Conversion rate optimization efforts touch on every part of your overall retail strategy, no matter what type of industry your retail brand represents. Sustained success depends on tracking key metrics and enacting robust processes that make more targets turn into customers. For retailers in high-end markets who deal with a more discerning consumer base, high conversion rates take extra effort.
The simplest calculations—purchases per site or shop visitors—don’t give nearly enough information to make smart decisions going forward. First, you must understand where this rate comes from, what affects it, and the marketing metrics to take into account. Next, you need an in-depth, multi-faceted plan to improve these percentages for both short- and long-term success. We’ll cover all of this below.
What are conversion rates and how do you calculate them?
The standard conversion rate in retail refers to the percentage of visitors to your store or website who complete the desired action of buying a product. It serves as a crucial metric that indicates how well your store is turning potential customers into paying ones. As mentioned above, the actual mathematical formula is quite simple: transactions divided by number of visitors multiplied by 100 to get the conversion rate percentage.
For example, if your shop gets 1000 visitors over a particular time period, and 200 of them buy something, your conversion rate is 20%. Mapping your average conversion rate over time gives you a fuller picture of how your brand is doing on a monthly, seasonal, and annual basis.
The formula for success depends on conversion rate calculations
These things depend on a wide variety of factors, of course. Some of them occur naturally based on things like fashion trends over time, high-purchase holidays, and product reviews for new releases. Use the right conversion rate optimization tool to get the most accurate results. You need a way to track all the different types of data that go into the equation in order to both identify key strategies for improvement and to take the actions that will make it happen.
Key metrics to target in order to measure conversion rates
Setting a conversion goal makes sense to improve ROI and profits overall for your retail brand. However, to do this effectively, you need to know what key metrics to focus on. The more you break data down into manageable chunks, the easier it is to enact changes that get results.
Average order value (AOV)
One of the most basic data points to focus on is the average dollar amount spent by each customer for individual transactions. If the amount is lower than expected, it might signify an opportunity for more sales associates or customer service personalization that can also increase how many people actually make a purchase overall. This plays a big role in the traffic to revenue pipeline.
Shopping cart abandonment rate
One of the most common problems in e-commerce that affects conversion rate is when a shopper puts products in their cart, but doesn’t complete the purchase. This usually has to do with complexity in the checkout process itself, limited payment options, or concerns about prices or expensive shipping charges.
Conversion funnel drop points
When you know exactly when a potential customer leaves the conversion funnel or purchasing process, you can improve that point to get better results. Identifying and reducing drop-off points streamlines the entire process and makes it easier for people to stick through to the very end. Some examples of common issues include checkout initiation issues in a brick-and-mortar store or general disorganization that makes picking products difficult.
Other metrics
Other metrics exist that can help you perfect your opportunities for conversion rate improvement. For example, you can track mobile shopper conversion rates, e-commerce time on site, customer lifetime value, and other things to get a better picture. With all this information catalog and analyze using a smart retail management tool like Clientbook, you can make effective changes. The following tips can help your brand make more sales for a higher percentage of visitors.
Tips to improve retail conversion rates over time
Reaching your conversion goal will take ongoing, strategic adjustments and continuous evaluation. It can include everything from renewing the overall marketing strategy or polishing the customer experience. Personalization helps every step of the way, as customers respond positively to focused attention and more highly targeted recommendations or services.
Enhance the overall customer experience
Every single customer interaction plays a part in the conversion journey. The more information you gather about potential customer actions, past buyer behavior, and general market trends, the better equipped you are to make smart decisions. Focus on customer service before, during, and after the sale to build the right impression and keep it.
Streamline store layouts and online checkout process.
Make it easy for people to buy the products they want and need. In brick-and-mortar stores, the path from merchandise to checkout counter matters just as much as how you display the items to begin with. Simple, well-directed, and efficient layouts and well-trained staff can increase conversions. The same holds true for ecommerce shopping carts and payment processes.
Provide enticing and informative product information
One of the challenges to conversion optimization comes from consumers not knowing enough about the products to make a quick decision about buying it. Do not ignore essentials like measurements, materials, and care instructions in favor of more artistic descriptions. This is easier online, but retail tech like smart shelving and connected shopping apps give customers a better opportunity to learn everything they need to know on site.
Promotions and marketing with a conversion rate focus
Sales and things like workshops or loyalty programs can exist primarily as conversion actions designed to turn interest into a sale. This type of powerful tool makes it easier for shoppers to make the final decision. If they believe they are getting a great deal or they are afraid to miss out on a limited offer, it becomes easier for your target audience to buy.
How Clientbook can help
Clientbook offers a wealth of assistance when it comes to managing your conversion rate optimization strategy. The more data you collect about the key metrics for improvement, the easier it will be to make changes that boost your CR percentages and make higher profits. Book a free demo to get an inside look at how it works.
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