Decision Tree: Analyzing Your Conversion Rate

Last month, we looked at the modern shopping journey as an continuous loop with 4 meaningful stages: ATTRACT, CONVINCE, CONVERT, and RE-ENGAGE.

Shopping journey steps: attract, convince, convert, and re-engage

By looking at the stages individually, you can put yourself in your customer’s shoes and understand their intent in that moment. Now that you know their intent, you can evaluate whether you’ve enabled them to complete their task, by looking at the metrics that pertain to that stage. To learn about all 4 stages and their unique KPIs, read:  The Four Pillars of the Modern Shopping Experience.

This month, we want to narrow in on the metric most commonly used to measure success – conversion rate – and the factors across the modern shopping journey that impact it.

You may already know that conversion rate can be a misleading metric. An increasing conversion rate isn’t necessarily a good thing, and a decreasing conversion rate isn’t necessarily a bad thing. To interpret your conversion rate you need to analyze the two variables that comprise it – traffic and transactions. To read more on why conversion rate can be misleading, check out Your Conversion Rate May Be Telling the Wrong Story.

Use the decision trees below to help you identify what factors are impacting your traffic, transactions, and in turn, conversion rate.

Scenario 1: Your Conversion Rate is Down

Your conversion rate is down flowchart

Scenario 1A: Both traffic and transactions are up:

This is good news! When both variables are up but you are seeing a decrease in conversion rate, it’s a result of traffic increasing at a faster rate than transactions.

Focus on the CONVINCE and CONVERT pillars of the shopping journey.

CONVINCE: Your objective here is to keep the shopper engaged. The best way to do so is by increasing performance and delivering a great user experience. An engaging shopping experience will translate into larger basket sizes, higher page views, increased time on site, and more repeat visitors. Read more here.

CONVERT: Your objective is to convert the shopper and grow revenue by removing any friction in the purchase process. A key way to remove friction is shortening the time it takes for your shopper to complete their purchase. Measure revenue per session, conversion rate, and cart abandonment. Read more here.

Scenario 1B: Traffic is up, transactions are down:

Good job on getting your traffic up! Now let’s get those users converting on your site.

Focus on the CONVINCE and CONVERT pillars of the shopping journey.

CONVINCE: Your objective here is to keep the shopper engaged. The best way to do so is by increasing performance and delivering a great user experience. An engaging shopping experience will translate into larger basket sizes, higher page views, increased time on site, and more repeat visitors. Read more here.

CONVERT: Your objective is to convert the shopper and grow revenue by removing any friction in the purchase process. A key way to remove friction is shortening the time it takes for your shopper to complete their purchase. Measure revenue per session, conversion rate, and cart abandonment. Read more here.

Scenario 1C: Traffic is down, transactions are up:

You should be seeing an increase in conversion rate so let’s work on getting that traffic up!

Focus on the ATTRACT pillar of the shopping journey.

ATTRACT: Your objective is to increase brand awareness and customer acquisition. To get the most out of your SEO, SEM, and email investment, deliver a fast experience. A strong customer acquisition strategy will have high click-through rates and low bounce rates. Read more here.

Scenario 1D: Both traffic and transactions are down:

Your conversion rate is down because traffic is falling faster than transactions.

Focus on each step of the shopping journey starting with ATTRACT to increase your traffic.

ATTRACT: Your objective is to increase brand awareness and customer acquisition. To get the most out of your SEO, SEM, and email investment, deliver a fast experience. A strong customer acquisition strategy will have high click-through rates and low bounce rates. Read more about each pillar here.

Scenario 2: Your Conversion Rate is Up

Your conversion rate is up flowchart

Scenario 2A: Traffic is up, transactions are down.

You should be seeing a decrease in conversion rate, so let’s work on increasing your transactions!

Focus on the CONVINCE and CONVERT pillars of the shopping journey.

CONVINCE: Your objective here is to keep the shopper engaged. The best way to do so is by increasing performance and delivering a great user experience. An engaging shopping experience will translate into larger basket sizes, higher page views, increased time on site, and more repeat visitors. Read more here.

CONVERT: Your objective is to convert the shopper and grow revenue by removing any friction in the purchase process. A key way to remove friction is shortening the time it takes for your shopper to complete their purchase. Measure revenue per session, conversion rate, and cart abandonment. Read more here.

Scenario 2B: Both traffic and transactions are up.

This is good news! Your increase in conversion rate signifies that your number of transactions  is increasing faster than traffic.

Focus on RE-ENGAGE to keep those users coming back!

RE-ENGAGE: Your objective is to increase customer loyalty and customer lifetime value. You can do so by delivering fast, app-like experiences with personalized content. Successful re-engagement will result in more repeat visits and revenue per visitor. Read more here.

Scenario 2C: Traffic is down, transactions are up.

It’s great that your transactions are up so let’s look at how we can increase traffic.

Focus on the ATTRACT pillar of the shopping journey.

ATTRACT: Your objective is to increase brand awareness and customer acquisition. To get the most out of your SEO, SEM, and email investment, deliver a fast experience. A strong customer acquisition strategy will have high click-through rates and low bounce rates. Read more here.

Scenario 2D: Both traffic and transactions are down.

Your conversion rate is up, so this means that traffic is falling faster than transactions.

Focus on each stage of the shopping journey starting with ATTRACT to increase traffic.

ATTRACT: Your objective is to increase brand awareness and customer acquisition. To get the most out of your SEO, SEM, and email investment, deliver a fast experience. A strong customer acquisition strategy will have high click-through rates and low bounce rates. Read more about each pillar here.

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