Conversion Rate (CR) is one of the most crucial factors that significantly impact the sustainability and success of e-commerce stores. Simply put, it represents the percentage of visitors who convert into customers. It is a pivotal indicator of the success or failure of any online store. The higher the conversion rate, the higher your revenues and profits, and vice versa. Improving this rate, known as Conversion Rate Optimization (CRO), remains one of the most important challenges faced by e-commerce stores.
Regardless of the quality of the products displayed in your store and the number of visitors, it means nothing if it is not accompanied by meaningful sales transactions. In fact, an e-commerce store must achieve a high conversion rate to avoid difficulties in staying afloat and thriving.
So, what measures can you take to improve conversion rates in your store?
What is the Conversion Rate (CR)?
The Conversion Rate shows how many new customers made a purchase compared to all visitors during a specific period. For example, if 1000 visitors visit your online store, and 50 of them make a successful purchase, the conversion rate is 5%.
Thus, e-commerce store owners can measure the efficiency of sales operations based on the number of visitors through the conversion rate. If this rate decreases, it indicates a problem that needs to be addressed to improve performance. Not always is the reason for a low conversion rate the quality of products in the store. The cause could also be attributed to poor store design, slow loading times, a complicated checkout page, or shoppers abandoning their carts at the last minute without completing the purchase, as a study revealed that about 70% of carts are abandoned before the payment process is completed.
Key suggested measures to improve conversion rates in your store
1. Improve the overall user experience:
- Emphasize the importance of an attractive and user-friendly store design.
- Ensure the website loads quickly and is compatible with various devices and browsers.
- Simplify the purchasing process to make it easy for customers to find products and complete transactions.
2. Implement express checkout:
Offering an "express checkout" option in your store significantly simplifies the purchasing process, saving the customer time that they might otherwise spend navigating multiple steps and filling out lengthy forms. This option can increase the chances of raising the conversion rate in your online store.
3. Allow guest checkout:
Enable customers to make purchases without creating an account in the store. While creating an account provides benefits for both the seller and the buyer, some customers prefer a quicker, guest checkout option. Encourage customers to create an account without forcing them to do so, keeping in mind that the primary goal is to increase conversion rates without compromising the customer experience.
4. Offer temporary discounts through coupons:
Using discount coupons is a common practice in e-commerce stores, often provided during special occasions or regularly during different sales seasons. Meeting the expectations of online consumers for periodic offers and discounts is crucial to retaining customers and preventing them from turning to other competitors. Additionally, coupons tap into the "fear of missing out" (FOMO) phenomenon, prompting customers to make impulse purchases to avoid regret later.
While the concept of "FOMO" has recently gained traction in marketing, statistics show that more than half of the world's population, specifically 56%, experiences this continuous fear of missing opportunities. Therefore, trying this trick may yield positive results.
5. Free Shipping: A Smart Strategy to Effectively Boost Conversion Rates
Even smarter is offering a limited-time deal on free shipping, aligning with the previously mentioned "FOMO" theory. Most shoppers (in general) hesitate to pay shipping costs, considering them additional expenses added to the total bill without any direct benefit. Therefore, providing free shipping for customers represents a strategic investment that significantly contributes to increasing the conversion rate and enhancing the online project's growth.
Furthermore, free shipping can encourage customers to increase the value of their shopping carts. For example, if a customer plans to purchase only one product, they might decide to buy additional items to take advantage of free shipping. Here, the overall inclination towards deals and offers that include free shipping becomes evident, as this offer is enticing for many.
In the same context, about 90% of buyers express that free shipping is a fundamental factor that encourages them to make purchasing decisions, providing them with a sense of savings and satisfaction when shopping online.
6. Simplify the payment process in your store:
Reducing steps in the payment stage is fundamental in improving the user experience and increasing the conversion rate. Customers feel that the process is easy and convenient, enabling them to complete transactions quickly and easily without much thought or complicated steps. This contributes to building a positive opinion about the store and increasing customer loyalty.
7. Use analytics techniques:
Utilize analysis tools such as Google Analytics, Hotjar, and others to understand customer behavior on your site and identify pages that need improvement. Track customer paths and use this information to enhance their experience.
8. Provide clear guarantees and return policies:
Customers feel at ease when they know they can return products if they are not satisfied. Therefore, offer clear, transparent, and simplified return and guarantee policies to increase trust among customers.
9. Offer excellent customer service:
Quick, friendly, and effective responses to customer inquiries can contribute to an increase in the conversion rate. Therefore, always strive to provide exceptional customer service.
How high should the conversion rate be for an e-commerce store to be considered successful?
As previously mentioned, the conversion rate in e-commerce stores is the ratio of visitors who make purchases to the total number of visitors to the site, usually expressed as a percentage.
The conversion rate depends on several factors, including the type of products or services offered by the store, the quality and design of the website, product prices, available payment methods, user experience, and marketing and advertising efforts.
A good conversion rate can vary from one store to another and from one business activity to another. However, generally, a good conversion rate in e-commerce stores is usually between 2% to 5%. Some successful stores can achieve higher conversion rates.
To increase the conversion rate in your online store, you should review and improve all the factors mentioned above and also use appropriate online marketing techniques such as search engine optimization (SEO), social media advertising, email marketing, and improving the user experience on the site.