Why Everyone is Talking About the Importance of Conversion Rates in ECommerce?

On the surface, it may appear that running an e-commerce portal online is just about listing the items on the website where visitors would come, select the desired items, and exit – following the route of making the payment for their purchases.  

But as you dive deep into it, you are bound to realize that there’s more than what meets the eye!
As you progress further into the process of attracting the traffic to your portal, you’d realize that there are a whole set of strategies that the market is using to its advantage to beat the competition as it comes.
Say, for instance, there has always been an emphasis on sending customized Woocommerce push notifications. Dedicated research and analysis are done to study the cause and effects of push notifications.

Also Read: 4 Reasons why an eCommerce Business Needs Mobile Apps

What do you think is the sole purpose of doing all the maths?
In this post, we’d be shedding the spotlight on Conversion Rate and its relevance in a special reference to the e-commerce portals. 

So, if you recently ventured into an e-commerce portal or have one from a long time back, sit tight and read along as we get you to the essentials of conversion rate.

To understand the relevance of conversion rates, let’s first get into the definition of what it means! 

What is a Conversion Rate?

A conversion rate is the number of leads or conversions divided by the total visitors of the website.
Typically, a conversion rate focuses on converting the leads out of the given traffic as opposed to the other marketing tactics that primarily focus on increasing the website traffic.

So, the one inference that we could draw from the above reference is that the higher the conversion rate, the better it is for the business to increase the returns from its ongoing operations.

And with it comes the term Conversion Rate Optimization (CRO) which lays its entire emphasis on taking the measures that could improve the user experience while funneling them to the next stage of the process.

Let us use an example and see how we can improve the conversion rate!
Say, a visitor came to your portal for the first time. It could be an excellent CRO strategy to offer him a free gift while making him sign up on your business website.

By doing this, you not just provided him with the value in his first visit but got the job done for him to simply visit the next time and shop instantaneously without having to go through the hassle of creating an account and adding items into his cart.   

On having a closer look, you’ll see that by offering a simple freebie, you made your customer skip the step of having to make a first-hand decision of how it is that he’d like to proceed with your brand and in fact, funneled him to the next step of conveniently shopping with your brand. 

Effective implementation of CRO strategies will not only establish strong credibility on the part of your brand but would lay a strong foundation of trust reflecting fairness and transparency – as your business values.    

Knowing that a conversion rate is a phenomenon where your focus lies on the existing incoming traffic to your website, all it takes is a creative approach to persuade your investors to take the desired action.
Want a Further Explanation of Why Conversion Rate Optimization is Important for the Success of Your Business? 

Here are the reasons why conversion rates have become the talk of the town:

1. A Proactive Business Strategy:

Business runs successfully when an entrepreneur remains a step ahead of his customers. Especially in times, when there is no dearth of suppliers of any product or service in the market and the solutions are available to the customers at a single click.

Think for a moment and tell me what is it that makes you stand apart from your competition?

A streamlined process of letting your customers interact and transact with your website with much ease and fascination. And what would enable you to take the correct measures in the right direction?

Optimizing conversion rate is about channelizing the available traffic to the best use rather than focusing on increasing the traffic.

2. Reduces Cost of Acquisition:

Spending money blindly on advertising is futile when the necessary steps pertaining to conversion rate optimization are not taken.

Effective implementation of CRO helps in reducing the cost of advertising by channelizing the efforts in persuading the existing visitors rather than spending the funds on getting additional traffic. 

3. Creating an Ever-Lasting Impression:

Placing effective CRO strategies in place allows your business to create an everlasting impression on your visitors.

Wanna know how?

Compare the two scenarios and tell under which scenario a customer is likely to get converted into a lead!

The first scenario is where a visitor comes and visits a website. He continues to explore the website and after having a quick tour decides to exit the website, forgetting his visit after he continues to browse for subsequent options.

The second scenario goes where a visitor visits a website. A chatbot appears instantaneously to ask him the area of his interest or the purpose of his visit to simplify his browsing experience.
Which one do you think would qualify to enter the good-book of your customer?   

4. Serves the Function of Nozzle when it comes to Sustaining the Web Traffic –

No matter how much traffic you generate applying the tactics of digital marketing, the generated traffic would be of no use given the befitted CRO is not applied in the business.

Encouraging your customers to take the action you want them to take is the prime purpose of conversion rate optimization that cannot be ignored at the cost of any given amount of traffic generated to your web portal.

5. Optimal Utilization of your Money and Resources:

If you wish to get the best out of your money and resources pooled in digital marketing, the best you could do is to study customer behavior and come up with the most suited CRO strategies for your business.

Many companies also provide advanced tools to study the customer interaction with your portal that may further assist you in the task of charting the best CRO strategies for your business.  


It isn’t rocket science to infer that businesses that manage to succeed in times of heavy competition are the ones that have understood the importance of following the customer-driven marketing strategy.
Given the due share of attention, it deserves; conversion rate optimization holds the potential of giving you double the return which you otherwise expect from your channeled money and resources.


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