Key Drivers of Successful E-commerce Optimization
2024-10-02
What separates a thriving online store from one that’s just getting by? It’s not just the product or the platform- it’s how well you optimize the customer experience at every stage. At Conversionrate.store, we believe the right question to ask is: What are the key factors that drive conversion?
Every successful CRO project begins by addressing essential steps: what, where, and how.
The first step is to understand what metrics really matter to your business. It’s tempting to focus on superficial numbers like how many people add items to their shopping carts, but these metrics often don’t tell the whole story. Instead, focus on metrics that directly impact revenue, such as customer lifetime value (CLTV) or the success rate of your checkout process. These are the numbers that reflect the true health of your ecommerce store.
Once you know which metric to prioritize, the next step is to decide where in the funnel to apply your optimizations. It’s always a good idea to start at the end – think checkout or transaction stage – and work your way back. For example, improving the checkout conversion rate by just 10% can lead to a significant increase in completed transactions, which means more immediate revenue.
Finally, there’s the question of how to optimize. This is where the real work begins. You’ll need to apply different levers depending on the stage of the funnel you’re focusing on. Whether it’s implementing express checkout options to speed up the purchase process or introducing smart cross-sells to increase average order value, each leverage should target a specific point in the user journey and drive tangible results.
Pillars of Optimization: Funnel, Sentiment and Behavior
At the heart of any effective CRO strategy are three key pillars: funnel performance analysis, user sentiment research, and behavioral pattern analysis. First, you need to map your funnel and identify where users are dropping off and where they’re converting. This means digging into data points like cart-to-detail ratio, buy-to-detail ratio, and your cart abandonment rate.
But it’s not enough to just look at the numbers. You also need to get inside the heads of your users through sentiment and perception research. Why are they hesitating before making a purchase? What do they really feel about your product or brand? Understanding these emotional triggers can provide invaluable insights that shape your optimization strategies.
Finally, you need to analyze user behavior patterns. This is where you uncover optimization opportunities by seeing how users interact with your site. For example, if you notice that a segment of your customers frequently purchases the same product in multiple variations, that’s a clear signal. By adding a sticky product selector to your product detail page (PDP), you can make it easier for users to explore different options, ultimately increasing average order value (AOV). Put it all together and you can make the difference in your e-commerce results.
CRO Leverages at Every Stage
CRO works with levers – actions and strategies that influence key e-commerce metrics such as revenue and conversion rates. These leverages are implemented across the entire funnel, from product listing to checkout, and each plays a significant role in improving performance.
Here are some of the classic levers you should be familiar with:
● Cross-selling at the cart stage: Recommending similar products to increase average order value.
● Express checkout options: Offer faster payment methods like Apple Pay to minimize friction.
● Visual hierarchy: Ensuring that product details, images, and pricing are organized in a way that directs the user’s attention toward the purchase.
These techniques have been around for a while, and any successful e-commerce business should already be using them. If you’re not, you’re falling behind. Classic CRO techniques, while critical, aren’t enough to guarantee a competitive edge in today’s business environment.
You need to go beyond what’s already working by creating new leverages. These new strategies should be based on user-generated insights – data and feedback from your actual customers that highlight their pain points, motivations, and behaviors.
Here’s where you need to start:
● Initial Intent: Understand why users came to your store in the first place. What problem are they trying to solve?
● Funnel Friction: Identify where users are getting stuck in the funnel. Are they abandoning the cart? Hesitating at the checkout? Address those friction points directly.
Examples of Optimized Leverages
Leveraging user-generated insights can transform CRO strategy from generic tweaks into data-driven actions that drive real results. Here are detailed examples of how specific leverages can lead to meaningful improvements across key metrics.
Personalized Problem-Solution Content Blocks
By analyzing user perception and sentiment, we discovered that many users came to the product page with different intents and needs that weren’t being fully addressed. We implemented a new content block specifically designed to solve this issue. The content provided clear answers to customer pain points, showcasing the benefits of the product in addressing their specific concerns.
Result:
● 22.68% increase in conversion rate
● 28.35% increase in revenue per user
● 4.68% increase in AOV
By directly addressing user concerns in a problem-solution format, we removed hesitation and guided users more confidently toward purchasing. With clearer messaging addressing specific customer needs, users felt more confident in their purchasing decisions, increasing the overall value of each order.
Sticky Material Selector on Product Detail Pages (PDPs)
In another example, we analyzed user behavior and discovered that 7% of orders included multiple products of the same design but in different variations—such as different metals or gemstones for a piece of jewelry. To capitalize on this, we introduced a sticky material selector on the PDP, allowing customers to easily switch between product variations.
Result:
● 7% increase in the average number of products purchased per transaction
● 6% increase in ARPU
Customers were more likely to purchase multiple variations of the same product when given a convenient way to compare and add them to their shopping cart. This small but significant increase in ARPU demonstrated the effectiveness of providing a smoother user experience on the PDP.
CRO isn’t something you can set and forget. It requires constant testing, iteration, and refinement. Each time you apply a new leverage, you must measure its impact and adjust based on the data you collect. As user behavior and expectations evolve, so should your optimization strategies.
If you’re eager to delve deeper into the world of e-commerce optimization and learn from a seasoned expert, don’t miss the opportunity to attend Ihor Sokolov’s lecture, “The Key Drivers of Successful E-commerce Optimization” at the “RIGA COMM 2024” E-commerce conference on October 3rd. Sokolov, the CEO of Conversion Rate Store, will share valuable insights and practical strategies that can help you elevate your online business to new heights.
About “RIGA COMM 2024”
The 13th Baltic Business Technology Fair and Conference will take place on 3-4 October 2024 in Riga, Latvia. The event is tailored for entrepreneurs in the service and manufacturing sectors, senior executives from government institutions, and cross-functional professionals. This event provides a unique platform to explore cutting-edge digital technologies, gain strategic insights, and forge valuable partnerships with technology providers to drive business growth and innovation.