As consumer behaviour changes towards online shopping, merchants are having to keep a close on their online checkout page conversion rates. But what is a conversion rate and how does it work in e-Commerce? Read on to find out...
Due to the increase in transaction volumes processed through e-commerce websites, the online checkout page experience is vital for merchants to improve their sales and increase profits. One way they can do this, is by looking closely at their online conversion rates.
However, much like anything, when it comes to online sales conversions in an increasingly competitive market, there are certain do's and don’ts.
It doesn’t matter if you are just starting out and operating alone, or if you are an eCommerce manager or marketing director looking to make an immediate impact, the tips below are applicable to all.
What is Online Store Conversion Rate?
The conversion rate refers to the percentage of clients who perform a desired activity, in this scenario, completing their shopping cart operation and making a purchase.
The average website conversion rate is about 2%. Although this may seem low, it is actually a good rate, with many websites struggling to obtain conversion rates of 0.1 to 0.2%.
The percentage of website visitors that purchased anything from your online store is known as an eCommerce conversion rate (in a set period of time).
How to increase your Online Conversion Rate?
To improve your Online Conversation Rate, there are a few things you can do. These include...
- Keeping forms simple and quick:
Conversion rates may be low if you have an online form that asks a lot of questions or is complicated and confusing. When faced with a longer form, customers who are ready to make a purchase can become frustrated and abandon the process.
Therefore, if you have a smaller, more succinct online form for your customer to fill out, you reduce the time it takes to make a transaction and increase the probability of a sale, which ultimately increases your online conversion rate.
One method a lot of companies are now implementing to overcome this is to implement digital wallets like Apple Pay, Google Pay & Paypal to reduce friction in the buying process as the cardholder’s information is ready to be shared with the merchant.
- Allowing customers to purchase without needing an account:
Some customers are hesitant to provide their personal information, such as name, email addresses, phone numbers and other identifying information, all of which are often needed to create an account.
Allowing clients to make a purchase without having to create an account can help increase conversion rates. If an account is not needed, customers are more likely to complete their online purchase, buy further products and improve your conversion rate.
Merchants should allow customers to checkout as a guest and then incentivise them to return by making it easy to create an account afterwards, usually when the customer is happy with their experience.
- Implementing Cart Abandonment Software:
Abandoned carts refer to people who visit the website, put products in their cart and then leave before making a purchase, which obviously has a negative impact on your conversion rate.
However, abandoned cart software can help you significantly boost your shop conversion rates.
This software allows you to generate follow-up emails with customers that have abandoned their carts, by sending the user an email with the contents of their cart, as well as a promo code for a discount as an incentive to finish their transaction.
Although the success of this software varies from store to store, there is little doubt that it benefits nearly all eCommerce businesses that use it.
- Being reasonably priced:
In the age of connected marketplaces where several sellers can list similar or identical products, it’s even more important to keep on top of your pricing strategy.
If you're selling products that a lot of other businesses sell as well, you'll have to compete by pricing your products at or below the average price.
To stay ahead of the competition, you should make regular pricing adjustments to evaluate what works best for both your customers and your business.
- Using HD pictures and videos:
When you go shopping, consider what you want to see. When you purchase online, you cannot touch or experience the products. The best thing you can do is offer the consumer a comprehensive overview of the product, including high-quality images or videos, so they know precisely what they are getting.
Having a robust and easy refund process raises the Average Transaction Value (Basket size) and also generates additional revenue.
Implementing a Buy Now, Pay Later payment method such as Klarna can really help here as the customer does not pay for the goods until they are happy with them. The merchant still receives the revenue from the Sale in a timely manner, ensuring there are no negative cash flow effects.
Summary:
In short, it is vital that merchants have an understanding of their Online Conversion Rate and the impact it is having on their business.
To gain this knowledge, you can use e-commerce software, which connects to your Payments Solution and shows you the ratio of individuals who arrived on your site and purchased, against those who are just browsing. You may also use a manual method to keep track of whether your colleagues, product, website layout, and other factors are turning casual observers into purchasers.
The good news for you though, is that no matter what route you go down, we at DNA Payments can assist you. So if you have any questions on how to boost your store conversion rates, please contact us today to discuss.