Most businesses nowadays need to double their effort in increasing and strengthening their online presence if they want to stand out among the vast competition. If you’re going to increase revenue while maintaining a robust online presence, you have to monitor your website’s conversion rate.
Before we dive more into the eCommerce conversion rate, what exactly is it? It can be a metric to see how much your online store or website is doing in the market. Conversion rate is the percentage of internet users who purchased a product or service from your online store or website in a specific amount of time. This could be any of the following:
- Online sales
- Service subscription
- Answered surveys
- Newsletter signup
- Feedback and ratings
- Products added to cart
- Products added to wishlist
- Sign-ups using emails
- Number of shares in social media sites
- Number of times links were copied
Basically, it can be any KPI you find vital to your business. You have to be aware of these numbers to know how you can increase your conversion over time.
The average ecommerce conversion rate is 1% to 2%. The primary goal of your business should be to acquire at least 2%+ conversion rate.
Now that we know what ecommerce conversion rate is, we’ve listed four reasons you need to boost your eCommerce conversion rate. As a business owner, you must understand these reasons to step up your online store’s conversion.
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Increase Revenue
Optimizing your conversion rate can lead to an increase in revenue every time you get a visitor and acquire new customers, and this helps speed up the growth process of your business.
If you want to increase revenue despite being in a competitive and fast-paced market, you have to understand your customers through various KPIs. Being able to determine your online store’s conversion rate allows you to have control of the situation and come up with solutions on how to raise your conversion rate. As your conversion rate rises, so do your leads for tour business.
Not all leads may convert to sales, but the higher your conversion rate is, the more you can increase traffic for your website. Increasing traffic also means an increased chance for your products and service to get noticed by potential clients.
Increase Ecommerce Competition
Before you cringe away, you have to be fully aware that the number of online retailers has kept growing every month ever since the pandemic began. All of those only retailers are competing for the same customers. Big names in the market are Amazon and eBay. Because of the reputation those two online sharks gained through time, there’s almost little to no chance for smaller businesses to be noticed by the public.
So if your goal is to convert the number of users viewing your website into sales, you have to first penetrate the market by increasing your conversion rate.
It’s hard to beat Amazon right when it’s at its peak, but what you can do is learn from it and use it to improve your website. It would help if you had an online store or website that is user-friendly and drives a call-to-action, such as free subscription, free shipping vouchers for a limited time so they will be forced to check out, discounts and bundles, repeat customer vouchers, and many more.
Increasing competition is healthy so that you won’t feel complacent all the time. It will be your drive to be as competitive as the top businesses in the market too.
High Conversion Rate Can Lead to A More Professional-looking Website
A website or online store that is being optimized continuously may seem more legitimate from a consumer’s point of view. Customers are meticulous nowadays, so increasing brand reputation through boosting conversion rate can help acquire the right customers for your business.
Boosting conversion rate makes your online store more discoverable, which strengthens your online presence; making your brand more professional in the eyes of the consumers.
Optimized Conversion Rate Increases Efficacy of Marketing Strategies
Online advertisements, special online events, sales, and discounts – are all different marketing strategies. Optimized eCommerce conversion rate can help translate those marketing efforts into sales by making your website more discoverable and user-friendly.
For instance, one of your marketing tactics is to give out free shipping vouchers to your users so it can positively affect their purchase decision, but since your brand is pretty much at the bottom of the search results, how can your target customers discover your helpful vouchers? Only a few might be notified, but it won’t still be enough to increase sales.
Optimized conversion rate can generate more sales through gaining leads. The more your online store gets optimized, the more it will likely attract more users who will eventually convert to customers.
Becoming part of the eCommerce world takes more than just having a stable internet and reliable PCs and laptops. You have to understand how eCommerce works to be prepared for the daily challenges of increasing online brand presence.
