To generate more sales, it pays off to focus on your website's current visitors rather than just driving expensive outreach and advertising campaigns to get more traffic.
An adjustment of product images, sales copies, CTA re-design or simplifying your landing pages can increase sales and profits as well. These techniques belong to the world of conversion rate optimization.
Here at FutureMargin we are big ambassadors of pricing strategy and price optimization, however we do believe that these strategies have to be balanced with general conversion rate optimization techniques to get you to the full potential of your online store and landing pages.
Conversion rate represents the percentage of users who took a desired action on a website. It is one of the most important metrics in every online business and should be carefully and continuously measured. Conversion rate optimization can be used to increase the percentage of web or blog users who either fill out a form or successfully check out a shopping cart and finalize their purchase.
Conversions can be measured individually on each page of a website, blog and ultimately improve your whole e-commerce store. For example, you might have pages where users subscribe to your newsletter or they can download a free e-book by filling a form. You might have a contact page with call or email details where users can obtain for more information and purchase a product or service they've been looking for. The goal of conversion optimization is to optimize each page for one specific conversion goal.
Creating a conversion rate optimization strategy requires a clear measurement of where you are at now and clarifying your business goals.
There are hundreds of available online tools and techniques which help analyze conversions and set goals. On the basic level, there are 4 steps and tools which give a full-picture of how to increase your conversions in a relatively short period of time.
1. Measure conversions and set goals with Google analytics
Firstly, it's crucial to know where you are at with your current conversion rate. You can use a free Google Analytics tool. For a given time period, comparing number of unique visitors with the actual number of customers who have made a purchase gives you the percentage that represents the conversion rate on your website.
Every industry, as well as every online business is different and although it’s hard to compare conversion rates of different businesses, many online blogs and studies mention the usual conversion rate of an e-commerce store to be somewhere between 1 - 2%.
What’s the conversion rate in your business? Is it below the average standard? In this case scenario there should be an urge to do something about it because you might not be selling up to your industry’s potential. In case that your website is already converting at a 3% rate and you haven't done any major conversion rate optimization in recent time, there is also a solid chance, that you will benefit highly from analyzing, redefining and implementing a new conversion rate strategy.
The next step is to set milestones in the conversion optimization process and set goals and metrics so you can track them. There are four types of goals you can set in Google Analytics: the user comes from a specific destination; the user spends a minimum amount of time on the website or an app; the user views a minimum number of pages and finally the user takes a specified action, e.g. filling-up a form. (Source: Google Analytics).
2. A/B Test Page Content with Optimizely or VWO
After setting up your goals in Google analytics you know what needs to be measured and tracked in the conversion process. Now comes the time to compare different versions of landing pages. Implementing parallel content version testing is usually done with an A/B test, which shows a different version of a webpage to a different subset of visitors. Two or more page variants are then compared against each other to determine which one performs better.
To avoid drawing conclusions from insufficient data samples, make sure your A/B test process involves evaluation of statistical significance of the test results. Experiment with the page variants and define which button colors, CTA or copy versions suit your target audience and lead to desired conversion goals. (Source: Optimizely and VWO)
3. Watch heatmaps with Hotjar
Hotjar is an all-in-one analytics & feedback tool for understanding your web and mobile site and finding your immediate opportunities for growth. (Source: Hotjar)
By setting up your profile on Hotjar you allow the tool to record, analyze and evaluate heatmaps. While watching these heatmaps you understand what your users do on the website and what they are interested in. It is very important to collect and understand user clicks, taps or scrolling. This tool shows clearly shows you the user mouse movements and which parts on the pages matter the most.
4. Build landing pages with Unbounce
Finally, you can benefit from a tool like Unbounce that helps increasing website and campaign conversion by quickly creating, launching and testing high-converting landing pages. (Source: Unbounce)
Conversion rate optimization is a technique that helps getting more out of the current website and helps visitors take desired actions. The most important thing is to measure and track your conversion metrics now and then test different versions of landing pages until you improve your conversion statistics and achieve your conversion goals.
FutureMargin is a pricing tool for evaluating and driving pricing strategies for ecommerce stores. Using historical sale, visitor and margin data, FutureMargin can be used to improve your e-shop product pricing and profit. Available integrations: Shopify and API.