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Glossary – Target action

Target action

Nikiforov Alexander
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Target Action: Definition and Examples

A target action (TA) is any activity that a company encourages users to perform. These actions can include subscribing to a newsletter, registering on a website, adding a product to a cart, or placing an order. For example, the business portal Rusbase encourages its readers to leave their email address to receive fresh news. In this case, subscribing to the newsletter is a target action.

The Importance of Target Actions for Business

Target actions play a crucial role in achieving business goals. They allow:

  • To achieve company goals by increasing profits and addressing intermediate tasks. For example, a target action can be aimed at attracting customers for free consultations or increasing website traffic.
  • To guide customers through the sales funnel. Typically, customers do not make a purchasing decision immediately. They need time to realize their need, compare products, and trust the seller. Hence, companies create a sales funnel, for which each stage requires its own target actions.

Stages of the Funnel and Examples of Target Actions

  • Drive Traffic to the Site: Click on an advertisement, visit the website.
  • Generate Leads: Sign up for a free consultation.
  • Sell a Product: Payment.

Companies also use trigger emails to prompt customers to make a purchase, for example, by reminding them of an abandoned cart and encouraging them to complete the order.

Types of Target Actions

Target actions vary depending on the type of online platform:

  • Online Stores: The main TA here is the purchase of a product. Calls to action may include "Go to Catalog," "Add to Cart," and "Buy."
  • Websites: They can serve various purposes, including presenting the company and its services. Here, the main TAs may include calls, requests for commercial proposals, and appointments.
  • Landing Pages: Single-page resources where the focus is on specific actions, such as ordering a consultation or purchasing a product.
  • Promotional Sites: They inform users about a product and collect contacts using calls like "Learn More" or "Subscribe to News."
  • Business Card Sites: These sites provide general information about the company and its services, focusing on booking consultations or sending messages.
  • Informational Sites/Blogs: Here, TAs may include newsletter subscriptions and clicks on advertising links.
  • Mobile Applications: Target actions are similar to websites, including adding products to carts and placing orders.
  • Social Networks: Joining communities, liking, and reposting are examples of TAs on social platforms.
  • SaaS Services: Target actions in cloud services include registration and using a trial version.

How to Calculate Conversion and Cost of Target Action

To track the effectiveness of target actions, companies calculate the conversion rate (CR). The formula is as follows:

CR = (number of people who completed the target action / total number of visitors) × 100%

For example, if 150 people visited a lawyer's website and 5 of them called for information, the CR would be 3.3%. Each industry has its own conversion norms, and if the CR is low, it may indicate the need to adjust strategies.

The CPA (cost per action) metric is also used, calculated using the formula:

CPA = advertising costs / number of completed TAs

This allows determining which channels are more effective for attracting customers and helps redistribute the advertising budget.

How to Encourage Users to Take Target Action

To ensure users actively perform target actions, follow several recommendations:

  • Personalize Calls to Action: Segment the audience and select relevant offers.
  • Formulate Calls Clearly: Use clear and specific verbs, such as "Subscribe" or "Buy."
  • Do Not Overload the Site with Calls: Ensure users understand what is required of them.
  • Work on Usability: The website or application should be user-friendly and visually appealing.
  • Show the Value of TAs: Explain what users will gain after taking action.
  • Use Urgency Triggers: This can encourage users to make decisions faster.

By following these recommendations, companies can significantly increase the likelihood of users completing target actions and, consequently, increase their revenue.