Understanding Conversion Rate Optimisation
To thrive in the crowded digital marketplace, you’ll need to recognise
the lingo at play. One key term to understand is conversion rate
optimisation (CRO). But what is CRO exactly?
In its most basic sense, conversion rate optimisation pertains to the
strategies and methods employed to increase the percentage of visitors
to your store who complete a desired action --- a conversion. That
desired action can come in various forms, from making a purchase to
signing up for a newsletter.
Now you might be thinking, “Sounds good, but how do I calculate it?”
The conversion rate is typically calculated by dividing the number of
conversions by your total visitors, then multiplying the result by 100
to get a percentage. Thus, if your store had 200 visitors in a day and
10 made a purchase, your conversion rate would be 5%.
But CRO isn’t simply about crunching numbers. It involves understanding
your customers’ behaviours and needs, then making strategic decisions
to make their journey more seamless. This might include tweaking your
website’s design, revolutionising your checkout process, or simply
changing the wording on a call-to-action button.
Then, once these changes are implemented, you’ll test out their
effectiveness, refine where necessary, and steadily improve your
conversion rates. All of this forms the core process of conversion rate
optimisation.
The beauty of CRO is that it not only leads to higher sales but a better
user experience for your customers. But the process can be intricate
with many facets to consider, and many ecommerce store owners can
encounter challenges along the way. That’s what we’ll uncover in the
following sections of this guide.
The Importance of Conversion Rate Optimisation for Ecommerce Store Owners
If you own an ecommerce store, understanding the importance of
conversion rate optimisation (CRO) is absolutely essential. CRO isn’t
just a flashy buzzword; it’s the key to maximising the effectiveness of
your online store.
But, what makes CRO so important?
Increase Sales Without Increasing Traffic
One of the greatest benefits of CRO is that it allows you to increase
sales without having to increase your website traffic. This is because
CRO focuses on improving your website’s efficiency rather than
increasing the number of visitors to your site. Even small percentages
of improvement to your conversion rate can lead to significant increases
in revenue.
Improve Customer Trust
A well-optimised, user-friendly site enhances customer trust. By
creating an easy, enjoyable shopping experience, you can encourage
customers to return again and again. A consistent, streamlined user
experience also reduces the likelihood of potential customers leaving
the checkout process prematurely due to confusion or frustration.
Better Use of Marketing Budget
CRO works hand in hand with your marketing efforts. By ensuring your
website is designed to effectively convert visitors into customers, your
return on investment for any marketing initiatives will be optimised.
This means every pound spent on getting visitors to your site is more
likely to result in a sale.
Gain a Competitive Advantage
Despite the clear benefits of CRO, many ecommerce store owners fail to
give it enough attention. By dedicating time and resources to optimising
your website’s conversion rate, you can gain a significant edge over
your competitors.
Overall, conversion rate optimisation is a vital ecommerce tool. It
allows for better use of resources, improves customer trust, and can
boost your bottom line significantly. With so many compelling reasons to
consider CRO, there’s no better time than now to start making
conversion rate optimisation a key part of your ecommerce strategy.
Common Challenges Faced by Ecommerce Store Owners in Conversion Rate Optimisation
Running an ecommerce store presents its own unique set of challenges and
when it comes to Conversion Rate Optimisation (CRO), these difficulties
can appear even more daunting. Let’s take a look at some of the most
prevalent issues that can hamper your CRO efforts:
Lack of Understanding of CRO
Probably one of the first difficulties that ecommerce store owners face
is the lack of understanding about what CRO really is. Many owners might
be experts in their product line, but lack the necessary digital
marketing knowledge to appreciate the importance of CRO, and how to
implement it.
Limited Resources
CRO involves a wide array of activities, including detailed analytics
review, user experience (UX) testing, content modification, and design
changes, among others. For small to midsized ecommerce stores, finding
the resources, both in terms of time and money, to carry out these
activities can be a steep uphill battle.
Data Overload
We’re in the age of data and with that comes the power to influence
purchase decisions. Yet, managing and interpreting massive amounts of
data can be overwhelming. Many ecommerce store owners struggle to
separate valuable insights from the noise which can hinder their CRO
efforts.
Identifying the Right Metrics
It’s one thing to measure your conversion rate, but it’s another to
understand the metrics that contribute to it. Identifying the right
metrics to track and measure is essential for successful CRO but it can
be challenging for ecommerce store owners to ascertain which metrics are
the most meaningful and relevant.
Ensuring a Seamless User Experience
One of the fundamental elements of CRO is providing a seamless user
experience. However, with multiple devices, diverse demographics and
changing consumer behaviour, ensuring a consistently smooth experience
can be a continuous challenge.
Keeping up With Advancements
The world of ecommerce is ever-evolving, with new technology and best
practices surfacing regularly. Thus, keeping up with these advancements
to ensure your store remains attractive and easy to use can, at times,
feel like a moving target.
Each of these challenges is significant, but don’t let them intimidate
you. By understanding these issues and strategising how to overcome
them, you can move forward towards achieving your CRO goals.
Analysing Your Current Conversion Rates
If you’re an ecommerce business owner, it’s crucial that you have
a grasp of your store’s current conversion rates. Such insight can
reveal if you’re making the most out of your website traffic, and help
pinpoint any possible shortcomings. But how can you go about this
analysis?
First, it’s about understanding what a conversion rate is. In essence,
your conversion rate is the percentage of website visitors that complete
a desired action, be it making a purchase, signing up for a newsletter,
or another objective that aligns with your business goals. It’s
calculated by dividing the number of conversions by the total number of
site visitors, then multiplying the result by 100.
So, how can one analyse these conversion rates?
Tracking Your Conversion Rates
Initially, you’ll want to establish a system to track your conversions.
Most ecommerce platforms offer built-in tools for this, such as Google
Analytics, which can provide comprehensive data on how your store is
performing. This is your first port of call for data collection.
Here’s a basic process for tracking:
- Set up Google Analytics or another analytics tool on your website.
- Define what a ‘conversion’ means for your website.
- Establish Goals in your analytics software to track these
conversions.
- Closely monitor these conversions over time to understand trends.
Analysing Your Conversion Rates
Once you’re tracking your conversions and have some data to work with,
you can start analysing. Again, tools like Google Analytics can help
with this, offering insights into conversion paths, the efficiency of
various pages, and more.
This analysis can help answer questions like:
- Which products are converting most frequently?
- What paths are users taking to these conversions?
- Which pages have a higher dropout rate?
- What is your average conversion rate compared to industry benchmark?
Armed with these insights, you can start benchmarking against industry
standards, identifying any gaps, and formulating a strategy to improve
your conversion rates.
The path to understanding and optimising your conversion rates may seem
complex, but the potential rewards make it well worth your time.
Remember, it’s about continuously gaining insights, and then taking
action based on these findings. That’s when you’ll start to see an
uptick in conversions on your ecommerce store.
Setting Goals for Conversion Rate Optimisation
Conversion Rate Optimisation (CRO) is not a destination but a journey.
And like any journey, it starts with setting proper goals. Clear,
achievable goals are the backbone of any successful CRO process. By
defining what you want to achieve, you can map out strategies and
allocate resources more effectively.
While your ultimate goal might be to increase sales, remember that CRO
encompasses a range of intermediate objectives that feed into your
overarching aim. These could include boosting email sign-ups, growing
your social media following, increasing product inquiries, or
encouraging downloads of your online catalogue.
Define SMART Goals
For each of these objectives, it’s important to establish goals that
are SMART - Specific, Measurable, Acceptable, Realistic, and Time-bound.
Instead of a vague plan like ‘increase sign-ups’, your SMART goal
would be ‘increase sign-ups by 15% in the next two months’.
- Specific: Your goals need to be unambiguous, clear and to the
point.
- Measurable: It implies your goals should be quantifiable to assess
progress at regular intervals.
- Acceptable: Goals should be aligned with your business values and
targets, else they will not be feasible.
- Realistic: Your goals should be attainable, not overly ambitious
or unachievable in reality.
- Time-bound: Setting a deadline keeps you focused and boosts
productivity.
By setting SMART goals, you can ensure that your conversion optimisation
efforts are targeted, structured and, crucially, measurable. As such,
you can adapt or reassess your approach based on genuine insights,
rather than guesswork.
Identify Key Performance Indicators
Once your goals are set, the next step is to determine your Key
Performance Indicators (KPIs). KPIs help you measure the success of your
CRO efforts. If your goal is to improve email sign-ups, your KPI could
be the number of new sign-ups generated per day or week.
Goals and KPIs provide a framework within which to operate. They guide
your decisions and tactics and give you a way to measure progress. With
them in place, you’re ready to embark on your CRO journey.
Identifying Barriers and Friction Points in the Customer Journey
As an ecommerce retailer, understanding your customers’ journey from
their initial visit to the point of purchase is crucial. It uncovers the
various touchpoints where customers interact with your store, providing
insights into potential barriers and friction points that can deter them
from making a purchase. Friction Points and Barriers can be defined as
follows:
Friction Points: These are areas that disrupt the smooth flow of
your customer’s purchasing journey, potentially leading them to abandon
their cart. They can be anything from complicated navigation, a lengthy
checkout process, unexpected costs, or even poor website performance.
Barriers: These are more significant obstacles that impede your
customers from making a purchase. Barriers may include limited payment
options, lack of product information, or insufficient trust indicators
like customer reviews or product ratings.
Mapping Out the Customer Journey
The first step in identifying barriers and friction points is to map out
the customer journey. Where do your customers come from, and what
actions do they take before making a purchase, or deciding to leave?
This recognises every step a potential customer takes in the process of
purchasing. It might take a bit of time and detailing, but it’s an
investment worth making.
Using Analytics
Use advanced analytic tools to ascertain information related to customer
behaviours on your site. By observing visitor behaviours, pages most
visited, bounce rate, and time spent, you can get some insights into
potential barriers and friction points. For instance, a page with a high
bounce rate might indicate a friction point.
Post-Purchase Surveys and Customer Feedback
Post-purchase customer surveys and feedback can be invaluable in
identifying friction points. By analysing these responses, you can
discover where customers encountered difficulties or frustrations in
their purchase process. This feedback provides a more qualitative
insight that can complement your quantitative data.
Once you have identified the barriers and friction points, the next step
is to remove them or ease their impact. This might involve redesigning
your website, simplifying the checkout process, or improving your
customer service. Remember, the goal here is to streamline the customer
journey and make it as swift and smooth as possible.
Implementing A/B Testing to Discover What Works Best
Up next on our journey of optimising conversion rates, we delve into one
of the most effective methods - A/B testing. This is a practice that
breaks down the complexity of your ecommerce site performance and
provides actionable insights. So, what’s A/B testing all about?
A/B testing, also referred to as split testing, involves comparing two
versions of your webpage or other user experience to determine which
performs better. It’s like a “trial and error” approach that allows
you to make data-driven decisions rather than just guesses or
assumptions. You show two variants, A and B, to similar visitors at the
same time. The one that gives a better conversion rate, wins!
Implementing A/B Testing
Befriend A/B testing by following these straightforward steps:
- Identify a goal: Your goal could be anything related to
improving user engagement - increasing sales, reducing cart
abandonment, or enhancing click-through-rates.
- Generate Hypothesis: Based on your metrics, generate a
hypothesis about what changes can improve your goal metrics.
- Create Variants: Use an A/B testing tool to create a new variant
of your webpage or a specific element (like a call to action
button).
- Run Experiment: Direct equal volumes of traffic to both
versions, A (control) and B (variant).
- Analyse Data: After a period of time, use your A/B testing tool
to analyse the results.
- Choose the Best Performing Variant: Finally, if variant B
performs better, implement it permanently.
Remember, meticulously chosen A/B tests can have a significant impact on
your bottom line. A heading that encaptures attention, a well-placed
button, an engaging product description - each alteration could be
a game-changer. However, only test one element at a time so you know
exactly what’s responsible for the increased conversion.
Takeaway: A/B testing is not a one-time task, rather an ongoing
process that caters to the changing dynamics of buyer behaviours, market
trends, and your evolving business goals. It enables you to remove the
guesswork, and make data-driven decisions that can have dramatic impacts
on your ecommerce site’s effectiveness.
As you delve into the realm of Conversion Rate Optimisation (CRO), a
crucial component in your toolkit will be testing tools. These tools not
only make the process of conducting tests easier, but they also provide
invaluable insights into how your changes are affecting your conversion
rates. Let’s explore some of the prominent tools that might come in
handy.
Visual Website Optimizer (VWO)
Visual Website Optimizer, commonly known as VWO, adds a new level of
proficiency to your ecommerce conversion rate optimisation toolkit. If
you’re looking for a full-featured platform that combines A/B testing,
heat mapping, and visitor recording, VWO might just be your perfect
match.
One of VWO’s standout features is its advanced segmentation
capabilities. This allows you to target website tests based on user
behaviour, browser, geographic location, and other factors. You can also
tap into its rich real-time analytics to gain critical insights into how
users are interacting with your ecommerce store.
In line with its commitment to helping you create a seamless user
experience, VWO offers a slew of features such as website surveys, push
notifications, and social proof widgets. The goal is to make tweaks that
not only drive conversions but also enhance your customers’ overall
experience with your store.
In addition to these features, VWO stands out for its ease of use. With
its straightforward interface, even those not versed in the technical
aspects of CRO can run tests and analyse the results.
It’s import to note, though, that while VWO offers an invaluable array
of features, it might be a bit overkill if you’re looking for a simple
testing tool. The costs can add up, particularly for smaller ecommerce
businesses with tighter budgets.
However, if you’re ready to dive into deep CRO waters and have the
budget to match, VWO’s comprehensive functionality makes it a worthy
consideration for any ecommerce store desiring to optimise their
conversion rates.
Posthog
PostHog is a noteworthy, open-source product analytics tool designed
for businesses in need of comprehensive user-interaction data from their
ecommerce store. It is particularly beneficial for conversion rate
enhancement.
With PostHog, ecommerce owners can analyze user behavior on their
website. It offers features beyond just conversion tracking, such as
user event tracking, session recording, funnel creation based on user
actions, and heatmaps, which highlight user interaction hotspots on the
website.
Through PostHog’s platform, you can dissect user patterns and trends
influencing your conversion rate. This information is handy for
pinpointing and resolving friction points in your customer journey. The
tool highlights stages in the sales funnel where user engagement falls,
enabling suitable adjustments for conversion improvement.
Furthermore, PostHog’s automated insights feature suggests possible
enhancements to your user experience and conversion rates. This
open-source tool is highly adjustable, catering to your unique ecommerce
needs.
However, PostHog’s complexity might need a learning curve for
beginners. It, therefore, suits ecommerce businesses with advanced data
requirements seeking in-depth understandings of user behaviors for
conversion rate optimization.
Summary
Each tool comes with its unique set of features, strengths, and
weaknesses. Hence, having a clear understanding of your ecommerce
store’s unique requirements and goals is crucial in choosing the right
tool for your CRO journey. This will allow you to take full advantage of
the benefits these tools offer and derive the best results from your CRO
initiatives.
Continuous Improvement: Implementing a Conversion Rate Optimisation Strategy
Let’s dive into one of the most critical aspects of conversion rate
optimisation: the continuous improvement of your strategy. Implementing
your plans is only the beginning; success in conversion rate
optimisation is an ongoing process that requires consistent monitoring,
testing, analysis, and tweaks. Rather than a one-off undertaking, it’s
better to think of CRO as a cycle of continuous learning and
improvement.
Pilot, Monitor and Analyse
Start by piloting your new strategies on a small scale. This could mean
implementing a new webpage design or checkout process on one category of
products. Monitor the effects closely, focusing on how customer
behaviour changes and its impact on conversion rates. Utilise analytical
tools and metrics to gather quantitative data that can fuel your
decision-making process.
Refine based on Findings
No matter what the results of your initial efforts are, there will
always be room for improvement. Use the data and insights you’ve
gathered to fuel your refinements. These could take the form of changes
to page layouts, modifications to call-to-action phrases, alterations to
navigation structure, or even revisiting product pricing. Remember, the
aim is to improve the shopping experience for your customers, ultimately
encouraging them to make a purchase.
Continually Test New Hypotheses
Once you’ve refined your CRO strategies, it’s time to repeat the cycle.
Develop new hypotheses, try new tactics, and conduct additional tests to
find out what works best with your current retail environment and
customer behavioural trends. Remember, your ecommerce landscape is
continuously changing, making your investment in upgrading your CRO
strategies invaluable.
Keep in mind that this process not only aids in increasing conversions
but also provides insight into how your customers navigate your store
and what they value most. This knowledge can inform every aspect of your
ecommerce strategy, from merchandising to marketing campaigns to
customer service.
Common Mistakes to Avoid in Conversion Rate Optimisation
When it comes to conversion rate optimisation (CRO), applying the best
practices doesn’t mean you’re immune to making mistakes. Some of the
most common errors could unexpectedly impede your CRO efforts. Here’s
what you, as an ecommerce store owner, should avoid:
- Ignoring Mobile Users: In today’s digital age, more people are
shopping on their mobile devices than ever. Ignoring mobile
optimisation could mean you’re missing out on a significant portion
of potential customers. Make sure you optimise your online store for
mobile users.
- Failing to Segment: Not all customers are alike. Failing to
segment your customers can result in a one-size-fits-all approach
that may not effectively meet everyone’s needs. Be sure to segment
your users based on characteristics such as demographics, purchase
history, or behaviour, and customise your strategies accordingly.
- Not Prioritising User Experience (UX): A positive user
experience is the backbone of a high conversion rate. Poor site
design and complicated navigation can frustrate potential customers,
leading them to abandon their purchase.
- Casting Aside Metrics: Not paying careful attention to key
metrics or misinterpreting data can lead to missed conversion
opportunities. It’s essential that you understand your metrics and
what they mean for your online store.
- Neglecting your Value Proposition: If prospective customers
can’t quickly grasp your unique value proposition, they’re more
likely to lose interest. Make sure your value proposition is clear
and compelling, or you risk losing a potential conversion.
- Leaving Out Call-to-Actions (CTAs): CTAs are essential tools in
conversion. Failing to place them properly or making them too vague
can lead to confused customers, resulting in a decrease in
conversions.
- Assuming One Successful Test Means a Strategy is Perfect: Just
because an experiment or test resulted in higher conversions once,
doesn’t mean the same will happen again. Never stop testing and
optimising. CRO is a continuous process and requires ongoing
adjustments.
Avoiding these common mistakes can give your ecommerce store a better
chance of converting visitors into customers. Don’t forget that
becoming proficient in CRO takes time and learning from both successful
practices and misleading steps. Persistence and continuous improvements
are key.
Wrap up!
Through this comprehensive guide, you’ve garnered great insights into
the world of conversion rate optimisation (CRO). We’ve closely explored
the concept, it’s importance for ecommerce store owners, challenges you
may face, and the steps to effectively implement CRO strategies. From
analysing your existing conversion rates and setting optimisation goals,
to pinpointing barriers in the customer journey, conducting A/B tests,
continuously revamping your strategy, and avoiding common traps.
What’s clear is that CRO is not a one-off project but an ongoing
process. It requires patience, attention to detail, and the ability to
test and refine consistently based on data-driven insights. However, its
rewards are worth the effort, as improved conversion rates can lead to
increased sales, better customer trust, more efficient use of your
marketing budget, and a significant competitive advantage.
Remember, CRO is about understanding your customers --- their needs,
challenges, desires, and behaviours --- and then making continuous
improvements to your site that make it easier for them to convert.
Regular analysis of your metrics, customer feedback, and user experience
should be par for the course in your CRO journey.
If you feel overwhelmed by the process, consider seeking the help of
experts or using specific tools that can simplify CRO. There’s a wide
range of tools that can help you analyse website data, conduct A/B
testing, map customer journeys, or collect and interpret customer
feedback.
As you implement CRO, make sure not to lose sight of your overall
business goals and your brand’s values. Strive for a balance between
achieving higher conversion rates and maintaining a site and brand that
truly resonate with your customers.
Embrace the power of CRO and make your ecommerce store a success. Good
luck with your conversion rate optimisation endeavours!