What is conversion and what does it mean in e-commerce?
Conversion is one of the most important KPIs used to measure the efficiency of an e-commerce site.
Conversion refers to a certain predefined action that a potential customer performs in an online store. The most important desired action is, of course, purchasing, but adding a product to the shopping cart and subscribing to an email list are also examples of conversion events.
For the success of an online store, it's advisable and necessary to measure conversions. This data provides valuable information on how well the e-commerce site functions (or doesn't) and how it can be improved.
By tracking conversions, you can invest in the right things in the online store instead of spending time and money guessing at something whose effectiveness is not guaranteed.
E-commerce conversion rate
The conversion rate of an online store is measured by the conversion percentage. The conversion percentage or conversion rate is the portion of visitors who perform a predefined action
The conversion percentage is calculated by dividing the number of conversions by the number of visitors to the online store and multiplying the result by one hundred (conversions / number of visitors * 100).
For example, 100 / 2000 * 100 = 5%
In practice, the conversion rate tells you how many percent out of a hundred visitors perform the desired action, that is, add a product to the cart, buy a product, download a brochure or a free product, join an email list, leave a contact request, etc.
The higher the conversion percentage, the better the online store meets the needs and expectations of potential customers, and the more effectively it also converts (sells).
By measuring and tracking conversions, it is possible to find out, for example, how long visitors typically stay on certain pages and improve their effectiveness.
What is a good conversion rate?
A good conversion rate, which every consumer online store should at least reach, is about 2-5%.
If the online store's conversion rate does not reach this range, the reasons for its ineffectiveness should be examined more broadly, and the problems should be corrected through conversion optimization. We'll talk more about optimization below.
However, achieving a perfect conversion rate is not possible, as not all e-commerce visitors have the potential to convert.
It is fairly common for a purchase to be interrupted when a potential customer stops browsing the internet or is comparing several options simultaneously.
A competing product may also be found at a cheaper price from a competitor, in which case your online store must have a way to stand out and offer added value to the customer.
The customer is also often at the beginning of the purchase path, seeking information about products but not yet ready to buy.
Increase sales to your online store with conversion optimization
Conversion optimization is a process that increases the conversion rate of an online store. It includes measures to improve the efficiency of the online store with the goal that more visitors convert, meaning they perform the desired action.
During conversion optimization, factors that inhibit the creation of purchases and other targeted conversions are identified through in-depth background research and A/B testing, and these problems are resolved.
The purpose of optimization is practically to make the online store conform to the needs of potential customers and thus increase the number of conversions.
Increasing the conversion percentage with conversion optimization
Conversion optimization increases the conversion percentage and sales of the online store by instilling trust in the customer, nurturing interest, and encouraging them to proceed from examining the products to paying at checkout.
An optimized online store and a good shopping experience also encourage old customers to return for more purchases.
However, a seamless customer experience in the online store does not happen by itself, as the right steps must be taken towards it.
In conversion optimization, technical (slow loading time, confusing implementation, non-functional buttons, etc.) and non-technical factors (poor product images, inadequate product descriptions, unclear return policies, etc.) that hinder purchasing and experience are minimized by improving the online store's speed, mobile responsiveness, appearance, content, navigation structure, and site functionality.
At the same time, there may be a need to work on building trust with a credible and target group-appealing brand, quality content that is consistent with the brand and sufficiently extensive, as well as payment and delivery methods suitable for the customer.
If the store's initial state, i.e., the technical implementation, is really poor or far behind the times, often acquiring a completely new online store is cheaper, faster, and much more result-oriented compared to optimizing a malfunctioning e-commerce implementation.
So it is not always wise to repair the old, especially when talking about online stores and conversions.
Do you want to get more conversions and speed up your online store?
We create efficient WooCommerce and Shopify online stores that are already optimized for conversion and sales.
We also help optimize your existing online store, as long as its basics are in order.
Check out our e-commerce service or contact us.
What is conversion and what does it mean in e-commerce?
Conversion is one of the most important KPIs used to measure the efficiency of an e-commerce site.
Conversion refers to a certain predefined action that a potential customer performs in an online store. The most important desired action is, of course, purchasing, but adding a product to the shopping cart and subscribing to an email list are also examples of conversion events.
For the success of an online store, it's advisable and necessary to measure conversions. This data provides valuable information on how well the e-commerce site functions (or doesn't) and how it can be improved.
By tracking conversions, you can invest in the right things in the online store instead of spending time and money guessing at something whose effectiveness is not guaranteed.
E-commerce conversion rate
The conversion rate of an online store is measured by the conversion percentage. The conversion percentage or conversion rate is the portion of visitors who perform a predefined action
The conversion percentage is calculated by dividing the number of conversions by the number of visitors to the online store and multiplying the result by one hundred (conversions / number of visitors * 100).
For example, 100 / 2000 * 100 = 5%
In practice, the conversion rate tells you how many percent out of a hundred visitors perform the desired action, that is, add a product to the cart, buy a product, download a brochure or a free product, join an email list, leave a contact request, etc.
The higher the conversion percentage, the better the online store meets the needs and expectations of potential customers, and the more effectively it also converts (sells).
By measuring and tracking conversions, it is possible to find out, for example, how long visitors typically stay on certain pages and improve their effectiveness.
What is a good conversion rate?
A good conversion rate, which every consumer online store should at least reach, is about 2-5%.
If the online store's conversion rate does not reach this range, the reasons for its ineffectiveness should be examined more broadly, and the problems should be corrected through conversion optimization. We'll talk more about optimization below.
However, achieving a perfect conversion rate is not possible, as not all e-commerce visitors have the potential to convert.
It is fairly common for a purchase to be interrupted when a potential customer stops browsing the internet or is comparing several options simultaneously.
A competing product may also be found at a cheaper price from a competitor, in which case your online store must have a way to stand out and offer added value to the customer.
The customer is also often at the beginning of the purchase path, seeking information about products but not yet ready to buy.
Increase sales to your online store with conversion optimization
Conversion optimization is a process that increases the conversion rate of an online store. It includes measures to improve the efficiency of the online store with the goal that more visitors convert, meaning they perform the desired action.
During conversion optimization, factors that inhibit the creation of purchases and other targeted conversions are identified through in-depth background research and A/B testing, and these problems are resolved.
The purpose of optimization is practically to make the online store conform to the needs of potential customers and thus increase the number of conversions.
Increasing the conversion percentage with conversion optimization
Conversion optimization increases the conversion percentage and sales of the online store by instilling trust in the customer, nurturing interest, and encouraging them to proceed from examining the products to paying at checkout.
An optimized online store and a good shopping experience also encourage old customers to return for more purchases.
However, a seamless customer experience in the online store does not happen by itself, as the right steps must be taken towards it.
In conversion optimization, technical (slow loading time, confusing implementation, non-functional buttons, etc.) and non-technical factors (poor product images, inadequate product descriptions, unclear return policies, etc.) that hinder purchasing and experience are minimized by improving the online store's speed, mobile responsiveness, appearance, content, navigation structure, and site functionality.
At the same time, there may be a need to work on building trust with a credible and target group-appealing brand, quality content that is consistent with the brand and sufficiently extensive, as well as payment and delivery methods suitable for the customer.
If the store's initial state, i.e., the technical implementation, is really poor or far behind the times, often acquiring a completely new online store is cheaper, faster, and much more result-oriented compared to optimizing a malfunctioning e-commerce implementation.
So it is not always wise to repair the old, especially when talking about online stores and conversions.
Do you want to get more conversions and speed up your online store?
We create efficient WooCommerce and Shopify online stores that are already optimized for conversion and sales.
We also help optimize your existing online store, as long as its basics are in order.
Check out our e-commerce service or contact us.