Conversion in eCommerce refers to the conversion of the status of a target person into a new status, e.g. the conversion of a prospective buyer into a buyer, a visitor into an ordering customer:
- Order conversion - the conversion of visitors to orders or e.g.
- Basket conversion - the conversion of shopping baskets to orders
Conversion is particularly important in eCommerce because it provides information about the effectiveness of an advertising measure or the success of optimization measures that have a direct influence on the revenue and profit achieved. In addition to the conversions mentioned above, the micro-conversions of each sub-step have a special significance in web analysis.
Conversion is measured by the Conversion Rate, CR, or Prospect Conversion Rate, PCR. In principle, it is calculated as: Conversion Rate = Orders / Visitors within a certain period. In this definition, the individual "unique visitor" is used for the calculation. This does not take into account how many "visits" (sessions) the potential prospective buyer has required for this. There are a number of calculation variants, which is important when comparing conversion rates. More generally, the conversion rate indicates how many visitors perform a desired action; this action can also be, for example, the submission of a product review or the ordering of a newsletter. The increase in the conversion rate is accompanied by a targeted reduction in the termination rates of an action, e.g. leaving a website or hiding an advertisement. Since eCommerce websites generate visitors through costly online advertising measures, a targeted, systematic increase in the conversion rate not only increases sales but also the return on investment.
There are numerous measures and approaches to conversion rate optimization, relevant examples are: Improving the content of the website (text, images, videos), improving the shopping experience, improving usability to break down barriers and thereby reduce abandonment rates, using online product advisors and'guided selling' to improve the product search and advice process, using product reviews or online seals of approval to increase the confidence of (new) customers in the shop or reducing elements that distract the user from conversion. The average conversion rate of German online shops is shown in the following article on konversionsKRAFT. Typical are values below five percent (in over 80% of German online shops), which means that out of 100 newly won visitors to an online shop, only up to five make a purchase. Maximum conversion rates are around 20 percent.
To increase your conversion rate, continuous improvement of your eCommerce solution is indispensable. As experts in holistic optimization along central online shop usage phases (start page, article lists, detail pages, order processes up to the order confirmation page) or along the central eCommerce areas (online assortment, actual eShop, (online) marketing, service and fulfillment), our consultants help you uncover optimization potentials, develop test hypotheses and finally also implement A/B and MV tests for you. With Smart Commerce you get everything from a single source: consulting, testing and implementation know-how. A/B-Test in the context of the test/analysis and optimization cycle to the "ideal eShop" lead to a continuous optimization of the usability, experience and usefulness of your application. Together we develop proposals for optimization and implement these in A/B or MV tests. Always in view the key figures of your success and a sustainable conversion rate optimization. Here you can arrange a preliminary discussion on conversion rate optimization.