Have you ever visited an ecommerce store and left without buying anything? You probably added items to your cart but didn’t complete the checkout process. This phenomenon of website visitors not converting into customers is all too common – but it doesn’t have to be this way.
Conversion rate optimization (CRO) is the process of maximizing the percentage of your ecommerce site visitors who take a desired action, typically making a purchase. With some strategic tweaks tested over time, you can turn window shoppers into paying customers.
How to Calculate Your Ecommerce Conversion Rate?
Before investing significant time and resources into conversion rate optimization (CRO), ecommerce stores should start by taking stock of their current website traffic and sales performance. This allows you to baseline where you are now for shaping realistic goals and metrics for improvement over time.
The average benchmark for CRO hovers between 2-3%, which is the industry standard for the average conversion rate. That means for every 100 visitors to a store’s site, 2 to 3 on average complete a transaction like adding items to a cart and finishing checkout.
So practically speaking, if your online store gets 1,000 visitors per month, and 25 sales are made, your calculated conversion rate would be 25 divided by 1,000, or 2.5%. Getting a handle on your overall monthly site traffic and sales totals allows easily determining your conversion rates using this simple formula:
Monthly Sales Divided by Total Visitors Equals Your Conversion Rate %
Keep in mind, the average conversion rate and standards vary widely across ecommerce business types, products sold, marketing channels leveraged, platforms utilized, total number of visitors, and more. But for reference, top-tier performing ecommerce stores convert over 5-8% of their total site visitors on average. Ecommerce industry leaders and innovators can reach staggering 12%+ conversion rates over time.
So if your current calculated conversion rates fall under the typical 2-3% benchmark, or you simply want to expand your potential customer base and sales – the CRO best practices covered in this guide are for you.
Even sites that have relatively strong metrics likely still have significant revenue lift opportunities hiding within their full customer funnel – from first site entrance to email re-targeting – to improve your conversion. Converting 10% rather than 5% would clearly 2X monthly profit potential. Small conversion gains make big revenue ripples.
The 80/20 principle applies strongly to CRO as well in terms of identifying quick lift wins versus more intensive optimizations. An initial analytics audit assessing your full conversion funnel can spotlight opportunities leaving money on the table so you can prioritize tactically.
Building out an experimentation roadmap tied closely to core business KPIs enables allocating resources like development and design bandwidth wisely over the coming months. With the keys to structuring an effective CRO strategy covered next, unlocking transformative ecommerce sales growth is closer than you think.
Ecommerce Conversion Rate Optimization Strategies to Help Improve Sales
Doubling or even tripling your conversion rates is achievable through continuous testing, data analysis, and incremental optimizations across core website elements that impact the customer journey. By focusing on the key phases visitors go through as they interact with your ecommerce store, you can identify and rectify conversion friction points losing you sales.
Optimize Website Navigation and Page Layouts
If visitors to your ecommerce store can’t easily find the right products or intuitively navigate site pages, you’ll rapidly lose them. To reduce bounce rate and increase conversion rates, ensure your navigation menus, search bars, category filters, and product taxonomies make finding relevant items effortless. Pay close attention to overall site information architecture from both desktop and mobile lenses.
Additionally, heat map click tracking tools should be leveraged to understand exactly how visitors visually scan and scroll pages. Look at key pages like product category listings, individual product pages and cart flows. Identify usability pain points causing the number of visitors to leave and improve page layouts, content presentation, and testimonial placements accordingly. Testing calls to action button colors, sizes and prominent positioning lifts conversions.
Boost Product Page Appeal to Increase Add to Carts
Your ecommerce site’s product detail pages make or break conversion rates and heavily influence add to cart rates. Ensure they clearly communicate what an item is, summarize its value proposition and benefits, and inspire confidence in visitors to purchase it. Invest in professional lifestyle images shot from multiple angles with optimal lighting. This allows buyers to visually inspect products and imagine using them.
Including detailed titles, product descriptions, customer reviews, and rich media like videos will improve storytelling and boost confidence in adding items to carts, ultimately leading to an increase in conversions for your business. Displaying authentic customer questions and answers alongside user reviews helps replicate seeing products in-person, overcoming online barriers.
Reduce Shopping Cart Abandonment
Getting those initial add to cart clicks accomplishes little on your ecommerce website if people don’t follow through with final checkout completion. Shopping cart abandonment hovers around 70% industry-wide so ensuring low friction paths to converting existing intent is crucial.
Effective tactics to reduce abandoned cart rates include showing social proof peer purchase behaviors like “5 other customers have this in their cart right now!”. From a behavioral economics lens, urgency and scarcity cues also work effectively to increase conversions, e.g., Only 3 units remain in stock.”
Streamlining mobile checkout user experience testing also pays dividends. Allow guest checkouts and ensure fast page load speeds as those influence conversion rates.
Additionally, surprising delighters like coupon codes or free shipping at checkout also lift sales. The combo of discounts capturing attention, urgency prods and simplified flows remove buying barriers allowing you to capture previously lost revenue.
Personalize Where Possible to Build Relationships
Visitor website traffic segmentation paired with personalized experiences across site pages drive exponentially higher relevancy and conversion rates over time.
Example tactics for your business include displaying dynamically curated top product picks on category pages based on an individual’s past product views and purchases. This utilizes their own demonstrating shopping intent to serve up additional relevant buy suggestions, getting more items in carts.
Another avenue is customizing on-site messaging. When someone lands on your product page from Google Shopping ads, you can popup extended return policy reassurances since that’s commonly researched. Tailored trust-building cues based on visitor origin channel improves conversion performance.
Post-visit abandoned cart and browse session follow-up email sequences can increase conversions and win back sales from retaliation and lead gen angles. 1:1 SMS cart recovery campaigns also bring back recent site traffic via personalized mobile touchpoints.
And cross-channel retargeting past site visitors enables extending your marketing reach to serve them compelling ads on platforms like Facebook and Instagram, winning back conversions and improving your average conversion rate.
Prioritizing customer data segmentation to then create tailored digital and offline touchpoints, offers and messaging boosts relationship stickiness overtime which lifts customer lifetime values achieved.
Cultivate a Testing and Optimization Mindset
For ecommerce brands, getting a significant conversion lift isn’t a one-and-done effort. Continuous optimization is necessary to calculate your conversion rate and increase conversions. It requires ingraining continuous experimentation into your ecommerce operations.
But where to start? These three keys lay the foundation for achieving a higher conversion rate:
Implement CRO Tracking
For an ecommerce business, obtaining granular data on your conversion funnel – from initial visits to purchases – is only possible with website analytics software like Google Analytics.
This gives you the insights, like top entrance pages and exit points, to identify quick fixes.
Run A/B Tests
Once tracking and CRO tools are implemented on your ecommerce website, the optimization fun starts. Take a hypothesis like “Adding reviews will lift conversions”.
Create a version with reviews added then split traffic 50/50 between old page (A) and new version (B). As a marketer, you can determine the statistical winner over a 1-2 week period based on conversion performance to optimize your ecommerce CRO.
Analyze and Iterate
Review analytics dashboard for changes in key conversion metrics on a weekly basis. Combine findings with learnings from A/B tests to fuel further tests, calculate your average ecommerce conversion rate, and adjust strategies to increase conversions.
More Advanced Areas to Explore When Performing CRO
The above covers core basics – but for ecommerce brands, the possibilities to increase conversion rates abound.
Other proven tactics include:
- Email flows for browsing abandonment and post-purchase
- SMS campaigns for retention and referrals
- Pop-up offering coupon for email signup
- On-site notifications tied to actions
- Loyalty and referral programs
- Reviews generation
- Retargeting across Google, Facebook etc. to drive re-conversions
Sky’s the limit for creativity paired with analysis to increase ecommerce ROI!
Increase your Ecommerce Sales with Bigger Vision Agency
Here at Bigger Vision Agency we demonstrate the strongest conversion rate methodology and results for our clients. Our approach will increase conversions for ecommerce brands no matter how big and what you are selling.
Our custom CRO strategies incorporate:
1. In-depth Analytics Audit – Identifying quick revenue lift opportunities
2. High-Converting Theme Buildout – Optimizing UI and UX flows
3. Continual A/B Testing using CRO tools – Weekly experiments across funnels
4. SMS/Email Sequence Setup – Automating re-engagement
5. Retargeting Campaign Launch – Remarketing website traffic
Past clients have averaged 348% higher conversion rates over a 6 month period. Can your ecommerce store afford profits not to get a lift?
Schedule a call with us today so we discuss what your company website might potentially need. With an average 503% ROI achieved for clients, now is the time to step into your next level of revenue growth!