Conversion tracking is the plumbing that records which visits produced the action you care about, and where those visits came from.
Without it, revenue is known and its cause is not. You can see that twelve people bought and have no way to tell whether they came from a newsletter, a video or a paid campaign — which makes every decision about where to spend effort a guess.
The mechanics are a recorded event at the moment of the action, plus attribution back to a source, usually through tagged links. Both halves are needed: an event with no source tells you what happened, a source with no event tells you who arrived.
Attribution is approximate by nature. Browser restrictions, in-app browsers and multi-device journeys all lose data, so the numbers are directional. Consistency of method matters more than precision.
In practice
Tagging the newsletter link and recording the purchase event reveals that a channel sending 4% of visits produced 30% of revenue.
Common mistake
Changing the tracking setup mid-campaign. The comparison you were running is destroyed, and the new numbers cannot be joined to the old ones.
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