Different keywords lead to conversions of varied frequencies, hence it is vital to know about the performance of a particular keyword as it affects your bid. In short, Conversion Tracking helps you improve your ROI (return on investment).
Methodology:
Usually, a small snippet of a code is embedded into specific pages on your websites, that denotes the occurrence of any important event. For example, when a user reaches the order confirmation page after a purchase, AdWords registers it as a Conversion. This data is then sent to your account and you can view it as account statistics and reports.
Improvements:
You can now define and track multiple conversions, which empowers you with more specific details about how conversions occur on your website. Use of AdWords Conversion Tracking brings you one step closer to Conversion Optimizer.
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