Understanding Conversion

All marketing ultimately aims to change behavior. Whether a user is at the top of the funnel or already familiar with the product, the objective is to move them closer to becoming an economically meaningful user. Results matter, but not all results are the same.

In direct response marketing, you want people to take an action on your site or app. In industry terms, this is referred to as a conversion. A conversion is the moment where a prospective user completes a defined action that signals progress toward becoming a customer — not necessarily the final or most valuable state.

As tools for selling and distribution have changed, most online marketing centers around driving users to complete some measurable action. This action may be as simple as providing their email or as complicated as a full insurance contract.

In contemporary contexts, conversions are defined in many ways. Purchases, installs, registrations, and leads are among the most common. For a web3 protocol, conversion might instead refer to onchain actions such as:

• Making a first swap
• Providing liquidity
• Staking tokens
• Participating in governance
• Bridging assets to your chain
• Minting an NFT
• Opening a perpetual position