When 98 percent of shoppers abandon the checkout process, a 2% increase in eCommerce conversions can generate more revenue and increase earnings for your company. In business, little, marginal changes matter more than you think. Let’s explore the essentials before we look at how marginal improvements might result in massive financial results for your firm. Whether you’re running a modest shop, one of your top short-term responsibility is to increase top-line revenue and profitability. Did you know that just 2 percent to 2.5 percent of your store’s visitors make it all the way down the path to buy and checkout? This suggests that 98% of online customers who visit an eCommerce store do not make a purchase. Furthermore, over 3.3 percent puts you in the top 20, and over 4.6 percent puts you in the top 10.
Benefits of increase in E-commerce Conversions
How can we determine what our E-commerce conversion rate is?
To get the percentage, divide the total number of completed checkouts by the total number of site visitors. Using a free analytics tool, such as Google Analytics, or an eCommerce platform, such as Shopify, is an easy way to track eCommerce conversions. Even a 1% increase in conversion every day would result in an additional net income. Imagine if we could increase your communication conversion rate from 2% to 4%. Your company would double in size, resulting in a significant increase in new revenue. You pay for overhead and cover operating expenditures like rent and employees with a 40% gross profit margin. So, with so much to gain in terms of top-line and bottom-line development, why do so many small businesses and startups fail to increase e-commerce conversion rates? It’s because they don’t see the customer’s point of view, according to my consulting sessions.
Here are three major obstacles to E-commerce conversions:
Unnecessary information that your store may request to complete the transaction is referred to as checkout friction. It’s the same as making first-time buyers register for an account rather than allowing them to check out as “guests”. Installing an API that allows your customers to authenticate their accounts without having to register. Another common source of friction is requiring customers to validate their email addresses before completing the checkout process when creating an account with your store. This forces customers to first log in to their email accounts before returning to their cart and completing the purchase.
Every transaction must establish trust with the customer. When you collect their money, you promise to deliver the product or service as soon as possible. You trust that the checkout process will keep your information safe using an encrypted checkout. Because if something goes wrong with the order, there is someone to speak with to get it fixed.
Displaying the security seal that confirms your checkout is encrypted to exhibit trust with your customers. On the basket and checkout pages, emphasize your company’s worry-free promise. Also, include your customer support phone number on the aforementioned pages, as well as in the emailed receipt and packing list that the consumer receives with their order.
Your brand has no credibility with first-time buyers. It’s your job to build trust and reduce the risk of doing business with your organization. After a positive experience, repeat consumers will have a foundation of trust on which to build their future purchasing habits.
A shopper does not anticipate a hidden charge or a higher-than-expected shipping price. To overcome this drawback, boost your prices to include free delivery, or establish a minimum order threshold that assures all orders meet or exceed that amount. Make all fees visible on product pages and eliminate last-minute consumer hesitation by going through the customer’s purchase process yourself to see where the thrill evaporates with a sudden and unexpected roadblock.
Now you understood the importance of eCommerce conversions, how to monitor them, and how a 1% to 2% increase in conversion rates may dramatically change your company’s economics and place it for faster, organic growth.
Finally, eCommerce conversion rates can and will fluctuate over time, depending on a variety of factors such as seasonality, the quality of site visitors you receive, the amount of discount or coupon you offer, and other variables. On a weekly and monthly basis, make sure to track the eCommerce conversion rates in a spreadsheet or other document. Any improvements you make along the process to improve the customer’s buying experience should be highlighted.
A better conversion rate not only benefits your business but also indicates that your customers are discovering what they want and checking out smoothly, which is one of the key reasons why they keep returning to your online store.