Digital Marketing Ecommerce

Why Conversion Optimization Is Important For Ecommerce Business

Why Conversion Optimization Is Important For Ecommerce Business
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Ecommerce websites have a bunch of moving parts. They have product pages, category pages, shopping carts and checkout pages. Then there are the conversions and micro conversions which is called a sales funnel. A sales funnel leads the visitor to a conversion. And a visitor can bail on you on literally any point while travelling through that funnel.

A visitor interacts with a site at many different levels which are hard to evaluate with raw numbers. This is where conversion optimization of your ecommerce business starts. Why a visitor abandons your sales funnel – can have many reasons. Maybe, they don’t get what they need or are looking for. You don’t need to worry about those.

The ones that you need to worry about are the ones who never checked out. Or perhaps they started the checkout process and abandoned it. Those are real issues that need to be addressed. That’s because they made the decision to start down the “funnel” but stopped for some reason along the way.

How would you know? The first thing you need to do is to make sure this ecommerce process is mechanically sound. You track mouse movements and mouse clicks to see if the design is not the issue. Assuming that the tunnel is mechanically sound, you can move on to emotional issues. It’s a little tricky – however, planning out a strategy to test these hypotheses is key to getting to the root of the problem.

Here are some reasons why the optimization is important:

Increasing Pay Per Click Costs


Pay-Per-Clicks can get you high traffic, yes, but that doesn’t mean high conversion rates too. The ever increasing rates of PPCs have made them such a luxurious entity for smaller ecommerce retailers, Especially, who have just come into existence and are not capable of spending big bucks.

PPCs were once the best way for new or small ecommerce start-ups to get attention. But now they are becoming less important as not all the clicks are essentially converted into sales. It is where the CRO activates its role when you want to build a brand identity without actually paying for it.

Higher and higher demand for the platform is the culprit—that’s just simple economics, but it doesn’t make shelling out more money any easier. Online retailers are noticing their PPC ad spend budgets increasing while conversions within their ecommerce store are decreasing.

Increasing Online Competition


Across the board, there are more and more retailers online, competing for your customers. Some of them are simply eating away other smaller retailers. That means – if you want to convert your page visitors into customers, you need to have an ecommerce website that is easy to use. This also means it automatically funnels the visitors towards taking the actions you want them to take.

The more competitors there are, the more competitive you need to be. Conversion optimization has the benefit of allowing you to stay ahead of the competition. Unlike search engine optimization that can take months to show real, positive results, conversion rate optimization provides immediate results.

As soon as the changes are made – your website funnels users towards making a purchase. You will see a higher rate of users making those purchases, instead of defecting to your competition and making their purchases there. Best part is, CRO gives long-term results but needs continuous improvement and testing.

Effects Of Social Media


Twitter, Instagram and Facebook – are a great venue for marketing and for connecting with new and existing customers. These also help in increasing authority and building loyalty among your customer base. Social media has increased the number of page views, but it has also fostered the atmosphere of a shorter consumer attention span.

The whole point of marketing is to direct users towards your store. But how can you make sure that more of them actually make a purchase when they get there? That’s where CRO helps. By increasing the number of page visitors who make purchases-improving the conversion rate – you can combat the rising cost of digital marketing.

Streamlines Your Ecommerce Business


For an online retailer, this usually means something like having an inventory that can easily be searched. That too with clear categories – so individuals can look at just what they want to look at. It also means making the online shopping cart visible and easy to access. This includes, perhaps even having it open up each time an item is added – so that making a final purchase is as easy as clicking a single button.

It’s also about displaying answers to any type of question shoppers might have. These could be about your product or ordering process – your online store laid out. So that it is easy to scan, search, and easy to actually make a purchase. While a website redesign may not be necessary for all online retailers, it can help some achieve more sales.

Conversion rate optimization makes your page make sense to users. It reduces friction and shopper anxiety. Keep in mind that your visitors are not you. They did not build your store, and if it is not intuitive to use, they will find another website too. And there are some really good websites out there.

Saves You Money


How could spending more money to get your website optimized actually save money? You’ll likely find that you are spending less money on each customer. Maybe you are not necessarily saving money, but you are making more money, which is nearly the same thing.

Improving your website’s conversion rate can save your business money. Doubling your website’s conversion rate means that you would cut your cost per acquisition in half. These savings can be spent in areas of your marketing strategy. You can spend more in pay-per-click advertising. You can even advertise in media like TV, radio, newspaper ads, direct mail or more.

The real importance of conversion rate optimization is that it helps you acquire more customers in a shorter amount of time. Even if you are only seeing a small amount of traffic, you can start making more money off of that traffic. This in turn, increases your popularity, so you get even more traffic.


Pragyan Sharma

A quiet person, likes to keep things to myself - well mostly. Have a passion for writing. Loves singing and playing Guitar. Reader. Dreamer. Wanderlust.

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