From product descriptions to payment methods, every detail can impact your conversion rate, a fundamental metric for merchants to pay attention to.
If you are launching an e-commerce or already have one consolidated in the market, the higher your conversion rates, the more successful your business will be. Your e-commerce conversion rate is a key metric to understand if your strategies are on track, leverage sales volume, and also strengthen customer retention.
In e-commerce, several elements can influence this metric so that it is in accordance with what merchants want. With that in mind, in this post, we’ll dive into conversion rates and bring you tips to get these strategies right in your e-commerce, especially considering consumers in Latin America — who have specific needs and expectations. Keep reading to find out more!
What is the conversion rate?
The conversion rate metric measures the number of people who have advanced from one stage of the sales funnel to another, whether they are visitors who became leads or leads who became customers. It is a number that reveals what percentage of your target audience converts, confirming your e-commerce got good results.
It is extremely important to emphasize that this type of indicator not only helps to measure sales, but it is an essential rate to verify the number of opportunities along the funnel that can result in sales; that is, the number of visitors who actually became consumers.
Why measure the conversion rate?
The purpose of measuring the conversion rate is to understand the return that each investment your organization is providing, in terms of both money and time, in addition to sales. It is a great way to measure the results of strategies, such as digital marketing or your e-commerce's payment stage.
Understanding your conversion rate is essential, both when filling in information, requesting a quote and subscribing to your newsletter — and, of course, conversion at the purchase stage itself. This is due to the fact that it attests that the site is efficient and mature, in addition to being able to follow the results of the business in general.
In the purchase stage itself, it is important to understand if the purchase flow is in accordance with the expectations and needs of the consumer; if it is easy to fill the shopping cart; choose the payment methods; if there are varied options for payment methods; and others.
What is the importance of conversion rate for e-commerces?
The conversion rate is important because it measures what happens when users enter your e-commerce. When you have a low conversion rate, it means something is wrong, and your target audience is not actually completing their purchases.
On the other hand, a high conversion rate reveals that your strategies have indeed paid off and that your e-commerce revenue is increasing. In short, the conversion rate is a great indicator of your e-commerce performance. Therefore, it is essential to measure it frequently.
Contrary to popular belief, the conversion rate is not just linked to sales. You can use metrics to calculate this conversion rate, configuring them individually in your business.
How to measure the conversion rate?
When calculating the conversion rate, you need to divide the number of conversions by the number of visits. For example, if your organization's website received 4,000 visits in a month and there were 1,000 form submissions, the conversion rate would be 25%.
The formula is as follows:
(Conversions / total visits) x 100 = conversion rate (%)
So, if we use the numbers provided in the example, it would look like this:
(1,000/4,000) x 100 = 25%
The conversion rate shows the percentage of leads converted into customers. So, if 1,000 leads contacted one of your salespeople, but 300 sales were completed, then the sales conversion rate is 30%.
How to improve the conversion rate in e-commerces?
Now that you know what the conversion rate is and its importance for the company, it is essential to know how to optimize conversion in your e-commerce. Check it out!
1. Strengthen marketing strategies
While any e-commerce entrepreneur has the goal of selling, if you want to improve your business like an expert, you need to focus on something more than just sales, which is where content shared on your website, blog, or social media comes in.
If you haven't created a blog on your online store yet, you should. This is the perfect place to share content with your customers and anyone who visits your online store. However, don't share content that won't add something new; try to find a differentiating and creative point that makes it interesting and engages customers.
Here is another important point that must be worked on: SEO. In short, SEO is the process of improving the visibility of a website in search results across different search engines, for example, Google and Bing.
So, if you want your online store to be easily found on Google, you need to implement an SEO strategy. A good visibility in search results will increase the probability of hits, conversions and traffic to your website.
2. Offer local payment methods
When selling to Latin American countries, it is essential that your e-commerce accepts local payment methods. Domestic-only credit cards lead the percentage in e-commerce sales, accounting for 30% of all online sales, while internationally-enabled credit cards account for 22% of sales.
In addition, there are e-wallets, instant payment systems, and cash vouchers, unique methods in each country that represent important slices of the consumer public. In Brazil, for example, Pix already represents 15% of total online sales, and will rise to 31% by 2025. Data are from the Digital Renaissance in Latin America white paper by BoaCompra.
Latin America represents a $268 billion e-commerce market and 256 million people. To reach all this market potential and have successful conversion rates in the region, local payment methods are an essential strategy.
3. Analyze visitor behavior
This is important because once you understand how visitors behave on your site, you can strategically modify that behavior based on that data. Imagine that one of your e-commerce product pages isn't converting as well as you'd like.
What happens is that many users do not complete the purchase and abandon the cart with the products selected by them. It's important to analyze everything your visitors do while on your site. Therefore, it is possible to obtain valuable data on how users behave on the product page, such as: which product photos visitors click on the most; which payment methods are most used by them;
- how far people scroll; whether visitors notice important details like free shipping offers and "Buy" buttons.
- Once you know this information, you will be well-prepared to adjust your website so that leads become customers. Ultimately, all the aforementioned ways to increase the e-commerce conversion rate are primarily aimed at optimizing the customer experience based on how your audience thinks and acts. However, don't think that you need to implement all strategies at once.
You can start by offering them attractive payment methods, for example. Now that you know how important it is to promote conversion practices for your e-commerce, don't waste any more time and take the opportunity to create a great experience for your customers by getting in touch with us below: