Today, the e-commerce arena is highly competitive. Every business wants to expand its reach, drive traffic, generate leads, and ensure maximum conversions. This makes e-commerce CRO (Conversion Rate Optimization) a critical metric for assessing a business’s success.
In simple words, it means the number of leads that get converted into customers. Your e-commerce conversion rate has a direct impact on its overall revenue growth. It can help measure ROI in e-commerce, offer personalized solutions to your target audience, and empower you to make significant decisions.
Considering the essence of monitoring and enhancing your e-commerce conversion rate by following best practices can be incredibly rewarding.
This guide explains the importance of measuring e-commerce average conversion rates and outlining expert e-commerce CRO strategies supported by real-world examples.
What Is an E-Commerce CRO?
E-commerce CRO (Conversion Rate Optimization) is the percentage of website visitors who complete a desired action, such as:
- Making a purchase
- Filling out a form
- Signing up for a newsletter
- Downloading a resource
- Registering for an event
- Starting a free trial
- Upgrading a subscription, etc.
E-commerce CRO means making crucial improvements to enhance conversion rates using various strategies. Businesses that implement CRO strategies see a 74% increase in sales.
User experience and CRO are interlinked as a better UX leads to higher conversion rates. Online shoppers expect better selection and convenience, which are significant areas for CRO focus. Conversion rate optimization aims to drive specific KPIs, so businesses need to enhance conversion rates across different parts of their e-commerce site.
How Is the Conversion Rate Calculated?
The conversion rate is a vital key performance indicator that quantifies the percentage of users who perform a desired action out of the total number of visitors. The formula for calculating the conversion rate:
Conversion Rate = (Total Number of Visitors/Number of Conversions) × 100
Where:
- The number of Conversions is the number of users who completed the desired action
- The total Number of Visitors is the number of users who visited your site during a specified period.
Example Calculation:
If your business website has 10,000 visitors in a month and 500 make a purchase, the conversion rate would be:
Conversion Rate = (10,000/500) × 100 = 5%
This means that 5% of the website’s visitors converted into customers by making a purchase.
Steps to Calculate Conversion Rate:
Step 1: Identify the specific action you want users to take; for example, you want to track the number of people who created an account on the website
Step 2: Use analytics tools to check the number of people who created an account.
Step 3: Find out the total number of visitors.
Step 4: Insert both figures into the given formula and calculate the conversion rate.
What Is a Good E-Commerce Conversion Rate?
Average e-commerce conversion rates range from 2.5% to 3%. They can vary according to region, with the US average of 2.8%, Europe of 2.2%, and APAC of 1.9%.
Use best practices to maintain a conversion rate of more than 3%. This should be the initial goal for your online store. You must implement advanced conversion rate optimization strategies to maintain a high rate.
Additional Metrics to Help Measure E-Commerce Conversions
Other metrics that can help you improve your e-commerce performance are:
1. Bounce Rate
This is the percentage of visitors who leave after viewing only one page. A high bounce rate indicates that visitors are not finding what they need.
2. Exit Rate
This metric shows the percentage of visitors who leave after viewing a specific page. A high exit rate on a particular page can mean issues with that page that should be addressed.
3. Click-through Rate
CTR measures the number of users who click a link to your website from an ad or email. A higher CTR rate means more traffic to your site, which can lead to higher conversions.
4. Average Session Duration
This shows how long visitors stay on your site. A low average session duration can lead to a high bounce rate.
5. Average Page Depth
This measures the number of pages a visitor views during a session. More page views highlight higher engagement.
22 Best E-Commerce CRO Strategies
E-commerce CRO is essential to make the purchasing experience enjoyable and streamlined for your target audience. Following key strategies can encourage visitors to take relevant action that can ultimately lead to business profitability and growth.
Here are 22 strategies to improve your e-commerce conversion rate:
1. Optimize Your E-commerce Checkout Process
According to research, the average cart abandonment rate for e-commerce sites is approximately 70%. Some of the major reasons why visitors abandon their carts are:
- Lengthy checkout process.
- Lack of multiple payment options
- Hidden fees
- Slow app/website
- Inaccurate information
- Lack of customer care assistance.
Thus, it becomes significant to streamline your checkout process to boost conversions. This will help visitors make a purchase.
Example: Amazon’s one-click purchasing, saved payment information, and streamlined checkout flow minimize friction and lead to higher conversion rates.
2. Add Trust Signals
Around 17% of shopping carts are abandoned due to concerns over the security of the site.
Trust signals reassure customers about the security of their transactions. Incorporate SSL certificates and site seals to protect sensitive information such as credit card details and personal data. Moreover, sites with SSL certificates may rank higher in search results, which means your website can attract more organic traffic.
Trust seals reflect that your site has been verified for security which can make your visitors more comfortable making purchases.
3. Use High-Quality Images and Videos on Product Pages
Modern customers rely on visuals to understand the product. High-quality images and videos allow users to see the product from multiple angles and in different contexts. Create authentic and high-quality videos for your website with Predis.ai’s e-commerce video maker progg.
Example: ASOS uses high-resolution images and detailed videos to help customers visualize products better. This leads to higher conversion rates and reduced return rates.
4. Ask Customers How They Found Your Site
Understanding how visitors arrive at your site is crucial. You can create your content according to audience expectations and learn about their journey to your site. You can use on-site surveys with questions such as:
- How did you hear about our site?
- What’s your main goal for using the specified product?
Responses to such questions can reveal the effectiveness of your marketing efforts.
5. Display Product Reviews
99% of online shoppers look for reviews when making a purchase, and 96% look out for negative reviews to understand drawbacks. Product reviews are crucial for building user confidence and helping the visitors evaluate products. Displaying reviews, testimonials, and ratings for each product can influence purchase decisions.
Example: Sephora prominently displays customer reviews and ratings on their product pages. This strategy enhances trust and encourages undecided customers to complete their purchases.
6. Measure Your E-commerce CRO Success
Using e-commerce CRO KPIs ensures that your optimization strategies are working. You must track your store’s conversion rates regularly in any customizable way. Important KPIs to consider are:
- Conversion Rates
- Cart Abandonment Rates
- Customer Lifetime Value
- Traffic Sources and Channels
- Customer Retention Rate
- Net Promoter Score
The top tools to track measurements are Google Analytics, A/B testing tools, heatmaps, and customer feedback.
7. Offer Free Shipping
Free shipping has become a standard expectation among online shoppers. Offering free shipping can eliminate a major barrier to purchase and further encourage customers to complete their orders. Today, 50.6% of online shoppers shop because of free shipping, and 48% of online shoppers abandon their carts due to high shipping costs.
You must consider costs before promising free shipping and ensure it is sustainable for the business.
Example: Nordstrom provides free shipping and free returns on all orders. This strategy reduces purchase hesitation and leads to higher conversion rates.
8. Provide Discount Deals and Coupon Codes
E-commerce stores that offer limited-time coupons or discount deals can create a sense of urgency. This strategy prompts shoppers to make quicker purchase decisions. You can also set an expiration date on these codes to drive more sales.
You can further send personalized discount codes to your email subscribers or offer exclusive discounts to repeat customers. Use social media platforms to share discount codes and promote special offers or run contests where participants can win special deals. Integrate channels and create valuable content for all platforms using Predis.ai’s e-commerce store social media tool.
9. Observe Customer Behavior to Improve User Experience
You must pay heed to how customers interact with your site. You can check where visitors are coming from, which pages they visit, and where they drop off. Collect direct feedback from users about their experience. This will bridge the gap between expectations and reality and enhance user experience.
Example: Shopify store owner Andrew Ethan Zeng discovered that many visitors tried to click on a non-clickable sales banner. After making the banner clickable, conversions surged, leading to hundreds of additional orders.
10. Ensure Easy Navigation
Customers expect intuitive website navigation that helps them find what they need with minimal effort. Make sure you help users see all available items and ensure product categories are visible on both desktop and mobile.
60% of consumers start their research on a search engine. You must simplify the menu structure, use a streamlined search function, and ensure faster loading times.
11. Offer a Live Chat Feature
Providing a live chat feature for your visitors can enhance the user experience on your site. However, it’s important to consider how and when this feature is used. Unsolicited live chat pop-ups can be perceived as intrusive, but they are highly valued when customers need immediate services. Live chat support offers instant support, real-time interaction, and quick resolution of issues.
Example: Apple provides an integrated live chat feature to assist customers in real-time during their shopping experience.
12. Capturing Emails
Capturing emails is a crucial strategy that can encourage users to subscribe and can lead to immediate conversions. You must offer access to exclusive content and include incentives that can increase conversion rates.
You can implement exit-intent popups based on user behavior and the page they are exiting. Further, you can keep the sign-up form simple with just one or two fields and make it mobile-friendly. Utilize analytics to track the performance of your email capture methods and perform A/B testing to optimize results.
13. Ensure That Autocomplete Fields Are Updated Correctly
Even though the user misspelled the item they are looking for, brands should still offer the right suggestions.
Poorly performing autocomplete fields can confuse users and bring your conversions down. Thus, it is important to optimize your autocomplete suggestions and make sure misspelled queries don’t cause users to abandon the site.
Example: Wayfair offers the right product suggestions despite the customer entering misspelled information.
14. Create High-Quality Content
You can regularly publish engaging content in the form of articles and blog posts related to your products. Focus on solving common customer problems. Brands with active blogs generate more leads per month compared to those without blogs.
You can create detailed product guides and how-to articles that help customers with step-by-step instructions. Further, encourage customers to share their experiences and highlight this content on your website and social media channels. Provide free resources such as eBooks and engaging video content that are relevant to your audience.
15. Offer an Omnichannel Experience
Improve user experience by allowing customers to switch between channels without friction. You must make sure that inventory, customer data, and order management systems are integrated across all channels. Provide customer support across all channels. The objective is to offer your audience a consistent experience, whether they are shopping on a mobile app, website, or in a physical store
Example: Ikea’s omnichannel strategy integrates in-store and online shopping experiences. It uses augmented reality to help customers visualize products in their homes. The brand also offers flexible delivery and pickup options. This approach enhances customer convenience, leading to higher conversion rates.
16. Allow Customers to Checkout As Guests
Allowing customers to checkout as guests can improve e-commerce conversion rates. You can start by streamlining the checkout process by minimizing the number of steps and fields required.
Do not force customers to create an account before making a purchase. To reduce barriers to purchase, offer the option to checkout as a guest. Make the guest checkout option prominent and easy to select, and label it during the checkout process.
After the purchase is complete, offer customers the option to create an account using the information they provided during the checkout. This allows customers to save their details for future purchases without interrupting the current transaction.
17. Offer Personalized User Experience
Use user tracking and effective communication software to personalize the user experience. Customized solutions enhance the purchase process and increase your conversion rates. Personalized user experiences also allow you to focus on users across platforms.
Example: Check out how Overstock uses advanced personalization techniques using customer data. It creates user-generated content and reviews to build trust.
18. Maintain Competitive Pricing
You need to price your products at or below the average market price. Adjust prices regularly based on market trends and consumer response. High-quality marketing can justify higher prices.
You must implement a price-matching policy to reassure customers that they are getting the best deal. You can also consider using penetration pricing, setting low prices in the beginning and slowly increasing them as your market share grows.
19. Ensure that Visitors see Call-to-Action Buttons
Place CTA buttons where they are easily visible and accessible. Make sure that CTA buttons stand out by using contrasting colors and are formed using concise language. Optimize CTA buttons for mobile devices and regularly conduct A/B testing to determine which CTA designs and texts perform best.
20. Use Compelling Product Descriptions
Conversion rate optimization often needs attractive product descriptions to set your brand apart from competitors. Your unique selling proposition should explain why customers should choose you over others. Use humor, intelligence, and a unique approach when creating authentic product descriptions.
Product descriptions should be detailed yet concise. They should provide all necessary information and include details such as materials, dimensions, and compatibility. Use Predis.ai’s e-commerce video maker that offers easy, customizable, and user-friendly ways to create top-quality visuals.
Example: Newegg effectively uses the comprehensive product description strategy by detailing product specifications and using comparison tools. The brand further uses high-quality images and videos along with descriptions.
21. Streamline Mobile Payments
You must optimize the payment process for mobile users is critical, as many customers shop on their phones. Ensure your mobile checkout process is straightforward and offers multiple payment options without overwhelming the user. Consider reviewing best practices and examples from other companies to refine your mobile payment experience.
22. Optimize Websites for Mobile Users
67% of consumers are likely to buy from a website if it is mobile-friendly.
Many websites are mobile-friendly. It has become imperative to offer a seamless mobile user experience that can make it easier for users to navigate your site on their smartphones. Refine your mobile user experience by considering common mobile pitfalls and avoiding cumbersome navigation.
Further, you can offer simplified layouts, incorporate one-click checkout, and use mobile-friendly calls-to-action to enhance the user experience.
Example: Check out how Staples boosts e-commerce CRO conversion rates by implementing one-click checkouts, mobile wallets, and a perfect mobile load speed.
Common E-Commerce CRO Mistakes and How to Avoid Them
Avoid these four mistakes to make sure that you are following e-commerce CRO strategies productively:
1. Poor KPI alignment
One of the biggest mistakes any e-commerce business can make is not following proper objectives, benchmarks, and key performance indicators. This means a lack of focus which can reduce the impact of integral changes that you make towards your business enhancement.
Solution: Establish clear KPIs and cover macro-conversions and micro-conversions. Set specific targets and aim for a 5% plus conversion rate over six months.
Examples of Macro-Conversions
- Making a purchase
- Filling out a lead generation form
- Creating an account
Examples of Micro-Conversions
- Adding products to the cart
- Downloading a resource from the website
- Watching a video
- Reading a blog or an article
2. Testing Without a Structured Plan
For the best results, you must create a roadmap for e-commerce CRO testing. It is not wise to test during holidays, as shoppers spend more time surfing through sites. The results could be skewed.
Solution: Plan in advance, manage timelines, and monitor progress. Maintain a consistent schedule to perform e-commerce CRO tests to get meaningful results.
3. Making Too Many Design Changes
Optimize your site is the need of the hour. But making too many changes can confuse visitors. Your audience can find it difficult to identify specific elements that drive e-commerce performance.
Solution: Implement small changes and understand the impact of each change by running individual tests. Avoid dramatic design transformations unless you are rebranding. This will help you maintain customer loyalty and brand recognition.
4. Neglecting Your Audience
To drive conversions, you must create urgency. One of the most critical factors is building trust with your audience.
Solutions: Display reviews to show that others have purchased. Use high-resolution images, include shipping costs, and offer various payment methods.
Never forget that any e-commerce CRO numbers are curated to enhance user experience and increase demand. Engage with your customers and keep their needs at the forefront of your CRO efforts.
Conclusion
Today, businesses are spending approximately $2,000 per month on e-commerce CRO tools and services.
The global e-commerce CRO market is expected to grow at a CAGR of 10%, reaching $1.93 billion by 2026.
Millions of consumers are shopping online, which depicts the relevance of e-commerce in retail. It becomes imperative to have an optimized website that can help you augment your e-commerce conversion rate. A high CRO rate directly encourages customers to purchase your products.
By following expert guidance and the 22 strategies mentioned above, you can make incremental changes and build audience trust. You can consider Predis.ai, where professional expertise and trending tools and resources can accelerate your optimization efforts. Sign up today to start your journey!
