A lot of people do not want to be called “Average”. This is also true when it comes to online businesses. Internet entrepreneurs want to make sure that they’re getting as many profits as possible. And, one way for them to know how many people are actually buying from their online stores is known as conversion rate.
The e-commerce industry is highly competitive in that there are a lot of people who are putting up their own online shop. That being said, for you to stand out, you should always strive to be the best and never settle to just being an ‘average’ business.
Why is conversion rate so important for e-commerce? Well, there are actually three reasons. The first is revenue. Instead of having to spend money on ads to help generate more people to buy from your website, you can use conversions as a means to do that- all without having to spend a dime.
The second reason is providing value. Your website’s conversion rate will tell you if the things that you have employed in your webpages is enough to garner customers on a daily basis.
The last reason is for marketing purposes. Part of optimal conversion is to encourage repeat sales and to do that, your potential customers should know if the people who have bought your products before are happy with their purchase. This can effectively help promote your products in a way that doesn’t even require you to spend some money.
So, how exactly do you improve your online store’s conversion rate? Here are some tips:
People are actually enticed to make the purchase when they see that other people have also enjoyed your products as well. Adding some social proof in your website like customer reviews on your product pages, celebrity endorsements, and testimonials from influencers can really help your cause.
Make sure that these reviews, testimonials, and what have you are prominent so that it can help influence the buyer’s decision to complete the sale.
Reduce Cognitive Load
Having an easy to navigate website is a must, especially if you are to sell some products online. If your customers would have to jump through hoops in order for them to arrive at your products page, then you are going to lose customers which will result in a high bounce rate, as well as low conversion rate as well.
Reduce the cognitive load by simplifying your website’s design. Use a pleasing motif as your backdrop and only highlight the products’ pictures on the main page. This will ensure that your customers’ eyes are only fixated on the things that are most important so that they can buy those almost immediately.
Use Loss Aversion
In a study conducted by Daniel Kahneman in Amos Tversky in 1984, people will do their absolute best to avoid risks as the pain of losing is way too much than the pleasure of gaining something.
Due to this fact, you want to employ tactics that will involve loss aversion and there are two ways you can do this. Either you implement a sense of urgency by providing time-based coupons or offer products that are scarce to encourage immediate purchases.
Of course, you do not want to overdo this as this can be seen as a manipulative tactic.