Let's be honest, it's not easy running an online store. It can be especially frustrating if you're doing everything you think you're supposed to but still have lower than average conversion rates. Today, we'll be sharing 6 tips all merchants can implement today to improve their ecommerce store and increase conversion rates.
Keep in mind, the average conversion rate for Shopify stores is 1.4%; stores with conversation rates of 3.1% or higher mean they are in the top 20% performers on Shopify (more ecommerce stats from Blend here).
Have you ever been online shopping and realized that if you spend only $5 extra you get free shipping? If you're easily influenced like me, chances are, you go back and look for a product you might not need but gets you to that free shipping discount. This is a common strategy used by merchants to increase items purchased and overall average order value.
The first tactic is to incentivize potential buyers to spend a bit more in return for free shipping on their order. Even if it's a cheaper product on your website, this was something they weren't originally planning on buying; therefore, an additional item sold by you! In order to use this tactic, you need to find the perfect balance between the threshold and the discount. Be cautious because some buyers only purchase when free shipping is offered, a potential buyer might be discouraged if they see that shipping isn't free.
You can also encourage additional spending by offering a discount when a customer spends a certain amount. Similarly to the previous tactic, this pushes potential buyers to add additional items to their cart in order to get an overall better deal. Make sure to clearly identify what the "perfect" threshold is for your customers, that way you are offering a good deal without cutting into your profit margin.
A great way to build customer trust and increase conversion rates is sharing an abundance of social proof on your ecommerce store. According to Qualtrics, 93% of potential buyers would read online reviews first before deciding to purchase a product or not. By sharing the experiences of existing customers, potential buyers can evaluate your product and make an educated choice, knowing that other people recommend it and stand by it.
Social proof comes in many shapes and sizes. The most common way to get started is by sharing customer reviews and testimonials on your online store and social media platforms. In case you don't have any reviews to share, don't sweat it! Start encouraging your customers to leave reviews. You can even offer an incentive (such as a discount) to increase the number of reviews you have.
Another form of social proof is using influencer marketing and celebrity endorsements. Although this can sometimes become a pricey tactic to use, 49% of consumers depend on influencer reviews and recommendations when making purchasing decisions. Remember that influencer fit isn't always based on followers and popularity. By choosing a micro or organic influencer, you can have stronger advocacy and connections with customers at a fraction of the cost. Check out our blog to learn more about how to find the right organic influencer for your business.
According to Ipsos, 53% of shoppers say they always do research before they buy to ensure they are making the best possible choice. Avoid losing sales by providing potential buyers with as much product information as possible.
If buyers have uncertainties about your product, chances are they will be discouraged and move onto the next option. Make your product description as detailed as possible, answering any questions potential buyers might have about your product. More is better! By providing the necessary information for a buyer to make an informed decision, you will increase sales while also increasing overall brand legitimacy.
For those customers who don't read description and want to go straight to the point, add trust badges to your product page highlighting key features. Trust badges will guarantee that, even if they don't read the description, they will know what your product has to offer.
Never leave an incomplete order unattended - follow up! If a customer reaches the checkout process but doesn't complete it, give customers that final nudge and remind them of what is left in their cart.
If you have your customer's contact information, remind them of their incomplete checkout by emailing them or sending them a quick text. A reminder never hurts, especially if it comes with a discount code.
In you were unable to get your customer's information, there is still a solution. Add a persistent shopping cart app to your ecommerce store so that when they come back, the cart still remains the way they left it. Instead of having to go through the shopping process again, customers can go straight to check out and purchase what they previously added to their cart. Make it as easy as possible for customers to convert.
One of the biggest hurdles for customers when online shopping is having unanswered product questions. Creating that customer service experience online doesn't have to be difficult. Make it easy for customers to reach out online by introducing live chat and live video shopping directly onto your online store.
By adding a live chat feature, potential buyers can resolve any uncertainties they may have then and there. If you're worried about having to be available all the time, don't worry because technology has got your back. Most live chat software enables you to set a time period for when you are available to help manage your customers' expectations.
If you're ready to take your store's shopping experience to the next level, introduce live shopping into your marketing strategy. Using live shopping, you can live stream a video directly in your online store. This allows you to share real-time product drops, host special events, answer questions, and get to know your customers.
Merchants who use live shopping as part of their marketing strategy experience huge boosts in conversion rates during live shopping events. We've worked with merchants who experience over 10% conversion rates and 25% engagement with live shopping viewers during an event. Furthermore, the live shopping industry is growing very rapidly; while it's still a relatively new use case for live video streaming, live commerce sales may account for as much as 10% - 20% of total ecommerce sales by 2026, according to research by McKinsey.
Unlike using platforms like Instagram Live or Facebook Live, you are livestreaming directly in your store which enables you to engage and convert your customers' who are already interested in your brand. This is what Shop Studio Live is all about!
Last but not least, the checkout. Make the checkout process as smooth as possible by ensuring that every little detail is in place. Buyers are often discouraged if they're being asked to create an account or input information they don't find relevant. Keep the checkout process as simple as possible to ensure customers don't change their mind at the very end.
We want our buyers to become lifetime customers, but what if our techniques are hurting business more than benefiting it? Research shows that 34% of buyers abandon their cart because they were asked (or force) to create an account. Instead, offering the option of a guest checkout will ensure people can still purchase without feeling forced into anything.
Buyers might also be discouraged from purchasing because of additional fees and shipping costs. Reduce last minute abandonment by offering free shipping, or if that isn't possible, a more affordable shipping option for buyers.
You can also offer payment installments plans, making it even more convenient to purchase. Shopify itself offers these plans, through the Shop Pay feature. By making it clear that your store has this option, customers worried about the financial aspect of the purchase will be more likely to convert.
The most important thing for all merchants is keeping customers happy. By implementing these recommendations today, you can improve how your customers interact with your website and increase overall conversion rates.
If you're curious about live shopping and want to learn more, check out Shop Studio Live on the Shopify App Store or reach out to our team for a free live shopping consultation.