Conducting e-business is often a tremendous task and in order to rise to this challenge you need to do a number of activities on a smaller or larger scale.
We start with the selection of the industry and then, we set up a sales platform.
Which, in itself, covers a number of phenomena – from visual identification to all : functionality, usability, integration, completing the offer, etc. Then, online campaigns, content marketing, positioning, social media – each of these branches that, promote the presence of the brand on the web, is a separate, very broad issue. However, it is important to mention, that even the smallest action that you take in order to run e-store leads to the subject of sales. And here comes one of the most important factors in the world of e-commerce – conversion rate. Although it does not have to necessarily refer only to finalized purchases, but very often that is the case.
What is conversion and conversion rate?
It is impossible for anyone who runs an online store not to hear about the conversion or the conversion rate. This issue is inseparably linked with the entire e-commerce industry and an evidence for effectiveness or inefficiency of sales in the store. It will be easier to understand what a conversion rate is by example. If we run campaigns in Google Ads and the user clicks e.g. on the sponsored link, he or she is redirected to the product card. If he or she makes a purchase (assuming the goal of the campaign is sales), it means that a conversion took place. The more often the goal is achieved, the higher the conversion rate will be. For example, if 4 people made a purchase in 100 visits to the store, the e-store ratio will be equal to 4%. Conversion does not always have to be for sales. We might as well assume that the purpose of visiting an online store or business page will be to subscribe to a newsletter or download an e-book.
How the conversion and its ratio are measured?
The formula for calculating the coefficient is a relatively simple equation. The conversion rate equals the number of people who made the assumed action (purchase, comment, etc.) divided by the number of people who entered the site and multiplied by 100. For example, for 20,000 visits, 500 users took the action, the factor is 2 5%.
(500/20000) * 100 = 2.5
Conversion is measured to determine the effectiveness of the online store as well as the business side. There can be many goals. Knowing the conversion rate, we become aware of how often users decide to take the desired action. We know if the level is right or needs improvement. Without this knowledge, we cannot determine how effective we are in running this or other campaign.
E-commerce conversion – what is it?
Conversion in e-commerce is strictly related to sales goals. It means that the conversion rate in e-commerce tells us how effective an online store is. If the monthly online store recorded 23,768 visits and the purchase was made by 921 users, the conversion will be 3.87%. The parameter is a great criterion indicating how effective the activities taken within the e-store area are. The conversion index clearly indicates whether our online campaigns are effective enough.
Let’s not forget that sales in a store are multidimensional. What does it mean? It means that users come to us from many sources. Some will click the organic link in the search results, others will go to the product card from campaigns conducted in social media or from price comparison websites. They can also reach us from external blogs by clicking on the banner ad or from YouTube. It is worth carrying out separate calculations for each channel. It may turn out that the poor result of the overall conversion is due to the fact that social media generate low-value traffic of clients that are not interested in the offer. Without knowing individual conversions for specific channels, we won’t be able to successfully optimize the ratio.
Goal conversion rate – what is it and how to work on it?
This parameter is calculated according to the same formula that is used for the e-commerce conversion rate. However, goal conversion does not just need to be about sales performance alone. There can be many different goals.
What goals can we set when running an online store:
• registering an account in an online store or other type of service,
• forwarding the text in social media,
• writing a comment or issuing an opinion on the purchased product,
• filling out the contact form,
• entering a landing page that promotes a specific product,
• downloading a free e-book, advertising materials or downloading an application,
• watching a movie posted on the website,
• listening to an expert podcast.
It is definitely worth making calculations for each goal that can be implemented by the user in the environment of a given website or online store. Information relating to the effectiveness of an e-store on many levels is invaluable knowledge, thanks to which we know whether our often very hard work brings out the expected results. However, if the rate is too low, we can take quick steps to improve the results.
Conversion optimization – how to do it?
Conversion optimization is defined by the abbreviation CRO (Conversion Rate Optimization). It is a kind of strategy whose goal is to lead the obtained conversion rate towards much better results. CRO is a fairly complicated process, but do not be discouraged, the diligent implementation brings out the measurable benefits. What can make up a CRO:
• Determining what level of conversion will be satisfactory
If the global conversion rate in an online store is, for example, 0.9%, it is definitely too low. This means that for every 100 people visiting the store, no one will place an order. Let’s assume that our target e-commerce ratio should be 5%. This is a good level worth pursuing.
• Analyzing the online store and defining the weaknesses
Constant monitoring of the online store is a must. Follow the entire purchasing process, try placing the order for yourself, ask an employee or a friend to do it. It may turn out that users have a problem with finalizing the transaction, because the shopping path is too long and as a result they abandoned the purchase. The bounce rate may be high due to the fact that the product card does not gain our trust, the information is hardly visible, shopping barriers are created, etc. It is possible that the cost of transport is not very visible, not transparent. Even the smallest element can result in a lower conversion rate.
• Improvement of key elements on the online site
E-consumers may resign from the purchase because the offer is not very attractive. CTA buttons can also mean fewer or more orders. What counts is the usability, without which the e-store in the eyes of users becomes unreliable. The content on the page itself also has a significant impact on the conversion.
Let’s not abandon the analysis – after introducing a series of changes, let’s re-analyze the situation of the e-store,
• Measure conversion rates obtained as a result of various online campaigns
Let’s check how CR (conversion rate) behaves as a result of generating traffic in social media, Goolge Ads, organic results, etc. It may turn out that organic traffic reaches CR at 6% and social media just 1.2%. If we specify individual CRs, we will be able to redirect larger workloads into areas that are a real problem.
• Continuous measurement of the results and A / B tests
If we decide to introduce changes in areas that are a problem, then we conduct tests. Changes may not necessarily bring out the expected result. If we verify the effectiveness of the changes, we will have a chance to take further sensible steps.
Note the relationship. Let’s assume that the conversion rate obtained by the online store is 2.3%. Assuming that the average basket is PLN 100 and the store is visited by 20,000 UU (unique users), the store’s revenue is PLN 46,000. It is enough to just increase the conversion by 0.7% and the sales will go up to PLN 60,000. It would seem like a small change and yet the effect is clear.
What kind of elements of the website are considered for the conversion rate?
# 1 Home
This is usually the first page the user has contact with. It builds the first impression and affects how the brand is perceived. If anything raises suspicions, the chances of bounce rates also increase.
# 2 Product card
As often as on the main page, users will find their way to the product card. What counts here is the simplicity and providing client with comprehensive product information. Customers don’t particularly like if they have to make a lot of effort to find out how many Watts the speakers have, whether the bicycle is equipped with a mudguard or how long the mower cable is. Lack of relevant information basically automatically deprives the store of opportunities to generate sales.
# 3 Blog
Building an image of an expert can be implemented on many levels. One of the key elements of creating credibility and trust is regular blogging, where we will write guide texts. Let garden stores explain why the grass turns yellow and how to face this challenge, let audio stores offer advice on what speaker power to choose for a 20m2 room, etc. This also transforms into a higher CR.
# 4 About us
This is an extremely important subpage that users are very happy to visit. There must be a place for a comprehensive company presentation. Let the e-store appear to all visitors as a brand that is very human, open, full of ideas and has extraordinary commitment character. It is worth to place some photos of the team, the magazine, and the shipments being carried out. This brings the customers closer together and the users are convinced of the quality of the online store.
Meet the 5 elements that optimize the conversion rate
There is no simple formula that would apply to every online store. Customers of a lingerie store act differently than customers from a shop with toys or garden equipment. Of course, there are common denominators, but there are also noticeable differences that can be seen by conducting a thorough analysis of a specific e-commerce environment. Interestingly, even stores selling products in the same field will generate slightly different user behavior. To be sure that the conversion work is going the right way, you need to take as many actions as possible to influence it. One of the most effective actions are:
• weaving CTA (call to action) into blog texts – admittedly CTA in the form of expressive buttons are an absolute must have, used in every channel, every e-commerce environment, but there are such spaces where they can be badly received and skipped. To improve the effectiveness of CTA in blog texts a bit, it is worth to enter the commands only in a text form. A kind of internal linking containing CTA can bring beneficial results,
• implementation of engaging pop-ups – although we often associate them with intrusive advertising, some time ago pop-ups got back in our good graces and found a slightly refreshed application. Today they can be used in a more subtle way. If the user decides to leave the store, we can catch his attention with a window in which we will offer a discount or other attractive offer. Surely this solution won’t hurt, it can only encourage many users to continue shopping,
• continuous A / B testing – landing pages have a clear purpose – they encourage you to buy, complete the form, download an e-book. Check if in this type of promotions whether, for example, the green button works better or, e.g. better results with the LP with the blue button. This way, we will be able to positively influence the achieved conversion rate.
• access to immediate contact with store staff – many users want to be able to contact store staff immediately. Questions may relate to the product, complaint or return option. Contact with the store is often a critical element that determines whether the user will become a customer. On the website, apart from the “contact” tab, it is worth including chatbots, buttons with phone numbers and email addresses. Users prefer different forms of contact, so you need to make all these forms transparent,
• remarketing – many people are in a hurry on the web, they quickly browse offers and abandon them. This does not have to be due to a badly designed e-store, but rather to rush. In such situations, the use of dynamic remarketing will be an excellent solution. Remarketing will cause products viewed on the run to be displayed to you later. They can be displayed in the form of banners or, for example, on Google Shopping.
Google Analytics – How do you verify conversion rate?
It’s enough if we use the powerful and free tool Google Analytics to measure conversions. Here we have access to reports presenting both the overall conversion rate and the average order value. At GA we can verify in real time how the optimization actions evolve into conversion. It is worth knowing that changes will not necessarily have the expected effect. It may happen that after entering them the factor will decrease. That is why analyzing conversions on a regular basis is so important.
Google’s tool is also extremely helpful when it comes to tracking shopping paths. Relevant reports inform us when users most often abandon purchases. With this knowledge, you can effectively modify a place that is poorly designed.
It is also worth analyzing places from which users get to the store. To do this, use the conversions / multi-channel paths tab. You’ll find out what conversion the traffic gets from organic search results, paid online campaigns, direct access, or social media. Conducting an analysis of the data from this report allows us to redirect the budget where traffic is best monetized or we can try to improve the conversion rate where it is unsatisfactory.
The e-commerce conversion rate or goal conversion ratio is an extremely broad issue, which cannot be enclosed in a rigid framework, requiring cunning, knowledge, experience and testing. It is worth making constant attempts that will realistically transform into better sales results. Making changes, analyzing or testing are activities closely connected with the work of an online store. Technologies and trends change, new solutions appear. Constant monitoring of the conversion factor leads to boost in the number of sales.