Improving Ecommerce Conversion Rates
The average ecommerce conversion rate is between 2.5% to 3%. Conversions can change depending on the organisation or conversion actions, such as subscribing to a newsletter, adding products to a cart, or filling out a contact form. Conversion rate Optimisation (CRO) requires more than just a sleek website and quality products. It demands strategic planning, continual optimisation, and a deep understanding of consumer behaviour.
How To Calculate Ecommerce Conversion rates in 5 steps
- Define The Conversion Event:
Determine what constitutes a conversion on your ecommerce platform. It could be a purchase, signing up for a newsletter, downloading a resource, whatever fits the goals of your organisation.
- Gather Data:
For this you will need to gather two different types of data:
Number of Visitors: The total number of unique visitors to your ecommerce website during a specific period.
Number of Conversions: The total number of visitors who completed the desired action (e.g., made a purchase) during the same period.
- Calculate Conversion Rate:
Conversion Rate = (Number of Conversions / Number of Visitors) * 100%
For example, if your ecommerce website had 1,000 visitors and 50 of them made a purchase, the conversion rate would be:
Conversion Rate = (50 / 1000) * 100% = 5%
- Interpretation:
The conversion rate represents the percentage of visitors who took the desired action (conversion) out of the total number of visitors.
- Track and Analyse:
Continuously monitor your conversion rate over time to identify trends, understand the effectiveness of marketing campaigns, website changes, or other factors influencing conversions. Organisations can then analyse the data to make informed decisions about optimising your ecommerce site for better conversion rates.
Organisations can also calculate conversion rates for specific segments of their audience, such as by traffic source (organic search, paid search, social media), device type (desktop, mobile), geographic location and more. This segmentation can provide valuable insights into which channels or demographics are most effective at driving conversions.
12 Ways To Improve Ecommerce Conversion Rates
1. Personalisation
Tailor website content and marketing messages to resonate with each customer. 80% of people admit they are more likely to do business with an organisation that delivers tailored content. Using software such as the Optimizely personalisation features makes it easy to create a website that aligns with customers preferences helping to create an emotional connection and brand loyalty.
2. Optimise For Mobile
Ensure your site is responsive and user-friendly on mobile devices. With 92.3% of internet users accessing websites through their mobile phones, seamless mobile experiences are vital for encouraging conversions.
3. Smooth Search and Navigation
Simplifying the purchasing process is key to reducing friction and enhancing user satisfaction. This involves minimising form fields, providing guest checkout options, and ensuring clear calls-to-action throughout the website. As 46% of users won’t revisit poorly performing websites, having a website that is easy to navigate is essential for improving ecommerce conversion rates.
4. Leverage Social Proof
Displaying customer reviews, ratings, and testimonials serves as powerful social proof, fostering trust and credibility among potential buyers. Integrating social proof elements into your website can significantly influence purchasing decisions, ultimately driving conversions and bolstering brand reputation.
5. Abandoned Cart / Cart Recovery
Implementing personalised abandoned cart emails has proven to be an effective strategy, with a notable 60% of shoppers returning to complete their purchase after receiving such notifications. Leveraging this tactic can help organisations recapture potentially lost sales opportunities and nurture customer relationship
6. Enhance Product Descriptions and Images
Providing comprehensive and compelling product information, coupled with high-quality images and videos, is essential for facilitating informed purchase decisions. By enriching product descriptions and visuals, organisations can effectively showcase their offerings and inspire confidence in potential buyers.
7. Optimise Site Speed
Addressing issues related to slow-loading pages is crucial for mitigating user frustration and minimising cart abandonment rates.The likelihood of a bounce increases by 32% when page load time exceeds 3 seconds, underscoring the importance of regularly monitoring and improving website loading speed.
8. Track Behaviour With Analytics
Leveraging analytics tools allows organisations to gain valuable insights into user behaviour, preferences, and interactions with the website. By tracking and analysing this data, organisations can make informed decisions and optimise their strategies to better align with customer expectations and objectives.
9. Segment Your Audience
Customising marketing campaigns based on user behaviour, preferences, and demographics enables businesses to deliver targeted messaging that resonates with specific audience segments. This is easy to do when using platforms such as the Optimizely Data Platform, which is built to unify customer data. This personalised approach enhances the relevance and effectiveness of marketing efforts, ultimately driving higher conversion rates and maximising ROI.
10. Safety and security
Assuring customers of the safety and security of their information is key for instilling trust and confidence in the online shopping experience. Clearly communicating your commitment to protecting customer data can help alleviate concerns and encourage conversions.
11. Customer Service Focus
Providing real-time assistance to address customer queries and concerns can significantly impact purchase decisions and reduce cart abandonment rates. Research shows that 75% of customers have made purchase decisions based on the quality of customer service, highlighting the importance of prioritising customer support initiatives.
12. A/B Test Continuously
Conducting regular A/B testing with technology such as Optimizely Experiments allows organisations to experiment with different elements of their website, such as headlines, CTAs, colours, and layouts, to identify what resonates best with their audience. With 75% of organisations experiencing increased digital revenue through A/B testing and other experimentation tools, adopting a continuous testing mindset can lead to significant improvements in conversion rates and overall performance.
Aiming for a good ecommerce conversion rate typically falls between 2% to 3%, while anything surpassing 3% is considered excellent, reflecting the effectiveness of implemented strategies.
Improving Conversion Rates Results:
The following examples demonstrate the effectiveness of targeted strategies in achieving significant improvements in conversion metrics.
A/B Testing Success:
Ace & Tate, a prominent eyewear brand, demonstrated the impact of strategic A/B testing on click-through rates (CTR), with an impressive 87% increase observed on their main navigation page. By optimising engagement with top-level categories and underlying content, Ace & Tate effectively leveraged experimentation to enhance user experience and drive conversions.
Segmentation Success:
Similarly, Pets Deli, a leading player in the European pet food market, experienced a 51% surge in online conversion rates during Black Friday compared to the previous year. They used a segmented approach tailored to distinct customer profiles, and tailored prices and promotions to meet specific needs, resulting in heightened conversion rates and decreased bounce rates by 10%.
Personalisation Results:
Moreover, Michaels, a retailer specialising in arts and crafts, achieved gains in ecommerce conversion rates through personalised communication channels. By incorporating personalised language into SMS campaigns, Michaels achieved a substantial 41% increase in conversion rates and a 25% conversion increase for email campaigns. This emphasis on customisation and relevance underscores the potency of targeted messaging in driving consumer action and fostering lasting engagement.
These success stories demonstrate the importance of strategic optimisation and personalised engagement in improving ecommerce performance. By prioritising user experience, tailoring promotions to individual preferences, and leveraging data-driven insights, organisations can unlock significant opportunities for growth and profitability in the digital marketplace.
Building A Bespoke Conversion Rate Optimisation Strategy:
To effectively build a plan to help with improving ecommerce conversion rates it’s a good idea to work with a specialised agency. Whether you’re enhancing customer experiences or making operations smoother, the benefits are huge, no matter your industry and Optimizely is a leading platform for creating exceptional digital experiences.
As the leading Optimizely partner in the UK, Ultimedia has over 25 years of experience creating seamless digital experiences and improving ecommerce conversion rates. We get that every organisation is different, so we’re ready to create a tailored solution for your organisation.
Contact us today to start your journey to optimal conversions and leading digital experiences. Let’s make your digital presence better, together.
