You might think that online retailers don’t need many optimisations since shoppers are simply looking for a specific product within their budget. Furthermore, if someone clicks onto a retailer’s product store, they are already ready and willing to purchase something, so the conversion is easy, right?
Wrong! In most instances, retailers need conversion rate optimisation more than other online businesses for many reasons, many of which will uncover in this post.
The importance of conversion rate optimisation for online retailers allows them to make the most of the site traffic they already have and effectively make more money without spending much more on advertising or customer acquisition.
Increase in online competition
Across the board, there are more and more retailers online competing for your customers. It’s probably no secret to you that pay-per-click price is at an all-time high.
If you want to convert your page visitors into customers, you need to have an easy to use website and automatically funnels the visitors towards taking the actions you want them to take (purchase an item or signup for a newsletter). The more competitors there are, the more competitive you need to be.
Conversion optimisation has the benefit of allowing you to stay ahead of the competition.
Shortening consumer attention span
It’s not a myth; there have been plenty of psychological studies that have proven that the rising generation of consumers has short attention spans than their predecessors.
What does this mean for an online retailer? It means that if the average user cannot quickly find what they need, or at least promptly figure out how to see what they need, they do not have the attention span to stick around and give the website more of their time. Instead, they will look for a website that more readily provides them with what they want, even at higher pricing.
Conversion rate optimisation, as we said above, combats this mentality. Online retailers will increase the chances of getting the shoppers attention with CRO.
Legitimises and streamlines your business
An online store that is continuously optimised looks more legitimate than a business that has not. It builds a clear path from the landing page to make a purchase.
For an online retailer, this usually means having a searchable catalogue or clear categories so individuals can look for what they want. It also means making the online shopping cart visible and easy to access, including perhaps even having it open up each time an item added to make a final purchase as easy as clicking a single button.
It’s also about displaying answers to any question shoppers might have about your product or ordering process (shipping fees, return policy).
Saves you money
For example, if an eCommerce store has an average of $80 AOV (Average order value) with a conversion rate of 2% and receives 20,000 visitors a month, the online store will generate 400 conversions per month with a total sales of $32,000.
If the conversion rate improved to 3% by optimising different elements on the online store, the number of conversions generated jumps by 50% to 600 per month with a total sales of $48,000.
That is $16,000 of revenue ADDITIONAL by allowing CRO implementation to an already thriving store.
Getting Started with Conversion Rate Optimisation
Yes, it would be best to optimise your ads, increase your ad spend when it makes sense, and always aim to improve your strategy to reduce your cost per click and cost per lead.
Start with this counterintuitive piece of advice: NOT by A/B testing.
Conversion optimisation is a process. And A/B testing is only a tool within that process.
You need to know what your buyers are looking for, what they’re thinking and feeling, and how they describe those thoughts and feelings before you can form one meaningful hypothesis or set up one single experiment.