Do you have an e-commerce store? Is it taking forever to grow to the size you want it to be? Consider your e-commerce conversion rate and if it's part of the problem.
Conversion is an essential part of any business, and knowing how to improve the rate is helpful. But you should also know how conversion rates work so that you can know how to change them.
Keep reading to learn more.
Your e-commerce conversion rate refers to the percentage of website visitors that buy something. You can also track the conversion rate for other factors, like newsletter opt-ins and social media shares.
Multiple factors can help increase your e-commerce conversion rate, such as:
If you can use these elements well, you can encourage people to sign up for your email list or buy your product. Then, you can grow your e-commerce business in the short and long term.
As you grow your business, you should keep track of your conversion rate. If it drops significantly, you can fix the issue, or you can take advantage of a steep increase and make more sales.
You don't have to be an expert in math to calculate your e-commerce conversion rate. Take a look at your website statistics and look at the total number of views for a specific period, such as a month.
Then, figure out how many sales you made in that same month. You will divide the number of sales by the total number of visits and multiply it by 100. Consider a couple of examples of e-commerce conversion rates.
Imagine your website gets 1,000 visitors per month, and over one month, you make 10 sales. Dividing 10 by 1,000 gives you 0.01, and you can multiply that by 100 to get a conversion rate of 1 percent.
Next, consider a website that gets 5,000 visitors each month, and the site gets 250 sales in that time. That website's owner can divide 250 by 5,000 to get 0.05, or a 5 percent conversion rate.
Knowing your e-commerce conversion rate is only the beginning. If you want to grow your business, you should consider how to improve your e-commerce conversion rate.
Then, you'll be able to increase your sales without necessarily marketing to more people or getting more visitors. Consider a few tips to help you increase website conversions.
Search engine optimization (SEO) is a crucial tool for e-commerce sellers. You can use keywords and phrases in your product descriptions and elsewhere on your website.
When you use relevant keywords, you'll be able to tell search engines about your website. Then, Google or another engine will know to show your e-commerce store to people when they search for those keywords.
If you can optimize your website for the right keywords, you can attract people who are looking to buy something. That way, it will be easier to get a sale from that user.
Another great way to attract potential customers to your website is with social media. You can use Instagram, Facebook, and other social networks to connect with customers and grow your following.
Social media is a great place to share links to your products and give a behind-the-scenes look into your business. You can also build relationships with your followers to get them to trust you and your business.
When you're ready to promote a product, you'll have an audience that loves you. You will be able to sell to people you've interacted with, which can help increase your e-commerce conversion rate.
When it comes to designing your website, you should focus on user experience (UX) and user interface (UI). If someone visits your website and can't find what they want, they will leave, and they may not come back.
However, when your website is easy to use, visitors will be more likely to buy something. Improving your UX and UI is a great way to increase conversion rates so that you can get more sales.
Whether you decide to choose different colors or get rid of extra text and images, making your website easy to use is crucial. That way, you can make it easier for people to shop around.
As you work on your UX and UI, make sure your website is simple and straightforward. Consider the steps someone has to take to complete a purchase.
If they have to register for an account or put in a lot of personal information, that will take time. And that extra time gives customers more of a chance to leave.
Try to make the ordering process and quick as you can. Allow people to purchase without a customer account, and get rid of any other steps that aren't necessary for a successful sale.
Even if you have a straightforward e-commerce checkout process, people may still abandon their carts. Someone may realize they're late for an event, or they have a kid or family member interrupt them.
Whatever the reason, you don't want to lose that transaction, and you don't have to. You can use tools like Google Analytics or a site-specific tracker to learn about cart abandonment.
Then, you can use ads or other marketing methods to retarget the individuals who started to fill their shopping cart. Those people know they want to buy something, so it won't take as much work to get them to complete their purchase.
While retargeting people who abandon their carts is useful, you may also want to retarget other visitors. Retargeting is where you advertise to people who have already interacted with your website.
Even if they didn't shop for products, they may have viewed a product or looked at other parts of your e-commerce website. Either action is a good sign that someone likes what you offer, and they may want to be a customer in the future.
Converting these types of people is easier than converting people who have never heard of your business. If you have a small advertising budget, retargeting is a great way to spend that money to increase your conversions and your return on investment.
Whether you're deciding what products to offer or how to collect payments, you should give a couple of options. Only offering one thing can limit your sales, while providing a vast selection can be overwhelming.
If your e-commerce store is fairly new, start by offering a few products. Then, you'll have a decent selection for customers, but you won't have so many products that it will be hard to manage.
When it comes time for someone to pay, you should also give two or three options for payment methods. Some people may not want to use a credit card or PayPal, so you can attract more paying customers.
Make sure any payment method you offer is easy for customers to use. Then, you can ensure they complete their transaction.
If you sell any physical products, free shipping is almost essential when trying to compete with larger e-commerce stores. Now, you don't have to cover the cost of shipping for every order.
One option is to include the cost of shipping in the product cost. That way, customers will view the price, and you can make it seem like the shipping is free.
On the other hand, you can also offer free shipping on orders over a certain amount. Doing that can be a great way to increase the total of each sale, and you can incorporate some of the shipping cost into the initial price.
Whenever you write product descriptions or market your business, you need to be honest with your customers. Honesty can help improve customer trust, which can help increase conversions.
Your product descriptions should accurately cover what the product does or how it works. Similarly, use good product photos that show the product in action.
You should also consider how to price your products. The price should reflect the quality and value of the product, so you may need to charge more or less than your competition. Either way, your pricing should help customers manage their expectations.
If you have any customer reviews or testimonials, include those on your product sales pages. Reviews and testimonials are forms of social proof, and they can give potential customers peace of mind that your product works.
Using social proof can make your products look better to shoppers, which can help with your e-commerce conversion rate. If you don't have reviews about a specific product, include some about your overall business.
Give your website visitors a chance to learn more about you from other perspectives. That way, you can help people be more confident before they make a purchase.
While the presence of a shop may be obvious to you, it won't be to everyone who visits you. Because of this, you should use a call to action (CTA) at least once on each page of your site.
A CTA tells visitors what you want them to do, whether that's to sign up for your email list or buy a product. Adding multiple CTAs throughout your site means you can convert people no matter how they find your site or what page they view.
In fact, people may need to see a CTA as many as seven times before they'll actually take the action. If you only have one CTA on your entire site, you may need someone to visit more often, so multiple CTAs can cut down on that time considerably.
A/B testing, or split testing, is a method you can use to compare two options to see what works. You can use two versions of a product page to show to different visitors.
Consider changing the colors, CTA, or the heading text, but only change one thing at a time. That way, you can know which change is successful.
You'll be able to track your e-commerce conversion rate for each version over a specific period. If you find that one color works well for a purchase button, you can change the other products on your site.
You'll need to use some sort of website analytics tool, such as Google Analytics, to track your e-commerce conversion rate. The right tool can help you learn more about your visitors to determine why your conversion rate is what it is.
Use analytics to learn:
You should review your analytics at least once per month. Then, you can see what works well and what you can change to increase your e-commerce conversion rate.
If you want to work on your conversion rate, even more, you can review your analytics weekly. That way, you won't have to wait a full month to correct a strategy that isn't working.
As you work to increase your e-commerce conversion rate, don't be afraid to experiment. You never know what might work until you try it, so you may be able to have an above-average conversion rate.
Whether you use A/B testing or focus more on your analytics, you can learn how to improve your conversion rate. While you can learn what works for other businesses, it might not work for yours.
You should learn what your customers like and don't like. And you may need to change your strategy occasionally if something stops working.
That doesn't mean your business isn't successful. People change, and you need to be able to adapt to fit the needs of your ideal customers.
Knowing your e-commerce conversion rate gives you a good idea of how well your business is doing. Fortunately, you don't have to live with a low conversion rate.
You can do a few things to improve the conversion rate, such as marketing on social media, or retargeting shoppers. That way, you can increase sales and grow your online business.
Do you need help growing your e-commerce business? Contact us to learn how we can help.