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"The Art of Finding Winning Products"
Conversion is more than just a buzzword for digital marketers. If you have an online store, you definitely have to understand what it is. After all, your eCommerce site’s success relies on how well it can convert customers.
Once you’ve set up the digital shop, done the branding, and planned your marketing strategy, you may think that you’re all set. But it’s not where it ends. On the contrary, your journey as an entrepreneur is just beginning.
Now that your online store is up and running, what do you do? In an increasingly competitive digital landscape, you have to learn to optimize for conversion. You have to fight for your space in the world of eCommerce. The truth is improving conversion rates is a lot of work, but it can be done. So let us guide you through it.
It depends on whom you ask really. But to put it simply, conversion is the action you want a visitor to take on your website. For an eCommerce site, that would be a purchase. However, that’s just one type of conversion. It can take many forms including:
Aside from a completed purchase, these other forms of conversion matter because they can lead to a potential sale, an intent to purchase, or at the very least, awareness of your brand. New account signup means another customer knows your digital shop exists and later on, may buy items from you. Adding to cart and saving products on a wishlist signify an intent to purchase. The same goes for newsletter signup because the customer wants to be notified about your shop and your offers. Finally, social media shares mean your products are getting noticed. This can increase awareness and even lead to traffic to your site.
For these reasons, you would want to track these types of conversion because they can all result in a sale. You, as an online store owner, would also be informed about the users’ path to purchase that can help you make site improvements later on.
But how exactly do you measure conversion rate? Is there a formula for this?
Yes, there is and it’s pretty straightforward. To get your website’s conversion rate, you simply have to divide your conversions by the total number of visits to your website or landing page. Then whatever you get, multiply it to 100. An online shop with 10,000 visitors and 500 conversions has a conversion rate of 5%.
To illustrate, 500/10,000 x 100% = 5%.
Sounds easy enough, right? The problem lies when you don’t even measure these metrics.
The good news is that there are different tools to help you analyze them — one of them being Google Analytics. You just need to link it to your website and your Google Ads account so you can track those conversions. It measures how many visitors you have on a certain period as well as new and returning visitors. Another cool feature is that it can also indicate how visitors found your website, whether through a direct Google search, a Facebook ad, or a link from a blog.
This way, you can see what campaigns are effective and which ones are not working as much. Don’t forget to also set up your goals for each specific landing page like add to cart, purchase, wishlist, and so on. As it is, Google Analytics is already an effective way to measure the factors that affect your conversion as long as it’s set up correctly.
If you want to go the extra mile, you may also sign up for a Hotjar account, a heatmap tool that shows you what visitors do on your website. It can even record website sessions for you so you can see what actions they are performing on your site.
These are just two tools, but go ahead and do a quick search on your own. You’ll find that there are other helpful platforms like Crazy Egg, Clicktale, and BigCommerce. Just choose which ones are easy enough for you to use.
Now for the million-dollar question. What should you be aiming for as a conversion rate for your digital store?
The short answer is 2-3%. On average, most eCommerce sites have a 2-3% conversion rate. Of course, there are exceptions like Play.Google.com that has a whopping 30% conversion rate. You don’t have to get to 30% right away, although that would be great. Realistically, if you breach the 2-3% conversion rate for your store, you’ll already be good.
The retail landscape has changed drastically over the years and the number of digital buyers has ballooned. There are about 12-24 million ecommerce websites all over the world and every day new digital stores get created. So how do you stand out? How do you increase your conversions when you are surrounded left and right by other digital shops?
Remember, your customers are shopping from their laptops, iPads, and mobile phones. They don’t get to hold your product in their hands or try them on. If they’re just casually browsing on the internet and they click on your website only to find substandard images, you can bet that they will hop off and go on to the next website they can find.
Make sure you catch their attention with high-quality images and videos. Photos that look great make them feel good about the purchase. It helps customers visualize what it’s like own the item you’re selling. Videos are great, too. They walk them through what it’s like to wear, taste, or smell your offering.
Don’t underestimate the power of good visuals. If you are selling makeup, for instance, a before-and-after makeover would be enticing. Now if you’re selling plants and gardening supplies, an album compilation of home transformations by bringing in the greens can convince a casual shopper to click that add to cart button. The possibilities are endless.
This goes hand in hand with your product descriptions. Make them as clear as possible. You can be witty, but don’t leave out crucial information like the expiry date, measurements, specs, or any other pertinent detail you can include. Put yourself in your customers’ shoes. What should they need to know to make a decision? Put that in your description. If you do this well, this will also help minimize and prevent product returns.
Earlier we said that there are millions of eCommerce sites on the internet. Surely, your store is not the only one selling your wares. Check out your competitions’ shops and do a quick browse. How much are their products? Do your items stack up when it comes to pricing? Price them too high and your customers will be turned off. Price them too low and you risk losing profit. Ensure that yours is competitively priced instead.
If you’re using Spocket for dropshipping, our Global Pricing Rules can guide you in pricing your products. Of course, there’s leeway for you to adjust as you see fit. Spocket just reduces the manual labor and ensures you still have adequate profit margins. We have three types of rules: fixed markup, multiplier markup, and percent markup. Learn more about them here.
This is more than just changing fonts and colors on your website’s landing pages. Yes, having optimized call-to-action buttons can help. So do enticing images and palettes. But go beyond that and try these instead. Spruce up your offers with free shipping. For many, that’s enough incentive for them to click ‘buy’. Adding coupon codes for limited-time discount offers also creates a sense of urgency. Instead of putting off that purchase or abandoning their cart, customers would want to buy right away if they feel that they would lose a good deal.
In addition, think about the user experience, too. Imagine the flow of the website. Is it designed to make browsing and shopping easy? Your site speed has a lot to do with this. Check it against Google’s Page Speed Insights. If it takes forever to load, you can expect visitors to leave. A few seconds delay in loading can mean a lost sale, so optimize your digital shop for speed.
Next, look into your checkout process. Do you have to fill out a kilometric form just to make a purchase? That’s a big no-no. You do need to get all the important information, but keep it short. The last thing you’d want to happen is for your customer to start thinking twice about their decision to buy so make your checkout process as painless as possible. Having a guest checkout also helps. Normally, you want customers to sign up for an account, but giving them an option to buy without having an account can prevent drop-offs.
Unlike traditional stores where you can simply call a salesman to ask about the product you want to buy, there’s no one physically there to answer you when you’re shopping online. The next best thing is a live chat option where you or your staff can answer queries from potential customers. There’s a gamut of live chat plugins online that you can easily install on your digital shop. However, if you’re going for this, make sure you are ready to respond. No one likes going on a live chat only to find out that no one’s there anyway. Live chat takes a lot of commitment, but it’s a great tool for engagement and customer service.
Alternatively, you can also get the help of chatbots. You can create one with predefined flows that are designed to answer possible questions from customers. While you or your staff sleep, your chatbot can take over. They don’t really replace human interaction, but they provide a viable customer service solution.
With the growth of online shopping comes online fraud and theft. Don’t overlook this detail because it can be a source of headache if you don’t get it right. Make your customers feel safe when shopping on your website. Build trust by being explicit about the steps you take to make their shopping experience not only fun and easy but also secure. Have an SSL (Secure Sockets Layer) installed because this keeps the internet connection secure and safeguards sensitive data, such as credit card details and personal information. While you’re at it, look into data privacy laws as well. You have to abide by them while you’re in the digital space.
It goes without saying that you should believe in the products you’re selling. Let your customers leave a review. Testimonials about your product are the internet’s version of word of mouth and can convince would-be shoppers to whip out their credit card and buy. Allow previous clients to tell other shoppers how satisfied and happy they are with their purchase. Then again, if they leave a bad review, it would still be helpful for you since you’ll get feedback. Just promptly answer the review with courtesy to mitigate the situation.
When you get into the flow of managing your business alongside checking your conversion rates, you’ll be surprised as to how these things will come naturally for you. Improving your conversions may be tedious, but in the end, it will help you save and earn more if you do the hard work.