What is the conversion rate?
Basically, conversion rate refers to the number of visitors to your store who take the desired action, which means they do what you want them to. The conversion can depend on a variety of things in your niche and business objectives.
For eg, In a month, 300 visitors visited your eCommerce store. During that month, 60 users purchased some products from the store. Thus, the site's conversion rate is 60 divided by 300, or 20%.
Conversion rate still is one of the most significant metrics when it comes to measuring the real value of efforts toward your e-commerce store. To put it simply, It shows the real percentage of visitors that not only visit your store but actually convert, thus directly contributing to your revenue.
Let's make it easier.
Here’s how you’ll calculate the conversion rate for each:
Total Conversion: Unique visitors on store/ The number of visitors with any conversion
Subscriber Conversion: Unique visitors on store / The number of new subscribers (subscribe/ sign up)
Shopper Conversion: Unique visitors on store / The number of new customers (who actually purchase a product)
Konigle's SMS Abandoned Cart Recovery helps your store to bring back customers, increase conversion and generate more revenue.
Now, it's time to know the actions taken by users for conversion.
Different conversion actions were taken by users?
Conversions don't aim to be sales but can be any key performance indicator (KPI) that matters for your eCommerce store like the following:
- Purchasing products on an eCommerce store
- Becoming a registered customer/user
- Allowing the store to save user's credit card information for easier checkout
- Signing up or creating an account
- Subscribe newsletters
- Downloading ebooks, software, or some downloadable products.
- Upgrading products or services from one level to a higher level
- Visit again and again to purchase products
- Click on the different types of offers
What is a good eCommerce Conversion Rate By Industry?
As per the industry, Average eCommerce conversion rates are around 2.5-3% but it varies industry by industry. Even if you are doing everything great, you can still expect to get the sale around 2-3% of the time.
A 3% and more conversion rate should be the baseline aim for your online store. Once you are able to achieve that, then you can definitely move on to more advanced conversion rate tactics.
The data below comes from IRP Commerce, which constantly collects data from across many industries. The numbers have been most recently updated in October 2022.
Which is a more focused metric for a good conversion rate?
Moving these metrics in the right direction will definitely help your overall online store conversion rate.
1. Bounce Rate
The bounce rate refers to the people who leave after viewing a single page.
2. Exit Rate
Exit rate, often confused with bounce rate, refers to people who leave after viewing the page. Your exit rate lets you know the last page visitor view before moving on.
3. Click-through rate (CTR)
Click-through rate refers to the number of visitors who click a link to your store from an ad or email.
4. Average Session Duration
Average session duration is an engagement metric that refers to how long a visitor stays in your store.