Conversion rate
Conversion rate of online stores
The conversion rate is the magic formula of e-commerce and is widely discussed in almost every article on online business. So, what is it? Conversion rate is the percentage representation of success in converting casual content views into conversions. This conversion or a goal, as we can call it, differs from site to site. A goal could be filling out a form, finishing an order or registering for a newsletter.
Explanation of conversion rate using an example
Imagine you run an online store and your goal (conversion) is to achieve the maximum number of orders. So, if your store is visited by 10 000 customers daily and you receive 350 orders you get the conversion ratio of 3.5% because 350 visitors represents 3.5% of your daily visit rate.
Why is monitoring conversion rate worthwhile?
Conversion rate can be monitored, for example, through the statistics available from such internet tools as Google Analytics, which is available for free and FastCentrik can be "connected" to it.
The conversion rate clearly shows the percentage of your visitors finishing their visit by placing an order. Simply put, it is the yield from visits. This overview allows you to better plan your turnovers. You would know how many orders would be generated by an increase in your visit rate of, for example, 1,000 unique visitors a day and what the resulting sales would be based on the average amount of an order.
It is important to monitor the conversion rate not only as a whole but also to filter it by the various advertising media used. Taking the time to fully utilize the tools available in Google Analytics will show you that the different advertisements (media, formats, text, etc.) which bring visitors to your shop have different conversion rates (Google Analytics training can be found in our pricelist).
Once you understand the statistics, you will be better equipped to invest wisely in e-marketing. You may find that some advertisements bring many visitors, but these visits do not necessarily correspond to an increase in sales. On the other hand, you many find that advertising on key sites can bring higher conversion rates. Furthermore, the conversion rate can be monitored by keywords and therefore you can learn which words achieve a higher conversion rate and you will be better able to target your PPC advertising on, for example, www.Google.com.
Show me your conversion rate and I will tell you who you are
Of course the overall quality of your online store, quality of product descriptions and your overall approach to customers are what count. If customers visit your shop and have some trouble with its speed, functionality, information or product searches, this will certainly lead to a low conversion ratio. It is also important to realize that returning customers are a significant component of a conversion rate. They will, of course, only return if the order arrives on time and if they are provided with quality information and technical support. The worst that can happen to any online store is that customers do not return for some reason and it is necessary to (very expensively) acquire newer and newer customers (visitors).
It is, therefore, essential to monitor statistics (including exit routes) if you wish to achieve an optimal conversion rate. Regular monitoring will allow you to observe the behavior of your visitors and, as you learn to understand them, you will be able to develop your shop so that the conversion rate will continually improve.
The sample of Google Analytics statistics
What conversion rates can be achieved
As mentioned previously, there are many factors which you, yourself, can influence. Generally, different products achieve different conversion rates. Very high conversion rate can be achieved with products which are purchased frequently and repeatedly - e.g. perfume, cosmetics, toiletries, clothes, underwear, etc. Lower conversion rates are seen in such areas as domestic appliances or cars where it is obvious that the buyer does not feel the need to retun to frequently.
How to understand it all and where to learn more
Google Analytics statistics can be rather complex for the beginner. Therefore, it is better to attend a professional training course which will teach you what you should focus on, what should be monitored and evaluated. If you need help you can find the Google Analytics training option on our pricelist and order it.
