Things a Business Leader must know: What is a Good Conversion Rate?
Things a Business Leader must know: What is a Good Conversion Rate?
A good business leader tests and adapts to all thriving strategies that can improve the company’s conversion rate. You can determine your product’s and sales strategies’ success only when the numbers meet your expectations.
Whether you are tracking a new signup, a purchase or an app download, it contributes to your measurable conversion rate. The conversion rate percentage is obtained by considering the total visitors to your website or platform and how many people among them took a business-oriented action.
So, if you start with a new eCommerce business, understanding conversion marketing is crucial to making you a competitive business leader. Hence, this article will educate you on what is a good conversion rate and how you can make it excel.
What Do You Mean by a Good Ecommerce Conversion Rate?
In this decade, the eCommerce conversion rate will play a massive role in helping entrepreneurs make money. Even though there are various parameters for judging the conversation rate of your business, with an eCommerce setup, the most important parameter is to track the customers’ purchase statistics ratio for your products or services.
It will exhaust you at one time when you will be spending enormous money to draw traffic to your website or platform, but people will abandon your site without a purchase. When traffic flow is optimal, but the sales are degrading, you can conclude your conversion strategies are not optimised.
There are always certain dos and don’ts that will lead your potential customers to decide whether or not to buy your products. So, if you want to draw positive results, the true definition of a good conversion rate is when you add personalisation to your marketing and sales strategies.
As per a survey of 2020, marketers from the UK and USA have expressed that they saw enormous ROI for every dollar they spent because they used personalisation as the key to making it work.
In numbers, a good conversion rate should be around 2 to 5%. You must always target this percentage, but be prepared to go beyond it.
Tips to Improve the Conversion Rate
If you understand the importance of getting higher landing page conversion rates, then let’s get along with the tips to increase it for your eCommerce business:
- Change or Improve Your Offer
As stated earlier, personalisation is the key to making your business successful. You cannot convert a website visitor into a buying customer if you are not offering them what they seek.
For instance, suppose someone has searched for the best shoes within a budget and has landed on your website. In that case, your website should showcase banners and discount ads on shoes instead of any other products. It doesn’t matter if your furniture ad has a heavy flashy discount; the visitor won’t convert as he was there looking for shoes.
So, use data that you can collect through contact forms, newsletter signup forms, and CRM tools. It will help you understand your customers’ behaviour, and you can optimise your conversion rate marketing strategies with personalisation, to curate the ads, landing pages and other such materials. Thus, the conversion rate will increase.
- Deal with the Cart Abandonment Issue
Cart abandonment is a major issue that almost all eCommerce stores have to deal with. As the name suggests, it is when a visitor adds a product to the cart, enters the details and then exits the website, resulting in cart abandonment.
It is one of the major parameters that affect conversion. As per the statistics, the average cart abandonment rate is 79.17%. You need to ensure you don’t lose a good conversion rate due to this issue. Therefore, take a closer look at some specific areas of your eCommerce business, which include:
- Hidden costs
- Complex understandability of the price breakdown
- Site is unreliable
- Website crashing issues
- Unavailability of desired payment options
You can add an SSL certificate, make the website navigation easier, avoid additional costs and add reliable payment methods to prevent cart abandonment.
- Try Remarketing for Attracting Your Website Visitors
There are customers who would not like to purchase from your store right from the first visit. If you are a new brand, they need to trust it before they start sharing personal information over it. Hence, you need to remarket your products or services to make this possible.
Remarketing is the technique of marketing your services or products to people who have already interacted with your brand. Retargeted ads have a better chance of offering you heightened conversion rates. But it is indeed an expensive approach!
How to Know if the Conversion Rate is Good?
If you are counting on determining if your conversion rate is optimal or needs some improvements, then here are a few ways you can drive your focus on:
- Keep a Tab on Previous Conversion Rates
To measure if your conversion rates are optimal, you must keep a tab on them. You need to compare the conversion rates periodically. Tools such as Weavr allow you to compare your different measurable conversion rates under one dashboard.
Depending on what results you obtain after the comparison, you can take optimisation initiatives to overcome the flaws. Take out the things that aren’t working while replacing them with something more market effective.
- Rectify the Industry Benchmarks
There are various aspects that correlate with making your website interesting for visitors to take action over it. These aspects include site navigation, mobile optimisation, copywriting, SEO, page load time, and landing page.
You must ensure that these parameters influence your target audience to take optimal action and not just bounce off your website.
- Competitor Analysis on Price Point
You can still fail even with the best marketing and conversion optimisation tactics. It is when your competitors sell the same products or services at a cheaper value. You don’t have to lower your prices in terms of justifying the competition. But with analysis, you can ensure you do your marketing right to draw people’s attention to buy quality over cheaper pricing.
Depending on various parameters, you can compare if your specified price point is justifying the ROI earned. For instance, if you are dealing with high-priced products such as laptops, appliances or others, you will have a lower variance among competitors than the low-priced products.
Try Weavr, and You Will Have a Better Hold On Your Conversion Rate Optimisation!
Weavr is your one-stop dashboard that can collect your data and turn them into actionable insights. It will help you track your conversion rate based on the purchases made against the total number of website visitors.
Every data, parameter and metric will be on your unified dashboard to make decisions and optimise your conversion rate. Make your eCommerce business operate smartly with digital integrations, such as Weavr.
This is all that you must know to ensure that your eCommerce conversion rate never fails. Adapt to the mentioned strategies and follow the ways for keeping a tab on its progress. It is to ensure that you will be able to take appropriate action to prevent the sales breakdown at the earliest.
Be strategic with your initiatives, personalise the marketing campaigns and keep the website responsive. It is all-important to be on the right track to attaining exceptional ROI and the best conversion rate.