If you want your eCommerce business to succeed you need to think about ways to boost your conversion rate.
The world of eCommerce holds a lot of possibilities and opportunities. According to statistics, it is expected that more than 2 billion people will be shopping online by 2021. This creates huge potential for any online business. If you want to take advantage of the profit opportunity that this presents, it is important for you to understand what conversion rates are all about and how you can use them to strengthen your online business.
Most people with online businesses would immediately focus on generating traffic on their site. While having thousands of visitors on your site is a good thing, it will not make your online business profitable. You need to find a way to convert these people into paying customers.
That is what the conversion rate is all about.
So what makes conversion rates more important than traffic?
Here is one way to think about it. Business A has 20,000 visitors a month with a conversion rate of 2%. Business B has 10,000 visitors a month with a 5% conversion rate. That means with all the visitors, Business A gets 400 orders while Business B gets 500 orders.
Which of the two companies is performing better?
Obviously, the answer to that is Business B. It does not matter if there were more people visiting the website of Business A, it is obvious that Business B is getting more profits.
What is an eCommerce conversion rate
Simply put, a conversion rate is the number of people that actively transact with your business. They do more than just visit the store or business. After looking around, they usually find something they like and end up buying something from you.
According to reports, the average conversion rate is 1-3%. This varies depending on the industry that the business is involved in. Usually, businesses that deal with digital products and online stores have a higher potential for conversion. Based on data measured between 2017 and 2018, arts and crafts and electrical/commercial equipment have the highest conversion rates. The lowest includes agriculture and baby products. This is not surprising since these are examples of products that you need to physically see for you to decide if you want to buy it or not.
When determining the rate of conversion, you need to determine the baseline number of visitors. Some people visit your site multiple times before buying. Others only take one visit to make a purchase. You need to learn how to count these numbers.
You also have to pay attention to the actual conversion events. These do not have to be actual sales. It could be a particular behavior that can be measured – known as the KPI or Key Performance Indicator. This behavior would be an indication of interest in the business or product. This could be signing up for a subscription or downloading a free app. These are positive actions that mean you have hooked a particular visitor. Their interest alone is an indication that you are one step closer to making them a loyal client.
It is important for you to determine how to measure the conversion rate based on what your business considers to be valuable. If the act of watching a video or clicking a link within the site is valuable, then it is considered a conversion event.
Tips to boost your eCommerce conversion rate
Now that you understand the importance of a conversion rate and how it can improve your business, here are some tips that you can use to give it a boost.
Update your KPIs
First of all, you need to track the conversion rate correctly. The rate that you are getting might not be accurate because the data you are measuring is no longer relevant. You need to check the KPIs and fix them every now and then to keep them updated. You might want to tweak the returning customers’ and the buying ones’ KPIs. Adjust their level of importance based on changes in your business.
Check your analytics
Once the KPIs are adjusted, you should check how the data is being analyzed. There are tools that you can use to analyze the data as close to accurate as possible. If you are already using a tool, check to see if it is still giving you the data that you need. If not, you might want to consider changing it. This tool has to help you understand your customers so you will know what has to change in order to increase the conversion rate.
Be more customer-centric
While you need to stay true to the brand you are selling, it is also important to make it appealing to your customers. After all, they are the ones that have to like it enough to pay you for it. This is why you need to exert effort to be more customer-centric. It is not just about giving them the product that they need. You have to give them the user experience that they want to have. This is what will help boost your conversion rate.
Make them trust you – in the sense that they will trust that you know what they want and need even before they do. If they start showing loyalty – reward them. Look into your data and spot the most loyal customers, and give them a reward. It can be a simple discount, or a freebie. It will leave an impression that will make them more enthusiastic to transact with your business.
Make the shopping experience simple
Your online shoppers are busy, this is why they are shopping online. They do not even have the time to go to a physical store. This is why you need to make it, even more, easier for them. Make the whole process simple. Use tools and programs that will make the shopping experience more seamless. Get a payment gateway that allows a smoother checkout process. If they like the experience, they are sure to come back for more.
Use your data to cross-sell
Since you already have the data, assuming that it is giving you the right information, you can use it to cross-sell. Offer other products that you think the customers would want based on previous shopping preferences. Display the products while they are shopping and even during checkout. However, make sure it will not be too disruptive or annoying, just give subtle hints. This is an effective way to increase sales.
These are only a few of the things that you can do to boost the conversion rate of your eCommerce business. Take note that this needs constant updates and monitoring. The digital market is constantly evolving and your business should be able to keep up with everything.
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