E-Commerce Conversion Optimization
There are many ways to optimize ecommerce conversions. However, many companies, including large companies, use conversion optimization with wrong tactics. In the ever-evolving e-commerce world, it is necessary to focus on tactics that will be successful to retain customers.
While the majority of e-commerce companies focus on customer acquisition, a smaller segment places more emphasis on retaining customers. But retaining a customer is five times cheaper than the costs of acquiring a new customer. E-commerce is no longer just about selling; It’s also about creating a space for customers to return to over and over. Conversion optimization is needed to drive first-time customers to buy again.
What is Conversion?
For e-commerce retailers, “conversion” is often described as “buying”. A customer comes to the website, does an on-site search, adds an item to the cart, and then makes a purchase. This is a typical “completed transformation”. Some e-commerce experts refer to this as the “main transformation”. Different types of conversions can also be found in an online store called “microconversion”. These include press release, product review, coupon redeeming, account creation and catalog download.
What is Conversion Rate?
Conversion rate focuses on how many users who visit the e-commerce site or any website become buyers. In other words, it is the ratio of the total site visitors to the total number of buyers. The main purpose of every online retailer; Increasing conversion rates that means “more sales and more profits.” To increase site conversion rates, a process called “Conversion Rate Optimization” should be implemented.
What is Conversion Rate Optimization?
Conversion Rate Optimization (CRO) is basically defined as “the science and art of generating more revenue from the same number of visitors”. It’s about marketing at a better rate. It also means simplifying everything on the site to better understand customers’ shopping behavior, provide them with a better experience, and help them complete transactions faster.
CRO, which can also be defined as “increasing the efficiency of the site in order to provide the same amount of sales with the traffic received by the websites”, tries to understand the visitors in the most accurate way. CRO, which is a way of converting website visitors into digital marketing and sales goals, works by improving the sales funnel. Thus, it is aimed that more of the site visitors are customers.
Taking into account the repetitive and non-repetitive behavior of existing customers, this optimization focuses on increasing the number of visitors who purchase from the online store. This does not mean “driving more traffic”; This is to use existing traffic to increase visitor engagement. So they actually make an indirect purchase. The ultimate goal; To increase the rate of total users visiting the site to make a purchase.
CRO processes should be designed specific to the website; because e-commerce store is not a physical store. Their goals are also different according to the sectors. Just doing what competitors are doing will not be enough to increase the conversion rate in the ecosystem!
How to Increase Conversion Rates?
Customer-specific profiles: Advanced and predictive analytical systems are used in conversion optimizations. This optimization means when a customer returns to the site, they are split into a predefined customer segment based on the customer’s profile data. For this, customer data from each channel is combined. A constantly updated profile page is set up for each customer. The practice of customizing these profiles allows for a better understanding of patterns in customer behavior and much more targeted segmentation.
Value segmentation: Lifetime Customer Value (CLV) estimates how much time customers will spend on the site as a customer. With this data, segments are created according to the long-term value represented by customers. Customers with the highest CLV make up a significant portion of the revenue from the site. Special opportunities can be offered to these customers, who can also be defined as “VIP customers”.
Turning customers into VIPs: It is not enough to focus on existing VIP customers. Customers with a profile with the potential to become a VIP should always be sought. Predictive analysis in optimization can measure the buying and propagation patterns of existing VIPs. It can find potential new customers to match their conversion goals even after just one purchase!
Email: The best way to communicate with customers and another area where personalization is available is via email. Sending a regular weekly newsletter or a special weekend promotion by email will positively contribute to conversion rates. For this, automatic e-mail sending should be planned according to the personal interests of the customers. In addition, an automatic and progressive email thread can be created that reminds them of the items in their cart and / or offers a special discount for the item of interest each time a customer drops them into their cart.