Czech ecommerce retailer Mall.CZ improved their conversion rate by 9.46% after using larger product images with product description.
Similarly, Peep Laja, a conversion rate optimization expert theorizes that Schwan’s (a home-delivery food service)’s high conversion rate is due to their high-quality images.
B - Add Trust Badges
Trust badges are badges that verify to visitors that a website is legitimate. The trust seal company (a 3rd party) collects data that confirms the website is authentic and not a scam.
Why is this important?
One of the key concerns a visitor has when first visiting your website is whether your website is legit.
And trust badges help allay that anxiety.
Blue Mountain Media (a digital agency) improved their conversion rate by 42% after adding a simple VeriSign seal. Virtualsheetmusic.com saw an increase in conversions by 31% by adding a VeriSign trust seal. And by adding a Norton Secured (SSL) trust mark, US Cutter, a supplier of vinyl cutting supplies increased their conversion by 11%.
C - Add Customer-Submitted Reviews
Has other people purchased this product before? Is it good? Will I be making a good decision in purchasing this product?
This allows them to read through and get affirmation that what they are doing is correct.
Express Watches improved their conversion rates by 58.29% simply by adding customer reviews to their product pages.
D - Add Live Chat
It’s proven: live chat increases conversions.
In one of Monetate’s tests, they conducted on ecommerce clients, adding live chat to their website increased the average order value by 3%. Another company, EZ texting improved its conversion rate by 31% simply by adding live chat.
With the addition of live chat, potential customers can now communicate with customer service managers who can answer questions and close them.
E - Improve Your Value Proposition
The value proposition is the #1 reason why your customers come and buy from you. It should describe to him or her why they need you, and why they should choose you.
Improve your value proposition by making it crystal clear why they are there and how you can help them.
Go to the Acquisition section where you can drill down into the reports you want, e.g visits over time, visits by referrer.
If you are using Google Analytics, you should be able to see it right here:
How To Get More Site Traffic
A - Social Media
According to Gary Vaynerchuk, the Internet IS social media. No doubt, social media is a huge channel for entrepreneurs and marketers to leverage and reach their audience.
Find out which platforms your customers are gathering at, and actively engage them there.
Pro-Tip: Here are 5 ADVANCED ways you can use social media to drive traffic to your store.
B - Search Engine Optimization (SEO)
"SEO is dead," declared marketers after their websites got penalized by the almighty Google.
SEO is not dead. Bad SEO is.
SEO is the art of “pleasing” search engines so that they will rank you higher. And as Google begins to refine their algorithm further, there are signs that they are now focusing on user experience (UX).
That means…. Good SEO is even more important than ever.
Good SEO is helping search engines do their jobs better. If you optimize your on-page SEO, create great content, deliver fantastic experience to your users, there IS no reason why Google will punish you.
Social media has empowered many individuals to build their personal brand and curate a huge following.
These people are known as influencers.
Influencer marketing is simply the process of building relationships with these influencers to get your products in front of their audience.
These influencers are trusted by their following to make good recommendations, and if you do this correctly -- can drive huge amounts of traffic, social proof and sales to your online store.
Pro-Tip: Here are examples of how HUGE brands have leveraged influencer marketing to grow their businesses.
Ecommerce Metric #3: Email Opt-In Conversion Rate
Email marketing remains one of the most profitable channels you can pursue for your ecommerce store. In fact, email marketing has been shown to provide a 40X ROI over other channels, including social media.
Also, the side benefit of collecting the emails of your potential customers is the ability to control your audience.
If you build your business off Facebook, Instagram or Google, a single change in their algorithm or policies can bankrupt your business overnight. However, if you own a email list of your customers, you have the ability to sell them products over and over again without being punished.
That’s the power of email marketing.
Formula For Email Opt-In Conversion Rate
(# of emails opted in) / (# of users) x 100% = Email Opt-In Conversion Rate
How To Track Opt-In Rate
There are 2 ways in which you can do this:
A - The Manual Way
Every email service provider should be able to show you how many emails are opting in into your list daily.
Here’s an example from Mailchimp:
Simply take that and divide by the number of users (which you can find out from Google Analytics) -- and you will get your opt-in conversion rate.
B - The Automated Way
The second way to do this to set up a conversion goal. Head to Google Analytics, set up a conversion tracking goal by adding the tracking code to your “Opt-in Thank You Page”.
Pro-Tip:Read this guide for the step-by-step if you are unsure how it is done.
How To Improve Your Opt-In Conversion Rate
A - Add An Opt-In Offer
Give people a “carrot” to opt-in.
Instead of telling them to opt-in into your site for no reason (or “get updates”), tell them WHY they should opt-in to your site.
Here’s how SkinnyMint did it:
B - Ask For Emails More Aggressively
Now, by no means am I suggesting you to add opt-in boxes at every empty space you have in your website.
But you can definitely do better.
Some businesses bury their opt-in boxes at the footer of their website -- which makes it hard for visitors to opt-in.
While you shouldn’t spam your visitors with opt-in boxes… You CAN become a little bit more assertive when it comes to asking for their emails.
Use a Welcome Gate:
Or an Exit Intent Pop-Up:
C - Change Up Your Offer
Already offering something, but still getting poor opt-in rates?
Then your offer might not be something your target visitors want.
Try A/B testing your offer (most email tools should allow you to do this) and see which one performs better.
“Revenue by traffic source is essential since it shows which channel your customers are coming from. If you only track visits or transactions, you’re missing half the story. You only get a handful of chances to reach your most dedicated customers, and spending the time and money to market through an unreliable traffic source is going to cut into your revenues.”
Only by doing this will you be able to identify the traffic source that is working… so you can double down on it.
How To Track Revenue By Traffic Source
If you have set up your ecommerce tracking properly (refer to Metric #1), you should be able to view this in your Google Analytics.
Pro-Tip: Want to turn your Google Analytics into a dashboard where you can see everything clearly? Follow this step-by-step guide.
How To Improve Revenue By Traffic Source
While this is highly subjective as it depends on which traffic source is doing well for you… here are some general tips.
A - Stop Spending Money On Channels That Don’t Work
If you discover that there is a particular channel that isn’t delivering results to you, stop spending time and money on it.
Yes, even if that channel is utilized by ALL of your major competitors.
Because every company is unique in its makeup. By testing multiple channels, your job is to find the channels that is RIGHT for your company, not the channels that is used by everyone else.
If that channel isn’t working for you, abandon it and focus your efforts elsewhere.
B - Double-Down On Profitable Channels
Spot a traffic source that is way over-delivering on results? This is your chance.
Scale up that channel. Invest more money and time in it.
In fact, this is what Jessica of Raw Generation did. She tested using deal sites as a way to promote her juice company -- and doubled down on it when she discovered that it worked.
What if every customer you acquire is making you a loss? What if you’re spending more to get a customer than what the customer is spending at your store?
Horrifying thought, yeah?
To prevent this problem, you must measure your Customer Acquisition Cost (CAC).
Customer Acquisition Cost is the average expense of gaining one customer. This includes everything from marketing and sales expenses to salaries and overhead associated with attracting and converting a visitor to a customer.
And according to David Skok, General Partner at Matrix Partners, you MUST get this right, if not it will kill your store:
“Failure to get product/market fit right is very likely the number one cause of startup failure. However… I believe the second biggest cause of startup failure is: the cost of acquiring customers turns out to be higher than expected, and exceeds the ability to monetize those customers.”
Formula For Customer Acquisition Cost
(Total Sales and Marketing Expenses) / (# of Customers Acquired )= Customer Acquisition Cost
Pro-Tip: To calculate your CAC accurately, here’s a good guide.
How To Reduce Customer Acquisition Cost
A - Improve Your Sales Conversion Rates
A higher conversion rate means that you’re converting more of your traffic into customers, which means getting more sales with the same number of visitors.
Spend the same and get more sales = YES!
We’ve already discussed how to improve your sales conversion rate in Metric #1, so simply hop back and take a look.
B - Leverage Referrals and Word-of-Mouth
If you can get every customer to refer one new customer to you, then give yourself a huge pat on your back.
Because you have effectively slashed your CAC by 50%!
Every successfully referred customer costs you NOTHING to acquire. All it takes is for a satisfied customer to tell his/her friends to spend at your store.
When your customers love you, they are more loyal and more willing to buy more of your products. If they stay loyal to your brand, their customer lifetime value will increase.
Do this by being honest and transparent with your customers. Keep them updated on what's going on , and what's in the pipelines for you and your store.
You can also reward your best customers regularly and let them know you appreciate them. You can also consider a customer loyalty program for a more formal system of tracking regulars and offering rewards, but the key is to build the relationship.
“It’s cheaper to get past customers to purchase again than it is to find new customers. This is true for most businesses, especially in the crowded online ecommerce arena where ad impressions, clicks and conversions always seem to be increasing in cost, making new customers more and more expensive to acquire.”
Formula For Percentage Of Returning Customers
(# of Returning Customers) / (Total Customers) x 100% = Percent of Returning Customers
You could also follow this formula:
How To Improve Customer Retention
A - Go The Extra Mile To Delight Your Customers
Go the extra mile and make them love you. Deliver extraordinary service and surprise them occasionally.
It can be something really small like a digital gift certificate or a personal handwritten Thank You note.
Si Quan is ReferralCandy's Content Marketing Manager. He is also the co-founder of BreakDance Decoded, an online breakdance training company. He loves standup comedy, and has a dream to visit at least 100 countries in his lifetime.