How To Deal With 3% Ecommerce Conversion Rate
The statistics say that the average ecommerce conversion rate is 3%.
So it means that for every 100 visitors only 3 will buy.
Is it good or bad?
Usually, Facebook ads cost per click is about $1.
So it means that for every 3 purchases we need to pay Facebook $100.
What if the price of our product is $10.
It means that our cost per acquisition is $33 and we are -200% ROI unprofitable.
Why is that?
The common most reason for it that people are usually visiting websites with the purpose of checking things out and only a few of them are ready to take action to buy.
Usually, those who take action are already aware of the brand and visit the website, not the first time.
They even might be existing customers.
But what can we do if our brand doesn’t have big awareness and a huge customer base?
We need a process of increasing the convention rates.
And usually, online stores are not natively designed to do it.
Furthermore, it’s important to know who exactly is visiting your website to check the probability of their action.
The three secrets to increasing the convention rate and outrun statistics
By outrun statistics I mean to have the conversion rates higher than the 3% statistical average.
If we make an analogy to the brick & mortar world we can investigate that the things which differentiate successful brick & mortar stores are laser targeted product range, personalized salesperson per every visitor and strong visitors control.
So brick & mortar store owners don’t need random people in their store, they only looking for ones who are interesting in what they are offering.
They offer a laser targeted range of products to match only specific peoples’ needs.
They treat the journey of each customer individually.
So the visitors are often ending up buyers.
So the three secrets are:
- Have a specific, laser targeted offer.
- Filter the visitors to only those who really need your solution.
- Have an individual treatment process for every visitor.
How ecommerce brands can utilize these secrets to increase their convention rates?
So let’s translate this stuff into the ecommerce language.
1) When driving people to your website — drive them to the specific offer page — not to the home page or collection page.
A lot of choices confuses people so make this choice for them.
2) All the promotions (posts, articles, images) you’re making to drive people to your website should be boring for people who are not interested in your solution and should be excited for the people who need your solution.
Don’t drive everyone to your store — qualify for only those who need your offer.
3) Drive new visitors to a specific sequence of pages and content that is highly individual and focuses on the problem (desire) they have.
These pages should make visitors feel like they aren’t shopping, but they are solving their problem (satisfying their desire).
The system for increasing ecommerce convention rates
Following these secrets, I want to introduce the system I’m using to overrun the statistical boundary of a 3% ecommerce conversion rate.
We have sales funnel on the right-hand side.
Sales funnel is a sequence of pages with special content to make new visitors be highly aware of your brand, emphasize the problem (desire) the visitors have in the way that leads visitors to purchase your solution.
Funnel is like a salesperson in the brick & mortar store — it brings a highly individualised experience for visitors.
It prevents visitors from different distraction by focusing them just on the step they need to take — buy a solution to their problem (desire).
Obviously, we need to know what problems (desires) people have to make their experience individual.
To take care of that we are using the visitors qualifying system on the right-hand side.
We choosing specific audiences to advertise to and making our advertising content as a filter, so it would be skipped by people who don’t have the problem (desire) we’re solving and will be followed by people who are searching for the solution to this problem or desire.
Why are most ecommerce brands failing?
This is something statistics says.
It might happen due to a variety of reasons, but the most common I’ve observed are:
When it comes to rapid growth — most brands getting out of their budget because of unprofitable ads.
Or they can’t even afford to try expensive ads.
So ads are expensive, but is it something we can’t overcome?
Of course, we can’t decrease the ads price, but we can utilize more from the ads we’re running to generate profit from them.
But why most brands failing to do it.
Because of the biases:
No one doing this weird strategy so I’m going to do what others doing.
Or I think it will not work.
So, don’t step on this rank over and over again.
Be open-minded to the weird but proven strategies.
And don’t judge things by your thoughts. Jude everything by market feedback.
The market decides what works what doesn’t — not us.
Check out this topic in the Youtube video: