Why Optimize Conversion Rate?

To understand why it’s important to optimize conversion rate, we need to look at revenue. Revenue is calculated from Traffic * Conversion Rate * Average Order Value. Traffic * CVR * AOV = Total Revenue Ex. 10,000 visitors * 0.83% CVR * $59 AOV= $4,987 If we have a lot of traffic but low conversion and low average value, this means we’re wasting a lot of potential, sometimes even up to 90%, as we’ve seen conversion rates triple for some Shopify websites. This way our competitors with optimized websites will soon dominate the market. As they get more revenue, they spend more on marketing and acquire a bigger market reach and market share.

Guide to Improving Conversion Rate on Shopify

In this guide, we’ll show some optimizations you can do to improve your conversion rate on Shopify. In a world of e-commerce, everyone wants more customers, but the reality is that there are a lot of visitors, but only a tiny percentage are buying. Conversion rate is just one of the KPIs which is important, but to truly increase the bottom line, conversion rate is not enough.

Three Ways to Increase Sales on Shopify

Yes, that’s right! All the work done to increase sales is targeting one of the 3 below. Fortunately, spending more on ads to get more traffic is not the only way.

1. Increase how many people buy (conversion rate * traffic)
2. Increase how much customers spend (Average Order Value)
3. Increase how frequently people come to the store and buy again (Purchase Frequency)

For brands that can’t get a positive ROI on their ads, oftentimes the answer is in increaseing conversion rate, average order value, and purchase frequency.

Understanding your Shopify KPI Vocabulary

Key Performance Indicators (KPI)

This is how you measure performance to make better business decisions. In e-commerce, the KPIs would be different than in another industry. Below you can see Shopify KPIs explained with examples.

Conversion Rate (CVR)

If we have 10,000 unique visitors and a 0.83% conversion rate, this means only 83 visitors buy, and 9,917 people leave the website without buying.

Average Order Value (AOV)

AOV $59: If we have 83 people ordering for $59 on average that’s $4,897 AOV $64.9: If we increase 10% the Average Order Value from $59 to $64.9, that’s $5,386

Customer Lifetime Value (CLV)

If you’re in a business with more recurring orders, then you’d calculate your Customer Lifetime Value (CLV) to track long-term metrics, as typically it costs more to acquire a customer than the initial profit from the first order.

Cost to Acquire a Customer (CAC)

If you’re spending $3,000 per month on ads and this gets you 100 customers monthly, then your CAC is $30. The goal is to have this CAC under your

Revenue Optimization

Optimizing AOV or CVR is not enough. If you increase AOV but the CVR decreases, this means customers are spending more but fewer visitors become customers and this could mean, there’s no real growth. Revenue Optimization implies the end number would be bigger. This is done by increasing AOV, CVR, or traffic.

Gross Margin (GM)

If you’re selling a $45 product and it costs you $18 to buy (or produce) and ship it then your Gross Margin is $27 GM is usually calculated in %. A $27 gross margin out of $45 is 60%

Break Even RoAS (BER)

This is the minimum Return on Adspent you’d need to cover all your costs to acquire new sales. Important: Use our calculator to create your BER →

Conversion Rate Optimization

There are many ways to get more of those visitors to convert and that’s what we’ll cover in this guide.

1. Website Optimization: The biggest impact on your conversion rate is done by your website. You can read below how to increase conversion rate through wesbite optimization
2. Email Automation & Campaigns Optimization: Email automation can help convert more visitors into customers. We have an example automation bringing more than $80,000 for a brand here →
3. Ads Optimization: The best optimization to improve conversion on the ad level is to get many comments and likes saying positive reviews about your brands and products

 

Increase Conversion Rate through Website Optimization

1. Product Page

The product page is where the magic happens. It’s where visitors decide if they’ll become customers. Here’s how to ensure they do:

1. Mobile Responsiveness: Ensure smooth navigation for mobile users.
2. Fast-loading Page: New visitors spend 10 seconds on the website, make sure all loads fast so they see more about your brand which could convince them to buy.
3. High-Quality Images: Use multiple angles and allow a zoom-in feature.
4. Engaging Product Descriptions: Clearly communicate benefits, not just features. Check 13 design-elements on a high-converting example here →
5. Clear Call to Action: A prominent ‘Add to Cart’ button is a must. If the page is longer, then can add the add to cart button a few times through the page.
6. Sticky Add-to-cart: Allows adding the product to the cart from any part of the screen.
7. Clear Shipping Information: Provide costs and delivery times upfront.
8. Add and mention 2-3 times a guarantee: A guarantee such as “
9. Social Proof: Showcase reviews and ratings multiple times on the product page. On top show stars and how many reviews, add image reviews in the description, add
10. SEO: Optimize product titles, meta descriptions, and images for search engines.

You can get a product page designed by our Shopify Experts here →

2. Cart

A user’s cart should lead them seamlessly into the checkout process:

1. Cart Visibility: Ensure users can easily view and edit their cart from any side of screen or any side of the website.
2. Cross-sell: Recommend complementary product. You can set this free without any apps if you’re using the Epic Theme
3. Threshold for Free Shipping Calculator: Highlight how much they need to add to order to get free shiping.
4. Secure “Continue to Checkout →” Button: Build trust by showing a visible Checkout button and make it obviously the next step with a contrasting color, being the most highlighted element of design.
5. Show Payment methods: Add payment methods under the checkout button to show they can pay with paypal or apple pay on the next checkout page

3. Checkout

Abandoned carts are a merchant’s nightmare. Reduce them by optimizing the checkout process:

1. Personalize the checkout with our branding: Add logo on the top and use the font and colors used on the storefront to keep the checkout congruent.
2. Improve logo with trusted icons: Add trusted by Visa, by Google, or any contact information by editing the logo placeholder.
3. Reduce the number of fields: Hiding the field of additional address and of the company can make the checkout look less overwhelming.
4. Guest Checkout: Allow purchases without account creation. Easy edit settings in Shopify Checkout Settings.
5. Multiple Payment Options: Add Card and Paypal Payments. Also allow Amazon Pay, Apple Pay, Google Pay, and Pay in 4 by Klarna or others.
6. Progress Indicator: Let users know how many steps are left.
7. Add social proof by modifying the copyright line: Ex. Trusted by 5,000+ Customers Worldwide

View 10 Examples of Successful Shopify Checkout Pages →

4. Homepage

Your store’s homepage is its first impression. Make it count:

1. Create Trust: The main goal of the homepage is to create trust through social proof and positioning the brand as an authority in your niche. Tip #1: Connect an instagram feed and show UGC Tip #2: Get guaranteed media placements with PressForWeb
2. Clear Navigation: The top bar has the categories of products the website offers
3. Direct Add to Cart: 2-clicks to checkout are possible if adding a direct add to cart button from the homepage or collection pages.
4. Clear Value Proposition: Why should someone shop with you?
5. Featured Products: Showcase bestsellers and new arrivals.
6. Engaging Banners: Use high-quality graphics to promote offers or categories.
7. SEO: Implement keyword strategies in meta tags, product features, and blog posts.

5. Navigation

Ease of navigation directly impacts user experience and conversion:

1. Announcement bar (Preferably animated): Show your best offer currently with an animated announcement bar. Examples: Free Shipping over $75, 15% Off For New Customers, Buy 2 Get 1 Free, Ships Worldwide, etc
2. Predictive search: Show products with images and prices when they type some keywords. Traffic from search converts at a higher percentage.
3. Clear Categories: Organize products logically throughout the homepage. Highlight best-selling categories
4. Breadcrumb Navigation: Help users know where they are.
5. Quick Links: Provide easy access to policies, FAQs, and contact pages.
6. Popular Categories in Bottom Navigation: Providing quick links to best-selling collections, a SALE collection, and products helps with conversion.

Want an optimized Shopify store? Get a FREE consultation with a Shopify Expert today →

Increase Shopify Conversion Rate through Email Automation

Email automation can be a powerful tool to increase the conversion rate for Shopify stores. Here are some ideas for your blog post on how to leverage email automation to drive conversions:

1. Capturing Emails: Your First Line of Defense

Not every visitor to your store is ready to make a purchase on their first visit. In fact, a significant number might be casually browsing, comparing products, or even just killing time. This is where capturing their email becomes crucial. With Omnisend, you can seamlessly integrate a welcome popup when a visitor lands on your site. But don’t stop there; leverage the exit-intent popup – a last-ditch effort to capture an email before they leave. This dual-pronged approach ensures you have the best chance to stay in touch with potential customers.

2. Time-Limited Coupons: The Urgency Factor

Once you’ve captured those emails, what next? Enter the power of time-limited coupons. By including these in your welcome campaign, you’re not just offering value but creating a sense of urgency. When customers know they have a ticking clock, the decision-making process is often expedited. Omnisend’s automation lets you send reminder emails about the impending expiry of these coupons, giving that extra nudge some visitors need to convert.

3. Cart Abandonment: A Missed Opportunity?

According to a study by Baymard Institute, a staggering 70.19% of carts are abandoned. This is where the cart abandonment recovery feature of Omnisend comes into play. By targeting these individuals with tailored emails, you stand a chance to recover 10-30% of these otherwise lost sales. It’s not just about reminding them; it’s about re-engaging them with your brand and products.

4. Browse Abandonment Automation: The Power of Personalization

Taking a leaf out of the playbooks of e-commerce giants like eBay and Amazon, browse abandonment automation is about capitalizing on demonstrated interest. If a visitor spent time looking at a product but didn’t add it to the cart, a gentle nudge in the form of a personalized email can make all the difference. It serves as both a reminder and a focused marketing effort on a product they’ve shown interest in. To get a clearer picture of how these strategies can be effectively implemented, I highly recommend checking out this example email automation setup. This beginner-friendly guide showcases a setup that generated over $70,000 per year for a Shopify seller.

5. Beyond Conversion: The Magic of Retention

While much emphasis is placed on conversion, it’s essential to note that email automation’s true power extends to retention. Existing customers, with whom you’ve already built trust, are easier to sell to. By using Omnisend’s email automation, you can not only increase conversion rates but also enhance purchase frequency and customer loyalty.  

Frequently Asked Questions about Conversion Rate Optimization on Shopify

1. Why is conversion optimization important for Shopify stores?

Conversion optimization is crucial for Shopify stores because it directly impacts the store’s profitability. By optimizing for conversions, store owners can increase revenue without necessarily increasing traffic, leading to a higher return on investment.

2. How can I measure my Shopify store’s conversion rate?

In the Shopify dashboard, navigate to the ‘Analytics’ section. Here, you’ll find the ‘Online store conversion rate.’ This metric shows the percentage of visitors who made a purchase after visiting your store.

3. What are some common methods for optimizing conversions on Shopify?

Common methods include improving website design and usability, A/B testing different elements (like CTAs or product images), optimizing product descriptions, and implementing targeted email marketing campaigns.

4. How does mobile optimization affect conversion rates?

With a significant portion of online shopping done via mobile devices, ensuring your Shopify store is mobile-optimized is crucial. A responsive design ensures that visitors have a seamless shopping experience, which can significantly boost conversions.

5. How does site speed impact conversions?

A slow-loading site can deter potential customers, leading to higher bounce rates and lost sales. Optimizing site speed ensures that visitors can quickly browse, select, and purchase products, enhancing the overall user experience and increasing conversions.

6. How do product reviews influence conversion rates?

Product reviews provide social proof, a powerful motivator for online purchases. Positive reviews can significantly enhance trust, making visitors more likely to convert. It’s essential to encourage satisfied customers to leave reviews and to address any negative feedback proactively.

7. How does email marketing fit into conversion optimization for Shopify?

Email marketing, when done right, can be a potent tool for driving conversions. Automated campaigns, like cart abandonment emails or targeted promotions, can re-engage potential customers and lead them back to complete a purchase.

8. Can I hire EcomRolodex to handle CRO for my Shopify store?

At EcomRolodex, we specialize in creating conversion-optimized Shopify stores. While it’s an investment, the potential ROI from increased conversions can make it a worthwhile endeavor.

If you want to improve conversion rate Guaranteed book a consultation call with our experts.