How to Improve Ecommerce Website Conversion Rates

There is one metric that ecommerce business owners across New Zealand care about more than any other - and for good reason: the conversion rate of their website. In the ever-evolving world of ecommerce, understanding and optimising this crucial metric can be the key to unlocking unprecedented success.

Welcome to the realm of conversion rate optimisation (CRO), where every click, scroll, and button matters. At Blackpepper, your trusted ecommerce experts in New Zealand, we recognise the pivotal role that conversion rates play in the digital marketplace. In this blog, we'll delve deep into the intricacies of conversion rates, offering valuable insights and actionable strategies to catapult your ecommerce business to new heights.

Whether you're just starting or looking to refine your existing strategies, this guide is your compass to navigate the seas of ecommerce, steering you towards higher conversion rates, increased revenue, and a more prosperous online business.

What is Conversion Rate?

At the heart of every successful ecommerce endeavour lies a fundamental metric: the conversion rate. But what exactly is this metric, and why does it hold such significance?

Defining Conversion Rate

In straightforward terms, the conversion rate is the percentage of website visitors who take a desired action on your ecommerce site, typically making a purchase. This action can also encompass a variety of other goals, such as signing up for a newsletter, submitting a contact form, or downloading a resource.

For ecommerce businesses, the ultimate conversion is, of course, a completed sale. A high conversion rate indicates that a significant portion of your site's visitors are not merely browsing but actively engaging with your products or services.

Calculating Conversion Rate:

The formula to calculate your conversion rate is refreshingly simple:

Conversion Rate = (Number of Conversions / Total Number of Visitors) × 100

In this equation, "Number of Conversions" refers to the total instances where visitors take the desired action, while "Total Number of Visitors" includes all the individuals who visited your site during the same period.

Now that we have a clear understanding of what conversion rate is and how to calculate it, let's explore what constitutes a good average conversion rate for ecommerce websites in New Zealand.

What is a Good Average Conversion Rate for Ecommerce Websites?

Understanding your conversion rate is pivotal, but how do you know if your ecommerce website's conversion rate is performing well? After all, what's deemed "good" can vary widely based on industry, target audience, and business model.

Benchmarking for Success

In New Zealand, as in many other regions, average conversion rates for ecommerce websites generally hover around the 2-3% mark. This means that, on average, about 2-3 out of every 100 visitors make a purchase or complete the desired action.

However, it's important to emphasise that this is just a benchmark. What's crucial is to compare your performance to your own historical data. Are your conversion rates trending upward? That's a positive sign. Are they stagnating or declining? That's an opportunity for improvement.

Industry Specifics Matter

Keep in mind that different industries have different norms. For example, luxury fashion brands may have lower conversion rates due to higher price points, while online food delivery services may see higher conversion rates due to immediate needs.

The bottom line: there's no universally "good" conversion rate. The key is to establish your baseline, track your performance over time, and strive for continuous improvement.

Five Factors that Influence Conversion Rate

Now, let's uncover the five pivotal factors that wield a significant influence over your ecommerce website's conversion rate. Understanding these elements can serve as a compass for your optimisation efforts.

1. Relevant Traffic (from All Channels)

Your conversion rate is only as valuable as the quality of your traffic. Ensure your marketing strategies, whether organic search, paid advertising, social media, or email, target audiences genuinely interested in your products or services. Relevance is key.

2. UI/UX (User Interface/User Experience)

Your website's design and usability play a colossal role in conversion rates. A cluttered, confusing, or slow-loading site can quickly deter potential customers. Invest in intuitive navigation, mobile optimisation, and fast load times.

Related: Ecommerce Website Redesign: When & Why You Should Revamp Your Online Store

3. Calls to Action

Your calls to action (CTAs) are the signposts guiding visitors toward conversion. Make them prominent, persuasive, and action-oriented. A compelling CTA should leave no doubt about what action the user should take.

4. Website Content & Copy

Your website content, including product descriptions and informational pages, should be clear, engaging, and informative. Help customers understand the benefits and value of your products or services. Showcase your unique selling points.

5. Brand Awareness and Trust

Establishing trust is pivotal for conversions. Display trust signals, such as customer reviews, security certifications, and clear return policies. Building brand awareness also fosters trust over time.

You May Also Like: The Power of Customer Reviews in Ecommerce

As you can see, these factors interweave and influence each other. A well-designed website with compelling content may be futile if it doesn't attract relevant traffic. Likewise, even the most relevant traffic won't convert if your site's user experience is subpar.

What is CRO (Conversion Rate Optimisation)?

Conversion Rate Optimisation, or CRO, is the systematic process of enhancing your website or landing page to increase the likelihood of visitors taking the desired action, such as making a purchase, signing up for a newsletter, or requesting more information. In essence, it's about refining your digital presence to maximise conversions from the existing traffic.

Here are key components of CRO:

1. Data-Driven Insights: CRO begins with gathering and analysing data. This includes understanding user behaviour, identifying drop-off points in your conversion funnel, and pinpointing areas for improvement.

Related: Top 10 Analytics Metrics for Ecommerce Websites

2. A/B Testing: CRO often involves running A/B tests or split tests. This means creating two or more versions of a webpage, each with slight variations, and then comparing their performance. This empirical approach helps you make informed decisions based on real user interactions.

3. User Experience Optimisation: CRO prioritises user experience (UX). It aims to create a seamless, intuitive, and enjoyable journey for website visitors. This includes optimising page load times, mobile responsiveness, and navigation.

4. Content and Copy Refinement: CRO scrutinises the effectiveness of your content and copywriting. Is your messaging clear and persuasive? Are your product descriptions engaging and informative? These are questions CRO seeks to answer.

5. Conversion Funnel Analysis: Understanding how users move through your website's conversion funnel is crucial. CRO delves into the various stages of the funnel, identifies bottlenecks, and streamlines the process to minimise drop-offs.

6. Continuous Improvement: CRO is an ongoing process. Once you've implemented changes based on data and testing, the cycle continues. Regularly analysing results and fine-tuning your website ensures that it remains optimised for conversions.

CRO is the secret sauce that turns your website into a finely-tuned conversion machine. It doesn't just boost conversion rates; it also enhances the user experience, which can lead to increased customer loyalty and higher customer lifetime value.

How Can CRO Aid in Increasing Conversions from All Traffic Channels?

CRO isn't just beneficial for one specific traffic channel; it can enhance conversions from all sources, be it organic, paid, social, or direct. Here's how CRO works its magic:

1. Organic Search Traffic: When users arrive on your website through organic search - aka SEO - they are often in research mode. Effective CRO can guide them seamlessly through your site, providing the information they need and compelling calls to action. This increases the likelihood that they'll convert, whether it's making a purchase or signing up for your newsletter.

2. Paid Advertising: Paid advertising or performance marketing campaigns can be expensive, so optimising your landing pages for conversions is paramount. CRO ensures that visitors from paid ads encounter pages that are finely tuned to convert, maximising the return on your ad spend.

3. Social Media Traffic: Social media visitors often come from diverse sources and may not be familiar with your brand. Effective CRO can quickly establish trust, guide them toward relevant content, and encourage them to take action, such as making a purchase or sharing your content.

4. Direct Traffic: Even visitors who type your URL directly into their browsers can benefit from CRO. Well-optimised pages make it easy for them to find what they're looking for and take action, whether it's completing a purchase or getting in touch with your business.

5. Referral Traffic: Referral traffic from other websites can vary widely in terms of user intent. CRO can help you cater to the specific needs and expectations of visitors from these sources, increasing the chances of conversion.

6. Mobile Traffic: As mobile devices continue to dominate internet usage, ensuring a seamless mobile experience is crucial. CRO includes mobile optimisation, making it easier for smartphone and tablet users to convert.

Keep Reading: Why is a Responsive Website Crucial for Ecommerce?

7. Cart Abandonment Recovery: CRO strategies often include tactics to recover abandoned shopping carts. By analysing user behaviour and implementing targeted follow-ups, you can win back potential customers who didn't complete their purchases.

In essence, CRO is a holistic approach to optimising your website or landing pages for conversions, regardless of where your traffic comes from. It's not about increasing the quantity of visitors but rather maximising the value you get from every visitor. When done right, CRO can significantly boost your revenue and ROI across all traffic channels.

With CRO, you're not just attracting more visitors; you're turning those visitors into loyal customers, driving sustainable growth for your ecommerce business.

Give Your Website a Little TLC with CRO

In the fast-paced world of ecommerce, improving your website's conversion rate is not an option; it's a necessity. Understanding what conversion rate is, how to calculate it, and what factors influence it is the foundation. But to truly thrive, embracing CRO is key. It's the process of refining your website's user experience, content, and design to enhance conversions and revenue.

At Blackpepper, we specialise in helping ecommerce businesses in New Zealand boost their conversion rates and overall online performance. With our expertise in SEO, CRO, and digital marketing, we can transform your website into a conversion powerhouse.

Ready to take your ecommerce business to the next level? Contact us today to discuss how we can tailor our services to your unique needs and goals.