In this article, we will touch on different free industry resources that focus on retail e-commerce transformation.
How are E-Commerce Conversion Rates Measured?
It is important to consider the denominator when making a conversion comparison. When measuring, do you divide the number of sales by the number of unique visitors or visitor sessions?
In Google Analytics, which can be considered a standard reference, sales transactions are divided into visits. the Ecommerce Conversion Rate is defined by Google as:
"The ratio of transactions to sessions was expressed as a percentage. For example, the rate of one transaction per ten sessions will be expressed as an e-Commerce Conversion Rate of 10%. "
When comparing the conversion rate, it is very important to explain to marketing managers that segment conversion by different types of visitors should go beyond headline conversion rates.
Retail Conversion Rates by Region
If your marketing strategy involves geo-targeting, it can be especially useful to create country-specific KPIs for segments of your customer base. The key here is that these statistics inform you not to define your goals.
E-commerce conversion benchmarks by industry
Many marketers set their KPIs based on industry benchmarks. For example, if you’re catering to a market with a lower overall conversion rate, a good conversion rate may still be lower than the average across all industries.
Unbounce's 2021 Conversion Benchmark Report compared landing page conversion rates across 16 industries - with 'catering & restaurants coming up top with an average conversion rate of 9.8%. Agencies and real estate represent the other end of the scale, converting only 2.4% and 2.6% respectively.
Meanwhile, online shopping data from April 2021 data puts food & beverage as the top online shopping category for conversion rate in the first quarter of 2021. The next highest converting categories of 2021 were hair care, beauty and skincare, and health and beauty. Luxury items and homeware (home furniture/ appliances) seemed to convert at a much lower level in 2021.
Mobile e-Commerce Conversion Rates
With shoppers using more smartphones and tablets, it is important that online retailers know what conversion criteria they need to achieve on a smartphone device. Globally, the average order value on a desktop is the 3rd of 2020. in the quarter it was 42% higher than on a mobile phone.
We recommend mobile and multi-screen availability with advanced modules for marketers who want to improve their customers' multi-channel e-commerce digital experience.
This indicates that iOS conversions are slightly higher than Android, and Windows conversions are significantly higher than Mac. It is unclear to what extent this is based on availability versus other demographics.
Omnichannel conversion rates
Compilations of published conversion rates often only consider online conversion to sale. Research by Google and Wolfgang Digital shines a light on ‘research-online purchase-in-store’.
"By uploading Point Of Sale information to Google, retailers can now match in-store purchasers with online ad clickers, gaining further visibility on the success of their campaigns."
The results speak for themselves: digital marketers saw an extra 168% in revenue in their in-store sales, on top of what was made online.
E-commerce conversion rates by country
It can be particularly useful to come up with country-specific KPIs for segments of your customer base. It might also be necessary to amend KPIs based on industry benchmarks if you’re catering to a market with a lower overall conversion rate. As always, the key here is for these stats to inform your goals not to define them.
In the table below, Germany leads with an average conversion rate of 2.22% while Italy lags behind at 0.99%.
Google Ads mobile conversion rates across different industry sectors
The 2021 cross-industry Google Ads clickthrough rate and conversion benchmarks show that:
It's no surprise that the conversion rate in the search network is much higher than in the display network since, in the search network, searchers are typing in product and brand names when they have a specific intent. This isn't the case in the display network where they are responding to banner and text ads, typically on publisher sites.
The results from 18 industries could be useful if you are a startup modeling conversion rates as part of a business plan, or if you want a top-level comparison for your activities with others in your industry.
Of course, the outcome that is measured as conversion rate will vary according to the sector and depending on the type of keyword. Brand searches always have higher clickthrough and conversion rates than generic searches, for example. For retail, the outcome will be conversion to sale, but in many other sectors show, the conversion will be converted to lead.
E-commerce conversion funnel
This funnel-based view of the conversion process is useful since as well as the average basket and sales conversion rates, it also shows the conversion rates to product page views which aren't published so often:
e-Ticaret Dönüşüm Hunisi
As would be expected, the number of sessions with product page views is much higher than the other micro-conversions, approaching 50 percent. This provides a useful benchmark and prompts retailers that it's useful to assess conversion to product page views when making site design improvements.
It also reminds us of the value of following up on interest in specific products and categories via sending personalized automated browse abandon emails. We have dedicated tools and training to support marketers using automation to optimize their marketing strategy.
Conversion by channel
This research from Optimizely Episerver retail clients Q1 2020 (based on 1.3 billion unique shopping sessions across 159 unique retail and consumer brand websites) shows a typical pattern. Conversion rates are significantly higher where consumers have higher intent, i.e. they are searching for products. This compares to social and display referred visits where conversion rates are significantly lower.
Options for segmenting e-commerce conversion rates
As Dan Barker suggests in his advice we mentioned at the start of this post, conversion rate gets more useful as you break it down by different types of visitors with different intent and a different relationship with the retailer.
Different conversion rates and average order values can then be segmented for different audiences to understand and work to improve the quality of traffic or strength of propositions, for example:
- First time, repeat visitor or registered customer conversion
- Referring channel conversion, e.g. paid or natural search, social media, affiliates, display advertising
- Search type, e.g. paid or natural, brand, generic or long-tail
- Product category type - conversion rates are much higher for simple commodity products for example - flower purchase (double-digit percentage) compared with a higher cost product that will often be purchased in-store (for example beds or furniture which will often be less than one percent).
- Promotion type or seasonal sale - the IMRG data and Coremetrics data below shows that conversion rates can increase dramatically at these times.
Keep up to date with the latest digital marketing stats and trends to reach and convert more customers on your e-commerce website. Identify new opportunities to develop your digital strategy and win more customers with our dedicated guidance and support for retailers.
Lead Generation and Landing Page Conversion Rates by Sector
This 2017 landing page lead generation conversion rate survey from Unbounce reports reports lead conversion rates by industry. The industries covered include business-to-business, travel, healthcare, dec and education sectors.
The chart shows wide variation within and between sectors with some businesses achieving lead generation conversion rates much higher than the media. So, to compare against your rates it's best to look at the media rates which vary between 2.8% and 6%.
We have retained this older version since it shows the range of conversion rates. In 2020 Unbounce released a new landing page conversion rate compilation.
Form completion conversion rate comparison
Another source to use for benchmarking lead generation efficiency which has unique insight breaking down the process by sector is provided by the Zuko form performance benchmarks October 2021.
Form types include purchase, inquiry, and registration data. Most forms tracked are transactional forms of various kinds, but you can see the full breakdown below.
This shows that typically only one-third of people start entering data into the form, showing the value in AB testing to ensure you make the value of completing the form via the title, copy, imagery and follow-up clear. Overall, just under half typically complete each form.
Want to find out more? Keep up to date with the latest e-commerce stats and trends to reach and convert more customers on your digital platforms. We have tools and training to support a data-driven approach to improve your e-commerce conversion rates. Start now.
Source: Smart Insights
12 January 2022 Wednesday tarihinde yayınlandı.
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