Do you wonder what the conversion rate is and how to make your advertising activities even more effective? Here is our advice!
The conversion rate is one of the most important indicators in the e-commerce industry. The higher it is, the more effective marketing activities. By optimising this indicator, it is possible to reduce the cost of acquiring a new customer. How to measure the conversion rate and how to optimise it correctly?
What does e-commerce conversion rate mean?
Conversion is one of the most important notions determining profits from conducted advertising campaigns. Simply put, it is a valuable action taken by advertising recipients. They can come across it, for example, from Google Ads or Facebook Ads. Actions will vary depending on the campaign purpose and business type. For example, a user can complete a form, subscribe to the newsletter, make a phone call, buy a product in an online store, download an e-book or set up an account on the portal.
Owing to conversion tracking, we’ll check which campaigns or advertising groups are the most effective. The conversion rate is expressed as a percentage. Simply speaking, it shows the percentage of users who have performed a specific action. For example, our website was visited by 100 users and 5 people carried out a specific action, thus the conversion rate is 5%. If it is not satisfactory, one should take care of additional actions improving the conversion rate – e g. focusing on targeted newsletters or push notifications.
Conversion rate – optimisation
Business is effective in as much as the conversion rate is high. First of all, one should obtain and analyse the data that will determine the conversion funnel. Thanks to the set goals, we have a chance to define which element, e.g. of the purchasing process, needs to be improved. Transaction is a general purpose of e-commerce, while adding a product to a cart is a detailed purpose. A realistic goal should be set to increase the transaction execution ratio in relation to the detailed purpose – e.g. a 5% improvement over a 2-month period.
How to increase the conversion rate?
The conversion rate can be improved by testing different solutions. The most popular include:
Call to Action in blog articles – CTA is highly effective as long as the call to action takes the right form. It should be placed in several places and be clearly visible. It is also worth using internal linking under the advertising slogan.
Newsletters – thanks to the newsletter subscription module it is possible to significantly increase the potential customer base and make them interested in customised messages.
Push notifications – this is a fairly new solution that has become a serious competition for traditional newsletters. Push notifications are a tool to increase sales, achieving 10 times higher conversion than from other sources. As in the case of newsletters, they also provide the possibility of accurate personalisation in terms of e.g. recipients’ interests and needs.
Remarketing – is a great way to remind potential customers about specific products, e.g. added to a shopping cart. Content or banners effectively remind of shopping.
These are just selected examples that can help us improve our conversion rate. Attention should be also paid to the website’s intuitiveness, graphic design, structure and naming of product categories in a store, as well as extensive filtering.
