Practical Tips on How to Improve the eCommerce Conversion Rate

The trend of purchasing things digitally over the internet has turned into a widespread obsession for Generation Z. While no one fully understands this, eCommerce is continuously evolving and is here to stay for long. E-commerce websites just like yours trying to get their content and product in front of the right audience and make them opt-in, buy, or engage in a swarm of millions of websites is a tough nut to crack.

Here are some statistics to prove the enormity of competition in today’s eCommerce marketplace.

• Today there are nearly 1.3 million eCommerce websites only in the USA (Can you imagine the number of eCommerce Websites figure worldwide!)
• The prediction for the market is that it will hit a global revenue count of $4.88 trillion by 2021
• Nearly 70% of marketers believe their current strategy is ineffective (HubSpot)
• 53% of customers will lose interest when your website takes more than 2 sec to load and every single second delay result in 7% conversion reduction

eCommerce competition is intense nowadays. How can you crush this competition and keep your business around the benefits in the eCommerce industry?

What is E-commerce Conversion Rate?

Conversion is encouraging your customers to purchase from the business. It is a critical metric to consider as you plan to expand and increase sales and revenues.

While Conversion Rate is the percentage of visitors who land on your website and complete the desired Call-To-Action. Thus, you must identify your goals to align accurately with your defined conversion rate.

Some typical conversions related to the eCommerce website are as follows…

• Online Sale
• Newsletter Subscriptions through email sign-ups
• User adding a product to cart
• Share on social media
• User adding items to a wishlist
• User adding items to the wishlist
• Product Purchase

The main aim of any marketer is to convert visitors from different traffic sources to active buyers. Thus, visitors who buy from the eCommerce store represent the conversion rate for the business. And every marketer uses optimization strategies to improve eCommerce Conversion Rate. And yes, these strategic efforts are covered in Ecommerce Conversion Rate Optimization.

The Conversion Rate is the percentage of users who take the desired action on your site. It’s a key parameter to measure how your strategy is working.

Learn How To Calculate The E-commerce Conversion Rate…

For calculating the conversion rate, simply divide the total number of conversions (actual number of people who buy your products) by the total number of visitors and multiply this with 100 to reach the conversion rate percentage.

(Conversions / Total Visitors) X 100% = Conversion Rate %

For example, let’s say your online store is getting visited from 50 people in 1 month and through those visits your eCommerce store gets 5 conversions; then the conversion rate for your site would be 10%.

It is possible to be as broad or specific as you want with the conversion rate. You can examine your business performance by using the conversion rates of various types.

• Overall rate to determine the conversion of traffic from more than one source
• Page-level rate to identify the page performing the best
• Marketing channel rate to determine the success of Instagram or Google ads
• Individual ad rate to determine whether ad copy or your content efficient
• Campaign rate to determine whether the campaign converted people
• Keyword rate to identify keywords that attract the right traffic

Calculate the conversion rate and use this as a metric to evaluate the performance of different online marketing efforts that you make. While it is a good thing to drive clicks but when these do not drive value to the business, advertising campaigns become ineffectual.

Conversion Rate = Total number of conversions / Total number of visitors * 100

What would be a Good E-commerce Conversion Rate?

Here are some statistics…

• Average eCommerce store typically sees its conversion rate as good figure hovering around the 2–3%.
• According to data collected by SmartInsights, the average conversion rate of eCommerce stores across industries through Q2 2018 was a mere 2.86%.

The good conversion rate, in general, refers to one that is higher than the current rate for your business. While industry benchmark provides a good baseline for the rate across an industry or market, it even leads to unreasonable expectations. Thus, you should aim for a conversion rate that meets the industry benchmark. Consider your current rates and then decide what you wish to achieve in another month, another six months, or another year.

Different factors impact the conversion rates for your business, such as;

• Number of products a business sell
• Price points in comparison to the competitors
• Look of marketing copy
• Use of videos and images to sell products
• Channels delivering most traffic for the store

Consider rates specific to the business to decide whether you are doing well.

What figure can be considered as a Good Conversion Rate? It varies by industry, for any eCommerce website, the average conversion rate based on statistics from authorized sources we can say 3% — 4% is supposed to be a good conversion rate.

Additional Read…

Before starting with Ecommerce Conversion Rate Optimization Techniques, you can refer to this Ultimate Ecommerce SEO Guide to Follow in 2020…

Use Following Tools to Improve Ecommerce Conversion Rate

Hotjar

You can use this tool to understand user interaction with your website from high levels. This is a heat-mapping tool and it gives users functionalities of cursor movement, scroll-depth and clicks mapping.

Based on your plan, the heatmap experiment captures 1000 to 10,000 page views, compile aggregate analysis. Even you can analyze real-time customer behaviour with session recording. Page targeting records the user sessions so that you watch it to understand user interaction with user-face on the organic level.

Quantcast Measure

Quantcast Measure is the only free audience-insights tool that uses direct measurement to deliver real-time insights from across the web.

This is a newer addition as a go-to product for the analysis table and proves to be valuable by multiple measures. This tag-based tool for analysis fills a niche between Facebook and Google Analytics by measuring site usage of the users and this provides demographic advanced data on a per-click basis. This way you get deep insight regarding the visitors on a personal level and it is possible to translate this to business intelligence. Creative teams use this to tailor imagery and messaging that resonates with your audience.

BigCommerce Analytics

If you have a store running on BigCommerce, the platform has an in-built Analytics section in the administration panel that shows everything like all abandoned carts including what products were in the cart at the time of abandonment.

The rest you will get here… Ecommerce Conversion Rate Optimization Techniques 2020