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The conversion rate in e-commerce is one of the main indicators to keep an eye on: it tells you whether your business is going well or whether you need to take action to correct problems.
Understand what the conversion rate is, how to calculate it and, most importantly, discover tips and strategies to increase this number and boost your online store's revenue
What is conversion rate?
How to calculate conversion rate in e-commerce
Benefits of calculating and monitoring conversion rates in e-commerce
What is considered a good conversion rate?
How to analyze your conversion rate?
6 strategies to increase your online store's conversion rate
13 Common Mistakes That Lower Your Conversion Rate
Track your checkout conversion rate
What is conversion rate?
Conversion rate is a metric used to analyze whether the strategies designed are having an effect. In other words, it is any desired action that the lead, target audience or customer takes.
It could be downloading a material, clicking on an ad, filling out a form, registering for an event or placing an item in the shopping cart.
Therefore, the conversion rate is one of the most important indic indonesia phone number data ators to monitor in your business, since it indicates the sales performance of your online store and the efficiency of marketing campaigns.
How to calculate conversion rate in e-commerce
The conversion rate is the ratio between people impacted by your strategy and people who took the action you wanted. For example, let's say 1,000 people entered your online store, but only 300 made a purchase: this means that your conversion rate is 30%.
The calculation for the conversion rate is as follows:
People who completed the purchase)/People who visited the website *100 = Conversion rate
In other words, just divide the number of visitors by the number of conversions and, at the end, multiply by 100. See how simple it is?
Knowing how to calculate the conversion rate is essential to understanding, above all, how to improve it – after all, the more conversions, the more sales for your online store.
Read also: How to make online sales?
Benefits of calculating and monitoring conversion rates in e-commerce
The great benefit of calculating and, especially, monitoring this metric is precisely the monitoring of your business results. Have you ever thought about what would happen if your conversion rate dropped and you didn’t know where the problem was? And worse still: you didn’t even know when it started to drop?
By calculating the conversion rate, you can create more accurate strategies to increase sales , reduce abandoned carts , and even increase customer loyalty. This is because, at any slight deviation, you can correct your course and take action to reverse the situation.
And we’re not just talking about sales-related conversions! One of the most important rates you should keep an eye on is the conversions from your paid media ads – the ones you use to attract more visitors to your website.
When you calculate and track this number, it becomes easier to create campaigns that attract the right audience and don’t waste money.
Want to learn more about e-commerce ads? Check it out:
Yampi Academy - Google Ads for e-commerce (Lesson 3)
What is considered a good conversion rate?
You might be wondering: what conversion rate should my online store achieve? Well, the answer to that question is a little more complex.