Visitors of ecommerce websites use numerous devices, have different customer journeys, and withdraw carts for various reasons. In the world of online shopping, the competition is fierce. So, digital stores carefully develop their marketing strategies and measure the obtained results. You can hardly build a perfect path for all of them but you are able to identify the weak points and understand the ways to turn more visitors into customers. A conversion rate is one of the most important KPIs. We’ve analyzed the situation using hard data and expert insights. Are you too curious whether you have a high or low conversion rate? Let’s figure this out.
What Is Happening
In this post, we use statistical data from Ecommerce Report 2017: Focus on Central and Eastern Europe, along with other reports available, to draw conclusions and discover trends.
This is hardly a surprise that the percentage of purchases from mobile devices is growing. One of the most evident trends is that the number of conversions on mobile devices increased by 67% compared to 2016. Obviously, higher conversion results in higher sales. Revenue from mobile traffic increased by 86% compared to the previous year.
The problem here is that mobile usually requires more effort to reach an order. The data from Adobe 2016 Mobile Retail Report shows that cart conversion rate on mobile can be as low as 16%.
Returned Visitors Bring More Value
Repeated visitors convert 25% better than first-time buyers. So, working with your audience brings its fruits. Email marketing, remarketing, special deals, and contests help you engage and entertain your clients and potentials.
Creative Solutions for Online Stores Work
People demand what they demand. This is where companies should deliver particular user experience and keep up with their brand promise.
Don’t be busy re-designing a website, updating product ranges, searching for new markets, and investing in any digital marketing services apart from conversion rate optimization (CRO). Did you know that adding proofs, like a list of clients who used your product, can increase conversion rate from 5% to 22%? Check out the case study about voices.com, a marketplace for voice-over talent.
Find more good examples of the proven ways to increase a conversion rate. Some of them can hardly be applicable to ecommerce, e.g. focusing on traffic from LinkedIn that worked out well for Quanticate, a company in the clinical research sphere. Either way, you may come up with a good idea.
What conversion rate is not-so-bad
More customers are buying online and spending more at online stores. Over the past 12 months, the number of visits increased by 30%. As the study shows, the conversion rate in ecommerce differs by niches*:
- Electronics – 0.8%,
- Books – 2.05%,
- Clothing – 0.75%,
- Children’s items – 1.7%,
- Car parts – 1.1%.
*We mentioned only representative data.
Conversion ratio varies from 0.8 to 2.1% with an average value of 1.1%:
- 52% of websites have a conversion rate less than 1%,
- 34% – 1-2%,
- 14% – more than 2%.
It is reported that the average conversion rate for international online stores is about 1.5%. Such a value may seem to be low enough but this is how things are. Some older data can be found here. According to it, the conversion rate for ecommerce websites dropped twice as compared to the early 2000s.
Conversion rate by channels differs.
If your conversion rate for various channels is below average, it’s worthwhile to consider their effectiveness. The value for email marketing channel is the highest one we have identiﬁed – 2.25%, so email marketing is not dead.
How to improve a conversion ratio
This is based on common sense and understanding the target audience. Investment is CRO is a one-time thing with a plenty of possible benefits reached in a few months. The success of your efforts is easily measured in Google Analytics. It is interesting to mention that in the short run, you will notice the higher transaction values and later – the higher repeat sales. So, how can you get started?
Create a simple visitor experience
Visitor experience should be easy to understand, simple. Complications such as bright colors, impressive pictures, and pointless information distract website visitors and, therefore, lower conversion. The tricky thing is to make access to information easy even for a first-time visitor. A decision-making process should be pretty straightforward and don’t raise questions.
- Product catalog and product pages should be comfortably navigated.
- The price policy should be fair without confusing additional costs.
- Client reviews are easy to find and contain true information.
- Your delivery service is trustful and flexible.
- You allow a range of secure payment methods.
Ensure effective communication
Timely and polite communication is an important part of overall customer experience (CX). The popular options your customers may value include:
- Live chat,
- Contact form,
- Free phone,
- FAQs section.
Let your visitors know how quickly you can respond to them using different communication channels.
Provide relevant content
Content truly matters. It makes sense to invest time and efforts in creating a unique copy instead of copying/pasting product descriptions and pieces of advice for users. An important nuance here is to ensure that every description is relevant to a particular product. Another hint is to provide a few photos of each product to explain the products visually. The latest trend is to add a video. This may be a user review, product usage, and so on.
Unify CX across different devices
A reduced mobile functionality is frustrating while creating at least four different versions for desktop, mobile, and tablet screens takes plenty of time.Therefore, developing a responsive design is worth your investment. However, this is significantly influenced by your particular situation, so analyze it first and then pick the best option.
Create fast checkout
This is where a large proportion of carts are abandoned. The data shows that shopping cart abandonment rate of ecommerce websites is about 45%.
It is recommended to create a one-page checkout and ensure that visitors do not need to fill in many fields. Don’t ask people to register before they make a purchase. Many people prefer not to sign up and stay anonymous. At least, add a register option after the order is placed.
Another suggestion is to use cart abandonment software, which promises to recover 15% of lost sales on average.
Analyze data and gain insights
Testing your visitors and shopping experts can help you gather information on how an average user makes a purchase, what problems he or she faces, and what improvements they are looking for.
Another point of interest is studying reports and analytical materials. Why not learn how other companies deal with similar issues and what KPIs they set? For starters, check out this Conversion Rate Optimization Report 2017 and study an Ecommerce Report 2017 with useful takeaways.