E-commerce Conversion Rate Optimization: Four Sales-Boosting Techniques
Recent years have seen sustained e-commerce expansion, as more and more people discovered the benefits of shopping online. As a result, more companies than ever are now assigning large amounts of their budget to improving their websites and online presence.
But when it comes to increasing e-commerce profitability, conversion rate optimization (CRO) is the key. What is conversion rate optimization? CRO is a field of digital analytics that provides greater online profitability. This technique improves conversion rates for the same amount of website traffic. The conversion rate formula is calculated by adding the highest number of conversions obtained to the amount of traffic received and is equivalent to the best profitability ratio possible.
When the same amount of traffic generates more conversions, it produces more profit, as the same marketing and production investments close more sales.
Our online and offline consultants provide conversion rate optimization strategies based on four profit-boosting techniques: the conversion trinity, quantitative and qualitative research, A/B and multivariate testing, and personalization.
The conversion trinity analyzes three conversion funnel variables and improves user experience by creating a website that is informative, attractive, clear, and easy to use. The first variable is relevance. The page should organically appear in searches and provide clear descriptions that meet user needs. Physical stores are located on busy streets and use attractive signage to boost sales. E-commerce sites must be similarly easy to find.
The second variable is value, which answers the question: why should the customer choose my e-commerce site to buy a particular product? The value proposition plays a key role in the purchase decision. That is why brands need to make clear value propositions online.
Finally, there is the CTA (call-to-action). This variable creates an easy and intuitive shopping journey that includes all the information a customer needs to avoid getting lost. Big-selling stores locate their cash registers in central or very visible areas. Products are displayed in a way that makes it easy for customers to browse and select what they want. The online world must make it just as easy for customers to fill their carts and must provide quick and simple ways to pay.
The conversion trinity aims to create a trusted online shopping environment, which makes customers want to come back.
From the question to the data
Constant quantitative and qualitative research is another interesting method. Tools like Google Analytics for CROcollect data that gives you a better picture of what’s happening on your website and online in general. Knowing how, when, and why visitors leave your website, or what’s behind a drop in the sales of a specific product is the best way to get value from insights and make data-driven decisions.
This basis allows you to use different systems that correlate numeric data with qualitative analysis to understand why the numbers turn out a certain way. Research using various tools gathers actionable insights. Some data extraction systems, like Hotjar, record user browsing and other actions that allow us to identify the problem. Other tools focus more on user testing or user interviews.
The key to these qualitative and quantitative analyses is learning how to act effectively on those elements with the biggest impact on conversion rates.
Once you have a clear picture of what’s happening on the website, you can calibrate the actions you need to take. A/B testing and multivariate testing allow you to run conversion rate optimization testing inside the site. A/B tests test two different page designs on different user groups to see which version performs better. Multivariate tests try out different combinations of variables on a page, or different variations of the same variable.
Numerous tools use A/B and multivariate testing. Dynamic Yield, Optimizely, A/B Tasty and Google Optimize are some of the most popular and most renowned. But it’s vital to evaluate the needs of your site and define the data you need to collect to choose the right tool.
From data to action
The more metrics you gather online, the more insights, actions, decisions, and changes you can make to adjust your website. The ICE Score framework allows you to determine which testing method to use. This index is based on three elements: Impact (does this action lead to a significant change in the conversion rate?), Confidence (is this action highly likely to improve the website?), and Ease (does the impact of this action make it worth the effort?).
These considerations allow you to define which tests best answer each of these questions and then prioritize accordingly.
The final technique is personalization, a CRO discipline that aims to customize e-commerce content based on inbound and outbound traffic, and where these exit the conversion funnel. Tools like Dynamic Yield and A/B Tasty are a big help when personalizing e-commerce sites since they let you create audiences and personalized content for each user, which eventually increases conversions.
These are some of the best ways to optimize conversion rates. However, the process of constantly seeking numeric data, qualitative insights, and developing precise actions that adapt to the ever-changing online environment remains an art form.