The Ecommerce space is more crowded today than ever before. Because of this, online merchants are increasingly looking for ways to entice more customers to buy from them.
Though inbound marketing is making it easier to capture leads with things like SEO and social media, nearly 70% of marketers feel that their strategy is ineffective.
If you’re one of them, don’t worry. Below are 5 conversion rate optimization tips that will help you build a conversion ready ecommerce site that’s designed to generate sales.
What is conversion rate optimization?
When it comes to ecommerce, conversion rate optimization (CRO) is the process of improving the shopping experience of your store so that a higher percentage of users end up making a purchase.
This often involves consistently creating and testing new ideas. The art of optimizing your conversion rate to get the most sales possible is a game of psychology. You need to convince buyers of the value of your product while easing the pain points of making the purchase. The tips below will help you accomplish this.
5 Ecommerce Conversion Rate Tactics to Generate More Sales
Simplify your checkout process
Customers shouldn’t have to jump through hoops to buy from you. If you’re going to ask for their money, make it easy for them to give it to you.
These days, people have short attention spans, so simplicity is key when building a checkout process for your store.
Here are some ways to make your checkout flow easier on your customers.
- If you require customers to register to complete the checkout process, consider removing this. 1 in 4 potential customers will bounce because of this.
- Include as many forms of payment as possible, such as PayPal, Apple Pay, and Amazon Pay.
- Make your forms as short as possible. If you ask for too much unnecessary information, more customers will bounce.
In addition to improving the checkout process, consider adding 1-click upsells post-checkout. This can significantly improve your average order value, which will allow you to spend more on customer acquisition.
Understand user behavior
Understanding how people use your site is a great way to identify potential issues in site performance or call-to-action phrasing.
Using heatmaps is a great way to accomplish this. There are various types of heatmaps you can use to see what your users are doing, such as hover maps, click maps, attention maps, and scroll maps.
Before you use heatmaps, however, you need to have a good enough sample size to collect enough data to help drive results. A good rule of thumb is to have more than 2,000 pageviews per screen (for example, desktop vs. mobile) you’re measuring. If you only have 50 pageviews, don’t trust the data.
Ultimately, heatmap software allows you to run A/B tests on your site based on click, scroll, or hover data to improve conversions.
Keep in mind that heatmaps aren’t an exact science. Because they don’t translate perfectly to user behavior, it’s best to use them to help you develop educated guesses.
If you do want a perfect representation of user behavior, you can leverage session recording tools. These will allow you to review recordings of exactly what your users saw when they visited your website, which can help you identify bugs that may be stopping them from converting.
If you choose to go this route, it’s important to understand that the recordings will happen without any context, so analyze carefully. It’s also a good idea to only test a sample of your website visitors rather than all of them, since these tools can make your website slower for your users.
Automate card abandonment emails
Retargeting emails are one of the most effective ways to improve your conversion rate. According to Mailchimp, cart abandonment automations generate 29x more sales than traditional emails.
It’s recommended that you send a sequence of cart abandonment emails rather than just 1. Rejoiner suggests you send your first email 1 hour after the abandonment to maximize conversion rates of the initial email, then follow up with at least 2 other emails to maximize sales potential.
It’s also recommended that you send these emails from a live email address. This way, if customers have additional questions about your product, they can simply reply to the email.
If you want to go the extra mile, you can even include discount offers in these emails to further incentivise your customers to complete their checkout.
You can even set up special automations that if customers don’t check out after 3 emails, you suggest alternative products. Understanding why your customers didn’t buy the initial product can help you identify the perfect products to include in these emails.
Separate the shipping and handling fees
Free shipping definitely draws customers in, but as far as getting them to complete the sale, it may not be the best way to approach your pricing strategy.
By separating your price into multiple components, your customers will be drawn to the base price rather than the total price. This means that when people compare your price as a reference price, they’re unlikely to reference the total, meaning you can potentially win out against competitors in your industry.
Hossain and Morgan conducted a study that tested this with eBay auctions by setting up an auction for music CDs and analyzing different bidding structures:
- Some with a low opening bid and a shipping cost (for example, $0.01 with $3.99 shipping).
- Some with a higher opening bid and free shipping (for example, $3.99 with free shipping).
The results found that the auctions with a lower opening bid plus shipping charges attracted more bidders and generated more revenue overall. Other studies have found similar results.
Keep in mind that your specific circumstances might produce different results. It’s best to test the concept of free shipping vs. charging for shipping. If your primary traffic source is advertising, using free shipping may improve results since using the word “free” in an advertisement does draw more clicks.
However, if your traffic primarily comes from search or referral traffic, charging for shipping may be worth considering.
Attribute your sales to a source
As mentioned above, knowing the source of your traffic is important in determining how to improve your conversion rate.
This is because users may be more or less likely to convert depending on where they came from.
Consider the following eCommerce conversion rate statistics:
- Desktop converts at 3.9% on average, but the average conversion rate for mobile is much smaller, at 1.8%.
- Referral and email traffic convert at over 5%.
- Traffic from paid advertising converts at around 1%. This is slightly better than traffic from social media traffic, which converts at under 1%.
Knowing where your users are coming from helps you understand why they do or don’t make a purchase. Depending on which channel, device, or marketing channel is working best for you, you can make more informed decisions about where to increase and decrease your budget.
What is a good conversion rate? How to measure your conversion rate performance
With all this talk about conversion rate optimization, how do you know if your site is performing well or not? How do you measure and benchmark your performance?
This is going to depend on a variety of factors:
- Your industry – Conversion rates vary by industry. The average conversion rate in the arts & crafts industry, for example, is 4%, while baby and child stores have an average conversion rate of under 1%.
- Your product type – As well as the industry you’re selling in, the type of product you sell has a lot to do with your conversion rate. Food and drink products that are sold online have a large conversion rate range from 3.6% – 7.2%.. Furniture, however, can have conversion rates as low as 0.7%.
- Your country – The cultural differences, as well as differing income levels, of different countries naturally result in varying online purchasing behavior. Countries like Germany, USA, and the U.K. convert at around 2% on average, while Italy, France, and India are closer to 1%.
- Your traffic source – As discussed above, the source of your traffic can have a massive impact on your conversion rates. A common theme is that warm traffic sources such as email and referral traffic convert the best, while cold traffic from sources like paid advertising convert the worst.
- The device your visitors are using – Mobile devices have a significantly lower conversion rate than desktop. This is often due to a poor user experience on mobile.
Ultimately, to measure your conversion rate performance, you’ll need to understand the data that pertains to your business. The ecommerce conversion rate statistics in the infographic below can help you benchmark your performance based on different segments to help you determine where you can improve.