What Is a Conversion?
Conversion – Any meaningful action taken by a customer that is valuable to your business and can be directly attributed to a collaborator‘s influence within a program.
This could be making a purchase online, renewing a subscription, or any other measurable activity that you’ve set as a target. In essence, conversions are the milestones that indicate your customer has taken an important step that aligns with your business goals.
How Siren Uses Conversions
In the framework of Siren’s programs, a conversion isn’t just about customer actions. It’s also about how these actions link to rewards for your collaborators. For example, in an affiliate program, a conversion occurs when a customer purchases a product after visiting the site using an affiliate’s link. Here, the conversion directly translates to a reward for the affiliate who helped make that sale happen.
A Visitor Clicks an Affiliate Link
This is usually shared through their blog, on social media, or an email.
The Visitor Buys Something
Since this visitor has a cookie, Siren can credit an affiliate for this sale.
Conversions Created
Siren detects that the visitor is associated with one or more collaborators, and creates a conversion for each winning collaborator.
Conversion Status, and Validation
Each conversion is assigned a status – Active, Pending, or Rejected. This system allows you to monitor and validate each conversion to ensure its legitimacy, and the status of the conversion helps ensure that rewards are only issued for legitimate conversions.
Pending
The conversion is still awaiting approval.
Difference Between a Transaction and a Conversion
A conversion is any meaningful action taken by a customer, such as signing up for a newsletter or making a purchase, often influenced by a collaborator’s efforts. Each conversion can potentially lead to a transaction, especially when the action involves a financial exchange like purchasing a product.
A transaction, on the other hand, is a detailed record of the financial aspects of a conversion. It itemizes everything involved in the purchase, including the items bought, their quantities, and associated costs like taxes and shipping. This detailed accounting is essential for accurately calculating the rewards for collaborators.
For example, if a customer purchases a book through an affiliate’s link and the book is also part of a royalty program for its author, the same transaction will link to multiple conversions—each triggering different rewards under various program structures.
Conclusion
Conversions are the quantifiable indicators of your program’s success and are crucial for calculating obligations. In Siren, these conversion milestones not only help you track the effectiveness of each collaborator but also serve as the basis for calculating the rewards they earn.
This direct linkage between conversions and rewards ensures that your collaborators are motivated to drive results, since their compensation is usually tied to the conversions they generate.
