The digital age has exploded in the wake of COVID-19, with eCommerce expected to reach an unprecedented 22% share of all retail sales this year. The rise of eCom brands and stores that have shifted their physical model online were game changers for businesses forced to close due to pandemic restrictions – leading many entrepreneurs from a variety field seeking out potential success through Ecommerce avenues. Despite its increasing popularity however, competition is on the rise as more people join the industry – making standing apart or ahead even harder than before!
Ecommerce Conversions and Conversions Rates
To maximize profits, it’s important to understand your Ecommerce site’s conversion rate. This metric helps define how well you’re turning visitors into customers and can be found by dividing the number of transactions made on a website by its total visitor/sessions count multiplied by 100%. Many dedicated platforms like Shopify offer this data out-of-the box whereas other programs such as WordPress may require an external tool like Google Analytics for tracking traffic stats. Armed with this knowledge, businesses are in an even better position to make decisions that could positively impact their bottom line!
Typical Conversion Rates in Ecommerce
IRP Commerce’s real-time market data revealed a surprising drop in their average conversion rate from February 2021 to 2022, with the latest month garnering 1.72%. While this decrease may appear significant on its own, it is important to remember that typical industry benchmarks range between 1.7 and 2.5% — which still falls comfortably within those averages for most industries. Ultimately, what matters more than a single month of figures are trends over time – something marketing agencies provide insights into by benchmarking against an easy-to-measure 2%.
Conversion Rates by Industry
The conversion rate for ecommerce varies greatly depending on the industry. While some businesses experience a low 0.94%, others have seen an incredible 4.17%! IRP Commerce has gathered these data points to provide meaningful insights into how different industries are faring in digital sales and transactions, with stark differences to be found from one area of business to another.
How to Improve your Conversion Rate?
Conversion rate: friend or foe? Knowing your website’s conversion rate, and how it measures up against industry averages can be intimidating. But the good news is that regardless of where you stand there are tons of ways to improve upon this key metric by engaging in Conversion Rate Optimisation (CRO). This process involves crafting more persuasive copy/messaging and designing for optimal user experience – attuning visual hierarchy, making CTA buttons prominent, avoiding long load times, ensuring a streamlined navigation journey…the list goes on! So don’t despair if your current rates fall below par – now´s the time to take action & shape CRO into an ally instead.
Lists of strategy on how to increase conversion rates
With so many potential options, it’s important to be mindful when deciding which ones are most suitable for your business and customers. Making too many significant changes at once can lead to confusion about the effects each one has had—it’s better to implement them gradually over a period. Researching what features you may need on various apps and plugins is easy with Google. With careful consideration given towards adding value in their online shopping experience, businesses will surely reap rewards from these thoughtful improvements.
- Abandoned Cart email automation.
Did you know that shoppers tend to abandon their cart just before checkout? But never fear! Shopify has automated feature allowing businesses to follow up with customers who have added a product but haven’t completed it. Email marketers also need be mindful of when asking for customer emails, and retargeting ads may offer another solution.
- A/B Split testing
A/B Split testing is the best way to optimize any ecommerce website for improved conversions. It involves creating two versions of something – such as a button, feature or pricing – and randominizing which one your site visitors see. If done correctly, you could potentially double down on successful elements while removing underperforming ones from circulation! This process can be applied to all kinds of digital design changes in order to maximize customer satisfaction. So, if you’re looking at CRO tactics with an eye towards boosting your ROI, A/B split testing should definitely be part of your strategy!
- Broaden payment gateway offering.
Choosing the right payment gateways for your customers is key in minimizing friction. Even if a certain gateway may be cheaper, it’s important to remember that comfort and security are just as significant – you don’t want an unhappy customer with doubts about their payments! Consider passing on any extra fees to provide them reassurance of safety.
- Bulk ordering discount/sliding scale pricing.
For those who need multiple of the same product, bulk discounts or quantity thresholds can be a great way to save! For example, if you stock up on ten meals at once – enjoy two for free!
- Cart tray instead of page
With the cart’s new design, users stay on their product or category page as they shop – no need to visit a separate checkout! Now adding more items and checking out is simpler than ever.
- Click and Collect
Making it easy for customers to receive their items has become increasingly important in recent years and Click & Collect offers the perfect solution. Rather than dealing with expensive deliveries to individual addresses, businesses can deliver orders in bulk to centralized hubs that are convenient for customers looking to pick up their goods.
- Easy reordering
Re-engaging with prior customers is a great way to boost repeat sales. Set up automated emails that offer tailored suggestions for similar purchases, or items the customer has previously bought – it’s a painless method of encouraging additional orders!
- Exit Vouchers
As people move to leave this site, an automated script steps in for the save! Using sophisticated algorithms and tracking data, it can identify when someone is about exit. If certain criteria are met, a voucher will appear with attractive discounts made just for them – encouraging them to stay longer!
- Gift Cards
Shopping for special people in your life just got easier! Show them how much you care with a personalized gift card from your store. With this unique marketing opportunity, treat friends and family to something extra-special by crafting an unforgettable campaign focused on the joy of gifting.
- Live chat
Live chat enables customers to engage with a business in real-time, removing any potential barriers that may otherwise cause them to look elsewhere – especially when it comes to bigger purchases. By providing knowledgeable staff who can handle customer inquiries and ensure they get the information they need quickly, businesses are able to cultivate an atmosphere of trust and confidence (and increase sales). For smaller companies this is often feasible without requiring extra resources but for larger operations scaling up teams might be necessary if demand proves high enough.
- Loyalty Programs
Reward your customers for their loyalty! Find a way to make them feel valued – whether that be offering $10 vouchers with every $200 spent, rewarding points as they shop, or even sending birthday greetings. Showcase how much you appreciate their support and watch loyal relationships flourish.
- Newsletter subscription with an entry voucher
Take advantage of the modern power of email marketing and increase your customer base with a simple offer. Integrate an easy-to-use platform like Mailchimp to your website, then provide subscribers with $10 off their first order voucher – a great way to encourage customers and boost sales!
- “Notify when back in stock”
Offer customers the opportunity to sign up for a database that will keep them in the loop about all your seasonal and rotating products! Whether it’s restocks or new arrivals, they’ll never miss out on their favourite item again.
- Product cross-sells & upsells
Give customers the opportunity to make an informed choice with upselling and alternative products – guiding them in their selection so that they can find a perfect fit for themselves.
- Product filtering & searching
Create an experience for your customers that is as intuitive and individualized as possible. Brainstorm ideas on how you can equip shoppers with a personalized product filtering & search journey tailored to their needs, whether it be through the lens of price, size or category – any kind of control they have naturally leads to more engagement and ultimately higher profits.
- Product reviews + review program
Building trust and credibility with customers can be difficult, but reviews help do just that. It may take more than requesting a review to get users talking about your product though; some incentive could make all the difference! Showcase those glowing reviews proudly while still remaining classy – it’s an essential element of any successful business plan today.
- Referral program
Grow your business exponentially by offering an attractive referral program! Encourage customers to spread the word of your product or service and both they and their referrals will reap rewards. Make it a win-win situation: every customer who brings in someone new can receive discounted offers or free products – that’s surefire success for everyone involved!
- Scarcity notices
As products start to fly off the shelves, scarcity notices become an essential tool for merchants. By advertising “only a few left”, it’s possible to create an illusion of appeal and urgency that encourages customers to act quickly before supplies run out. However this tactic should be used judiciously so as not to appear deceitful or inauthentic.
- Simple shipping options
Shipping plays a critical role in online purchases, as 93% of shoppers say free shipping would lead to additional orders. However, the opportunity cost for difficult or expensive delivery can offset potential sales gains. To keep up with larger brands that often offer gratis postage and maximize conversions, businesses should consider adopting similar tactics like flat rate options and/or threshold-based discounts (e.g., all orders over $100 are qualifying). Free fast shipping is quickly becoming an industry expectation!
- Sticky Add to Cart
Shopping on-the-go just got easier! Our product pages feature a practical “sticky” add to cart button that follows users as they scroll, ensuring the checkout process can be completed in no time – even with limited screen space while shopping from your mobile device.
- Subscription Model
If you’re looking for a way to ensure your products can remain popular and keep customers coming back, implementing a subscription model could be the answer. This type of arrangement is particularly common in food businesses – think meal boxes or snack packs! It’ll take some careful consideration but it would definitely benefit your business long-term.
- Trust markers/icons
Consumers often appreciate the added credibility and goodwill that comes from affiliations with regulating or certification bodies. To maximize the value of these endorsements, create a category system so people can easily search for products bearing specific certifications. Additionally, emphasize related information on product pages to ensure customers are fully aware of your high-quality offerings!
- 1-click ordering
Streamline your store with simple checkout procedures, adding convenience and security to the shopping experience. We recommend Google Pay and Apple Pay, two popular payment gateways that make paying for purchases easy!
Here at Your Business Live, we ensure your business goes to market with the right marketing plan and investment. Contact our friendly team today and we’ll be glad to support you! Call us at 1300 078 509 or email us at enquiries@yourbusinesslive.com