One of the most important analytics tools in Shopify is the conversion rate. You can find it in your Shopify Dashboard in the Analytics tab. The conversion rate tells you how many of the visitors to your site became customers. According to Shopify anything over 3.3% puts you in the top 20% of Shopify stores. Anything below .5% probably needs work.
Now, wait just one minute before you head off in either joy or sorrow. Your conversion rate is tied to your products. If you are a discounter selling trendy items, your conversion rate will be much higher than if you are selling very expensive items. So a 0.5% conversion rate may be bomb-diggity for one product category and a conversion rate of 3% may be tragic for another. Let’s get real here—it doesn’t matter how well everyone else is doing if it doesn’t help you do better.
If most of your customers are visiting your store on a phone, you probably have younger customers, and your conversion rate will be lower. A good conversion rate for mobile on Shopify is 2.7%. That puts you in the top 20% of stores. Many shoppers will shop on their phones while they are killing time or commuting. They buy on their lunch break at work or when they get home. That’s why desktop usually has a higher conversion rate than mobile.
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This is not surprising. Return customers came back because they saw something they liked so they are already interested in what you’re offering. Getting more return customers is a great way to increase conversions. Loyalty programs, abandoned cart programs, retargeting, and Stylaquin all help bring customers back. Stylaquin is a Shopify App that engages and delights shoppers so they return about 28% more often and buy more when they do.
If you are a new store, the most important thing to do is measure and track your progress. You have to walk before you can run. If you’re an established store, look at your conversion rate overall, then look at your conversion rate for each quarter, and then for each month. This will tell you if you have seasonality. Seasonality means that there are regular and consistent highs and lows in your yearly sales cycle. Understanding when your conversion rate is highest will tell you when you should be spending more on promoting your store with few if any, discounts. Knowing when your conversion rate will be low tells you when you should be putting things on sale or trying new things.
Adding easy payment options with something like AfterPay reduces price resistance for expensive items by offering to cut large payments into multiple smaller payments. Loyalty programs that let customers collect points they can redeem for products or discounts are other-time honored ways to get more return customers. Adding Stylaquin to your Shopify site will increase the number of return customers, which helps increase conversion rates and makes your site more attractive to Google. It’s a double win.
One of the best ways to increase your conversion rate is to have exclusive products. If you are the only place shoppers can find something that interests them, they have to buy it from you. If you have exclusive items be sure to shout them out loud and proud. I am forever amazed at how many stores that do have exclusive items fail to say so in their copy. Ask your suppliers if they can let you have an exclusive color or style of a product. Some vendors may be willing to offer online exclusives, or early releases of products making them exclusive for a limited amount of time. New stores may not have the volume most vendors need for exclusive items, but it never hurts to ask and let them know you are looking. Try looking for new and smaller vendor who may be willing to offer exclusives at smaller minimums.
Customers need to trust that you are legit and going to treat them well. Another way to increase conversions is to discount. Be careful with this. If you are not a discount store, offering huge discounts may put off more customers than it attracts. Shoppers have their own perceived value for products that should have some relation to the actual price of the product. If you see a $400 item selling for $39.99 it will make you wonder why there is such a deep discount. But seeing the same $400 item marked down to $300 looks like a great deal.
Make sure that you are paying attention to the sales journey. What do you tell new customers? Package inserts are a great way to tell your story and say thank you for the purchase. Even small stores can do this at very low cost.
Does your Shopify site look like a jumble of products or is it well designed and maintained? Ask a friend (or stranger) to take a look. Websites that don’t inspire trust will have a lower conversion rate and a higher abandoned cart rate than those that look trustworthy.
Take the time to understand what your conversion rate is and how it changes over the year. Use sales and discounts strategically so that you aren’t giving up margin when you don’t need to. Getting the best conversion rate for your store is what you should focus on, not an average conversion rate for every store out there.