What is E-commerce conversion rate optimization?

1 What is e-commerce conversion rate optimization?

E-commerce conversion rate optimization, or CRO for short, is the process of improving your website design, content, and functionality to increase the percentage of visitors who complete a desired action, such as making a purchase, signing up for a newsletter, or downloading a free resource. A higher conversion rate means more sales, more customers, and more growth for your business.

2 Why is e-commerce conversion rate optimization important?

E-commerce conversion rate optimization is important because it helps you make the most of your existing traffic and reduce your customer acquisition costs. By optimizing your website for conversions, you can increase your revenue without spending more money on advertising or marketing. You can also improve your customer satisfaction and loyalty by providing a better user experience and meeting their needs and expectations.

3 How to measure your e-commerce conversion rate

Before you start optimizing your website for conversions, you need to measure your current performance and set realistic goals. To calculate your e-commerce conversion rate, you need to divide the number of transactions by the number of unique visitors to your website in a given period. For example, if you had 10,000 visitors and 500 sales in a month, your conversion rate would be 5%. You can use tools like Google Analytics or Shopify Analytics to track your conversion rate and other metrics.

4 How to benchmark your e-commerce conversion rate

Once you know your e-commerce conversion rate, you need to compare it with your industry average and your competitors. This will help you understand how well you are doing and where you can improve. You can find industry benchmarks from various sources, such as reports, surveys, or case studies. For example, according to Monetate, the global average e-commerce conversion rate in Q1 2020 was 2.58%. However, this may vary depending on your product category, price range, and target audience.

5 How to optimize your e-commerce conversion rate

E-commerce conversion rate optimization is not a one-size-fits-all formula, but there are common practices that can help you increase your chances of converting your visitors. For example, optimize product pages with clear and compelling copy, high-quality images, videos, reviews, and social proof. Additionally, simplify the checkout process by reducing steps and distractions, and offering multiple payment and shipping options. Urgency and scarcity tactics such as countdown timers, limited stock alerts, or flash sales can create a sense of FOMO (fear of missing out) and encourage faster decisions. You can also test different elements of your website such as headlines, colors, buttons, layouts, and offers to see what works best for your audience. Segmenting visitors and personalizing website content and offers based on their behavior is also beneficial. Tools like Google Optimize or Optimizely can be used to run A/B tests or multivariate tests while Google Tag Manager or Klaviyo can be used to collect visitor data and create personalized campaigns.

6 How to learn more about e-commerce conversion rate optimization

If you want to learn more about e-commerce conversion rate optimization, there are a variety of resources available. You can read blogs and podcasts from ConversionXL, CXL Institute, Unbounce, or Ecommerce Influence for tips, insights, and case studies. Additionally, there are books and courses such as E-commerce Evolved, The Conversion Code, or E-commerce Masterclass that will provide fundamentals and strategies. Finally, you can reach out to experts and consultants like Peep Laja, Talia Wolf, or Kurt Elster for coaching, training, or consulting services. E-commerce conversion rate optimization is an ongoing and dynamic process that requires constant learning and experimentation.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?