13th August 2021 -

Improve your Ecommerce Conversion Rate with Personalisation

What is ecommerce conversion and why is it important to ecommerce businesses? 

Businesses ecommerce conversion rate is the percentage (%) rate of how many times a desired action is completed during a website visitor’s online session. The desired conversion action can differ depending on the online store’s ecommerce goals and industry. For instance, the most common conversion goal (but is not limited to) is a customer making an online purchase or a lead generation form. 

Ecommerce conversion rate is shown in a percentage (%). The calculation of your conversion rate is determined by the average percentage of website visitors who have purchased a product and/or products from your site. 

Unlike click-through, ecommerce conversion allows businesses to depict which of their online marketing efforts are working and which are not. If an ecommerce store has a low conversion rate then you can assume that the content on your webpages isn’t working efficiently. 

Stick with us to understand how to calculate your conversion rate, what a good conversion rate looks like, why yours could be low, and how to optimise it through ecommerce personalisation. 

Calculation formula 

Total number of conversions / number of visits X 100 =
conversion rate (%)

Let’s say last month you had 100 sales and 1000 visits. (100 / 1000 = 0.1) X 100 = 10% conversion rate. 

If you had 76 sales and 2,451 visits. ( 76 / 2,451 = 0.031) X 100 =  3.1% conversion rate

It is helpful to document your month on month conversion rates so that you can establish whether you are increasing or decreasing month on month. 

Good conversion rate vs average conversion rate

A good conversion rate generally speaking sits at around 2%. Depending on the vertical of the business this can alter. The average conversion rate marketers tend to aim for ranges between 1% to 4%. According to Shopify the average conversion rate across all ecommerce businesses sits at about 2.86%

Why is my conversion rate low? 

“A website’s conversion rate illustrates how successfully a brand is able to use its online presence to transform traffic into revenue. When a conversion rate is low, it means that a business may be losing out on lucrative leads and prospective customers.” – Digital Marketing Institute

Depending on how competitive your industry vertical is and – believe it or not – your geographical location could make it more of a challenge to achieve a high conversion rate. In simple terms, the best and most reliable way to get a good conversion rate or improve the one you currently have is by focusing solely on the user experience. First of all you can optimise your conversion rate (CRO) by: 

  • Listening to your customers. Use website and google analytics, social media listening tools, feedback forms etc to understand what your customers like and want. 

  • Simple website design and layout. Your navigation needs to be clear and concise. The less steps it takes to get your website visitors from the landing page, through all the key benchmarks, to the final desired action the better. 

  • Provide good and useful onsite content. This can be done through blogs, FAQ articles, and social proof (reviews and customer testimonials). Talk to your customers and educate them about your products, service and brand. 

  • Include customer support features such as live chat so that your customers can seek out information quickly.  

  • Conversion tracking. This can be set up within your Google Analytics and Google Ads accounts.  It will allow you to track your conversion rates and help guide your marketing decisions. Ecommerce personalisation software also has tools to help you track the conversions of your campaigns (see below for more). 

  • Optimise for all devices (mobile, desktop and other handheld devices). More and more people are shopping via their mobile device. You do not want to increase bounce rate by not having a mobile friendly site. Usability is key. 

  • Personalisation is the key to a lowering bounce rate, increasing conversion rate, and improving user experience. See below for how to execute personalisation strategically to improve your ecommerce conversion rate. 

How can personalisation improve conversion rate on my ecommerce site? 

Personalisation is a great way of optimising your conversion rate (CRO). Unlike a brick and mortar store, getting to know your customers on a deeper level to enhance their shopping experience can be tricky online. That’s where ecommerce personalisation comes into play. 

It allows you to create hyper personalised and unique shopper journeys for individual website visitors based on their wants and needs during that particular session. From the journeys they take, the content they are shown, and the products that they see on the page can all be adapted based on who that customer is, what they want, and what the actions they are taking in real-time. 

This is the kind of user experience that customers not only want, but now expect as a minimum when they visit ecommerce stores. 

In fact, a recent survey revealed that a whooping 73% of online consumers have stated that they prefer personalised shopping experiences, and 86% of them have declared that personalisation plays a big role in whether or not they make a purchase with a brand.  

It’s simple maths really, if you improve the user experience you will increase your conversion rate, average order value (AOV), customer retention, and overall online revenue – and what’s a great way to achieve an excellent user experience? Personalisation! 

Improve user experience with personalised dynamic content 

An analogy I like to think about when it comes to personalised content is, if you are standing looking at two stores, you are more likely to enter the store that has a shop window laced with products and messaging personalised to your current wants and needs than you are one that is generic. This is how personalised content works its magic on your website visitors.

Personalised content allows you to give each online visitor a unique online shopping experience, whilst also building product awareness, increasing the chances of converting potential customers, and giving you the ability to shout about your promotions and offers. 

Dynamic personalised banners, product carousels, an email header, campaigns, and searchandising are aspects of personalised content. These can be placed anywhere on the page and on any page. Generally, they work best on landing pages (i.e homepage, product listing pages, product pages etc.). However, they can also be extremely effective on the basket page. For instance, say you have a banner on your basket page that offers a 10% discount for today only, this is an incentive to persuade the customer to complete the desired action faster. 

See how our clients are using personalised content to increase ecommerce conversion: 

Hotdrinks Cross-Sell Banner Campaign to increase conversion rate

Our client Hot Drinks, a B2B and B2C business, provides a great case study for how to effectively use enriched banner campaigns on product listing pages to increase conversion rate.

Here you can see that they have included a banner to cross sell their products, build product awareness and increase overall online revenue. From implementing this and other personalisation campaigns they have managed to:  

  • Increase conversion rate by 27.3%
  • Increase average order value by 11%

Increase ecommerce conversion with AI powered product recommenders 

I am sure you have heard a thousand times over the benefits of product recommenders. Well they are the holy grail when it comes to increasing your ecommerce conversion rate – especially AI driven product recommenders. 

In a previous blog we spoke about how Amazon repeatedly proves how effective personalisation can be. Amazon’s bread and butter up-selling and cross selling their products through artificial intelligence (AI) product recommendations. In fact, 35% of Amazon’s annual online revenue comes from offering people alternative, complementary, similar or more expensive products across their webpages.

The AI allows the recommenders to adapt in real-time, meaning that when a potential customer is scrolling through your online store, clicking on different elements and interacting with different pages, the web analytics alert the product recommenders update to meet the current needs of the user. This not only improves user experience, it increases the chances of your customers completing the desired actions. 

Advances in AI and machine learning, along with increasing accessibility and affordability for ecommerce personalisation software, and a wider awareness and appreciation of the technology means that not only the likes of Amazon gets to have all the fun. 

How are Harry Hall using AI product recommenders to increase conversion? 

Harry Hall using product recommenders on their homepage

Our client Harry Hall, an equestrian supplier, wanted to focus on achieving a higher conversion rate. Since implementing AI product recommenders onto their homepage, product listing page, product page, and basket page. 

  • 10% increase in their overall conversion rate
  • 17.5% increase in revenue driven by the use of PureClarity AI product recommenders alone

Persuade your website visitors to make fast actions with popups 

Popups have a bad reputation for being intrusive and annoying. However, when they are used correctly they are a great way to demand attention and maximise conversion rate. Marketers use them across their webpages to persuade their website visitors to complete a desired action. 

The main two popups used are: 

PureClarity Simple Popups

Standard CTA popup: Here you could use a popup to lead your customers to a particular product listing page. For example, ‘Take a look at our new line. We think you would love it!’. Or you could use a standard popup to offer returning customers a reduction in their overall price (‘Hey good to see you again. Enjoy 15% off on us!’).

PureClarity Email Popups

Email capture: For instance you could include an email capture popup to persuade people to become apart of your mailing list to receive exclusive online offers

The sky’s the limit when it comes to where is best to place a popup. Depending on the conversion goal and CTA of the popup will depend on where best to place it. If it is an exit intent or basket abandonment popup then it is usually best placed on the basket page. If it is a site wide promotional offer you could place it on the homepage, or any page that the customer lands on. 

“The average conversion rate stated by Sumo for all popups is 3.09% so when you translate that conversion into actual email signups, content downloads and promo usage in basket, it all adds up to an effective engagement tool.  The reality is that the most effective popups can convert up to 40% of website traffic when used correctly.”

– Jo Burman, Head of Strategic Marketing – PureClarity

Create 1-2-1 conversations through customer segmentation to boost conversion 

Segmentation is the grouping of customers based on common characteristics, this can be based on demographic, geographic, psychographic, or behavioural variables – to name the most popular types of customer segmentation. It is an additional layer – or the cherry on the top of the cake – with ecommerce personalisation.  

Customer segmentation is a tool marketers use to get a better understanding of their customers, improve user experience and overall boost the impact the marketing campaigns have on their audiences. It is an efficient way of reducing resources and money. 

EXAMPLE 1: For instance, you could have a personalised banner that welcomed back returning customers and offer them free delivery with their next order – everyone loves free delivery! This kind of segment would target website visitors, who have visited the store more than once, and reward them for being loyal customers. This is a great way to engage with your customers and increase conversion. 

EXAMPLE 2: Here you could apply geographical segmentation that targets customers based on their location. To take this a step further you could add a weather condition. If your customer is located in Central America and it is a warm sunny day then you could target them with a standard CTA popup that leads them to your product listing page for sunglasses. 

Track customer behaviour through analytics  

Insights & Analytics

When it comes to running any kind of digital campaign, analytics should be your best friend. You can use Google Analytics to understand your audience better and get to grips with what kind of site traffic you are receiving. 

Similarly, ecommerce personalisation software typically comes with built-in analytics and insights so that you can track the performance of your products, campaigns, and return of investment analysis. Monitoring your site’s performance is vital to understand what’s working, what could work better, and what to do next.  

A/B test your campaigns

Depicting which campaigns and CTAs are working isn’t always easy. If you are struggling to understand which campaigns to run or which one will have the most impact, you should always conduct A/B tests. A/B testing is the process of running two or more campaigns against each other for a certain period of time. Then you can compare in the analytics the metrics of each campaign to see which out performed based on conversion rate (if that is your main form of success rate). 

“See what types of headlines, colours, copy, layout, and CTAs work for your audience. Get creative with your experiments. For example, you can try testing an entirely new type of CTA or completely changing the format of your copy.”


Key takeaways 

Ecommerce conversion rate is a great metric to use to understand how your marketing efforts are performing. Understanding how to optimise your conversion rate is essential for all businesses. Want to maximise your conversion rate with ecommerce personalisation? Get in touch today – book a discovery call here.

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