An online sales conversion rate is a key metric showing whether an e-commerce business is effective at converting site visitors into leads or sales . That’s why it should become one of the most important areas of focus for every modern online retailer. The good news is that the number of online consumers is constantly growing worldwide. According to Statista, it is projected to grow from approximately 1.8 billion, in 2018, to 2.14 billion in the next two years.
However, such phenomenal growth in the e-commerce industry brings some challenges to online merchants, too. One of the greatest of them is winning customers’ attention and persuading them to choose goods from your store rather than from a competitor’s website offering similar or alternative products.
In this article, we will explain how you can optimize your online sales effectively and be a step ahead of your rivals in this race for customers’ hearts, minds, and “buy” button clicks.
How to calculate an online conversion rate
Before we dive into the practical tips for online sales conversion optimization, let’s take a brief look at some theory. In general, an online conversion rate is a figure showing the percentage of people who took the desired action out of all people who visited a website.
What these desired actions are depends on your unique business. For instance, it could be completing a sale, adding a product or service to a shopping cart, subscribing to an email list, sharing video or other types of content on social media, etc.
Most e-commerce stores define their conversion rates based on the number of successfully completed purchases. For this reason, e-retailers usually use the terms “conversion rate” and “online sales conversion rate” interchangeably.
So let’s say your store received 50 visitors last month and 5 of these people made a purchase. This means that your online sales conversion rate is 10% (see the image below). However, in order for you to actually know how many people visited your site, you need an analytics tool (e.g. Google Analytics).
An average conversion rate for the whole e-commerce industry amounts to 1.5-2%. So if you get 2 buyers out of 100 website visitors, you’re pretty much meeting industry standards. However, you should understand that this figure is quite generalized. In practice, an average online sales conversion rate would be different for every product category.
But no matter what the exact statistics are for your particular market, to stand out from the competition, you should strive to surpass your competitors, not just meet the industry standards. In other words, the question becomes: How can you take your online sales conversion to the next level in 2019?
Video marketing: why it should be your starting point
Conversion optimization is a complex process. It comprises many practices such as adding testimonials to a website, creating an appealing design for a landing pages, placements of high-quality images, etc. Of course, all these recommendations are important to consider. However, most online retailers already apply them to their e-commerce stores. This is why these aspects of conversion optimization strategy no longer create a competitive advantage. If you want to make your internet retail business really noticeable in 2019, you should particularly focus on taking advantage of video marketing.
The reason why you should focus on videos becomes obvious once you look at some video marketing statistics:
- When there is a choice between explainer videos (or other types of videos) and text content, 72 percent of digital buyers would prefer to watch a video in order to get information about a product.
- 80 percent of millennials, who constitute the biggest buyer demographic nowadays, intentionally search for videos before making purchase decisions.
- Video conversion rate statistics show that watching videos increases the likelihood of buying a product for 64 percent of consumers.
- The overall impact of video content is exceptionally significant. Including a video in a web page may increase its conversion rate by up to 80 percent.
- 84 percent of digital shoppers say they have bought a product from an online store after watching a video.
As seen from the numbers above, video shopping, online videos, and mobile videos really matter. It’s hard to overestimate the value of video content for today’s marketing. But there is also one more crucial figure to consider. Nearly 83 percent of marketers say video content is growing in importance. This means that you should be creative in your video marketing strategy to get the desired results. Luckily, the modern state-of-the-art technologies can help you do that easily and cost-effectively.
Increasing a CR with transactional product videos
In short, transactional product videos (or shoppable videos) are the type of interactive video content that allows customers to make purchases without leaving a video player. A buyer just needs to click a “plus” or “shopping cart” icon that appears on a product featured in a video in order to initiate a transaction. Once it’s done, he or she is directed to a product page that contains detailed information about a product as well as a checkout button.
Besides being a truly innovative shopping solution, transactional product videos are also a powerful marketing tool. Specifically, their performance is nearly 10 times higher as compared to an ordinary video ad. This not only means that you’ll get more video views, but the online sales conversion rate will also increase.
The main secret is that the engagement rate of interactive videos are at 45.71 percent. At the same time, for example, an average engagement rate when people watch videos posted on Instagram is as low as 1.73 percent.
Now, the key question is: how can online retailers add transactional product videos to their e-commerce stores? Luckily, DUZY tv’s patented solution makes it easy to add and create transactional videos.
How to get started with DUZY tv’s solution
DUZY tv’s patented solution is an innovative platform that allows you to create shoppable videos in just a few clicks. Another great aspect of the DUZY tv platform is that it requires no upfront investment. To get started, you basically need to register and connect your e-commerce store to the platform.
Once your first transactional product video is live, you’ll be able to see how it improves your online sales conversion. The platform is extremely easy to use, even if you’re inexperienced with creating videos. To create an interactive product video, a user just needs to complete two simple steps:
- upload an ordinary video to DUZY tv, and
- choose the products featured in it from the list of items
This list will be automatically pulled into the platform since you already connected it to your store.
Once everything is ready, you can start optimizing your online sales conversion rate by placing a shoppable video on your website, sharing it on social media, and adding it to your marketing emails.
Why DUZY tv is the best option for your e-commerce store
The main benefit of DUZY tv for any online retail business is that it can drastically increase online sales conversion rate in an easy yet budget-friendly way. Using this top-notch solution won’t only mean that your business makes more money, but it will also help you in building trust and delivering an outstanding shopping experience.
Nowadays, most people feel exhausted from dealing with numerous advertising messages directed towards them from all angles. This is why most customers want a clutter-free message, with clear information about a product or service with a simple buying process without frustrations or manipulations.
DUZY tv gives you an opportunity to show a product to viewers as it is. The solution also makes it possible for customers to buy all the items which piqued their interest without any distractions. That’s why, besides increasing an online sales conversion rate, DUZY tv can benefit your business in the long run by helping you build strong brand loyalty.
A high conversion rate doesn’t happen out of the blue, it needs to be meticulously optimized. As statistics show, the most effective way to encourage people to buy from your e-commerce store is to include videos in the marketing strategy.
If you want to really stand out, a few ordinary video ads will unlikely bring you the expected results. Simplify the buying process by making your videos shoppable and you’ll definitely win over more customers in the online retail market.
Ready to make your online sales conversion rate skyrocket with DUZY tv’s solution?