April 8, 2020
Fundamental Ecommerce Metrics: Conversion Rates

Fundamental Ecommerce Metrics: Conversion Rates

In ecommerce, the term “conversion rate” usually refers to the ratio between the number of visits to an online store and the number of purchases made in a given period of time. For example, if your website received one thousand visits last month and made ten sales, your conversion rate would be 1%. If you’re currently managing an online store, it’s likely that you just compared that 1% metric to your own store’s conversion rate. How does it compare? When analyzing Compass’ data, we found that the average conversion rate in ecommerce is 1.33% If you’re operating at a 3.6% conversion rate or higher, you’re among the industry’s top performers. For traffic coming from search engines, the average conversion rate is 1.18% Top performers get 3.65% For Email traffic the average conversion rate is 3.84% While the best email campaigns can get 9.89% Traffic coming from Google Ads convert on average at 1.55% While top campaigns get 3.77%. Lastly, Facebook Ads have an average conversion of 1.56% While top performers get conversion rates of 2.49% Consumers can behave very differently, depending on the type of product they’re buying or who they’re buying from And all these factors affect conversion rates People looking to buy beauty products, for example, will not engage in the same shopping behavior as someone buying an electronic item. Another aspect that has a big impact in conversion rates is price. Expensive products require a more complex purchasing process than cheaper ones. So when you need to visit a website multiple times to make one purchase, that site’s conversion rate will naturally drop. Think about how many times you visited a website before buying your car, and how much research you put in to buy a pair of socks. Why should you care? Conversion rates are one of the most important metrics of your online business. If your conversion rate is too low, you’ll need to bring a lot more visitors to your site just so you can make a sale. Which is expensive and time consuming. The most common reasons for bad conversion rates are: One. You’re attracting a type of consumer that is not interested in your products. Two. Your messaging is not clear, letting visitors confused about what you do. Three. The site navigation and design is not organized, leaving people lost on the way to check out. At Compass, we take all main factors into account when benchmarking your business metrics to give you the best possible view of your data and how to use it so you can better run and improve your store. Find out more at www.compass.co

4 thoughts on “Fundamental Ecommerce Metrics: Conversion Rates

  1. Winner of a video, I been tryin to find out about "direct email advertising" for a while now, and I think this has helped. Have you heard people talk about – Jenevi Digital Duppy – (Have a quick look on google cant remember the place now ) ? Ive heard some unbelievable things about it and my m8 got great success with it.

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