November 15, 2010 - No Comments!

Are Your Conversion Rates Too High?

Your logical retort right now might be, “Is that even possible?” Of course, everyone wants high conversion rates on their e-commerce sites. In an ideal world, every person that visits your site would purchase something from you.

In fact, it's easier than you think to get a near 100% conversion rate. Here's how:

  1. Start a site that sells nothing but framed pictures of you and your mom.
  2. Sell those pictures for $2 with free shipping.
  3. Put no descriptive copy on your site to ensure it never shows up in search engine results.
  4. Give no one but your your mom the URL.

As Josh puts it, if a minor league pitcher is striking out every batter, he’s probably ready to graduate to the majors. Similarly, if your site is converting every visitor that walks through the door, you need tougher visitors.

A good conversion rate is in the 1–2% range. Less than that and you need to look at:

  • User experience / user interface (UX/UI): How easy is the site to navigate? How cumbersome is the checkout process?
  • Quality of traffic: Are you selling organic dog food, but your paid search campaign is bringing lots of traffic for the phrase "organic food"?
  • Product offerings: Does anyone actually want your stuff? Is it too expensive?

However, unless you’re a special case, if your conversion rate is over 2–3%, then you probably have too little traffic. Your problems might be that:

  • Nearly everyone who comes to your site already knows you and is determined to buy.
  • You are not attracting new customers.

One way to confirm this is to look at Google Analytics and the keywords that people search to find you. If your top traffic generating keywords are your business’s name (and variations thereof), you need to examine your site’s search engine visibility. It may be time to call in an SEO expert.

Lastly, don’t be afraid when a strong SEO campaign leads to a decreased conversion rate: Your sales are mostly likely going up.

Published by: Greg Baugues in Business

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