Growing revenue through optimised customer journeys: a guide to conversion optimisation

The art of conversion rate optimisation: a guide

In the world of e-commerce, optimising the conversion rate is an indispensable strategy that determines how effectively visitors can be turned into customers. This post dives deep into the nuances that make up a successful conversion rate strategy, covering both the technical and psychological aspects that are decisive for lifting conversions.

What is a good conversion rate?

Before diving into improving your website, it's worth taking a close look at your current conversion rate first. Perhaps no adjustment is needed at all.

According to intellAD's e-commerce index, the average conversion rate worldwide sits at around 2%. That figure alone doesn't give a complete picture, though, since the rate can vary considerably by sector.

Interestingly, tourism is among the best-performing sectors with a conversion rate of 8%, followed closely by finance at 10%. That may be because financial products are usually explored with a specific intention rather than out of mere interest.

In fashion the figures differ too: menswear reaches an average rate of 1.6%, while womenswear sits at 3%.

At the other end of the spectrum we find luxury goods, such as expensive cars or jewellery, whose conversion rate is below one per cent. In these categories, visitors of every kind seem happy to browse the offerings — often more to dream than actually to buy.

In closing, it's fair to say that a general assessment of whether your conversion rate needs adjusting isn't readily possible. A close look at how your competitors perform is essential, and trade publications and industry reports often deliver valuable insights.

The perfect conversion funnel

As soon as someone notices your offer — whether through a search query, an ad or your Instagram pictures — it's important to make the path to purchase as direct and as short as possible and to ensure an efficient conversion funnel.

In concrete terms that means: avoid leading users through unnecessary steps. Your promotional banners should link directly to the page of the product being advertised, not to your online shop's homepage. The same goes for product images on Instagram, especially where specific items like a summer dress are involved. Very few people will want to use your shop's search function after being drawn in by a particular product.

Once a product has landed in the basket, unnecessary actions should be avoided too. So it would be a mistake to suddenly show a popup or put a newsletter signup in the way.

An optimal conversion funnel is characterised by a purchase that completes as smoothly and as quickly as possible. Every additional click and every unnecessary user input can cost you potential revenue.

Thinking about lead nurturing during and after the purchase

During the purchase – at this point your online forms play a central role. Without careful lead nurturing, many prospects could drop out just before completing their purchase. Keep in mind the essential guidelines for effective forms in your e-commerce store:

Stick to the genuinely essential details: avoid asking for things like date of birth, region, which floor someone lives on or a phone number. People are cautious with their personal information, and for delivery the exact flat details, like "3rd floor, left", aren't needed.

Keep it simple and customer-friendly: simplify the process wherever you can. Delivery and billing addresses are often the same, so enable that option by default to minimise the effort.

Use placeholder text: placeholder text is the light grey hint in form fields showing how the data should be entered. In a name field, for instance, it may be unclear whether first and last name or surname should come first. Placeholder text can clear up that uncertainty.

After the purchase – don't forget that even then the relationship with your customers can be developed further. If you keep placing value on lead nurturing, one-off buyers can become loyal regulars. It's decisive that customers continue to feel valued and looked after even after they've paid.

Shipment tracking should go without saying, as should a closing email in which you thank them sincerely for their trust, ideally with a personal touch. Should problems with the order arise, it's important that solutions like an exchange or a refund are offered without fuss. A hassle-free returns process can contribute substantially to customer retention.

Loyal customers are invaluable: they not only buy more often, they're also inclined to recommend your brand, need less support and are more open to new products. So don't let up on customer engagement, especially in this final phase.