If you have an online business or are considering opening once again, you have surely heard of the “conversion rate”. But what exactly is it and what benefits does know how to measure it correctly bring us? I’ll tell you about it in this post!
The conversion rate is a metric that indicates the percentage of users of our ecommerce that complete a certain action. This action can be any objective that we have set in our business (add a product to the cart, sign up for your newsletter, fill out a contact form.
But in this article, we will focus on the conversion rate to sale, which is which measures the percentage of users of our electronic commerce who complete a purchase.
For example, if my business gets 2,000 visits and 20 of them end in sales, my eCommerce conversion rate is 1%.
Why should we correctly measure and optimize this metric? The conversion rate is one of the main metrics that help blue world city islamabad measure the success of the strategies that they implement in their business.
Not only can we focus on having many visits, but in the end, we have to know how to optimize our ecommerce to achieve our final goal: sell our product or service.
Thus, the conversion rate will allow us to understand what the return on investment is dedicated to our ecommerce (either time or money) in relation to final sales.
What is the conversion rate in ecommerce?
One of the biggest challenges when analyzing the conversion rate is finding a benchmark against which to compare the performance of our business.
This reference value will depend on many factors, such as the sector to which we belong or the product we sell, but on average we can say that the average conversion rate of an ecommerce is between 1% and 3%.
This means that of every 1,000 visits made to a product page, only between 10 and 30 finalize the sale. However, depending on the source of the traffic and the device from which the page is accessed, this percentage can also vary greatly.
Therefore, we must be attentive to the conversion figures of each channel to identify which ones we have to work on to improve our average conversion.
In addition, we must take into account that within the same sector we can find large differences between the conversion rate of each business depending on its ability to execute an effective strategy for your business.
For example, within the retail sector, where the average conversion rate is 1%, but in an ecommerce success story like Amazon, the conversion rate can be up to 7%.
How has the pandemic affected the conversion rate?
Due to the situation caused by Covid-19, the consumption habits of users have been greatly affected.
According to the latest Annual eCommerce Study 2020 prepared by IAB, half of consumers have increased their frequency of online shopping during confinement, and, although the majority declare that once it returns to normal, it will return to its usual frequency, a 25% confirm that they will buy more frequently through the online channel.
Some sectors have been positively affected by this change, while others have seen their conversion rate decline after the pandemic.
Of all the categories analyzed in the IAB study, the airline sector is the one that has experienced the greatest growth, while food delivery is the one that has suffered the greatest decrease.
Another important change that can be observed in the impact of Covid-19 is the growth of mcommerce compared to the previous year, demonstrating the great importance of having a responsive electronic commerce:
10 ways to optimize your conversion rate
Although there are multiple techniques that you can apply to optimize the conversion rate of your e-commerce, here we indicate 10 of the most important ways to do it.
1. Be different
For the success of any ecommerce, a key point is to offer something of value to users that is not offered by the competition. Therefore, we have to highlight our differential values and purpose at all times.
It is important that our differential values are always visible together with the commitments we have with the client (free shipping, 24-hour delivery, etc.), bearing in mind above all that the home page, which serves as a company presentation, will be the place where we will be most interested in highlighting our differential value.
2. Include testimonials, opinions and trust marks
When a user arrives at an ecommerce, what he wants is to find symbols of online trust, security and credibility that give him the peace of mind he needs to buy.
In addition, the opinions of other users take on great importance in ecommerce, since consumers need detailed opinions that can guide them in their purchase decisions. What better than the opinions of other consumers to know if a product or service is worth buying?
User experience on any web page is essential to meet conversion goals. One of the most critical is the loading time of the website, since if your page does not load fast enough, the user will go to another online store where they can navigate faster and you will have lost a customer.
In addition, we must make your browsing experience as pleasant and comfortable as possible: we must offer well-ranked menus with quick access to categories and subcategories so that you can easily find what you are looking for.
It is also recommended to add filters within the category pages, since this way we offer a faster and more precise search option.
4. Optimized product pages
It is important to provide all the information that is necessary to make the purchase easier. Many users will go directly to your product page and there they must find all the information that allows them to understand what they are going to buy and how they are going to be able to buy it.
Thus, the most important elements that must be taken into account are:
- Add quality images and from different angles to have the best possible representation of the product. If you can use a 360º view of your product, even better.
- Add a short, clear and concise description below the product name and near the image to provide a quick overview of the product.
- Highlight the price of the product and highlight special offers such as discounts, if you have any.
- Provides clear and visible information on payment methods or shipping management.
- Work on the long description for SEO to help you rank better in search engines.
5. Offer multiple payment and shipping options
Offering few payment options or shipping options can be a barrier to the final purchase of the product, since they are the main concerns of users.
It maximizes the flexibility and confidence of the user by offering various payment methods and explains their operation so that they can feel comfortable.
In addition, it will be essential that you offer information on shipping times, destinations (national, international or islands), companies with which you work and price.
6. Have a responsive purchase process
If you still do not have a responsive website, it is very likely that you are losing money because users who access from mobile devices or tablets do not finish the purchase process.
Optimize your website and make sure you don’t lose sales due to a page that is poorly adapted to mobile devices.
7. Simplify forms and request data strictly necessary for your objective
Users are increasingly reluctant to provide their data, and if the checkout seems more like a maze than anything else, we may lose a possible purchase by asking too much time for dedication.
Try to simplify the checkout as much as possible and, if possible, even try to centralize it in a one-step checkout so that the user can see all the information at a glance and also save them time.
8. Returns and withdrawal policy, clear and visible at all times
One of the biggest fears when buying online is that the product is not as expected that we have made the wrong size. So, for the client it is important to know that they have the option of return and withdrawal.
We must be clear in its operation and leave them visible at all times so that the client can consult it whenever they want.
9. Use cross selling and up selling
Cross selling or cross selling: try to get the customer to buy another product apart from the one they already plan to buy by offering complementary products to their main purchase intention. There are several cross-selling strategies that you can apply, but the important thing is that they are closely related to the product that you want to purchase initially and that, in addition, their price is lower than the main product.
In this way you will be able to convince the user more easily. You can add a banner with “related products” or “other customers also bought” within the product page. You can also offer a pack of complementary products and you can even consider offering them an economic advantage by using that pack.
Up selling unlike cross selling, the idea is to induce the customer to buy more expensive products or that we have an interest in selling by showing him products similar to the one he wants to buy.
It is usually presented in a carousel format within the product sheet, but it can also be used in other media such as email marketing. For example, Amazon uses this technique by sending emails with products related to your searches but with a higher price than the main products you have visited.
10. Use email marketing
This tool is one of the best allies for any ecommerce, since it allows us to overcome the barrier of lack of interaction with the user compared to traditional stores.
Establishing a good customer acquisition strategy through email marketing requires time and dedication, but it is one of the channels with the highest average conversion rate (approximately 2.72% vs. 1.85% of direct channels or 1.2 % of payment channels), so it can help us enormously to improve our conversion rate.
Did you know that approximately 70% of the carts are abandoned? Why not try to get them back through personalized email marketing campaigns?
According to the Digital 2021: Global Overview Report, ecommerce sales growth has grown by 36% in 2020, positioning itself as the third country with the highest growth in the last year.
It remains to be seen what 2021 brings us, but growth and more competitiveness are expected for which we must be prepared. What better way to start applying all these tips to prepare your Tajarat properties and beat your competition?