Conversion rate: how to analyze and optimize it?
Conversion rate: how to analyze and optimize it?
E-commerce is a specific industry and many factors have to be taken into consideration while running such business. Above all, it’s driven by hard data and statistics, which should not be ignored. Deciphering the most popular indicators is not difficult and is necessary to implement the relevant processes in the store.
Marketers responsible for e-commerce activities see statistics as a confirmation of their strategy, or on the contrary: as a clear signal for change and optimization. One of the most important factors to analyze is the conversion rate.
Conversion rate and its analytic results influence subsequent actions. Depending on the assumptions, marketers need to decide whether to stick to a given strategy or change it completely. In the following parts of the article, we will face the most common mistakes and factors affecting the number of conversions. However, before we get to that, it's worth answering the question …
How to measure the conversion rate?
Although this indicator is often generated automatically, it is worth knowing what it is made of. It is enough to divide the number of actual conversions, in this case usually a successful purchase, by the number of visits to your website or subpage, and multiply the result by 100%. In this way, we will get the result expressed in percentage. According to Smart Insights, this ratio in global terms amounted to just 2.42% in Q3 2018. This is a result that few online stores can afford. You already know how to measure conversion rate: it's time for practical action and sharing tips on how the value of such a rate can be clearly raised.
Conversion rate optimization
Even if a store is quite decent at selling and can not complain about the lack of turnover, you can always work on improving the situation - more so because the competition doesn’t sleep. However, before you start implementing solutions for optimization, it is worth knowing what affects the conversion rate.
Also in the case of e-commerce, the first impression plays a crucial role in the launch of the purchasing process. If the online store’s website is unintuitive and has a bad display (this is a common problem with mobile devices for example) and the payment is configured incorrectly (no prefered payment option or errors when finalizing the transaction), this may negatively affect the value of such statistics as the goal conversion rate. Only a well-set, tested in various environments (browsers, systems, devices) and a user-friendly store can compete for higher conversion.
User experience is very important, but it does not have to cause a potential purchase. The price is still a factor that significantly affects clicking on the "buy" button, and thus the e-commerce conversion rate. Equally important are refined, comprehensive descriptions and photos of a given product. If important details from the user's perspective are invisible in pictures, or if the descriptions do not contain information about, for example, the composition of a given product, the conversion may go down. Potential clients who resign from the purchase at the last stage are a group that is very hard to encourage to revisit the site.
What affects the conversion rate? Some people are not aware that brand awareness can be real leverage of trade. The brand, which enjoys a good reputation in social media, and additionally has a positive image and flattering opinions about the offered products is on track to maintain and constantly improve its conversion rate. This is one of the reasons why brands invest more and more resources and time on activities in social media and in influencer marketing.
How to improve the goal conversion rate?
There are several ways that you can increase conversions. They can act autonomously, but it is best to use them in synergy for the best results.
The use of social media
Many e-commerce entities are afraid of social media, or can not manage them effectively. It turns out, however, that this is one of the most effective channels for acquiring new customers to the online store while building the loyalty and returnability of the target group.
With features such as a Facebook store or the ability to mark products on Instagram, the recipients can immediately get familiar with the offer of the store or purchase the item visible on the marketing content. Using the interest groups or events, the brand can present the offer to a wider audience.
In addition, e-commerce conversion rate may also be affected by activities within paid campaigns. Attractive campaign content and accurately selected target groups targeted using the chosen strategy, or a dedicated offer for people who have abandoned the baskets is a recipe for higher conversion. For e-commerce, social media means almost an ocean of possibilities, and at the same time does not require huge expenses.
Changes on the website
Sometimes the problem is not in the promotion itself, as in the design or intuitiveness of the e-store, and the attractiveness of the offer. Optimization of e-commerce conversion can be based on the modifications of the photos, store descriptions, templates and prices. Even small changes in the SEO field, improving the quality of photos or a more intuitive shopping path can have a positive effect on the conversion rate. It can turn out that the page's "bottleneck" was, for example, a wrongly configured subpage of payment methods or too expensive delivery costs. The changes on the website also include more effort in content marketing and delivery of valuable content, additionally properly optimized for search engines.
Use of web push notifications
Another method of increasing conversions may be the use of web push notifications, which is a non-invasive manner and after prior consent, may remind the user about the items left in the abandoned shopping cart or a new collection in the online store. In the era of many distractors in the purchasing process, completing the transaction is often a problem. Web push notifications minimize side effects and make the potential client remember about the offer of a given store and finalize the purchase by making an informed consumer decision triggered by the impulse. Any user who wants to receive such notifications must consent to them, so it is not possible to receive unwanted information.
Improve conversion rate and generate more spontaneous purchases! Start testing web push notifications in your store!
In e-commerce, one should not forget about high-quality and regular e-mailing to the subscribers gathered in the database. In this way, it is easy to inform them about the new offer, the exclusive discount (it is worth to test offers directed only to the newsletter recipients, to strengthen their loyalty and sense of uniqueness). Mailings are often underestimated or considered as spamming activities, but they can be spectacularly effective once carried out in a proper way in terms of content and regularity.
As you can see, the conversion rate optimization does not have to be a difficult task, but it's worth remembering a few rules. First of all, work on increasing conversions is a process, not a single action. Even if you can not complain about the weak conversion rate in your store, it does not mean that you don’t need to improve it. Remember to constantly analyze the conversion rate and look for factors that can affect it both positively and negatively. In this way, you will identify areas where it is worth investing more money (because they bring results) or those that are completely inefficient. Good luck in your adventure with conversion rate optimization!
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