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Comprehensive Guide To Track & Measure Conversion Rate Of Your Magento Store

Product Grid Page with Options & Layered Navigation

In simpler terms conversion rate can be defined as “Number of people coming to your site against number of people who are actually buying your stuff”. I have seen many Magento store owners often get overwhelmed to see great traffic coming to their site organically from Google, Yahoo & Bing. But what about conversion rate?

If 10000 people are coming to your site and only 20 people are buying from your site then there is something wrong for sure. Rather than increasing traffic to 20000 and get 40 people to buy your products is not a good solution. You should figure out a way to increase conversion rate. Anything above 10% is considered as good conversion rate, so why not increase your sales conversion from 1% to 10%.

In order to improve your traffic to sale conversion you have to first determine few things:

  1. Where does the traffic coming from
  2. Where are they landing (this will give you keyword efficiency as well)
  3. What are they doing after they reach your page
  4. Are they getting what they are looking for
  5. Customers are finding your site easier to understand & usable
  6. Design & layout of your site is perfect
  7. Are you offering right products to your customers based on their interest or search results. More offers helps in greater sales.
  8. Are you offering products on sale
  9. Are you offering Additional products based on customer’s recent purchases, wish lists or likings
  10. Are you offering coupon codes
  11. You store offers shipping or has a third party shipping solution already built in
  12. Are you showing total cost of a product early in the checkout process (make it non ambiguous)
  13. Are you making sure that your product prices are competitive
  14. Are you showing helpful product insights & reviews to your customers
  15. Products are easier to find & Add to cart button is standing out clearly
  16. Shopping basket is clearly displayed as per user’s expectation (typically customer expects the shopping cart button either top right of the page or at the right hand side)
  17. In case of international customers are you giving option to change locale, currency and have some sort of translation service enabled
  18. Are you offering multiple Payment options (this helps the customer to buy stuff without thinking about how he/she will pay you)
  19. What about “After Sale” services – are you sending proper emails confirming what’s going on
  20. Contact form and Live Person support, direct phone numbers, third party accreditation (if any) along with customers testimonials are equally important to answer customer’s questions.
  21. Do you have Opt in email list for subscription and blog for news & events?
  22. Do you know what does your audience (not yet customers) expects from your store

Design, Layout & Usability

Some of the above questions are related to design, layout and usability aspects which are vital for customers. Remember HIPPO (High profile person or Highest Paycheck Person), the one who defines the store’s layout should not impose what he/she thinks would work but rather think about how customers wants the store to be. Google provides A-B testing tool which will help you understand how to place different modules so they are not scattered in hap hazard manner but are strategically placed. This doesn’t imply that you copy Ebay or Amazon design; you should be creative enough to create your own image. Once you are satisfied with your design you should test test and test with at least few thousands of visitors and then figure out which layout, design is working best in terms of greater sales and thus conversion. It is recommended that you do the big functional or layout changes in one go and fine tune them slowly. This way you don’t end up wasting time and energy on the changes which are not working for you anyways.

Not only the layout and design but the usability of your online store plays a vital role in sales. A well designed site with lots of confusing Flash, AJAX and other fancy items might not help as much as they cost, simply because the usability is sacrificed to attain higher fancy stuff. Amazon is a great example of usability; simple, precise and to the point. If you are searching for books it will show you books with lots of other interesting books based on your search criteria. Make sure that your customers have to do less ground work in understand what the product is all about and what are other products are recommended by your store. Criteo is one of the best recommendation engines which learn over time what users are buying and offer similar recommended products to customers. Although there are plenty of third-party software’s who brag to increase your conversion but it’s up to you to decide which one is actually working for you.

Functional Modules & Other Important E-commerce Sections

This is the core of your Magento ecommerce store, although Magento comes with great set of functional elements still there are lots of stuff which is missing. Adding those in your existing Magento store is not difficult as you can install either Free Magento extensions or Premium Magento extensions to gain from the added functionalities. Considering you have already optimized your store’s layout you can still do few things:

  • Search Page – Optimize your search result page in a way that a customer finds exactly what he/she is looking for. You can optionally show additional products which are not an exact match but are tagged together.
  • Category Page – One common error or wrong perception tells us that store owners should create categories and subcategories heavily. Ideally you should avoid going into 3 levels down. Don’t let the customer dig deeper than that to find his/her product. Refine your search tool to show products based on Bestseller, Product names A-Z, Product price (Low to High), Reviews and Rating.
  • Guest Checkout – Enable guest checkout, don’t ask the customer to log in to add a product to the shopping cart. 80% of potential customers are initially searching for the best offer, prices before deciding on where to buy. By requiring customers to log in prior to adding a product to the shopping cart, you might be stuck with only 20% of the potential customer inventory.
  • One Page Checkout – Most of the customers do not wish to fill lengthy forms to purchase something. Try to minimize the user input as much as possible.
  • Tax, Shipping & VAT – It would be best if you show total cost of the product including taxes well in advance as most of the customers do not like last-minute surprises.
  • Coupon codes – To increase your subscription it is ideal to issue specific promotional coupons to help increase the sales. Big coupon sites typically pick these coupons and post on their site as a deal (which somehow advertise your products on those big sites). You can optionally setup promotional coupons for these sites e.g. “Get 5% Off on Baby items especially for members”.
  • Shipping Solution – If you don’t want to handle the products shipping overhead then you should opt for third-party shipping providers and charge the customers accordingly.
  • Competitive Product Pricing – Research well in advance before setting up your product pricing. You should be competitive enough so that customer doesn’t let down your offers easily.
  • Locale, Currency & Translation – If you are selling products internationally then you should measure and figure out which country or specific geographical region is giving you good results. You can optionally setup a country, region specific store or have some sort of currency & locale conversion to facilitate those customers. Google translator services are also helpful but that’s entirely optional.
  • Subscription, Blog & FAQ – You should have all these three elements in your Magento store along with contact form, phone number, live person chat support and customer’s testimonials section to enhance customer’s confidence in your store. Obviously they would love to know more about you prior to the purchase.

Traffic, Visitors & Analysis

Google Analytics and other tools like Ginzametrics, Crazy Egg, Perfomable, Kissmetrics and KissInsights can give you useful insight on what’s going on your web store. More technical insight will help you in taking strategic decisions and fine tuning your store pages.

Heatmaps, visitor trending etc. are most important but you can also use different surveys to ask people how to improve your services, what products should you offer etc. KissInsights is really cool in this regard.

I would love to hear your experiences of optimizing your Magento store and increasing conversion rate. Please leave me a comment and let me know. Subscribe our RSS to receive latest Magento Themes, Extension and development updates.