Conversion Rate Optimization

Improving Conversion Rates

E-commerce sales success is driven by customer conversion rates. Conversion rate is calculated by taking the number of conversions and dividing it by the number of total visitors or total number of users that take a specific action. The result is then expressed as a percentage of the total visitor count.

The Conversion Rate Formula

Conversion Rate = (Number of Conversions / Number of Visitors) x 100%

I.E. A website receives 100 visitors and 10 of them make a purchase, the conversion rate would be:
(100 / 10) x 100% = 10%

It is important to note that conversion rate can be calculated for different actions or goals, such as page views, newsletter signups, contact page submissions, and file downloads, not only for purchases. Conversion rates should be evaluated over time to identify fluctuations in performance.

Pricing and Perceived Value

The price of a product can greatly impact the conversion rate. Customers will be more likely to purchase a product if they feel they are getting a good deal or if the product is perceived to have a high value. Customers will often compare your price to the Amazon price, especially if they are prime members.

If your price is greater than the Amazon price then perceived value can be implied with additional benefits not available to the Amazon shopper. For product manufacturers enhanced customer service and warranty support can be offered as a benefit of purchasing from the manufacturer directly.

If you’re a service oriented business, pricing comparisons with other service providers for similar services can provide a way to signal positive price offers to your customers. For service providers who provide parts replacement, offering a deep discount on the parts, or no markup on the repair parts is an important consideration in service pricing.

Website Usability

The design and usability of a website can greatly impact the conversion rate. A website that loads quickly can greatly impact the conversion rate as customers are less likely to abandon a purchase if the website loads quickly. Google does not give wide placement in search to sites that are slow to load.

A website that is easy to navigate and has a clear call-to-action will encourage customers to make a purchase. High-quality images showing products from multiple angles, information sheets, product specifications, videos, and assembly / use guides help a consumer during the consideration phase of the conversion process.

Customers are more likely to make a purchase if they trust and believe in the brand and website. This can be established through customer reviews, testimonials, and a professional website design. Customer reviews and ratings can greatly impact the conversion rate. Positive reviews can increase trust and credibility in the brand and encourage customers to make a purchase.

As more and more customers are using mobile devices to browse and shop online, it is important to have a website that is optimized for mobile to increase the conversion rate. Test your site for mobile usability at this link: Mobile-Friendly Test

Other Factors to Consider

Customers are more likely to complete a purchase if they feel their personal and financial information is secure. Offering multiple payment options and ensuring the payment methods are secure can increase the conversion rate.

Every product should have a complete listing of its Features which are factual in nature, and then benefits which are emotional prompts about the product. A sense of urgency to purchase can be implied with stock level signals, free shipping, or discount offers all based on an offer timeout counter.

Shipping costs and delivery times can greatly impact the conversion rate. Customers are more likely to complete a purchase if the shipping costs are reasonable and the delivery time is quick.

A positive user experience and responsive customer service can greatly increase the likelihood of a customer returning to the website and making future purchases. A clear and easy-to-understand return policy can give customers peace of mind and increase their likelihood of making a purchase.

Regularly testing and optimizing different elements of the website, such as the call-to-action or product images, can increase the conversion rate by determining what works best for a specific audience.