Micro & Macro Conversions in the Sales Funnel Process

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Posted on March 23, 2020

macro and micro conversion

One reason why online marketing is revolutionary to the world of advertising is because you can find out the degree of click certainty. This is accomplished by tracking and measuring performances down your sales funnel. Tracking is instrumental in pay-per-click advertising. Pay-per-click advertising requires you to set a price you are willing to pay for each click you get from a particular target. Without being able to track your performance, you cannot know the value of the clicks being sent to your site.

Tracking and measuring performance down your sales funnel can also help you optimize your sales funnel to improve its performance. By identifying elements of the sales funnel that can be improved, you can test new variations of those elements.  

The two types of conversions are micro and macro conversions. Macro conversion occurs at the final stage of the sales funnel while micro conversions are steps that lead to the macro conversion. Both micro and macro conversions have values.

The value of the macro conversion is determined by the revenue of the sale while the value of micro-conversions is determined by the probability that the micro-conversion will lead to a macro conversion. When you make a funnel report, you will look at metrics, such as conversions, and then create compound metrics, such as cost per conversion, cost per micro-conversion, and conversion rates.

To better understand micro and macro conversions, let’s take an example of a shopping cart.

– First, a customer will add a product to the shopping cart by clicking on the ‘add to cart’ call to action.

– The customer must be a registered user to complete the checkout. This is a micro-conversion.

– Adding the product to the cart itself is a micro-conversion.

– Then comes the addition of shipping details and personal details. These are also micro conversions.

– Adding payment details overlap as macro conversion.

– The final click on Pay Now is a macro conversion, as it’s the closure of the funnel.

The acknowledgement of the sale is also a macro conversion.

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