Understanding Conversion Rates
Understanding conversion is vital to making good sales. All the ad spend and exposure in the world means very little if the end result isn’t a sale. Optimizing your conversion is the bread and butter of growing your eCommerce brand, but how exactly is it done? Today we are exploring 3 steps you can take to convert better and transform your business.
Track and Optimize Data
The first and most important step is to track your data. No other step really matters much if you don’t know what metrics you need to work on. To improve your conversion, you need to start with your sessions, which is how many people are visiting your site that are sticking around, and you need your conversion rate, with is how many conversions you get per session. In addition, you can also track your bounce rate, which is how many people come to your website and immediately leave. A high bounce usually means you are advertising to the wrong audience, and you should focus on finding narrower audience segments. Finally, knowing your average order value will let you know how much each conversion is worth to you. A good analytics tool such as Purvey can be invaluable for understanding and navigating these metrics.
Amazon uses Unit Session Percentage (USP):
Unit Session Percentage refers to the ratio of the number of units sold to the total number of sessions generated for a particular product listing. In simpler terms, it represents the conversion rate of sessions into sales. The higher the USP, the more effective a product listing is in converting browsing customers into buyers.
Creative Funneling
Next we can look at the creative. Solid ad and website creative is designed to help guide your audience effectively through your sales funnel to make a purchase. The early parts of the funnel are built around warming the audience to the idea of the brand and getting them to trust your product. The later parts of the funnel are designed to sell them on the deal and upsell customers on a smaller secondary purchase. Once set up, different metrics you’ve been gathering can inform you on the part of your sales that needs focusing. Low sessions mean the early part of your funnel could be more engaging. High sessions low conversion means you could probably make the actual sale itself more compelling. And finally, lots of new purchasers without a lot of returning customers means there is missed opportunity to upsell and build customer loyalty. The exact details of a sales funnel vary greatly depending on the product being sold, but at each step of the funnel there is room to optimize towards more effective conversions.
Designer Website
Finally, once you’ve worked with your data and you’ve built out your sales funnel, if you are still running into issues or simply looking for areas to optimize it is time to call in a UX design team. A user experience designer is someone who maps out the layout of your website or app itself so that the user’s time in your virtual business is well spent. A good UX designer is a master of tracking clicks, page views, media interactions, and other key data points to see if users are moving through the site towards a sale, and spotting problem areas where the customer gets lost along the way. Sometimes something as simple as the color of a webpage or the size of a button is all that’s standing between you and more sales.
That’s all there is for today. Stay posted here to stay on top of more tips on using your data wisely. If you’re considering taking the next step toward better data, contact our partner Purvey.ai today and see how a free demo can serve up the metrics you need to enact these tips and grow your company. Good luck!
Thank you,
Commerce Canal Team
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