or year.

Other Metrics

There are numerous other metrics that will give you a better idea about the performance of your digital business strategies, and they will vary depending on the type of business you are running. Lifetime Value, Lead Generation, Website Traffic, Traffic Conversion, etc., are among a few other metrics. You will need to identify the most important ones depending upon your key goals.

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