What is an e-commerce conversion rate?
It is the ratio of transactions to visitors or sessions expressed as a percentage. If you had five transactions out of 100 visitors to your online store, the conversion rate would be expressed as a 5% conversion rate.
Overall, there two types of conversions, Macro and Micro conversions. Macro conversions cover visitor’s actions aimed at completing tasks that directly impact the company’s revenue, like making a purchase, filling a contact form, requesting a quote or signing up for a free trial.
Micro conversions include actions that don’t directly result in revenue growth, but they allow you to add the visitor to the funnel for nurturing to support future sales. Examples of micro-conversions include e-book downloads, newsletter subscriptions, social media follows or case study views.
Factor affecting the conversion rate.
Your conversion rate depends on several factors including, the level of competition, the interest level of the visitor, the attractiveness of the offer, trust (endorsements), the relevance of the traffic and the customer experience as influenced by the UI/UX design of your website.
Once the visitor is on your website and finds your offer competitive, it is their customer experience on your website that will influence the conversion rate. All things being equal, if your website is flow-optimized, intuitive and frictionless, you are likely to see higher conversion rates.
The average conversion rate being 1.99%; therefore, an additional 1% conversion will increase profits by 50%.
It is expensive to get traffic to your online store, eliminate friction to convert more traffic to sales.