Conversion is essential to marketing strategy, and even more essential to digital marketing. It is a way of measuring the effectiveness of a marketing strategy, both from an advertising standpoint (campaigns, targeting and acquisition channels), and a digital performance standpoint (website, apps). A given action’s conversion rate is thus often used as a KPI.
Conversion is when a user completes a desired action towards a brand, which proves brand engagement. This action is often assumed to be a purchase or a transaction, but it can take many other forms: online or offline, depending on company objectives and business model (signing up for newsletters, filling out forms, joining a loyalty club in-store, submitting content, etc.).