For a newbie who just started e-commerce, you’re lagging behind if you don’t know what conversion rate is and how to make it work for your online store.
Conversion rate is simply the percentage of visitors on your landing page or website that reached your desired objective (conversion) out of the total amount of visitors you have on your site.
If your conversion rate is high, it means your marketing is successful. In other words, people like what you’re selling and they are interested in making a purchase.
To calculate your conversion rate isn’t really difficult. Just divide the number of conversions your website gets in a defined time by the total number of visitors on your website/landing page and multiply by 100%.
That is; conversion rate = conversions /total visitors × 100%.
Let’s say the number of people who visited your site in the previous month is 18,252, and you had about 3,300 conversions, your conversion rate would be 18.08%.
You don’t have to calculate by yourself if you set your online advertising tracking well enough. There are a lot of platforms that you see your conversion rate.
Sometimes, business owners get confused as to how to calculate their conversion rate if one visitor converts more than once. They are not sure if they should calculate it as one or multiple conversions.
Well, here is the trick. As earlier mentioned, the conversion rate equals the number of conversions divided by the number of visitors. Now, to the multiple conversions by a single person, you have to divide the number of converting visitors by total visitors multiply by 100%.
The answer you get is the percentage of visitors converted. This concept is known as “Click Conversion Rate (CCR)”. CCR= converting visitors/total visitors ×100%.
Online platforms have an interface that lets you see your conversion rate. To get an accurate conversion rate, you need to chose a suiting long time-frame even though there’s no such thing as a perfect time-frame. Generally, a lot of online stores make use of a month time-frame.
Some Types Of Conversion Rate
- Overall Conversion Rate: determines how well your site or landing page converts traffic from sources.
- Individual Ad Conversion Rate: to see if you need to change your ad copy and if the ad drives better traffic.
- Page-level Conversion Rate: to know which page converts traffic better
- Marketing Channel Conversion Rate: to determine which is more likely to convert between Facebook ads traffic and Ad words traffic.
- Keyword Conversion Rate: to determine which keywords need an additional budget.
- Campaign Conversion Rates: To check if your targeting changes improved anything.
In a nutshell, the conversion is a measurable action that makes potential customers become paying clients. Check these actions below to get a better idea.
– Signing up for a free or paid subscription
– Clients registering on the website
– Submitting a “contact us” or “lead gen” form and others
– Service upgrade
– Downloads such as a mobile app, software trial, eBook and the likes
– Purchase actions
– Business call
Site engagement which could be repeated visits, time on site or the number of pages that was visited.
What Causes A Low Conversion Rate?
A low conversion rate can be caused by a number of reasons. It could be because your offer is costly or your website and landing page is difficult for visitors to navigate around make them unable to complete tasks.
You should, however, note that conversions on your site don’t always mean the same as sales/purchase. What every marketer aims for is to produce sales not conversions. Conversions might lead to sales though.
If you fail to track down your conversions, you can’t optimize your ad campaigns to produce maximum profit.
What Qualifies As A Good Conversion Rate
A good conversion rate is that with good tracking in place allowing you to optimize your ad campaigns making you generate higher conversions than your competitions.
So, you’ve learned what a conversion rate is, how to calculate, the difference between a good and a bad one as well as the different types.
The question now is: How do you increase your conversions rate to your eCommerce store and what do you do with your conversion rate?
Ultimate Guide To Increase Conversions To Your eCommerce Store
To answer this question, take a look at what Conversion Rate Optimization (CRO) is.
CRO is the process of optimizing your website or landing page to increase or produce more conversions from traffic generated on your site. It helps you fully take advantage of the traffic your site as.
With this, you know increasing your conversion rate is effective rather than increasing your website traffic. The following are ways to increase your online store using CRO.
1. Specialized Landing Page: A landing page is about the easiest type of page to do a CRO on because it’s basically designed to sell your products. It helps optimize a page and allows you to generate more traffic with ease.
2. Hypothesis: You need to come up with to determine the website elements that might influence your conversion positively. These elements include;
- Headlines: headlines are your first selling point. Visitors get attracted by headlines mostly.
- Offer: Create different layouts and descriptions just to see what works better for your potential clients.
- Call-To-Action (CTA): create different eye-catching.
- Media: Images and videos are great elements you definitely should try out.
3. A/B Test: requires two different variants of a page, then split your traffic between variants A and B. The cheapest way to split your site traffic and create variants of a landing page is through the following software.
4. Google Content Experiments: This is actually free but it doesn’t give real-time results.
5. Traffic Test: You have to test your traffic, see if they usually come from search results on Google or from an organic search. It’s really important that you’re aware of this because the wrong traffic won’t even convert on a perfect page.
6. Make Shipping Free/Flat Rate: There are a lot of online stores that offer free shipping if a customer’s shopping cart value exceeds a specific amount.
Customers are always eager and ready to make a purchase if there’s no shipping cost. Some even purchase more products if that’s the condition for free shipping.
Now, you’re wondering how free shipping increases conversion. It’s quite simple really. Make shipping free to get more conversions.
If free shipping isn’t something your store can afford (depending on your business/services), change to a flat rate shipping fee and make sure customers get to see this as soon as they enter your site.
7. Share Reviews: A study from the Acquity Group says that about 41% of B2B shoppers read reviews before they make a decision to purchase the products. Well, if people are not saying good things about your products, you would be stuck or running a soon-to-be-dead business.
It’s not enough that you get good reviews though. You have to constantly share them using a widget or a free plugin. You can also put the reviews as quote testimonials on your website.
More importantly, don’t delete bad/negative reviews. Doing so proves that your brand is dishonest and not trustworthy.
8. Always Display Contact Information: Your conversion won’t increase if people can’t see your contact information especially if you run a small business.
Make your contact information visible on your website, it helps build trust for your e-commerce store. When your contact information is being displayed, you’re automatically telling people that your business is very real.
9. Recapture Abandoned Carts: Customers of e-commerce stores abandons shopping carts during a check out process. This situation could be caused by doubt, distractions, shipping costs, site speed or forced registration.
You can recapture the abandoned carts through an email follow up if they drop their email addresses during check out. You can always send them a notification immediately they abandoned a cart so you don’t lose them to your competitions. More importantly, sales.
Conclusion: Without any doubt, the conversion rate is one of the best marketing metrics for e-commerce stores. Increasing them doesn’t have to cost you anything except focus on analytics and accuracy. Time to put everything you’ve learned on how to increase conversions into good use.
Ready to increase conversions to your eCommerce store? We can practical walk you hand in hand. Send us a message now or book a free strategy call with us right away. Have a quick on how to grow your business using facebook.