Once you’re sending traffic to your Shopify store, you need to turn it into a profit. Optimizing your conversion rate is something that you should continually work on in your store.
In this episode of the eCommerce Lifestyle podcast, Anton shares his favorite tools and tactics for optimizing Shopify conversion rates.
During the previous episode of the eCommerce Lifestyle podcast, Magen asked: "I get very few abandoned carts but a fair amount of 'add to carts' and 'reached checkouts'. Aside from risk reversal tactics you cover in the course… Are there any tools or tactics you've used to increase the customer emails you get in-cart?"
Listen in to hear his response.
Hey, what's up, everybody? Anton Kraly here from ecommercelifestyle.com. And welcome to another episode of the eCommerce Lifestyle podcast.
So today I'm doing a follow-up episode to the episode that was posted last Thursday. And that was an interview I did with Magen, who's a member of Drop Ship Lifestyle. Now, if you want to listen to that episode before this one, again, this is a follow-up, you should just look in your podcast feed on iTunes or whatever you use. Or if you want to see it on our website, just go to ecommercelifestyle.com/interviews-magen. M-A-G-E-N.
Now, in that interview, Magen asked me a question at the end. And her question, let me actually pull it up because I have it here, her question was how to increase the amount of people that are entering their email when they're in checkout. Okay, so basically what Magen is seeing is people are going to her website, they're adding to cart, they're getting to the checkout, but she's not having many abandoned carts.
So what's happening is when people fill out the step one of the order form and then get to step two, they're buying. So what Magen was asking is can she do anything to get more people that are on the checkout page to fill out step one, ideally step two as well, but at least step one so that she can go ahead and then follow up with those people to figure out why they didn't buy or to close the sale and just to to make more money, right? To sell more.
So what I asked Magen at the end of that episode was to send me the analytics from her store and some of the data from previous months. That way I can give more of a informed decision rather than just some general tips on how to get more people to get from the checkout to becoming customers or at least filling out step one of the order form.
So Magen did that. She followed up right away with some good data, and I appreciate that, and I'm looking at that now. And what I'm going to do is basically say what I would say to Magen if we were on a one-on-one call and I was just following up to give her feedback.
And the goal is, if you're listening to this podcast, maybe you're in a similar situation as to where she is right now. Or maybe you can just use this data as baselines for your own store or your future store if you haven't built one yet.
And by the way, if you haven't built one yet, go to dropshipwebinar.com. D-R-O-P-S-H-I-P, webinar.com. And you can learn how we build these things. That's my free training.
But what Magen sent me is how much traffic she's getting, where the traffic is coming from, what percentage of the traffic is adding to cart, what percentage of the traffic is reaching checkout, and what percentage is converting, meaning buying.
Now, what we look for when we're auditing our own ad accounts and our own stores is a minimum 2.5% conversion rate. Meaning, if a hundred people, a hundred unique people visit our website, we want two and a half of them to buy.
I'm going to use just 2% for this example so I can round a number. It's easier. So let's just say I wanted a 2% conversion rate, right? And I'll just go through this before I look at Magen's numbers here.
If I wanted a 2% conversion rate, that would mean I would want 8% of people that visit my store to add an item to their cart. Reason being is because you see about a 50% drop in number of people at each step of the sales process. What that means is if eight people add something to their cart, typically we'll see about four of them reach the checkout. So they'll go from the cart to the checkout. Again, if we had eight add to cart, we'll see about four reach checkouts.
Then again, we see about a 50% drop for conversions. So if we had 4% of people reach checkout, we would see about two people buy. Again, that's if we had a hundred people to our website, we would have eight add to carts, we would have four reach checkouts, we would have two conversions.
That's not always true, obviously, but it's a good baseline. It's like the first thing that you can look for to try to identify weaknesses.
Now the first thing that I noticed when looking at Magen's numbers is that her conversion rate is much less than 2%. Now, that is not by itself a problem. Because when we're talking about conversion rates, what matters is where the traffic is coming from, right? What quality traffic is it? If it's a bunch of bot traffic or general, broad keyword-search traffic, it's not going to convert a 2% because the people aren't that interested.
So when I'm talking about those numbers, I'm looking traditionally for Google ads. And I start by looking at Google shopping ads, then by looking at Google search text ads, looking at Bing shopping ads, looking at Bing search text ads, and so on and so on. So kind of like where you should make most of your money and then working backwards.
Now, what I saw as I went through Magen's numbers is that she currently is driving most of her traffic and sales through Houzz, H-O-U-Z-Z. If you're not familiar with them, they are huge in the ecommerce space, really blew up a few years ago. That's where she's getting a lot of sales from, which isn't a bad thing.
But the problem for me to try to analyze these numbers is that there is not a Google ad budget right now. And the reason I want there to be a Google ad budget is because it makes it so easy to see what's working and what's not.
Now, the conversions and the numbers that I see on the analytics that Magen sent me, and maybe this is what you see on your own analytics, is that her sales are being powered mostly by Houzz. And then also she's getting organic traffic too that's converting to sales, right?
Now, the problem is organic traffic is not something we have as much control over. It's not something that we can just obviously throw money on top of and get to bring in all these extra sales. So there's not numbers that I could really baseline off of. With that being said, I wanted to answer Magen's question the best I could, which is how to get more people that reach check out to get to the conversion stage.
So before I do that though, I'll just say what I looked at, right? I looked at the percentage of people that are reaching checkout versus the percentage of people that are converting, and the numbers a little bit worse than it should be. So it drops by a little bit more than half, but it's not drastically off. It's not like there's a huge, huge problem.
So again, if there was Google ads running, we could make better decisions to get the numbers up. But where they are right now, I don't see any huge red flags besides that you're not running paid traffic, okay?
So again, if you had Google ads running, I think these numbers would be higher because the traffic would be more targeted, and that could be enough without you changing anything on your site. If you set up Google ads, the way that we teach in Drop Ship Lifestyle with the Alpha/Beta campaign, and if you're optimizing and taking out the negative keywords, I see no reason why these numbers wouldn't increase to where they should be across the board.
So with that being said, as I went through Magen's site, just a couple things that are worth doing before turning Google ads on.
So one of the things that I would recommend doing on the cart page is modifying the text where you're showing off that free shipping is included. So right now on that page it does say, "Free shipping included, limited time offer," which is good. Again, that may be enough to get your numbers where they need to be if you have targeted ads turned on.
But I would show that off much more because it's actually kind of small and it was hard for me to even find. And not just make it bold, change the font, change the colors so it pops out more, I would use the code that we have. Laura can give this to you. If you're in Drop Ship Lifestyle, just let us know. It's a code that dynamically updates the date.
So instead of just saying, "Free shipping included, limited time offer," we could have it say something like "This offer is eligible for free shipping orders placed on and before," and then we'll give you the dynamic code to change the date.
So the date would be "Today, we'll ship free to the USA." So adding a little bit of urgency there, right? Adding in a dynamic date so people see it and they're like, "Is that today? Oh, that's today." And that'll give them a better chance of getting from the cart to the checkout, okay? So making that first transition, getting them to move forward.
Something else I would recommend you do ... Again, this might not be necessary. Maybe all you need is targeted Google ads. But if you want to increase your conversion rate on your checkout page, you can go on Google and just search for a Shopify cart timer.
I mentioned this briefly during our call, the interview that's posted on the podcast feed. But you can basically put code on your website that gives you a feature that's typically only available with Shopify Plus, which starts at like two grand a month. But you can put this code on for free.
And what it will do is add a timer and the timer can say something like, "Your cart is reserved for," and then have a countdown timer on it. So something like "Your card is reserved for," and you know, make it 10 minutes. That way when people get to that point and they're on that page, you've already put the dynamic date on your cart page.
Now people are at the checkout. Now they'll see a timer saying, "My cart's reserved for," whatever it is, 10 minutes. And they're more likely to move through to step two because they know that there is a timer.
Now this is the same thing, like I mentioned on the call, that you see if you buy tickets online anywhere. It'll say, "We're holding your tickets for." And a lot of ecommerce stores do this too. "We're holding your spot for" whatever it is, or "We're holding your order for" whatever it is.
One thing I'll say, for everybody listening that already has kind of their numbers where they need to be, let's say you have 5% of people that visit your website getting to checkout and you have 2.5% of them converting to sales from your Google ads. If you, somebody that has those numbers working, if you put this timer on your cart, what you'll likely see is your amount of people that get to step two go up.
But you'll see the number from this page to actual conversions go down, because it applies urgency kind of early on, so it'll get people to that next step. So it might shift your numbers a little bit, but it's worth doing because you will have now the emails, the phone number, the address of the contact, so that you could follow up and close the sale that way if needed.
So again, if I had to like summarize this in a few sentences, my advice for Magen is go ahead and change the way you're showing off your free shipping. Use the dynamic code that we can give you to have a real-time date on the cart page.
The next bullet I would say beyond that is you should also experiment with changing the color of your header bar where you have the coupon code. I know it fits into your theme style perfectly, but it was very hard for me to see it a few times because it kind of blended into the back, at least on the screen that I'm looking at. So second bullet would be show off that more, your coupon in your header.
And the third thing you could do, and again, optional, but you can look for the code on Google for a cart timer and put it on to the checkout page, saying, "Your order is reserved for," you know, whatever amount of time.
After that, my advice is turn on Google ads using the Alpha/Beta campaign structure. Monitor it every day and try to get to the point early on where you have your targeted ads getting you at least 8% add to cart, 4% reach checkout and 2% convert. And then you'll have more abandoned carts, you'll have more sales, and everything should be more profitable from paid ads.
So again, it's awesome to see you're getting free sales right now from organic, but that is my advice for getting more sales and getting it to a point where it can scale up. You can spend more money and you can control how much revenue and profit is coming into your store.
So Magen, hope you found that useful. If you need any help with this stuff, just post in the forum or in the Facebook group, the team could help you out. Appreciate you again for being on the call.
And appreciate everybody that's been sending in messages and leaving reviews for the podcast. So definitely doing what I would hope it would do, getting good feedback. And I appreciate it, guys.
So as always, if you've got value, really do appreciate you going over to iTunes or whatever podcast player you use, leave a quick review so more people could find out about this thing.
And if you are totally new here, be sure to go to dropshipwebinar.com. Again, it's dropshipwebinar.com, and that's where you can get my free training and learn how it is we do this stuff.
So thanks, everybody. Appreciate you. And I'll talk to you on the next episode of the eCommerce Lifestyle podcast. See you, everybody.
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