What is a conversion rate
— 2 min read
Improving conversion rates is a great way to increase sales and make the most of your visitors time at your online store.
If you have an online store, you already have a conversion rate - it’s from somewhere from 0 to 100%. Now, no one has a 100% conversion rate, but we’ll get more into that later.
So just what is a conversion rate?
A conversion rate is the percentage of people who decided to purchase divided by the total amount of people who visited the page, product, or entire store. What is a good conversion rate?So if 100 people visited your store, and 5 of them made a purchase, you would have a 5% conversion rate. A typical conversion rate for a Shopify store is 1.75% (1) As you likely can already tell, a higher conversion rate means more sales. So the more you can do to increase conversion rates, the better
Factors affecting conversion rates
A number of things can affect a conversion rate; let's take a look at those.
Are visitors to your website or store finding what they are looking for. Is the content or product on your website or store what they are searching for? If not, your site is not relevant to them
Are the calls-to-action on your page focused, minimal and easy to find? If your page looks like a Christmas tree with a million places to go, likely that’s how the user will feel. The fewer the choices, the easier it is to make a decision (increasing your conversion)
Are you a reputable store or website? Users feel trust for those quickly. If it’s their first time to your page and they haven’t been there before, they may need a little more convincing.
This convincing can be done through social proof. If users can see that others have shopped with you, and that others have had good experiences, they are all the more likely to make a purchase with you.
One of the most important factors of conversion is a reasonable price. If users or shoppers find value in your solution, theyre more likely to buy.
Tactics like coupons, sales and discounts can make shoppers feel like they are getting a good deal.
Urgency is one of the leading factors of decision making when buying. The more urgency shoppers feel, the more pressure they feel to buy. As you can guess, there is a threshhold for urgency however, when it can turn into being annoying really fast, and turning off customers.
Conversion rate optimization
Having a good conversion rate also improves customer experience. If a user can make a decision quicker, you have made their experience more simple by making it faster. Less time toiling if it is a good or bad idea to purchase from your store. Also, if they are having trouble deciding between products, helping them make a decision will also make their experience simpler.