How to Increase your Conversion Rate
Before we get started let us look at what a Conversion Rate is:
A conversion rate is the percentage of visitors who take a desired action such as sales of products/ services, membership registrations and newsletter subscriptions. In e-commerce, we consider conversion as a percentage of online store visitors who successfully complete cart checkout
How many people are interested in your product/ services?
Conversion rate shows you how good your marketing is at getting people to buy your products/ services. A high conversion rate is a sign that your marketing is efficient: that you are targeting the right people with the right product.
To calculate conversion rates, use this formula:
Conversion Rate = Total Number of Sales / Number of Visitors
For example, if you had 50 conversions from 1,000 clicks, your conversion rate would be 5%, since 50 ÷ 1,000 = 5%.
It is very important that you understand the average e-commerce conversion rate by industry for your industry as from here you can improve.
The benchmark for e-commerce conversion rates is to be anywhere between 1.5%-3%
My rule of thumb is: If you are getting conversion rates over 2%, focus on getting more people your my site. If I’m getting conversion rates lower than 1%, focus on improving the quality of your traffic, website or product (bringing conversion rates up).
Here are 7 methods I have put together to help you increase your conversion rate today:
- Multiple Payment Options
When starting an E-Commerce business, one can be lured into just offering Paypal or possibly direct Bank Deposit, as the only payment preferences. I once experienced a rise in my online sales when I added a credit card processor to my payment methods. Presently, the emergence of Afterpay has witnessed the increase in sales by many online stores.
Result: Providing multiple payment options can convert over 15% more sales.
- Solves Shopping Cart Abandonment Problem
Have you noticed that over 70% of website visitors could add a product to their shopping cart and then don’t buy it?
It is known as “Abandoned Cart Rate.”; Usually, why it happens:
One of the major causes is that people become shocked when they notice additional charges at the checkout (like extra delivery charges). Then, they decide to abandon the purchase. Majority of people could have had their attention diverted before concluding the purchase. Others could even use the shopping cart as a Wish List!
Result: The result of implementing an “Abandoned Cart Strategy” could result in over 15% more sales.
- Offering a Warranty
Various small business managers could feel nervous about proposing long money back warranties to their customers. Though the idea could frighten a small business person but the fact is that warranties result in more sales. Just imagine when you buy online yourself. There is always that uncertainty, “What if I don’t like it?”
Results: Offering a 60-day money back guarantee could lead to over 50% conversions and more sales. Though the number of money back could increase, (it won’t exceed 25%) but still you will be at a better position.
- Shortened Checkout Form
Ensure that your checkout form contains as few questions as possible. A short form that could be easily filled within 60 seconds is preferable. Usually, e-commerce website checkouts should just ask for only customers’ vital information, like phone numbers, delivery and billing addresses, and no more.
Result: Asking for customers’ phone numbers, delivery and billing addresses can increase sales by more than 10%.
- Using unique Button Colours
Though arguably, people care about what colours they see for “add-to-cart” and “buy-now” keys.
Even though the colours for “buy now” keys matter. It’s been ascertained that over 85% of online shoppers say the colour is the primary reason for buying a brand because full-colour banner adverts get recognized over 26% more times compared to black and white adverts.
However, there is no particular or distinct button colour that beats the rest. The main issue here should be the colour arrangement.
Result: Choosing a colour that is distinct from other features on the page can result in over 5-20% more sales. Sticking to a particular colour (because it is your brand’s preference) should be discarded. It’s worth trying out for oneself.
- Convey Your Value Clearly
Many E-Commerce websites fail to convey clearly their product value testimonials.
Product features are boring and don’t shift the needle. Customers do not buy your product; they buy the changes it would bring to their lives.
Result: In a brief sentence, it is important to mention on your checkout page that what they’re buying and how that product would benefit them in certain ways. This has the potential to increase your sales by up to 15%.
- Be mindful of Social Proof
Social proof is one of the most potent influential features of an E-Commerce checkout procedure. Customers are particularly motivated by the knowledge that others like them have already got from the product purchase and are satisfied with them.
Result: The inclusion of customer reviews or testimonials (5 or more), in your products description, can increase sales by over 20%.