Conversion Definition

Conversion refers to the process of turning a prospect or website visitor into a paying customer or achieving a desired action, such as signing up for a newsletter or filling out a contact form.

conversion definition

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A common definition of conversion is “the act of changing from one use or function or purpose to another.” But what is the conversion definition in the context of running your small business?

If you’re not sure what conversion is and why it matters for you as a business owner, don’t worry. We’re here to help. 

Use our guide below to learn more about the definition of conversion and how to leverage it for your limited liability company, corporation, or other business legal entity.

Conversion Definition: What You Need to Know

When it comes to conversion, a few different definitions exist. However, for the purposes of this guide, we’ll be addressing a particular type of conversion, sometimes referred to as lead conversion, that may come up in the course of running your small business.

Here are a few important things to know about lead conversion.

Definition of Conversion in Business 

It’s important to remember that the conversion business definition is different from the standard definition you may be familiar with. 

Lead conversion is when an individual to whom you have marketed your goods or services takes a specific desired action. Leads are individuals or entities that represent potential future customers. They might be contacts you have or those who have reached out.  However, they have not yet decided to become a customer or client of your business. 

In most cases, lead conversion is when someone goes from a lead to a customer. 

Conversion Examples

There are many ways to convert a lead. For example, lead conversions might include: 

  • Securing a new sales contract
  • New YouTube or podcast subscriptions
  • eBook downloads
  • Seminar or webinar signups
  • Purchase of goods by a new customer

A business is only as successful as the business it continues to bring in. Thus, lead conversions allow small businesses to continue acquiring new clients and customers to drive future success.  

Conversion Benefits

In this day and age, lead conversion has become a crucial part of running most businesses. Small businesses that fail to adapt to these changing times and focus on lead generation and conversion risk losing out on valuable new customers and a number of other benefits and advantages. 

For example, some key lead conversion advantages can  frequently include: 

  • Steady increases in the total number of customers for your business
  • Expansion of your business into new markets
  • New business opportunities
  • A better understanding of your customer base and their wants and needs
  • Improvement to the quality of your goods or services based on customer engagement and feedback
  • Increases in revenue

A strong focus on lead conversion can go a long way toward helping your small business grow and thrive.  

Conversion Definition Summary: Why It Matters

There are a number of definitions of the word “conversion.” However, one of the most important definitions, as it pertains to owning and operating a small business, relates to the conversion of leads into customers. 

A strong focus on lead conversion can allow your business to better retain existing customers, obtain new ones, and increase your revenue and overall success along the way. 

Recommended: Statutory Merger vs. Statutory Conversion

We Can Help

Starting a small business is complicated. And continuing to keep customers coming in can, at times, feel even more difficult. 

Fortunately, you aren’t in this alone. We’re here to be your go-to resource for all things small business and entrepreneurship. Check out our variety of products and services and see how we can help you start, manage, and grow your business today. 

Recommended: How Do I Improve My Web Site Conversion Rate? Part 2

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by Team ZenBusiness

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