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Conversion, retention, ROI, Opt-In… what does all this mean? A marketer’s glossary

Do you know the meaning of basic marketing concepts? Get familiar with them to create even more effective advertising campaigns!

Nowadays online marketing is undergoing dynamic changes. New concepts and definitions that every marketer should know keep on appearing. Here are some of the most important ones:


Conversion rate is primarily about goals achieved by online stores. It refers to the performance of desired action by a recipient, namely a potential customer or blog reader, for example. Conversion may include making a purchase, registering an account by a customer, leaving contact details, filling out a form, opting in to receive   push advertising, subscribing to the newsletter or staying on the website as long as possible. A conversion target should be clearly defined: for example, making a purchase for at least PLN 100. A conversion rate, i.e. the proportion of recipients who have achieved the target set by the marketer, reveals the website effectiveness.

Formula for calculating the conversion rate:

Number of actions performed that are desired on the websiteNumber of unique visits on the sitex 100

The conversion rate is affected by many factors depending on the type of conversion and stages that make up a sales funnel, i.e. promotional and advertising activities, as well as the website layout and transparency.


In the world of marketing, retention is an indicator of company’s ability to retain existing customers. There are several key principles that affect the retention rate in e-commerce – first of all, you should define a target group, monitor customer actions in terms of their activity and undertake measures to activate customers. The main tools automating customer retention include push advertising and email marketing. They allow for effective customer segmentation into groups that differ in terms of preferences, behaviour, and position in the shopping funnel. Owing to the above, we can direct customised information to individual groups, and thus, retain customers and boost sales.


ROI is a return on investment indicator that reflects the effectiveness and profitability of advertising activities. It enables to estimate the ratio of profits to investment expenditures incurred by a company. 

It is calculated in accordance with the following formula:

Revenue – ExpenseExpensex 100%

We can illustrate the return on investment on the example of Google Ads advert. An online store selling women’s clothing reported 1,000 visits of PLN 0,10 from one ad each. These activities resulted in a consumer who purchased goods worth PLN 500. In this case, the cost of advertising was PLN 100, the revenue totalled PLN 500, while the profit was PLN 400, so the ROI stood at 400%.

By monitoring investment in advertising compared to our profits, we can implement the campaigns that give the company the greatest financial benefits.


Opt-In is nothing more than conscious and voluntary user’s consent to join the list of subscribers. It mainly refers to such marketing tools as push advertising, emails, and messages sent via Messenger. There are two models in Internet marketing: Single Opt-In and Double Opt-In. In the first case, there is only one degree of consent, e.g. one click on a button is enough to agree to receive push notifications. As you know, the less effort a recipient will have to put into the signup process, the greater the chance that he or she will become a subscriber.

The second subscription method requires additional confirmation of users’ consent. This applies in particular to email marketing. The first step is signing up for the newsletter, while the second step is confirmation of one’s email address and activating subscription. The Opt-In form should be displayed as soon as a user enters the website, should contain a relevant CTA, as well as encouraging headline and content.

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