The concept of “conversion rate” has been around since the advent of marketing, although the term hadn’t been coined until the early 1960s. To understand how it developed, we have to look at what came before.
In its most basic form, marketers had always believed that if they could make contact with their customers or reach a certain audience size, they would secure sales and conversions. The goal was simply to increase market share and build brand reputation; there wasn't really any focus on tracking effectiveness and measuring results based on customer behavior.
It wasn’t until direct response advertising took off in the 1950s/60s – along with more sophisticated technological capabilities – that metrics for conversion rates started to become available. This marked an evolution in marketing, as companies were now able to gain insights into customer responses from campaigns and fine-tune them accordingly. Over time, this data analysis continues to evolve as businesses take advantage of big data technology and advanced analytics capabilities to create targeted approaches tailored specifically for individual customers.
Today, conversion rate is used increasingly across sectors but particularly in ecommerce where it has a decisive role in driving digital success for businesses large and small alike. And as marketers recognize this importance, tools such as AI (Artificial Intelligence) are being utilized more frequently to optimize their internet strategies and maximize conversions. As such, optimization is becoming even easier and removed from manual processes thus lowering costs associated with ineffective strategies while boosting revenue bottom lines at the same time.
As we move further forward into a world driven by tech-enabled dynamics, one thing's certain: conversion rate will remain an essential part of all marketing operations both now, tomorrow – and likely forever beyond!