In case you didn’t know, the average conversion rate in e-commerce is about 1%. The reality is that 99% of people who visit your business leave without buying your products. Isn’t that quite astonishing? What’s more surprising is that various studies show that in e-commerce, 25% of the best performing stores have between 2-3% conversion rates.
As you can see, if you optimize your store's conversion rate, you could tremendously improve your performance. You can double or triple your average performance within a short time, but before you get there, you’ll need to work smart.
When promoting your e-commerce store through adverts, you hope to convince your prospects to purchase your products or services. Some are convinced and proceed to purchase; others just visit you but don’t buy.
Therefore, your conversion rate is the number of visitors who decide to buy from your store. For instance, if 100 people visit your site, but only 10 purchased your product, then your conversion rate stands at 10 %.
Below is an illustration of how we arrive at this conversion rate;
10/100 X 100 = 10%
Here is how you could increase your conversion rate:
Understand your visitors' shopping behavior
Having a good understanding of your visitors' shopping behavior is the key to optimizing your conversion rates.
There are three categories of visitors that will click on your landing page. The first group will never buy from you. The second category will always purchase your products or services, while the last group is not sure whether to buy or not.
Avoid investing your time and resources in the first category as they will never make a decision that favors your business.
You needn’t worry about the second category as well because they have already made up their mind to buy from you.
What you need to do is to capitalize on those that are undecided. That is where you have the best chance of growing your conversion rate. You can nudge them to buy from your store because they are open to doing so. And if you convince them, your average conversion rate can improve drastically.
One of the best ways to convert those that are undecided is tapping into email marketing. This should be automated. Email marketing is a proven sales channel that drives sales effectively for e-commerce stores.
Some of your site visitors could buy from you, but they are just not there yet. They need a little bit more convincing to act. Email marketing could deliver that extra push to convert them.
According to the founder of ReEngager, John Mclntyre, a welcome email may bring to the fold about 7% of visitors who may not actively be looking for your products or services. Besides that, an email series could turn your store into the number one choice for neutral visitors.
If you decide to incorporate email marketing into your plans, it is prudent that you track its performance to know if it’s making a positive impact on your conversion efforts.
Types of buying behavior
Buying behavior varies from one individual to the other. How customers make their buying decisions affect your conversion rate. If you could wrap your head around different types of buying behaviors, you can successfully optimize your conversion rate.
A complex buying process leads to a much lower rate of conversion. You could change this by optimizing your site so that visitors can spend more time on it. Try to get your potential customers through the sales funnel with the utmost ease.
The truth is that customers buy complex products such as laptops through brand familiarity. Therefore, you should focus on making your ads repetitive. This helps you to achieve a good degree of brand familiarity with your site's visitors.
You should also take advantage of imagery in advertising. The more you use it, the more your brand sticks into a customer’s mind. You see, through imagery, your clients tend to remember your brand easily.
Use data to optimize your conversions
Another smart move that you can make is using data to optimize your conversions. Analyze your sales funnel to see where most of the site’s visitors tend to abandon it, and then see what you could do to stop that.
Do some in-depth research to identify the pages with the highest bounce rate and re-work them. This will help develop effective techniques to optimize your conversion rates.
Finally, you need to understand that growing your conversion rate needs a lot of experimenting. It is the only way you can arrive at the best optimizing technique. As you run these experiments, record and study the data. You’ll eventually identify what works for your e-commerce store.