A conversion rate is typically defined as the percentage of visitors to your website or landing page that convert. Depending on the business, conversions can be a wide range of activities, but an eCommerce Conversion Rate refers to making a transaction (a.k.a. a sale).
The data for this metric can be found in visitor tracking and analytics tools such as Google Analytics.
The formula for calculating eCommerce Conversion Rate is finding the ratio of transactions to sessions, expressed as a percentage. This is done by dividing the number of transactions in a given time frame by the total number of visitors then multiplying by 100%.
- Make sure to segment by target markets, otherwise the entirety of your digital traffic will paint the wrong picture on your metrics.
- In Yaguara eCommerce Conversion Rate can be created as a Key Result.
More than any other industry, eCommerce teams are deemed successful based on their digital conversion rates. And generating more traffic to the website to reach a conversion count is a quick fix - so focus on what is happening on the funnel.
For eCommerce teams, conversion rate should not be siloed to the marketing department and objectives. A full team effort to understand what’s actually happening can give you more insight into process improvements and optimization techniques, so your company’s most critical metric is accurately addressed.
One product at a time
One mistake teams make is making catalog-wide changes to all products and landing pages, expecting a universal increase in conversion rates. We recommend implementing changes product by product.
Beyond the A/B test
When operating with Google Analytics, utilize compatible tools such as Google Optimize to A/B test ideas and potential updates. But this can often be incremental, so if you are minute changes over time it makes sense to rethink the entire positioning and framing.
Dedicated landing page decisions
But even testing two pages (A/B) can be too narrow-minded. Powerful eCommerce teams should be testing at least four unique landing pages, with varying offers, flow and messaging, in an attempt to find a true winner.
Returning visitors will be your highest chance of conversion, they are after all familiar with your offering. Use remarketing tools to recapture people who showed intent but didn't convert the first time. Then optimize!
Product Pages 101 via WordStream
Analyze Enhanced eCommerce Data via Google Analytics