How do conversion operators work in C++?

Consider this simple example:

template <class Type>
class smartref {
public:
    smartref() : data(new Type) { }
    operator Type&(){ return *data; }
private:
    Type* data;
};

class person {
public:
    void think() { std::cout << "I am thinking"; }
};

int main() {
    smartref<person> p;
    p.think(); // why does not the compiler try substituting Type&?
}

How do conversion operators work in C++? (i.e) when does the compiler try substituting the type defined after the conversion operator?