Improving eCommerce conversion rate is not an easy task. In 2020 the average eCommerce conversion rate was 2.63% and research compiled by Smart Insights shows that the eCommerce conversion rate in the 2nd quarter of 2021 and in the US alone is approximately 3%.
That means out of 100 prospects, only 3 convert!
However discouraging the data may sound, with the right eCommerce conversion rate optimization approaches and tactics, you can definitely move the needle.
In this blog, I’ve compiled five common yet effective tactics for optimizing eCommerce conversion rates. So let’s begin and see what they are.
5 Proven Tactics for Optimizing eCommerce Conversion Rate
Optimizing an eCommerce website conversions is a never-ending cycle. You constantly have to analyze and identify what needs tweaking to improve your eCommerce website’s CR.
What’s even more difficult is that there are countless methods and tactics you can use to increase conversions on your eCommerce website.
But the following are five tried-and-true tactics, all of which are easy to implement even for every eCommerce business owner.
eCommerce CRO Tactic #1: Website Heatmaps
Using website heatmaps, you’ll be able to see what users click on, scroll through, or ignore on your website. All of which will help you form a better idea of what elements to add/remove, how and what to use A/B testing on, and in general what to do to improve the overall user experience on your website.
What is a Website Heatmap?
Heatmaps use a color spectrum ranging from red to blue to provide you with a visualized representation of how users engage with various elements on your website.
So if you want to know, or perhaps it’s best to say you should know, what users do on your eCommerce website, you must definitely rely on a website heatmap tool and use the visualized data, to boost your eCommerce conversion rate.
Among all of the top website heatmap tools like Hotjar and Smartlook, WatchThemLive is my top pick. Watch this video to find out why:
eCommerce CRO Tactic #2: Gather Social Proof
It’s no secret that people prefer recommendations from friends and family over advertisements and marketing gimmicks. This reflects the fundamental trust-based nature of human relationships.
So how can we use this to help improve our conversation rates?
Simple. Use every single opportunity you have to promote your brand’s social proof. Make use of testimonials, expert advice, and case studies that you’ve acquired over the years.
Good word of mouth is very, very underrated. It’s an excellent way to qualify your brand’s status and helps your customers overcome any niggling doubts they might have to boost your eCommerce conversion rate.
eCommerce CRO Tactic #3: Add Exclusivity and Urgency
Exclusivity and urgency are two incredibly powerful ways to turn prospects into paying customers. The longer you let your customers delay their purchase, the lower the odds of them actually buying something.
You want to encourage positive momentum to help them make purchasing decisions quickly.
Tell your customers about the finite number of items in stock. The moment your customer puts an item in their shopping cart, you want to remind them they have a limited time to purchase said item. Put the deadline at the front and center of your page.
Offer exclusive discounts that will expire unless they take action soon. These are proven ways to encourage prospects to buy, buy, buy, and are great for your eCommerce conversion rate.
eCommerce CRO Tactic #4: Offer Multiple Discount Options
There’s nothing worse than offering a coupon to a customer only for them to find out it’s invalid on the item they want to buy. This is a hugely negative experience you want to avoid.
At the same time, it’s not possible to give out coupons for everything.
So what do you do?
You simply give them more options. By giving them multiple discount options, you give them control over their purchasing decisions. You encourage them to experiment with different products and offers.
Not only does this make the purchasing process a little more personal, but it also leads them to make purchases when they originally might not have bought anything at all. Multiple discount options are a proven way to improve your eCommerce conversion rate.
eCommerce CRO Tactic #5: Reduce Abandoned Carts
Abandoned carts are common. Customers are fickle, so you can’t expect every single shopping cart to become a sale. This is one of the biggest problems plaguing your eCommerce conversion rate. But you can take measures to improve your website’s interface to salvage the shopping carts that are salvageable. So stop worrying about why your customer walked away.
eCommerce Conversion Rate Optimization FAQs
In this section, I’ll answer some of the common questions around optimizing eCommerce conversion rates.
What is a Good Conversion Rate for eCommerce?
A typical eCommerce conversion rate is between 1-4% of total site visitors. However, a high conversion rate might be damaging if those conversions do not result in revenue.
How Do You Calculate eCommerce Conversion Rate?
The conversion rate is calculated by dividing the number of conversions by the number of visitors, multiplied by 100. So if an eCommerce site has 1000 monthly visitors and makes 10 sales, the conversion rate is 10/1000*100, or 1%.
What is Online Store Conversion Rate?
Google defines eCommerce conversion rate as “the ratio of transactions to sessions, given as a percentage.” For instance, a 10% eCommerce conversion rate is described as a ratio of ten transactions for every hundred site sessions.
What is the Optimal Conversion Rate for an eCommerce Site?
There’s no one rule for defining an optimal conversion rate for an eCommerce site. But in general, a conversion rate of 2- 5% is acceptable.
Why is Conversion Rate Optimization Important in eCommerce?
With proper eCommerce conversion rate optimization, you can reduce customer acquisition costs by extracting more value from current users. eCommerce CRO allows you to earn more revenue per visitor, acquire more customers effectively, and eventually grow your business faster.
How Can I Improve My eCommerce Conversion Rate?
1. Use website heatmaps
2. Gather social proof
3. Add exclusivity and urgency
4. Discount frequently but wisely
5. Reduce abandoned carts
6. Improve UX
7. Leverage social commerce
8. Implement a user-friendly web design
9. Include various payment options