If you’re a subscriber to the ecomdash blog, you know that we are numbers nerds. Whether it’s performing data-driven annual reviews of your business or visually representing your ecommerce conversion reports, the importance of remaining a metrics-focused business can’t be overstated.
One metric that’s particularly crucial for your ecommerce business is your conversion rate. This shows how good your site is at converting traffic to actual sales. It helps you determine the effectiveness of anything from your site’s copy, its navigation, your prices, and even your checkout page.
How to Calculate Your Ecommerce Conversion Rates
The formula for calculating ecommerce conversion rates is pretty simple.
C (number of conversions) ÷ T (traffic from source) = ECR (ecommerce conversion rate).
Let’s define a couple of these terms. A conversion is simply a sale. It’s any person browsing your site who was converted into a buyer. Traffic from source is the number of people visiting your site in a certain way. It could be people who Googled a keyword to find your store (we’d call this organic traffic), people who clicked a link you shared on social media, (we’d call this referral traffic), or people who clicked on one of your pay-per-click ads somewhere on the net (we’d call this paid traffic).
Through this calculation, you can get a handle on whether or not your site is attractive to buyers, keeps them engaged throughout the buying process, and sets you up for success.
Ecommerce Conversion Rate Optimization Techniques
So now that you know what the issue is, how do you fix it? Correcting your course when it comes to ecommerce conversion rates doesn’t always require long and expensive website overhauls, or bringing in pricey consultants. Here are four surprisingly easy methods to raise conversion rates that any seller can accomplish.
#1 Offer Free, Fast Shipping
My least favorite thing about shopping online is shipping. Not only do I have to wait for my order, but I have to pay extra for it. If you can eliminate this barrier by offering your shipping free and fast, customers will be a lot more likely to complete their purchase and you’ll see a bump in your conversion rates.
Method: One way to make shipping appear free is to roll the cost of shipping into the purchase price. Customers love free shipping so much, they’re more likely to buy a $20 t-shirt with free shipping than a $15 t-shirt with $5 shipping. Test out this method to see how it works with your audience.
Related: Want to have faster shipping than your competitors every time? This software system supercharges your shipping speeds. Check it out.
#2 Give a Last-Minute Discount
Getting to the final page of the checkout process only to find the price significantly higher than you expected would make a lot of people re-think the purchase. You don’t want your shopper re-thinking the purchase this late in the process. Instead, offer a last-minute discount. Show the original price with a slash through it and display the new discounted price. The shopper will believe they’re getting a sweet deal and it’ll make them more likely to finish the purchase process.
Method: Make your last-minute discount time sensitive. Creating urgency in ecommerce is a proven method for boosting sales. If you tell your customer that they only have 10 minutes to make their purchase before the new discount disappears, it’ll give them the final push they need to complete the order.
#3 Give Away Freebies
Who doesn’t love free stuff? Drive your customers to buy by offering a freebie in exchange for the purchase. Make sure the freebie is related to the product that they are purchasing, as shoppers will view this as an added value. Examples include:
- Selling guitars? Throw in a free pack of strings.
- Selling artisan coffee? Offer a free branded mug with larger purchases.
- Selling vintage comic books? Give away a free superhero figurine.
The possibilities are endless.
Method: Allow customers who purchase above a certain amount to choose any item in your store under a certain amount for free. For example, you could say that anyone who spends more than $35 dollars can receive another item under $5 for free. This bonus purchase will not only raise conversions, but should give a boost to your average order value as well.
Related: These 5 tips will help you create kits and bundles that drive purchases. See your sales increase today.
#4 Show Off Some Social Consciousness
Putting social responsibility at the forefront of your business will convince customers that their purchase is serving a higher good. The socially conscious consumer is becoming more common every day. Appealing to this crowd will make completing the purchase a lot easier for shoppers who will then feel good about contributing to a cause that they care about.
Method: Let customers select a small amount of their purchase to donate to a related cause. Choice is always a draw for shoppers. You could even let them choose the cause they’d like to donate to. This adds an additional positive element to the purchase.
Use these methods to make the most out of your traffic. Increasing conversion rates is a constant battle of trial and error. None of these methods are magic bullets, but each should give you a lift in conversions. Try a few out today and check out the impact on your profits.