6 Factors that affect the conversion rate in E-commerce




After doing all the necessary research on what product to sell, from where to source the product, logistics,and everything, you have finally set up your e-commerce website. You have started promoting your website through digital channels. With time, traffic started flowing.

However, you observed that visitor engagement is low as well as the conversion. You would at least expect that the user subscription should increase but that also is not happening. This is what is faced by many e-commerce businesses.

There is a way to turn things back in favor. Start implementing conversion rate optimization tactics for your website. Conversion is basically the desired action taken by visitors. The desired action could be subscription, free trial, register for demo or purchase.
Below are 6factors that affect conversion rate in online business–

Website Speed

Webpage load time is one of the crucial and basicfactors when it comes to optimization. As per Google Research, 53% of mobile visitors leave websites that take longer than 3 seconds. As the page load time increases, so is the bounce rate.



You have invested a lot of time and money in improvising your landing page and product pages, but if the checkout page load time is not optimized, you are going to lose customers. Your checkout page is most critical when it comes to conversion. Customers are always busy and do not have the patience to wait for your page to load. As per the study by Bounce, an optimized page got a 66% lift in revenue as compared with the non-optimized page. This is enough reason for you to get started in improving the page speed.

What to do to optimize speed for conversions -

There are tools available to help you optimize the page speed –

•    Google Page Speed – This is a free tool by Google. It will give you a detailed list of all the areas to optimize. It will give you basic to advance strategies to optimize your website. Another reason to use this tool is that you will get data for both desktop and mobile sites.
•    GT Metrix – Another tool that can guide you on page speed optimization. It shows exactly how much time is taken by each action on your website. This helps to plan out your speed optimization steps.

There are many other tools available for free as well as paid.

Trust Factor

Your visitors need to trust your website before they make any purchase. Online frauds are a reality and happen everywhere. Customers are skeptical before transacting online.
As a business owner, you need to implement all the security-related technology like SSL certificate, secure payment gateway and all.

However, as a customer, they are not aware of the technological jargon. So, apart from using the security tools, you need to showcase them to users.

What to do increase trust among visitors -

You need to display Trust Badges on all the pages of your website. Trust Badges creates a sense of security among the visitors. You need to make customer trust in your website which has a direct impact on your conversion. There are lots of trust badges available. A survey done by Baymard found Norton trust badge to be most favored among online customers.



Reviews

Online reviews are plays the role of the recommendation of the product to the customer. Most of the customers check for online reviews before making the final purchase. A study done by Revo found an 18% lift in sales when product reviews are available.



What to do increase reviews –

Always ask the customer to share reviews of the product. To start with, ask your loyal customers to give reviews. However, you need more than that to increase your conversions. Here are some of the ways to convince customers to share a review –

•    Incentive–One of the most common ways is to give reasons forthe customer to share their honest feedback. You can incentivize customers by giving him cashback, points or coupons.
•    Multiple Platforms – Let customers review your product on different platforms. Apart from writing reviews on your website, customers should be given options to review your product on other websites as well. Create your company profile on social media platforms like Facebook, review websites like G2Crowd, Yelp.

•    Easy to Review –The entire review process should be very simple. You can use tools like TrustPilot, Reevo to generate reviews for your website. You can even share a direct link on your website for your customers to review you.

Re-engagement

You have invested a lot in getting traffic to your website. However, conversion didn’t increase in the same proportion. Usually, visitors do not convert in a single visit. They may visit your website, browse through the product and even add the product to cart, but didn’t complete the purchase.

In such cases, re-engagement is the key to conversion. Re-engagement helps you to build your brand’s image on the customer’s mind. The cost of acquiring new customers is far higher than existing customers. Moreover, you can run targeted campaigns for existing visitors/customers.

What to do to increase re-engagement?

Use multiple re-engagement channels to bring back the user to your website.

•    Web Push Notification – Using this re-engagement channel, you can reach out to customers even when they are not on your website. You can segment the subscribers and send targeted push notifications. There are many push notification service providers like PushEngage which are easy to implement and use.A case studyshows how an e-commerce website generated $2K to $4K in sales per week using push notifications.

•    LiveChat – Another effective way to engage the user is through chat. Once the user lands on your website, you can start a conversation with them. Just like any salesman in the offline store, help the customer to go through different products, their benefits and choose the right one. Having a live chat helps customers to understand the product faster and make the decision. You can choose from many online chat services like Intercom.

Limited Choice

Do you know “The Jam Experiment” done by Psychologists Iyengar, Jiang and Huberman? The experiment was done to understand the effect of options on conversion.

It was found that a lesser number of options lead to higher conversion. Fewer choices help customer to decide faster. Buying decisions in itself is a complex process and the choices increase the complexity.

How to improve customer buying decisions?

•    Limited Options – To start with limit the total variety of the product you are currently showing. Keep the ones which are selling well.
•    Social Proof – Share social proof and reviews of the variety which you are showcasing.
 
Checkout Flow

This is the last and final page of your conversions. You do not want your customers to go to any other page from the checkout page. The more distractions you have on the checkout flow, the higher will be cart abandonment.

The main purpose of the checkout page is conversion. Once the user has added the product to the cart, he enters the checkout flow. From here on, there should be no distractions for the customer.

How to improve the checkout flow?

Here is an example of Amazon Checkout Flow.



You can see there is no header in the final checkout flow. The only option the user has got is to choose the payment option, delivery address, order placement,and payment.

Conclusion

Conversion optimization is a must for every e-commerce business. If you haven’t started on conversion optimization tactics, then check out this infographic. Some of the benefits of conversion optimization are:

•    Increase in sale
•    Reduced cost of custom acquisition
•    Positive impact the customer lifetime value

The above 6 factors are crucial when it comes to conversion. Optimize these factors and see the impact on conversion.

Author :

Ravi Trivedi is the CEO and founder of PushEngage. PushEngage is a leading platform for browser push notifications with customers in 150+ countries serving 3 billion monthly notifications