e-Commerce and Conversion Rates
Sep 19th, 2008 | By Joe Rozsa | Category: E-CommerceImproving your return on investment for your web budget is a critical goal of most e-commerce businesses. Whether the money is spent on SEO, paid search, or even site infrastructure, you need to know that the money going into the site is directly putting money back into your business’s pocket. Yet, the most commonly overlooked aspect of how an e-commerce site generates revenue continues to get little recognition. Conversion Optimization is one of the most important (and easy to do) things that you can do to increase revenue for your site.
Conversion Optimization is the process by which you improve the aspects of your site that cause visitors not to convert while they are on your site. Whether a conversion in your world is a sale, a newsletter request, or even simply having a visitor navigate to a certain page on your site, the focus needs to be on improving the funnel and making it as easy and user-friendly as possible for the visitor to do what you want them to do. Conversion rates are tricky to judge, and typically hover around the 4% rate for most retail e-commerce businesses. We see some rates as high as 8% for a couple of highly targeted and highly optimized sites that we work with. 8% may be a difficult number to aspire to, and your business may not be conducive to a number of 8 or better. But there are things you can do, some simple enough to do in one day, that can and will improve the conversion rate. And since web sites no longer are glorified electronic brochures (well, for most people), converting customers is the reason why every web site exists.
If you think about it, every single web site has a goal of a conversion. Google wants visitors to submit a search request. Newspapers want visitors to read their articles and allow ad impressions to be viewed or even clicked. Other sites yet want people to sign up for their mailing list. Heck, we want customers to call or email us, and then hire our firm for a multi-million dollar retainer-based e-commerce consulting project. What all of those sites could use is conversion optimization. There are things that every site can do to improve the path that a visitor takes to go from visitor to converted customer.
One of the things we specialize in at KaLor Technology is conversion optimization. We use our vast experience and complex analysis to determine where visitors might be dropping off the path, and make recommendations to fix those pitfalls. We take a look at your checkout process and then re-engineer it to make it easier to use and eliminate that as an obstacle for a customer to make a purchase on your site. We look at content and layout, site analytics and conversion rates, all in an effort to make your site generate more conversions. We feel strongly about search engine optimization as a means of getting visitors to your web site, but if it is difficult for them to complete a conversion when they are there, then you are wasting your time and money until you first have a well optimized site in terms of conversions. It is more important to take care of improving the experience for the customers that you already have rather than bringing additional non-converting customers to your site. This isn’t TV or radio - brand recognition is not the goal for a web site. A web site is there to get visitors to take action immediately. This is what many e-commerce directors do incorrectly, and it is something that we do very, very well.
Contact us today for more information about how we can help you make the most out of every visitor you have on your web site.