Most retailers already have the secret to higher conversion rates: data.
Conversion rates can pave the road to success for online retailers. A retailer’s ability to change a shopper into a customer lies in several different aspects, including product offerings, prices, and merchandising, among other things.
Many retailers make the mistake of taking conversion rates at face value. What I mean by this is they believe that simply changing their site layout or prices will improve their conversions.
While this is definitely true, these changes require plenty of thought and analysis.
How can retailers make the appropriate changes to their website to boost conversion rates? One word: data.
Customer data and competitor data alike can help retailers optimize their conversions to boost sales and revenue. It’s like having your friends and enemies work together to ultimately benefit you.
But how can you collect and analyze data properly? You’d be surprised to see how easy it is to gain competitive intelligence, and use it to get ahead of the competition.
Shoppers aren’t staying on your site for long
Maybe you’re in a little bit of a rut. You’re experiencing quite a few visitors, but they’re not converting into customers.
Measuring your store’s traffic can give you a better understanding of how shoppers interact with your site.
A quick fix to this problem is to build a sense of urgency. Something about your store obviously has them hooked, it’s just up to you to reel them in.
One of the best ways to create a sense of urgency is through limited time sales. Flash sales will help the customer capitalize on an opportunity that they know will not be around much longer.
You have a solid handful of big spenders
So let’s say your conversions aren’t bad, but you wouldn’t go so far as to say they’re great, either.
However, you notice that you have a handful of customers who have been spending a lot of money on your store.
These are the people that you do not want to leave for a competitor, and building their loyalty up is easier than you think.
Loyalty programs are the best way to keep your biggest fans. By introducing discounts after a certain number of purchases, you can help your favorite customers make the decision to return to your store.
Advertise your loyalty programs on your site with a dollar threshold that needs to be met to qualify, it can incentivize more customers to stay and increase your average order value.
You miss some of your customers
Sometimes familiar shoppers stop visiting your store. They used to be regulars, but you’ve noticed that they haven’t done a transaction with you in a few months.
There is a way to approach this situation, and you can bring them back. The answer lies within their data.
If they have made a purchase from your store, they probably left an email address to receive confirmation and shipping information. Use this email address to send them a fresh copy of Player’s famous song “Baby Come Back.”
Or, simply send them an email with a small discount or perk. It can help them remember the great times you had with one another, and you’ll hopefully be able to win them back.
Certain products sell better than others
Not all of your items were created equal. Sometimes the customers like one more than the other, and that’s totally fine.
It’s up to you to acknowledge this and capitalize on the love that certain products have been receiving over the past days, weeks, or years.
Odds are that the product has a popularity cycle. There are probably certain times of day that the product sells more than others.
Understand these times of day, and use a dynamic pricing strategy to increase the prices of those products to capitalize on the demand. This will make sure you’re getting the most from each transaction.
Data can reveal aspects of your business that you may not have known existed, and these aspects can help you boost your conversions and increase sales. When it stands alone it is not useful at all.
But once it’s analyzed, it can help you turn shoppers into buyers.