What is “Conversion Analytics”? Transactions on your website that are defined as goals are tracked and recorded in analytics as a “Conversion”. Once a visitor starts the conversion process on your site, you want to sell and cross-sell as many products to him/her as possible. Optimizing your cart, your products, and your checkout process can help you reach the ultimate goal of turning a visitor into a customer. A focus on Conversion Analytics can help you and your team successfully turn more visitors into customers.
This is the art and science of Conversion Analytics, and we start any new project by defining goals and setting Key Performance Indicators (KPIs). For example, your business goal may be to increase revenue by 25 percent for the financial year. With this defined goal, we can begin setting KPIs for conversion, which could include:
- A focus on purchases
- Increasing micro-conversions
- Decreasing micro-conversion abandonment
- Optimizing cart conversions
- Cost insights
- Increasing gross revenue
- Increasing return on investment
- Estimating revenue loss
With an ecommerce website business that specializes in selling multiple products across a wide range of categories (for example, home furnishings, tools, and appliances), the business goal might be to increase revenue on categories and products that have the highest turnover. There are several conversion KPIs that may tie into this goal:
- Conversion rate by product category. This could be further segmented by the product ID (for each product.). Questions to ask: Apart from the conversion rate, how often are they returned?
- Cart optimization by product category-by-region (which should be segmented by the product ID). Questions to ask: When trended over time, how often are visitors purchasing? Which geographical location engages in each respective product?
- Bonus Questions: Which products are cross-sold the most? How can that be optimized by geo-location?
- Double Bonus Question: Which branded and non-branded keywords contribute most to the purchase?
The next logical step in a new Conversion Analytics project is to understand which Analytics report(s) can help you understand the factors that affect the KPIs. Expand your analysis by looking at the data with multiple metrics, then sharpen your insights by segmenting the data. This will help you to determine next steps in focusing your analytics efforts for greater Conversion insights.
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