How to increase Conversion Rate in e-commerce?
Conversion rate provides a lot of valuable information. For those who run their own online store, it is an important indicator that is crucial to the revenue of the company. Performing conversion rate optimization is therefore in the interest of anyone in the e-commerce industry. Read the article and learn how to effectively increase website conversion. We also explain what the conversion rate is and how to adjust it to the type of business.
Conversion – what is it?
A conversion is an action that is taken to encourage a passive Internet user to take an action, such as making a purchase. By clicking on an online ad, a given user takes an action which may also consist in subscribing to a newsletter, providing personal data, sending a request, etc. or making a purchase). This gives online store owners a chance to increase their revenue. Conversion in the case of e commerce is therefore a process that encourages the customer to take a specific action, thus attracting their interest in the product.
Microconversion vs. macroconversion
It is also worth mentioning that conversions can be divided into micro- and macro-conversions. The former are actions which users may take on the website (e.g. filling out a form). Each micro-conversion is a step that promotes a greater benefit – i.e. making a purchase. Many online store owners make the mistake of focusing only on macro conversions. However, it’s important to remember that micro-conversions have equally important benefits for optimizing a site for sales.
Conversion rate – what is it?
Conversion rate is a term often referred to in online marketing as conversion rate. It is used to calculate the click through rate, which determines the effectiveness of an online advertising campaign. In the simplest terms, the conversion rate is a parameter expressed as a percentage, which indicates how many users made a conversion – i.e. action on the store’s website. This parameter helps to determine the effectiveness of advertising and store visibility on the Internet.
How to calculate the conversion rate?
For this purpose, you need data such as the number of conversions and the number of users who clicked on particular groups of ads and became the source of traffic to the store’s website. Then, the number of conversions should be divided by the number of people who visited the landing page. So if 1,000 people visited the website, and 10 of them took an action (e.g., signing up for a newsletter, making a purchase, etc.), then the conversion rate will be 10%. Knowing the number of conversions and the value of the above indicator allows you to increase the effectiveness of your ad. That’s why you should think about optimizing your conversion rate. A higher conversion rate increases the chances that the customer will make a purchase in the store. However, this is not all.
Conversion rate optimization goals
Increasing your conversion rate is an important part of your e-commerce strategy. However, for this to happen, you should first start by identifying your website optimization goals. This will make it easier to create ad campaigns that encourage users to become active on the site. Conversion goals can vary – it all depends on what the business profile of a given company looks like. The main goal for an online store is to finalize sales. On the other hand, for an ordinary website (e.g., information portal) it may be only the desire to persuade the reader to use the service, such as signing up for a newsletter. These actions prompt the user to be active on the site and may be aimed at:
- Making a purchase;
- Getting acquainted with the assortment and sub-pages of the store;
- Subscribing to a newsletter;
- Registering the customer and getting data about them – such as age, phone number, place of residence;
- Downloading a file – such as discount coupons;
- Establishing contact with the company through the contact form.
The result is the establishment of a relationship with the customer. Conversions are also aimed at encouraging the customer to re-enter our site and use the services offered. Many e-commerce companies also use conversions to improve the quality of the website. Filling out a form or survey by the customer helps to make minor changes which will serve to optimize the content on the website.
Improving your conversion rate – is it worth it?
Of course it is! There is no doubt that Conversion Rate Optimization helps to initiate the purchasing process. Encouraged by an advertising campaign or content you provide on your website, a customer is more likely to make a purchase. Maximizing the chances that a customer will make a purchase translates directly into company profits. On the other hand, optimization of the website in terms of published content will increase the probability that a given visitor will visit the website again. An online store that does not achieve high conversions will not bring the expected profits. Thus, it may become unprofitable for its owner.
How do we improve our conversion rate?
To do this, start by looking at our website. The more readable and usable it becomes, the more the quality of the site will increase. However, there are many more ways to improve the conversion rate. Here are the most important ones.
Optimize your website for your customer’s needs
The design of your store and the impressions your customers have of your website will help increase conversion rates. For this purpose it is worth to think about the fact that the website should be:
- Easy to navigate – too many graphics, banners and other messages can have the opposite effect. The customer will feel overwhelmed and lost, which will lower the number of conversions. You should also follow the latest trends in website design.
- Addressed to a specific target group – thanks to that it will be easier to gain customer’s attention. The conversion rate will increase thanks to unique product descriptions;
- Gained user’s trust – a store website should be clear, readable and functional. Lack of nice graphic design and chaos on the website lower the conversion rate. Making purchases on the website should be as simple as possible. The customer should feel that he or she can count on the store’s employees to help if needed;
- Fast loading – the more time it takes for the website to load, the less interest it will generate. Pages that take too long to load generate a rejection rate that lowers the effectiveness of conversions.
Safety and convenience
The conversion rate will increase if visitors feel safe on our site. This will also encourage them to make a purchase. For this purpose, it is worth taking care of:
- Secure connection – or SSL security certificate. This protocol protects the interests of buyers, so users of the site can make transactions in a safe manner;
- Positive reviews – they have a positive influence on the company’s image, build trust, and above all encourage people to make purchases;
- Multiple payment methods – especially nowadays, when the traditional bank transfer payments are being abandoned;
Cross-selling and complementary sales – the so-called cross-selling and up-selling, which consist in offering customers similar items.
How to increase conversions among users? Summary
It is also very important to collect and track data, as well as meticulously follow the purchase process to analyze potential issues. Sometimes, small but specific changes on the website allow you to increase the conversion rate satisfactorily. The conversion rate will increase if users are able to sign up for an online store newsletter. A very good idea to increase their activity is also the use of so-called call to action, which are phrases that encourage them to take action on the website. Another important element is social media and promotional campaigns conducted in them. They increase the company’s visibility on the Internet. Web push notifications, countdown timers and exit pop-ups are also very useful tools. They will help to keep the user on your website.