CRO: Top 3 Best Practices for an Ecommerce Business

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CRO — The tool of the future

When we think about various conversion tools, it’s easier to picture the importance of the CRO described this way — imagine there’s a pot we have to keep being filled with water. The pot holds a particular type of plant that dries out losing a set level of moisture. It’s a good quality vessel, but it has some minor holes in various thinned out places that force the liquid to bleed through. To keep the water at the same level we keep pouring more on top — frequently, and relentlessly if we are aiming to keep the liquid intact.

That’s a crucial part of the process, but imagine how much more effective keeping the water would be if we managed to close some of the holes. Way fewer efforts and energy spent, right?

Now to uncover the described analogy — the pot is our website. By wanting to maintain or increase our sales we keep pouring more water — that’s our marketing bringing more leads. Now when it comes to keeping those leads, we might want to focus on plugging the holes — and that’s exactly what CRO is all about.

Defining Your Metrics

The first step on the way of doing so is choosing the right Key Performance Indicators to guide you in the whirl of the collected data. To assist you with your mission, we suggest three main KPI’s you should monitor in order to increase your website’s performance.

1) Number of visits to a completed sale

To utilize this metric you will have to set a reference point on the number, new customers visit your website before they make their first purchase.

2) Customer Lifetime Value

To find this metric, subtract the cost it takes to acquire and serve the customer from the customer revenue. Add the findings together over his lifetime.

3) Shopping Cart Abandonment Rate

This KPI describes the percentage of visitors who’ve decided to add a chosen product to a shopping cart but left the website without completing the purchase. Since it’s the closest your visitors come to performing the main macro action, i.e.sale, you should pay special attention to fluctuations on this metric.

To calculate your website’s shopping cart abandonment rate you should divide the total number of checked-out purchases by the number of shopping carts left unattained. Subtract your result from one and multiply the obtained number by a hundred.

Top 3 Best Practices

To do so, let’s review the next steps in increasing an e-commerce website conversion rate:

1) Reducing the number of visits to a sale

Firstly, pay attention to your descriptions. Keeping in mind that your customers don’t have the ability to assess the product in real time, make sure your description of the aftercare, fabric composition, sizing differences etc. is comprehensive and as close to the real product as it gets.

Secondly, make sure to include high-quality pictures from various angles under each product description. Including a video demonstration for products is an excellent way of reducing your visit-to-sale ratio, as it showcases your product in a true light, making an average visitor spend 88% more time on your pages.

2) Increasing the Customer Lifetime Value

To increase the customer lifetime value, build the trust with your consumers by being as transparent as possible. Include remarks about garments being able to bleed throughout the first couple washes, or mention the requirement of being handled with care and special cleaning detergent. For example, the fast-growing market of high-end previously used bags grows so rapidly mostly thanks to the resellers being completely honest about every dent and every scratch a branded purse possesses.

Allowing their visitors to see all the in-and-out of the product, merchants build a trust that lets their customers come back again and again, drastically increasing consumers’ lifetime value. Include remarks about garments being able to bleed throughout the first couple washes, or mention the requirement of being handled with care and special cleaning detergent. For example, the fast-growing market of high-end previously used bags grows so rapidly mostly thanks to the resellers being completely honest about every dent and every scratch a branded purse possesses.

By allowing their visitors to see all the in-and-outs of the product, merchants build a trust that lets their customers come back again and again, drastically increasing consumers’ lifetime value.

3) Reducing the Shopping Cart Abandonment Rate

They do so by automatically sending a follow-up email to the visitor, offering help with completing their purchase along with various convenient ways of contacting your e-commerce store. Another feature among the said software, that is shown to have great proven results, is sending a coupon code along with the email, enticing your customer to proceed with their purchase.

Befriend your CRO

Building your CRO is the fastest, most efficient way of increasing your sales without much effort. At the end of the day, if you are selling a product or a service the number of daily visitors does not translate directly into the cash flow. The number of visitors who performed an action — bought in, booked or reserved your services does. And the Conversion Rate Optimization helps transform your website into a comfortable purchase zone for everyone entering.

Because the truth is — it was never about the traffic. It’s about how much traffic you can convert into a sale — and this is exactly what CRO is made for. Due to the nature of the industry, optimizing your conversion rate is a constant work in progress. Websites design, interface and user experience evolve with the speed of light, — and so is the number of practices you can adopt to enhance them.

Nevertheless, keep in mind that for them to be effective it is crucial to perform in-depth research of performance indicators against sale goals and develop a corresponding strategy based on existing and potential clientele.

Originally published at https://insightwhale.com on April 29, 2019.

Written by

Fully remote team of professionals providing Digital Analytics, Conversion Rate Optimization and Business Intelligence services for clients around the world.

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