Conversion Funnel Optimization For Your eCommerce Store
Conversion funnels are an essential part of any eCommerce store because they lead the customer through the sales process and allow them to purchase more items.
But conversion funnel optimization isn't just about making sales. It’s also about maximizing revenue generation by getting the most from each customer who visits your site.
Funnels are composed of a couple of essential stages that must work together to produce the desired results.
This blog post will introduce you to what conversion funnels are, how they work, the stages, and the best practices for conversion funnel optimization!
What Is a Conversion Funnel - 4 Stages Of The eCommerce Conversion Funnel
A conversion funnel is a conversion process that has a series of steps connected by conversion rates. This process leads the customer to take the desired action or make a conversion.
A conversion funnel starts with a visitor who may browse the website, look for a product, add the product to the cart, and finally make a purchase at the checkout page.
The conversion funnel has four different stages:
- Awareness - Visiting the landing page
- Consideration - Discovering the product page
- Decision - Checkout from the shopping cart
- Loyalty - Final purchase and loyalty programs
#1 Awareness - Visiting the landing page
The conversion funnel starts when a customer lands on your website. They may find it through an ad, social media campaign link, or they might simply type in the URL into their browsers.
The awareness is the most crucial conversion funnel stage, where the first impression can make or break the whole funnel.
That’s why you need to make sure that there's enough compelling information about your product (guides, videos, demonstrations, etc.) for them to consider moving to the product page.
#2 Consideration - Discovering the product page
Once the customer has a clear idea about what you're selling, they can choose to do a deeper dive.
They'll look through your product pages and compare similar products from other sellers to get a better price or quality. This is where you need to shine and show them that they can't find this unique combination of features anywhere else!
You need to make sure that your product descriptions are high-quality and informative. The best practice is to include additional information about your product such as user reviews, in-depth features explanation, benefits, shipping info, or videos from previous buyers.
These elements will significantly help your conversion funnel at this stage so your buyer can move smoothly to the next stage.
#3 Decision - Checkout from the shopping cart
If the conversion funnel is successful, the customer will eventually reach your checkout page.
In this stage, they will have to make a final decision about whether they truly need your product and feel confident enough to complete their order on your site.
That's why it’s essential to put as much effort and information into your checkout process as possible so that the conversion funnel can run smoothly and quickly with a high conversion rate.
To lower the customer’s hesitation, you need to offer guarantees, a return policy, SSL security, and everything else.
#4 Loyalty - Final purchase and loyalty programs
The last step in the conversion funnel is where users are finally ready to buy your product. These people have gone through the whole process, and it's vital that they feel like their purchase is worthwhile. So you need a solid checkout system that offers safe and transparent transactions.
However, to make the most of your website and increase conversion rates, you must consider implementing a loyalty program. This automated process rewards repeating customers for their continued engagement and multiple purchases on your website. It's all about giving them what they want and need when it matters most!
How To Identify The Most Important KPIs For Your eCommerce Funnel
If you want to improve the conversion funnel for your eCommerce store, you need to identify the most important KPIs (key performance indicators) for your online business. Tracking these metrics will help you analyze how well your conversion funnel is performing.
There are many KPIs, but not all of them matter. Here are the most important KPIs that are essentials for measuring the effectiveness of your conversion funnel.
The traffic your eCommerce website generates is the first KPI you need to look at. Without traffic, there won't be a conversion funnel, and without a conversion funnel, there won't be sales.
You can generate traffic by having a solid SEO strategy, social media presence, PPC strategy, email marketing, and many other sources where your target audience can be reached.
You need to make sure to grow your traffic steadily and only bring relevant traffic to your funnel.
Conversion rate is an important metric to measure because it tells you how many people who come to your site actually make a purchase or subscription. The more conversions you get, the better the conversion rate will be.
You can use various tools like Google Analytics for tracking this KPI accurately and quickly.
You can also calculate the conversion rate in a specific time frame by dividing the total number of conversions by the total number of visitors and then multiplying by 100.
Conversions / Visitors * 100
So if the last month you had 20 conversions and 1000 visitors, then the conversion rate would be 20/1000*100 = 2%.
Add to Cart Rate
Another KPI you need to measure is the Add to Cart rate. This tells you how many people who visit your website actually put something into their shopping carts (during the session), which shows a certain level of interest in your products.
If this number is high, then it means that there are more chances of conversion, and you should work to optimize these rates.
Here’s how to calculate Add to Cart rate:
Add to Cart sessions / Total website sessions * 100
For example, if you had 500 Add to Cart sessions and 15,000 total website sessions in a month, your Add to Cart rate would be 500/15000*100 = 3.33%.
Customer Lifetime Value (CLV)
The conversion funnel is not over when someone makes a purchase. The process continues after that, and it might take long before they decide to buy something from you again.
CLV measures how much money each customer spends with you on average. It is an important metric because it shows you how much money you can expect from a single user account.
Here’s how to calculate CLV:
Average purchase value * average frequency of customer purchases * average customer lifespan
Cart Abandonment Rate
The Cart Abandonment Rate measures how many people abandon the shopping cart page before completing payment during checkout.
It’s important to look at this metric closely because it shows how many potential sales are lost regularly.
Here’s how to calculate Cart Abandonment Rate:
1 – (transactions completed / shopping cart initiated) * 100
Returns rate is also a conversion funnel KPI that you should look at. It tells you how many people return their purchased items after buying them from your online store.
This metric will help determine the quality of products and services on offer and customer service levels, directly impacting conversion rates.
Conversion Funnel Optimization - How To Optimize Your Conversion Rate?
Conversion funnel optimization is the process of making improvements to your conversion rate and your overall conversion funnel.
If you want better conversion rates, you need to make conversion funnel optimization a priority.
Next, we will discuss the most practical ways on how to optimize conversion rate.
Define your micro-conversions
Micro conversions are small steps that users take to become a customer, such as visiting a product page, filling a form, or adding items to a shopping cart.
Every eCommerce website owner should focus on improving these micro-conversions to avoid them being a potential roadblock to the final conversion.
Map out the stages of your eCommerce funnel
Every conversion funnel is different from the next. However, there are some common stages that people go through when they visit your eCommerce website:
Visit a homepage > Discover the product > Add to cart > Checkout > Buy
When you map out the conversion funnel, you will know where to focus conversion optimization efforts.
Offer engaging content
Customer conversion funnels are about adding products to the shopping cart and getting them prepared for making a purchase. But they may need a logical and emotional explanation that justifies the purchase.
So you can help your customers along their path by creating engaging content that is highly relevant and can nudge them in the right direction.
This content can include bullet points, videos, comparison charts, diagrams, testimonials, FAQs, etc.
Use social proof
Social proof consists of testimonials and product reviews that create trust between you and the user.
Testimonials help by showing that other people have used your products with success and got value from you.
Reviews can be an effective conversion optimization tool for your eCommerce website when they are used correctly. They give you a chance to get feedback from customers and improve conversion rates over time.
Optimize your product page
Product page optimization includes creating engaging visuals, informative descriptions, and fast loading speed on your product pages to grow your conversion rates.
In addition, you should provide all the necessary info - shipping, costs, technical information, and everything else that your customers will find helpful.
Also, to get the most out of your product page optimization, you should add practical CTA buttons positioned strategically on your product page so your customers can take action quickly.
Use popups with an exit-intent
Popups are an excellent way to get more conversions on your site by encouraging visitors to register for the offer before they exit out of your website.
This conversion funnel optimization technique also works best when you are offering free content, such as eBooks or how-to videos.
With the popup form, you can get their email in exchange for free content and later use an email marketing strategy to convince them to buy your products.
Optimize your shopping cart
Optimizing the conversion funnel for shopping carts includes creating a fast and effective checkout process, making your customers more likely to buy.
You should also consider adding CTA buttons that offer discounts or free shipping to generate the most conversions from your conversion funnel optimization efforts.
In addition, having a well-optimized shopping cart will significantly reduce the Cart Abandonment Rate.
Introduce loyalty programs
It’s a well-known eCommerce fact that people are more likely to buy from you if they know there is an opportunity for them to save money.
So you can consider implementing loyalty programs with special offers and discounts for your repeating customers.
In addition, loyalty programs help retain your customers and create brand advocates. People who have bought before will be more likely to make another purchase if they get something in return.
Consider referral marketing
In a referral program, customers are rewarded for referring their friends to your eCommerce website via email or social media.
The best part about this strategy is that both parties benefit, your customers get incentives (discounts, gift cards, free samples, etc.), and you get powerful word-of-mouth promotion.
Conversion funnels are an integral part of any eCommerce store.
They lead the customer through a series of steps that will eventually result in them purchasing your product.
Today we’ve talked about what conversion funnels are, how they work, what their stages are for optimization, and some best practices you can employ now to build a results-driven conversion funnel.
With all this information about conversion funnels, it’s time to consider what you can do to optimize yours!
However, if the process seems too overwhelming for you and you want an effective marketing strategy for your eCommerce store hassle-free, then you can get in touch with us today.
We can help you create custom eCommerce strategies specifically tailored to optimizing your conversion funnel, so you can get the best conversion rates you’ve always wanted.