It takes tangible resources, time and investments to build, launch and promote an eCommerce business. You may think that successfully advertising your business and having a large percentage of visitors on your website is enough. However, to estimate your business’s overall progress and success, it is essential to understand what percentage of visitors make purchases from your website. This is called a conversion rate. It will help optimize your website and encourage customers to take desired actions. Those include making purchases and adding items to a wishlist. Also, your can suggest subscribing to your newsmagazine, registering on the site, downloading something, to name a few. In a competitive digital reality, it is essential to be in charge of your business and constantly improve customer experience. You should make sure that your business brings maximum value and revenues.
Below find insights on how to calculate eCommerce conversion rate and what metrics to use to optimize it.
Ecommerce conversion rate calculator
Before diving into conversion rate optimization metrics, it is essential to estimate your website’s current performance and how customers interact with it. Therefore, before thinking of how to increase conversion rate, ask how to calculate it. Once the conversion rate for your business is defined, it will be easier to set up the benchmarks you want to aim for. To calculate the conversion rate, you will need to divide the number of conversions you get for a set period of time by the total number of people who visited your site and multiply that by 100%. For instance, if your online store had 7000 visitors in a given time frame and 70 conversions, your store’s conversion rate will be equal to 1%.
Conversions 70 / Total visitors 7000) ×100% = 1% Conversion rate
Calculating your conversion rate is essential in evaluating the overall performance of your business. For instance, you may analyze which marketing channel or platform( Google or social media advertisements ) works best in marketing your products and services. This will allow you to understand which marketing channel brings more converts and revenues to your website. Calculating conversion also helps to analyze the effectiveness of page-level conversion, keywords conversion, and any other aspect of your online marketing and determine which channel deserves more investments.
Now that you already calculated your business’s conversion rate, you can already determine a benchmark for the future. The average eCommerce conversion rates are between 1% and 2%. To get started, you can aim for a 2+ conversion rate. Consider that the conversion rate depends on the type and demand of your business, targeted audience, price, level of customer experience, and other peculiarities. Also, keep in mind that increasing a conversion rate is an ongoing process and requires constant execution of improvements.
How to monitor conversion Rate
There is a number of tools designed to help you track conversion rate efficiently.
Google Analytics can provide you with valuable data about your website visitors. You will be able to know how visitors found your website, whether they are new or returning visitors. You will also have access to a variety of demographics and other peculiarities about your users. It will also allow you to know the type of browser and operating system of users, how they interact with your website and the measures that lead to conversion. All of the listed information will help you clearly understand what works on your website and how to increase conversion rate.
Google Ads will allow you to promote your business, track the results and examine the effectiveness of your marketing strategies. With Google Ads, you can choose the type of conversion rate. The options include customer installs or purchases of your App, web or app conversions from Google Analytics App + Web, phone calls, offline conversions, to name a few.
If you are advertising your business through social media platforms such as Facebook, then Facebook Adds Manager and Facebook Analytics is the perfect way to analyze conversion effectiveness. You can monitor conversions in three ways, standard events, custom events, custom conversions.
You may also monitor the conversion and performance of your app with ConstApps mobile application builder. ConstApps will equip your mobile app with advanced features. Fo example, Advanced App Analytics, Advanced Push Notification Analytics and provide you with valuable updates and reporting for your app.
How to increase the conversion rate of eCommerce?
As already mentioned, boosting your eCommerce conversion rates requires constant optimization for maximum productivity.
Here are practical ways to boost the eCommerce conversion rate.
In order to encourage your customers to make purchases from your brand, it is essential to showcase your products and services in visually appealing and persuasive ways. Your customers cannot try on or touch the products you are selling. This means that it is vital to provide as many details as possible. You may illustrate your products and services through captivating visuals or videos. This will help your customer better understand the different characteristics of your products. It is crucial to have all of the images and videos in your website or app are of high quality. Keep in mind that every detail must all bring customers one step closer to making purchases.
It is crucial to make sure that your customers can effortlessly move from one product category to another. They should be able to swiftly find what they need and quickly make purchases. In order to provide your customers with smooth navigation, it is essential to optimize search functionalities. Also, work on product pages, present product details, and other relevant information in the description section. You may also add filters to your category pages according to price, label, and other characteristics of your products.
In a competitive marketplace offering high-quality product and services are not enough. Keep in mind that there are many companies that offer the same services and products as your company. Therefore, it is vital to come up with innovative ways to market your products. Product customization will allow you to understand your customers’ needs better and treat each of them with a personalized approach. Personalization will provide each customer with a unique experience leading to more revenues, increased traffic, and conversion.