E-commerce businesses dedicate significant resources to increasing the proportion of site visitors who eventually become customers. This measure, known as the conversion rate, is a key focus for these businesses regardless of size, from major corporations to small and medium-sized enterprises (SMEs). In the past, there have been difficulties balancing the high expenses associated with the app and website development with the typically modest revenues generated through online sales platforms.
A primary solution to enhancing conversion rates and optimizing web and app user experiences is employing data-centric strategies. This particular approach is the forte of fifty-five The Data Company, a global consulting firm specializing in data and analytics for marketing performance. Its team, composed of experienced digital analytics consultants, measurement specialists, data engineers, and data scientists, utilizes a data-centric methodology for its Conversion Rate Optimization service.
Here is a closer look at the e-commerce conversion rate from a broad, global perspective, and the factors that greatly affect it. fifty-five unveils why the technologies and strategies it implements can ascertain the highest outcomes and best results.
A deeper look at the global average conversion rate
According to the most recent statistics collected this year, the mean conversion rate for e-commerce enterprises stands at roughly 1.64%, indicating a minor drop from the previous year but marking the lowest e-commerce conversion rate ever recorded.
Industry leaders in the skincare and health and beauty sectors stated that average e-commerce conversion rates are around 2.5 - 3%, according to this data. However, this may not necessarily be the sweet spot for all businesses. Starting with a baseline conversion rate of 2.5% is considered a good place to begin, but continuous efforts should be made to optimize and improve this rate using conversion rate optimization tactics.
Although there may be minor discrepancies in the exact figures from different sources, it's evident that conversion rates in e-commerce exhibit variability. It's essential to remember that numerous factors can sway conversion rates, such as the industry, season, the intended audience, the design of the app or website, and ongoing advertising campaigns, among others. For e-commerce enterprises to achieve their highest potential, it's critical to constantly observe and take action to enhance conversion rates.
The huge influence of devices on conversion rates
The influence of various devices on e-commerce conversion rates is significant. While internal research does not explicitly mention the average conversion rates by device as of Q2 2022, it is important to note that e-commerce operates in an omnichannel environment, where users engage with brands through multiple devices. Consequently, it is reasonable to expect variations in conversion rates based on the device utilized, including desktops, tablets, and smartphones.
E-commerce conversion rate is defined as the percentage that represents the relationship between transactions and sessions. This metric compares the number of purchases made to the number of site visits, allowing businesses to determine their conversion rate. The choice of device by consumers can impact their browsing experience, ease of use, and overall comfort, thereby influencing their likelihood of completing a purchase. For instance, desktop computers may exhibit higher conversion rates compared to tablets or smartphones.
Furthermore, factors such as web design, user interaction, and mobile-friendly optimization play a crucial role in determining conversion rates. Therefore, enterprises must gain insights from their website or app analytics to understand how different devices affect their e-commerce conversion rates.
The data-centric approach from fifty-five The Data Company
In the pursuit of a successful customer experience (CX), a systematic and data-driven strategy becomes paramount. To this end, fifty-five has devised a four-step approach that serves as a guiding light towards achieving that success.
The first step in this process involves identifying the business objectives and pinpointing the specific areas that require attention. Once these focal points are established, a comprehensive website analysis and user experience (UX) analysis are conducted to gain a thorough understanding of user behavior. Furthermore, the company conducts benchmarking exercises against competitors to gauge their current standing in the market. Armed with the insights gleaned from this initial phase, a prioritized optimization roadmap is crafted, taking into account the potential business impact and technical complexity of each improvement area.
With the roadmap in hand, the next step entails performing A/B testing to determine the most effective updates for the website. This iterative process allows for continuous optimization of the customer experience over time, ensuring that it remains aligned with evolving needs and preferences.
In summary, the journey towards a successful customer experience involves careful planning, meticulous analysis, and ongoing refinement. By following the four-step approach devised by fifty-five, businesses can pave the way to a customer-centric environment that fosters satisfaction, loyalty, and growth.
In addition to providing first-class training, the expert team at fifty-five can also set an organization up to efficiently share responsibilities and ensure accountability. Beyond CRO, using cloud technologies and AI to automate operations allows the team to take data-driven decisions in designing, building, maintaining, and scaling an organization's infrastructure. Custom AI systems, algorithms, and data science applications are another transformative approach that organizations can activate to bring their performance to a higher level.
Recognized as a leading global management consulting firm and the honored winner of the "Best Management Consulting Firm" award by Forbes and Statista, fifty-five is well-versed in the significant role data plays in shaping the tactics of online businesses. With ongoing testing, optimization, and personalization practices, it consistently strives to discover and implement enhancements that boost conversion rates and amplify the success of marketing investments.
