Before we start with the content part of conversion optimization, we will deal with a number of basic concepts. We also include a number of examples of the importance of conversion optimization. Then we look at the most common mistakes in a website or webshop and we teach you which figures you can look at to determine which part of your website needs the most attention.
E-commerce conversion rate
To get started with conversion optimization, it is important that you know what a conversion ratio is. The terms “conversion rate” and “conversion rate” mean the same thing.
The conversion rate is the percentage of visitors to a website or webshop who have completed a conversion (goal). We can calculate the conversion rate based on a formula.
In the formula we start with the number of conversions divided by the number of visitors. If you multiply this number by 100 then you have calculated the conversion rate.
- (conversions / visitors) * 100 = conversion rate example: (1/100) * 100 = 1%
Cata’s sneaker web shop
Cata has a webshop in which he sells sneakers. In the month of January of 2017, he had a total of 540 orders in his webshop. For Cata, an order is a conversion in this case because the visitor has completed the set goal (a purchase in the sneaker web shop).
Cata sees in his statistics that he had 22,350 visitors in January. Based on these 2 data we can calculate the conversion rate. For this we use the formula “(conversions / visitors) * 100 = conversion rate”.
If we enter this formula, we get the following calculation. We start by dividing the number of conversions by the number of visitors;
540 divided by 22,350 is 0.02416.
Now we only have to multiply this number by 100;
0.02416 times 100 is 2.416.
The conversion rate of Cata’s sneaker web shop was therefore 2.416% in January.
With conversion optimization, we aim to increase the conversion rate. The result is more conversions without the need for more visitors.
Let’s repeat it again with a calculation example;
With a conversion rate of 2%, we get 2 conversions out of every 100 visitors. With a conversion rate of 4%, we get 4 conversions out of every 100 visitors.
A doubling in the number of conversions without having more visitors to your website or webshop.
Average value per conversion
If we extend this example with the average value per conversion, then we can also calculate what this entails in terms of turnover.
The average order value of the Imane webshop was € 28.69. With 2 conversions / sales, she has a turnover of € 57.38. When her conversion rate rises to 4%, her turnover becomes € 114.76 (4 * € 28.69) from every 100 visitors.
In the example we dealt with in the assignment, Imane had 27,239 visitors in January. Take a look at what happens with its turnover if the conversion percentage rises from 2.34% to 4%;
27,239 visitors * 2.34% conversion rate = 637 orders. 637 orders * € 28.69 average order value = € 18,275.53
27,239 visitors * 4% conversion rate = 1,090 orders. 1,090 orders * € 28.69 average order value = € 31,272.10
Turnover increase of more than 71%
By working on the user-friendliness of her webshop, she increases the conversion rate and in a month she quickly earns € 12,996.57 more than before. That is an increase of more than 71%!
Maths lesson or online marketing?
Maybe you are a bit dizzy now about all numbers and calculations. Fortunately conversion optimization is not about numbers and calculations. We are mainly working on improving the website or webshop. It is useful to be able to make this type of calculation for 2 reasons;
- Identify the current situation
- After making changes to the site, be able to calculate what the effect has been on the number of conversions and the final turnover
The rest of the process has little to do with numbers and is mainly about the design of your website, the navigation in the site, the confidence that your website exudes and things like the checkout process.
Another example;
In this example we see that the turnover has risen much faster than the number of visitors. Next year you will learn a lot more about statistics, but with a preview.
The number of sessions (number of times the website was visited) increased by 90.72% while the revenue (turnover) increased by 187.02%.
This can be explained by the increase in the conversion rate and a fairly constant average order value. In many cases, it is therefore more interesting to work on your conversion rate than just on visitor numbers!
The conversion rate must be higher …
The right message to the right people! With conversion optimization we quickly think of improving the website or webshop, but that only makes sense if we know for sure that we have the right visitors on the site.
Reach the right people
For the search engine optimization you have done extensive keyword research and with content marketing you have worked out personas. Even in the “the
introduction ’you have already considered the description of your target group. By doing this ‘preparation’ well, there is a good chance that you will reach the right people with your message.
The right message
You have also thought about your message. What do you put in the ad text or banner? What content will you develop? Only when you have completed these 2 steps can we look at the last step; improving the user experience on the website.
Complete goals on the website
Only when we have received the right people with the right message on the website or webshop does it make sense to start with conversion optimization.
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