- If you are not converting browsers to buyers, you are losing business.
- There are ways to get shoppers to purchase your products.
- It's important to determine how to calculate conversion rates.
Attracting customers is only half the challenge in business. Once you have their attention, how do you turn their interest into a purchase? There are many ways to convert shoppers to buyers, but the most important strategy is to understand your customers so you can help them buy what they want.
Here are some more tips for turning browsers into purchasers.
1. Look for conversion leaks, and plug the holes.
Traffic volume and conversion rates tend to be inversely related. That is, when traffic is high, conversion tends to go down. When traffic is low, conversion rates tend to go up. It's not hard to understand why: When the store is busy, lines are longer, and it's harder to get help from an associate. The opposite is true when the store isn't as busy. So, if you want to improve conversion rates, look at the traffic and conversion patterns in your store by the day of the week and by hour to see when conversion rates are sagging; these dips are the times when sales are being lost.
2. Set conversion targets by store.
Having goals and targets is important if you want to improve results. If you don't have a conversion target for your store, you need to set one. It's crucial to remember that every store is unique, and thus conversion targets should be set by the individual store. One store might be doing well with a 15% conversion rate, while another may be underperforming despite having a 30% conversion rate. The trick is to move your conversion rate up relative to your store's performance.
3. Make conversion a team sport.
It takes the collective effort of all staff to turn prospects into buyers. Everyone in the store – including the cashiers, the sales associates and the merchandisers – plays a role. So, don't think of conversion as merely a business metric but rather a simple measure of how well the whole store is doing at helping people buy. A good way to improve conversion is to ensure all your staff understands what conversion is and that each staff member helps to influence it. Ask your employees why they think people don't buy and what the store can do to improve its conversion rate. Discuss targets, get them to buy in and share results. Get them excited about moving the conversion needle, and you will significantly improve your chances of actually doing it.
How do you calculate conversion in retail?
In all of this discussion about how to turn prospects into buyers, it is helpful to understand how to calculate conversion. First, pick a timeframe to study. Then, take your sales during that time, and divide it by the number of customers who visited your store or site during that specific time. You get a decimal, so multiply it by 100 to get a whole number. This gives you the conversion rate.
What is a good conversion rate in retail?
"Across industries, the average landing page conversion rate was 2.35%, yet the top 25% are converting at 5.31% and higher," writes Larry Kim, founder of WordStream, on his blog. "Ideally, you want to break into the top 10% – these are landing pages with conversion rates of 11.45% or higher."
Why is retail conversion important?
Conversion is important because it is a direct reflection of your sales. You may have more traffic to your store than you think, and the opportunities for conversion are always changing. It is important to continue measuring traffic so you can create conversions. You should staff your store based on traffic, not your sales. When you are adequately staffed for traffic, you have better chances of converting those visitors to actual customers.