2.3 Conversions and conversion attribution
- Define the term "conversion"
- Explain how marketing attribution works in Google Analytics and why understanding attribution is important for good analysis
- Understand the “last-click” attribution model versus other models
A macro conversion occurs when someone completes an action that’s important to your business. For an ecommerce business, the most important macro conversion is usually a transaction. A micro conversion is also an important action, but it does not immediately contribute to your bottom line. It’s usually an indicator that a user is moving towards a macro conversion. It’s important to measure micro conversions because it helps you better understand where people are in on the journey to conversion.
Attribution is assigning credit for a conversion. In last-click attribution, all of the value associated with the conversion is assigned to the last marketing activity that generated the revenue. However, there are other attribution models that can help you better understand the value of each of your channels. For example, rather than assign all of the value to the last channel, you might want to assign all of the value to the first channel, the one that started the user on the customer journey. This is called first-click attribution. Or, you might assign a little bit of value to each of the assisting channels in the customer journey.