Changing E-Commerce Conversion Funnels with Simple Statistics
Written by Toonimo
In the world of e-commerce, every brand works extremely hard to improve conversion rates. The best efforts conversion rate optimization focuses on split testing and refining engagement strategies. You want better conversion rates.
According to the most recent VMO ecommerce survey, statistics are indicating that 5 major conversion require attention and improvement across the e-commerce industry. Changing these onsite marketing and engagement tactics will yield better conversion rates and an overall positive shift in revenue.
Based on these statistics, here's how to increase the conversion rates of any e-commerce business.
Account Creation= Conversion Detractor
Stat: 23% of customers abandon carts after being asked to create an account.
In today's digital e-commerce world, the classic model of adding members and customer accounts is slowly fading. Companies can't rely on the notion that customers will be willing to create an account. Simply stated, if one e-commerce site asks for an account, the customer will find an alternative site that doesn't. Competition is high and the customer has the upper hand.
Most customers simply want to complete a purchase in as short as a time frame as possible.
So the best solution, keep the conversion process seamless without detracting customers to create an account.
Encourage alternative payment options besides creating an account. Guest checkouts or PayPal.
The customers that are truly interested in the product and the brand will register.
Remember: conversions are the most critical aspect of an e-commerce site, don't let a simple account shift away from the revenue.
Stat: 54% of shoppers will convert if items left in shopping carts are offered at a discounted rate.
As mentioned, competition in e-commerce is fierce. With so many options, customers are looking for the best deal and want to sense that they've received a good discount. Offer it to them!
If the customer has already added items to their cart, offer a discount on those items and watch the conversions grow. Especially with those carts that were dropped or abandoned, converting these customers should be as simple as an email with a blue light special.
Retargeting is Normal
The Stat: 72% of today's new consumers are comfortable with retargeting.
In the past, retargeting used to be affiliated with questionable digital marketing tactics. It was considered spam and made consumers uncomfortable with the relationship between consumer and company.
All that has changed. It's no secret that retargeting is arguably the highest converting form of digital marketing.
The concept of this marketing tactic is to continue the placement of the product and visibility of the product even after a customer has left a site. In marketing, the more visibility a consumer has of a specific product, the more likely they are to convert. So start retargeting and bask in the ROI growth.
Retargeting and identifying repeat visitors enables any brand to engage users on the specific level of their previous experience with the brand. In some companies, once a consumer has visited a site, the onsite engagement tools, like a virtual guide, are triggered to increase conversion potential.
Customer Satisfaction: Brand Ambassadors and New Marketing Team
The Stat: 55% of shoppers search for online reviews before making a decision.
Testimonials have always been a consumers best friend. They offer honest opinions about any product and allow the customer to research all of the aspects of a product before purchase. In today's hyper social and highly engaged market, customer reviews are critical. Customers will gladly promote a product if their experience was positive and they are encouraged to share their thoughts. With each purchase, offer a discount or incentive for customers to submit and share their thoughts. Each review then turns a converted user into a brand ambassador with their user generated content.
Shipping Rate Surprises
The Stat: 28% of shoppers will abandon their carts if surprised with the rate of shipping.
That's right nearly 30% of customers leave a site without converting because companies are surprising them with unexpected shipping charges.
Shipping doesn't have to be free. It just shouldn't come to customers as a surprise.
Clearly, cart abandonment is going to happen . If a company can avoid 30% of its dropped customers by being upfront and transparent about the costs of shipping that can change the conversion rates significantly. All that for being honest.
Any e-commerce company that considers these conversion statistics should see a marked improvement in their conversion rates.