In this blog post, we'll share six indispensable tips to help you improve your online store's conversion rate, spanning from website design nuances to marketing strategies. Implement these, and watch as you attract more orders and propel your sales to new heights!
As an online store owner, you've likely grappled with a central concern: "How can I drive more sales?" One of the pivotal elements in enhancing your store's revenue is elevating the conversion rate. In this blog post, we'll share six indispensable tips to help you improve your online store's conversion rate, spanning from website design nuances to marketing strategies. Implement these, and watch as you attract more orders and propel your sales to new heights!
Before delving into conversion rate, let's first clarify what "conversion" entails. Conversion is a prevalent marketing term denoting any action users take that holds value for a business. According to Google's official definition, a conversion occurs when an individual views an ad and subsequently undertakes a desired action, such as subscribing to a newsletter, calling a business, or installing an app. Google defines the conversion rate as "the average number of conversions per ad interaction, expressed as a percentage." The formula is as follows:
Conversion Rate = (Number of Conversions ÷ Total Ad Clicks) × 100%
For instance, if an ad garners 1,000 clicks and results in 50 conversions, the conversion rate would be 5%.
Beyond advertising, you can also gauge marketing effectiveness through conversion rates in other scenarios. In the realm of e-commerce, the online store conversion rate is of utmost importance. From a funnel-concept perspective, the behaviors of online store customers primarily include: browsing the homepage, searching for products, adding items to the cart, placing an order, making a payment, and completing the transaction. Through conversion rates, you can calculate the likelihood of visitors achieving these events after visiting the online store. Examples include:
Once you've calculated the transaction completion conversion rate, you can determine the online store's revenue by multiplying it by the Average Order Value (AOV). For example, if your online store had 10,000 visitors in the past month, with a transaction completion conversion rate of 5% and an AOV of $1,000, the store's revenue for that month would be: 10,000 × 5% × $1,000 = $500,000.
Evidently, to enhance your online store's performance, you must strive to simultaneously increase visitor traffic, conversion rate, and average order value – all three are essential. If you're uncertain where to begin, consider the following six strategies to boost your online store's conversion rate!
The quality of traffic is intrinsically linked to the performance of your online store. Ponder this: if your store manages to attract a large number of visitors, yet most merely browse without making a purchase, this traffic won't contribute to improving your conversion rate. Thus, you need to consistently optimize your traffic sources to ensure that visitors come to your store with the intention of buying, rather than just for initial exploration.
When it comes to advertising, contemplate implementing retargeting strategies. For example, through the Boutir mobile app, you can run dynamic ads on Facebook that showcase to visitors the products they previously viewed after they leave your store. This nudges them to complete their purchase, thereby aiding in boosting your online store's conversion rate.
The bandwagon effect, also known as the "herd effect," describes the tendency of people to follow others and make the same actions and decisions because their sense of security heightens when risks are shared. When applied to consumer behavior, it's easy to see why many customers gravitate towards purchasing the most popular products to bolster their confidence in their buying decisions.
As an online store owner, you can harness this psychological phenomenon to enhance your store's conversion rate. In terms of website design, consider displaying the number of products sold or even curating a ranking list of your store's best-selling items. This can increase the likelihood of potential customers placing orders. Additionally, collaborating with multiple influencers and inviting them to share their experiences with your products on their social media platforms can attract their followers to make purchases.
If your marketing resources are limited and you'd rather not rely on influencers to draw customers, you can also contemplate organizing group-buying promotions. This approach can likewise trigger the bandwagon effect, thereby boosting your online store's conversion rate. To efficiently manage a potential influx of orders within a short span, you can utilize Boutir's "AI Sales Assistant" to enhance your operational efficiency.
In addition to the bandwagon effect, the "Fear of Missing Out" (FOMO) is another potent consumer psychology tactic for boosting your online store's conversion rate. Simply put, people dread missing out on the best purchasing opportunities, such as limited-time discounts, which could lead to later regret. You can capitalize on this psychological state by instilling a sense of urgency in potential customers, prompting them to place orders promptly and thus increasing your store's conversion rate.
For Boutir users, you can effectively utilize the following features to introduce urgency for potential customers by leveraging the three key elements of "limited quantity," "limited time," and "exclusive access":
UGC (User - Generated Content) refers to content created by customers about a brand, typically centered around their authentic experiences and emotions. Last year, Statista conducted an online shopping study, gathering responses from over 10,000 individuals across 56 countries and regions. The study revealed that 44% of respondents concurred that online customer reviews were extremely helpful to them.
This underscores the significant influence of UGC. When harnessed effectively, it can play a crucial role in word-of-mouth marketing, enhancing potential customers' affinity for the brand. Boutir merchants can utilize the "Custom Page" feature to create dedicated pages on their online stores to showcase genuine customer reviews, fostering brand trust and boosting the store's conversion rate.
When targeting new customers, one of the key strategies for improving your online store's conversion rate is to reduce the barriers to purchase. Consider how often you've felt both excited and apprehensive when contemplating trying a new brand. This conflicting sentiment often stems from high shopping barriers, as new customers fret about whether the product offers good value for money. Consequently, they may visit your store multiple times but hesitate to make a purchase, ultimately impacting your store's conversion rate.
To lower the barriers to purchase, the most straightforward approach is to offer smaller packages or trial sizes. Another common method is to provide shopping discounts for new customers. Boutir users can initiate a "First Purchase Discount" campaign on their online store, offering discounts to members with no prior purchase history. This mitigates the risk of trial and error for new customers and encourages them to place orders. Of course, when setting up first-purchase discounts, you can append additional requirements, such as a minimum spending threshold. However, exercise caution not to set the requirements too high, as this could inadvertently raise the shopping barriers and impede your store's conversion rate.
The Baymard Institute conducted a survey to understand why respondents abandoned their purchases. Common reasons included:
This indicates that low online store conversion rates can often be attributed to the store's design itself.
To improve your online store's conversion rate, you can commence by optimizing the checkout process. For example, support guest checkout options and enable customers to register as members through their social media accounts, providing a smoother shopping experience. Additionally, you can enable more fast and secure payment methods to increase their willingness to complete transactions. In this regard, Boutir already supports a diverse range of electronic payment tools commonly used in Singapore, helping you boost your store's conversion rate.
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