The average eCommerce conversion rate is around 3%. That means for every 100 people who visit your site, only 3 of those will end up buying something. Of the other 97%, some might click around, others add products to the cart before abandoning the site, or there are those that skip the shopping all together once they hit your homepage.
If you’ve spent a lot of time, energy, and money developing your eCommerce site, it’s safe to say that you want to ensure you’re not missing out on the 97% of people that don’t purchase as well as maximize revenue from the people that do. The best way to do that is to optimize your eCommerce sales funnel. Here are our seven proven tips for doing so:
Tip 1: Upsell or Cross-Sell Offers
Upselling encourages people to buy a better product than the one they were originally after. For example, if someone was to buy a coffee machine, an upsell would also include coffee pods or a new mug. Cross-selling is where you encourage the shopper to buy another relevant product that’s priced closely to their initial purchase.
For example, if they were to buy a coffee machine, you might also encourage them to buy a kettle or a teapot. They still get their original product, but they also get a “bonus” product. The principle is the same with upselling. The only difference is that the products presented when you’re upselling are more expensive than the original product. Implement this strategy by first offering an upsell. If the buyer isn’t interested then offer a cross-sell.
Tip 2: Suggest Compatible Products
When shopping on eBay or Amazon, you’ll notice that when a product comes up, there’s an option further down the page that states “people also bought” or “frequently bought together”.
This banner usually displays popular products that are similar to or related to, the original product. It actually doesn’t always mean someone has purchased those products together, but it’s a simple backend marketing ploy for buyers to make them think that if everyone else bought that product, they should probably do it as well.
Amazon is great at doing this and almost 30% of their revenue comes from simply adding suggested products on their product pages.
Tip 3: Identify the common conversion paths
A conversion is when a visitor lands on your website and takes your desired action. That could be signing up for your mailing list, watching a product demo, or buying your products. Each person browses your website differently before converting. They could head directly to a single product page and buy what’s presented there, or they could view ten pages before choosing a product.
Even though the exact path they follow is different, there are common threads pages they’ll visit and things they’ll do before converting. You want to identify those pages and actions and optimize them separately to improve your overall conversions.
To do this, analyze the conversion path – that’s the sequence of the pages visited, actions taken, or links clicked before a conversion action is completed. Once you understand the way visitors interact with your website, you can optimize each step of their journey.
Start with the highest impact part of the customer journey or where most people are dropping off. For example, if you see most people leave your site after getting to the checkout page, there may be an issue with that they’re seeing there. If they leave after viewing specific product pages then you may want to try optimizing them.
There are many tools you can use to implement customer journey tracking. Choose the one that works best for you and start using it to optimize your entire website.
Tip 4: Engaging Product Pages
When you walk into a store to buy a new dress or suit, you get to touch it and see it. You can see all the colors available, feel the textures, read the labels, and you can try it on to see if it’s a good fit. Buying online doesn’t allow any of this, so it is important that your product pages are up to scratch. The conversion rates on your individual product pages are one of the KPIs you should be tracking religiously.
When someone visits your website, you only get a few seconds to grab their attention. To do that, and make a sale, develop engaging product pages that have as much information about the product as possible. At the same time, it should provide the best representation of the product in photographs or illustrations.
Ugmonk, below, is a great example. Not only does it provide a number of photos, but it also gives you information on the products available, price, a detailed description, sizing, shipping, reviews, and much more. It’s easy to read, and the images are clear.
Tip 5: Exit-intent popups
Exit-intent popups appear on the screen when someone is about to leave the website. It’s the last opportunity to get the person to take one of your desired actions before leaving your storefront for good and has been proven to be effective.
There are multiple ways to use it. You can add an exit popup during the checkout process, on specific product pages, or across your entire website. The more specific you get, the more effective they are.
In the image above, the brand is offering a whopping 30% off any purchase. They may be able to do this because they know what their CLTV is or they’ve set up an effective upsell and cross-sell sequence to maximize the value of every purchase.
Test out using exit popups at different points along the customer journey. When you find the place where they have the highest impact, test different messaging and offers until you’re converting a large percentage of your visitors.
Tip 6: Cart abandonment emails
If someone was on your site and left an item in the cart without completing the checkout, it would make sense to encourage them to finish the transaction – right? That’s where cart abandonment emails come in. On average, well-designed cart abandonment email sequences are opened nearly 50% of the time and ⅓ of clicks lead to purchases.
People abandon online shopping carts for many reasons. It could be that they were distracted while making the purchase and they simply forgot they had the item in their cart. It could be because of a long checkout process or because they were surprised by additional fees. Whatever the most common reason is in your business, your cart abandonment email sequence should focus on addressing that objection.
There’s no hard and fast rule about how many emails to send to recover the transaction. I suggest you start with at least two and work your way up. If you start getting a lot of pushback then you may want to reduce the total number of emails you send or their frequency.
Tip 7: Implement A Loyalty Program
According to the Adobe Digital Index Report, repeat customers are more likely to buy a product, and they spend more money. Customer loyalty programs are a great way for business owners to establish and maintain relationships with their customers.
Loyalty programs have been found to boost sales, increase customer retention, and improve a company’s reputation. They are also cost-effective and generally lead to you receiving more customer referrals through word-of-mouth.
There are a few ways you can set up your loyalty system, with one of the most popular being the points system. It gives points to the customer when they spend money (like the Woolworth’s Rewards Card). Also, take note of the way you design your marketing materials. If they’re at odds with your normal branding then it may cause problems.
Other types of loyalty programs include:
- A spend program, which provides credits for the amount spent
- A tiered system so the more you spend, the better the rewards
- The value-based program where you might donate to a particular cause (5c for every $5 purchased)
- The partnered program, which gives you rewards with another company
The system you choose will depend on your resources and what your customers respond well too. It may not directly affect your sales funnel but it will help you increase your revenue.
Whatever path you choose, or if you decide to do all of the above, optimizing your conversion funnel is one of the most important things you can do in any business. It takes time, but it’s worth it and can get you sales you didn’t know existed. Follow these tips above and you’ll be well on your way to increasing your revenue.