Low conversion rates in an e-commerce store can be a frustrating and costly problem. However, by understanding the reasons behind low conversion rates and implementing proven strategies, it is possible to significantly improve your store’s performance. In this blog post, we will explore common causes of low conversion rates and discuss practical tips and techniques for increasing the number of visitors who purchase from your e-commerce store. From optimizing your product and checkout pages to implementing effective marketing strategies, we cover everything you need to know to increase your conversion rates and generate more sales. So… if you are ready to take your e-commerce business to the next level, read on!
First of all, what are e-commerce conversion rates?
E-commerce conversion rates refer to the percentage of website visitors who take a desired action, such as making a purchase or filling out a form. It is typically calculated by dividing the number of conversions by the number of website visitors and expressing the result as a percentage. A high conversion rate indicates that a significant number of visitors are taking the desired action, while a low conversion rate suggests that the website or marketing efforts may need improvement. Now that you understand why it is crucial for your business to have a good conversion rate, we can proceed.
1st error: required registration during checkout
Mandatory registration during checkout negatively impacts an e-commerce store’s conversion rate for several reasons. One reason is that it adds an extra step to the checkout process, which some customers may perceive as a barrier to purchasing.
Okay, but why?
Keep this exactly in mind: simplicity is key. Every step that creates more “friction” in the buying process for customers must be eliminated. If you do not get rid of unnecessary steps, it will certainly lead to customers abandoning their shopping carts. Furthermore, some customers may hesitate to provide their personal information, such as their email addresses, for fear of receiving spam or unwanted marketing emails. Therefore, to ensure that you encourage every customer to complete their purchase, add a “Continue as guest” option or simply do not ask them for registration at all.
2nd error: not enough social proof in the right place
Not having sufficient social proof in the right place can certainly affect your conversion rate. One reason is that customers often rely on social proof, such as customer reviews and ratings, to make purchasing decisions. Without this information, customers may be more reluctant to make a purchase, as they have no assurance regarding the quality or value of the product. Another reason is that a lack of social proof can make a store appear untrustworthy and uncertain. Customers may be more inclined to buy from a store with a proven track record of satisfied customers, rather than a store that has no customer reviews or ratings. Try to use social proof on your website as we suggest here:
You can see that you only need to be moderate when adding social proof. You can follow the flow we have provided here for the homepage. For other pages, such as the product page, it is advisable to consult your marketing team to be 100% certain where to add social proof that matters.
3rd error: shipping cost dilemmas
Free shipping is one of the very powerful motivators for customers to complete a purchase. It can increase the perceived value of the products and make the total cost of the purchase more attractive. Additionally, free shipping can also reduce the perceived risk of making an online purchase by eliminating unexpected shipping costs at checkout. This can increase customer trust and loyalty, which can lead to repeat purchases in the future.
Yes, but to offer free shipping, profits must go down, right?
Not at all. Below are a few ways you can offer free shipping to your customers while still maintaining a desired profit.
- Minimum order value: set a minimum order value for customers to qualify for free shipping. This can help offset shipping costs for smaller orders.
- Product pricing: slightly increase the price of your products to cover shipping costs. This can be done without affecting the perceived value of the products for the customer.
- Free shipping only for returning customers (your members): This can be a loyalty program where customers who shop with you frequently receive free shipping as a reward.
4th error: no excellent user experience on the payment page
If you have successfully brought the customer to this stage, it would be a great shame to lose them at the end. You must provide them with even better UX on the payment page than on the other pages, and if you want exactly that, we have great designers and developers to make that possible for your Magento store. So, do not hesitate to contact us!
Specifically, here is what good payment page UX can do:
- Reduce unnecessary steps: a smooth and simple checkout process can reduce the amount of time and effort customers need to complete a purchase, making it more likely that they will do so. We have already discussed reducing friction and unnecessary steps, so you understand the point.
- Increase trust: a well-designed and secure payment page can increase customer trust in the website, making them feel more comfortable entering their personal and financial information.
- Reduce cart abandonment: good UX can reduce the number of customers who add items to their cart but then leave the website without completing the purchase.
- Increase customer loyalty: a positive experience on the payment page can create a positive impression of the website, leading to repeat purchases in the future.
- Mobile-friendly: Since most online purchases take place on mobile devices, it is important that the payment page is mobile-friendly, user-friendly, and optimized for smaller screens. We will say more about this in a moment.
5th error: your store is not (well) optimized for mobile
As many as 30% of all mobile shoppers will abandon a transaction if the experience is not optimized for mobile. This makes it very simple: you must provide your customers with the best mobile experience to gain their trust. If you do not yet have a mobile-optimized website, now is the time to create one. You can read more here about how the Hyvä theme can help your business. It is also expected that 63% of people will buy more via mobile devices in the coming years. You now understand how important this can be for your conversion rate.
And what else? A number of users leave a page that takes more than 3 seconds to load. That tells you that you must have a properly designed and functional experience on mobile, but also a fast one. Whether you like it or not, you cannot neglect or ignore it. You must step up your mobile optimization strategy and offer mobile users the same or even a better experience than on desktops.
6th error: having only one payment option
This is a piece of cake. More is better and more convenient. But if you are not sure if more is better for your business, let us convince you with facts.
- More convenience: offering a variety of payment options can make the purchasing process easier for customers, as they can choose the option that best suits their needs.
- Increased sales: by offering multiple payment options, you can increase the number of potential customers who can make a purchase on your website. This is because some customers have a preference for a specific payment method, such as a credit card or PayPal.
- Increased security: some payment methods, such as those using tokenization or encryption, can provide increased security for both the customer and the business.
- More trust: offering a variety of well-known and secure payment options can increase customer trust in your website and make them more comfortable entering their personal and financial information.
- Greater global reach: multiple payment options can be crucial if you are targeting a global market, as different countries have different preferred payment methods and it is important to cater to the needs of your international customers.
From a technical standpoint, integrating more payment options into your website can be tricky. Therefore, it is useful to ensure that your partner is experienced enough when it comes to Magento stores. If you have read through this article so far, you already know exactly what fits your needs. Contact us!
Conclusion
You have now clearly read and seen how conversion rate optimization is crucial to the success of any e-commerce website. By avoiding the common errors we have covered above, you can significantly improve your conversion rate and increase sales. Remember that conversion rate optimization is an ongoing process and that it is important to constantly monitor and test different elements on your website to see what works best for your specific target audience. By paying attention to the key factors that influence conversion, you can make data-driven decisions that can help you improve your website’s performance and generate more sales.
