What is a Conversion Rate?
If you have an E-Commerce website, conversion rates are likely to be one of your primary concerns. Conversion rates give you insight into how successful your store is. They allow you to understand how traffic is interacting with your site and how well your visitors are engaging with your products.
In E-Commerce, a conversion rate is usually the number of people that have made a purchase compared with how many people have visited the website. The conversion rate is a metric that allows you to assess how well your online store is optimised for sales. Because of this, it’s one of the most important measures you can have.
How Do You Calculate Your Conversion Rate?
You can find out your conversion rate through Google Analytics. This requires you to set up an account and add specific goals you wish to begin measuring (eg; purchases or adding items to cart). If you require assistance with this feel free to get in contact with us! We will be able to help you setup your Google Analytics to track conversion rates accurately.
What is a Good Conversion Rate Benchmark?
Even if you know your conversion rate, how do you know if it’s good or not? How does a store scale their success?
The first thing you need to do is decide what conversion you’re attempting to gauge. A conversion isn’t always a sale - at least not for all websites.
Conversions can include:
- Form Submissions
- Newsletter Sign Ups
- Telephone Calls
- Email Enquiries
Before you make any investigation into your conversion rate, it’s important to distinguish what exactly you want to measure.
Context is Essential
There’s no individual conversion rate that dictates whether an online store is successful. Every industry is different. Certain products are harder to sell, they require more research or consideration - which may equate to more browsing and fewer purchases.
It is important to keep this in mind when attempting to find a benchmark conversion rate. While there is always going to be room for improvement, some markets will have more varied conversion rates than others. However, an E-Commerce conversion rate benchmark will offer you some clarity in comparing your efforts and will give you an achievable goal to work towards when taking on conversion rate optimisation or website improvements.
Generally speaking, E-Commerce stores achieve an average conversion rate of 1-2%. This means that if a store is achieving 1,000 visitors per month, 10 people are making a purchase.
As mentioned, different retailers will have varying benchmarks. Depending on which sector your store operates in, your conversion rate will likely be higher or lower. Here are some factors that may impact conversion rates in your niche:
- Price of product (expensive items require more consideration)
- Type of product
- Location of your company/warehouse
- Device the person buying from - how does your store look on mobile?
- Traffic Sources - how do people find your website?
- Price for Shipping
- Timeframe for Delivery - overnight, few days or click and collect
Conversion Rates Matter
There’s no doubt about it, the conversion rate is an essential figure. It’s important to take note of how users are interacting with your E-Commerce store. For websites that rely on people making purchases, it’s crucial to always strive to make your medium as conversion-friendly as possible.
Start Improving Your Conversion Rate
If you’d like to know more about improving your online store’s conversion rate, feel free to talk to us. We work with E-Commerce businesses to optimise stores that will sell products and engage customers. We can help with recommendations to increase your conversion rate. Call us today on 0800 444 000.