Improve The Conversion Ratio in Your E-commerce Business by Developing These 6 Areas
In this blog post, I will be sharing simple things you can do to improve the conversion ratio for your e-commerce business and get more sales in the process.
For those who aren't familiar with what a conversion ratio is, put simply, it is how many sales you make for every hundred visitors that come to your website. It's really how you determine your success online. The average conversion ratio for all e-commerce websites in 2017 was about 2 percent.
Now depending on who you are whether you’re a newcomer in the e-commerce space or an older company, whether you sell very affordable goods or luxury goods, that conversion ratio is going to differ. So you know Gucci.com is going to have a higher conversion ratio than a new fashion website.
So let's dig right in!
How do you improve your conversion ratio?
How do you make sure that more visitors start buying on your website?
I. Organic Traffic
About 30 percent of your website visitors are going to come from organic traffic. This traffic will be generated by things like your SEO, repeat customers, email marketing, and word of mouth.
So that's 30% of your sales that's going to be organic, and again these are marketing efforts that you don't pay for with advertising dollars. It will be mostly your time that you spend to get those organic clicks!
II. Action Buttons
To give you an example I really like to give about Google and Gmail and what they do to try to improve their own conversion on their own platform and so on Gmail, there's that red compose button. In Google, that's an eight person team with a team leader, and they probably made ten million dollars a year.
Just for that button to determine what color it is, what shape it is, where it should be on the page, and whether it should change color when you hover on it.
All these things they continuously use their data and analyze to try to improve the customer experience. I like to give this example just to give you the scope of work that you have to look into and analyze to determine the color of the action button on your own website.
III. Website Speed
Another important thing to work on for your conversion ratio is speed. Not only is the speed of your website important but the speed of the checkout process. So I get a lot of clients who want to clutter the checkout page with information about the delivery or payment process. I prefer to simplify the checkout experience as much as I can.
One simple way to do this is to offer free shipping. You don’t want your customer to reach the checkout page, then find out there is an extra charge for shipping, you might end up losing a sale when you mismanage a customer's expectations.
VI. Google and Facebook Pixels
Analyzing website traffic is very important for improving your conversion ratio, so make sure that you register your domain with Google analytics and generate and link you Facebook Pixel ID.
Google analytics can show you things like where the highest cut off rates are on your website. It could be that %50 of website visitors land on the homepage and leave, and the other %50 click on something, but then what? Google analytics will analyze that journey for you and if there is a page that has a huge cut off rate, take it as an opportunity to address that page and see what the issue is.
Facebook Pixel allows you to track conversions from Facebook ads, allowing you to optimize your paid advertising efforts based and build targeted audience based on data collected.
V. Targeted Paid Advertising
70% of traffic are going to come from visitors you paid to attract to your website. So it's really important to increase that conversion ratio
Now let's talk about paid advertising efforts. So the more targeted your visitors are the better your conversion ratio is going to be. If when you're doing an ad on Facebook and Instagram or anything you're casting a really wide net, then random visitors are coming to your website. So you're wasting ad dollars. The more targeted your visitors are then the more likely that the visitors that do buy. So it's very important to optimize that process. We offer advertising consultations on hourly basis for those that are interested we're more than happy to help.
So I just want to talk about one more thing that you can do to improve your conversion ratio, that's having a blog, now for some reason a reluctance for websites to have a blog but it's actually the number one thing that you can do for a lot of things. It's the number one thing you can do to improve your SEO Rankings and it also increases your authority on whatever you are selling. If every week you're putting out an article about what the best blankets are in the market and you sell blankets, then you're an authority on that topic. Every week you thought this guy knows what he's talking about. This girl knows what he's talking about. So you become an authority on that topic and again your conversion is likely to go up because of that.
So that's a summary of things, obviously like I said there's a million things that you can do to convert, you change the color on the website and you'll probably change the conversion ratio because people are going to have a different reaction. People like to buy happy experiences. So you got to create a happy experience.
I hope this was helpful information, again always happy to share my experience. If any questions anyone has share them in the comments. I look forward to answering your questions. Keep grinding everyone have a lovely week.