To effectively assess whether your marketing strategy is hitting the mark, it’s crucial to understand how to calculate eCommerce ROI. We’ll provide a detailed look at essential metrics and benchmarks to help you gain this insight.
However, it is not so simple. You may face several challenges trying to maximize ROI:
- High competition where everyone fights for customer attention
- The low technical performance of the online store
- Poorly optimized website
- High cart abandonment rates, and so on
Atwix knows how to enhance your customer experience and increase your eCommerce ROI. Our team can boost your website loading speed, improve the interface, add more payment options, and implement advanced and interactive features.
Atwix is a trusted software development agency that knows how to get the most out of your eCommerce platform. We have been implementing game-changing solutions since 2006.
In this blog post, you’ll find tips on how to boost your eCommerce ROI, marketing mistakes to avoid, and successful real-life examples. Let’s dive in.
eCommerce ROI KPIs
To effectively assess whether your marketing strategy is hitting the mark, it’s crucial to understand how to calculate eCommerce ROI. We’ll provide a detailed look at essential metrics and benchmarks to help you gain this insight.
1.Conversion Rate
Conversion rate is the percentage of people who take a desired action, such as making a purchase or signing up for a newsletter, out of the total number of people who visit a website or see an ad. There can be other actions; it depends on your goals.
2. Google Adwords Conversion Rate
This specifically shows the percentage of visitors from Google Ads who take the desired action. Traffic from Google Ads typically has a higher conversion rate. If your Google AdWords rate is much lower than other sources, it’s a sign to review and improve your strategy.
3. Email Conversion Rate
This rate is the percentage of people who purchase or click on a link in response to an email of the total number of recipients. It’s a way to measure the effectiveness of your email campaigns.
4. Time on Website
The longer a customer stays on your website, the higher the chance they’ll buy something. Each extra moment allows them to connect personally with your brand. In 2023, buyers spent, on average, 54 seconds on the page. That’s why it’s important to think about making the most of this time to grab their interest.
5. Abandoned Cart Rate
The abandoned cart rate is the percentage of online shopping carts filled with items but left without completing the purchase. If these metrics are high, find out what prevents your potential customers from finishing the process. It may be shipping or payment options, poor loading speed of your website, and more.
Indeed, this is not a comprehensive list of benchmarks you have to pay attention to. But even knowing these metrics, you can find out whether your online store needs boosting eCommerce ROI.
10 Strategies for Boosting Your eCommerce ROI
If you have analyzed the above indicators and realized your marketing campaign is not working, don’t panic. The following strategies for boosting eCommerce ROI will bring you 100% excellent results.
1. Invest in Organic SEO
Search Engine Optimization includes techniques that make your website visible to customers if they look for specific goods on Google, Yahoo, etc. It increases your position in the search results. Thus, being on the first page is crucial because only 0.67% of users go further.
But how to improve your SEO and get to the top? Here are some things you have to know:
- Find keywords and phrases relevant to your store and goods and used by your target audience.
- Add these keywords to your website content, including pages, sections, and blog posts.
- Use the keywords in your metadata and meta tags, such as product and image descriptions, file names, and other behind-the-scenes text.
- Create backlinks, which are links from other resources that direct to your eCommerce website.
- Publish guest posts and sponsored content to add extra backlinks.
- Implement dynamic SEO tags, such as ATWIX Rich Snippets available on BigCommerce, to enhance the display of your website in search results and provide more detailed information to users directly from the search page.
Remember that SEO takes time, but it is one of the most long-lasting and effective strategies for increasing eCommerce ROI that will bear fruit over time, yet deliver an exponential ROI.
2. Making Detailed Competitor Analysis
There’s nothing wrong with looking at competitors and adopting similar strategies, especially if you’re just starting. In fact, it’s an excellent way to avoid mistakes and financial losses. Analyzing their strategies provides valuable insights for your store, helping you understand what works effectively.
You can explore competitor product pages, websites, social media accounts, checkouts, and blogs to see how they convert shoppers into buyers. Study their positioning, offerings, and advertising investments. This way, you can identify successful approaches and potential gaps in their strategy that your company might fill.
3. Offering Great Customer Experience
Excellent customer experience is an integral part of maximizing eCommerce ROI. Understand more about improving performance with AWS CloudFront to enhance customer satisfaction through faster loading times.. First, it fosters a connection with your buyers, increasing the likelihood of repeat purchases.
Then, satisfied customers are more inclined to recommend your business, building trust and improving your online reputation, leading to increased organic traffic. Finally, a fantastic shopping experience increases client loyalty, reducing their chances of choosing other options.
How to provide the best possible service?
- Enhance your store with advanced features by choosing the right eCommerce platform. A modern solution guarantees high loading speed and excellent performance during the high seasons.
- Get a user-friendly and intuitive design so your customers can navigate the store easily and find what they need quickly.
- Treat your buyers with respect and equality and always keep your promises.
4. Tracking Customer Behavior
Analyzing customer behavior is also one of the ways to boost eСommerce ROI. By doing so, you can get valuable insights and make essential changes to your website that increase sales and conversions.
To track customer behavior, use tracking codes or analytics software. Thus, you can see what visitors do on your website and how they interact with it and identify areas where buyers may encounter issues. It may include complicated forms, a confusing menu, or an inconvenient button location.
5. Creating Quality Content
High-quality content is a way to grab potential customers’ attention. People are more interested in your goods when your product descriptions, blog posts, and media are informative. They help your brand build trust with your audience, which is essential for helping people to feel comfortable making a purchase.
Moreover, search engines prefer high-quality content, so when your posts are relevant and insightful, it’s more likely to appear in search results. Also, it’s how you can launch the word-of-mouth machine, as people would like to share your articles with their friends or colleagues.
Here are some basics for creating high-quality content:
- Write blog posts on themes your company specializes in.
- Share your case studies to show people how you make this world better with your products and goods.
- Diversify your content with videos, infographics, guides, images, etc.
- Offer your website visitors freebies in exchange for their emails.
- Publish interviews with your team to build a deeper connection with your audience.
But your website is not the only place where you do content marketing. Social media pages are also vital for boosting eCommerce ROI. Choose a channel your target audience uses.
6. Using Artificial Intelligence
AI in eCommerce market size is expected to reach $22.60 billion by 2032. Thus, if you refuse to implement this technology in your workflows, there is a risk that your more daring competitors will beat you to the punch.
In fact, AI offers many advantages for modern business, such as AR and AI for smart online sizing and fitting, which can significantly boost customer engagement and satisfaction. It’s great for analyzing your big data in seconds, serving as a recommendation tool, creating content, increasing customer engagement, and more. This technology can boost your eCommerce platform, complementing it with advanced functions.
An excellent example of using AI in eCommerce is chatbots that provide 24/7 client support, quickly answer visitors’ questions, and help them navigate the store.
7. Lowering the Amount to Spend Acquiring New Clients
This process involves the cost of getting new customers through advertising or marketing. The less you pay for that, the more profitable your company becomes.
Spending $5,000 on Facebook ads might bring in 5,000 new clients, but your ROI will be low if they don’t buy your products. Thus, to avoid losing money, find ways to lower the amounts spent on acquiring new clients.
8. Analyzing Data Consistently
You must monitor your metrics if you want a good ROI for your eCommerce store. It helps you figure out what strategies are effective. If a particular product, marketing channel, or promotion performs well, you can focus more on it to maximize returns.
Also, analyzing data allows you to catch any problems early. For example, if there’s a sudden drop in sales, you can address the issues promptly before they impact your overall performance. Moreover, constant data analysis helps you understand customer behavior patterns and improve their shopping experience.
9. Conversion Rate Optimization (CRO)
CRO is crucial for boosting eCommerce ROI as it focuses on making your website more effective in turning visitors into buyers. It focuses on creating a user-friendly, intuitive store that caters to what your customers are looking for.
To optimize your website, you should gather essential data, including website traffic, conversions, and cart abandonment rates. This data will give you insights into what changes your marketing campaign needs. You can perform A/B testing to understand the most effective strategy for your brand.
10. Personalizing Customer Experience
76% of buyers prefer to purchase from companies that offer a personalized approach. Learn how adding custom attributes to Magento 2 API response can aid in personalizing the shopping experience. When customers feel that you want to meet their needs, they are more likely to make a purchase, increasing your conversion rates.
Personalization builds a connection with clients, encouraging them to return for future purchases. Moreover, satisfied buyers would like to share their positive experiences with others, leading new customers to your store.
If you want to make your store a more personally oriented experience:
- Use data on previous client purchases to provide recommendations.
- Send emails, address clients by their name, and offer personalized content.
- Create personalized loyalty programs that offer rewards based on individual customer behavior.
- Encourage visitors to create accounts on your platform.
- Take advantage of social media by responding to comments and engaging in conversation to show that your company values its buyers.
Mistakes That Can Be Made
Now you know about strategies to boost eCommerce ROI. To get the most out of them, try to avoid common mistakes.
Going Overboard with Experiments
While experiments are valuable, running too many can hinder successful campaigns. It limits meaningful data and wastes time and budgets. Use a balanced approach and apply one or two techniques at once. This way, you can better track the results and improve your overall marketing strategy on time.
Overusing Keywords
If an SEO tool has shown you a list of a hundred keywords relevant to your brand, it doesn’t mean you should use them all at once in one blog post. First of all, the text runs the risk of being meaningless and does not look native. Secondly, search engines will consider such content as spam.
Putting Technology Over People
Put your customer at the center of all changes to your online store marketing strategy. Your articles should have not just a great SEO performance, but bring value to the user. You also don’t have to add cool features to your website if your visitors don’t need them. Remember that your buyers are people with feelings and thoughts, not robots.
Case Studies and Real-Life Examples
The practice speaks louder than theory, so let’s look at a few real-life cases of companies that know exactly how to make eCommerce ROI analysis and upgrade their marketing effectively.
Wayfair
Wayfair has revolutionized furniture shopping by using social media and eCommerce SEO. They have built an online-only store similar to Amazon for the home industry. With well-organized filtering and navigation, they make browsing easy.
Clear product ratings enhance customer information, and a “quick view” feature streamlines the shopping process. Personalized product recommendations encourage clients to explore their extensive selection.
Sephora
Sephora expanded online to compete with makeup boutiques, gaining popularity on YouTube and Instagram. They have simplified the online shopping experience, offering discounts and personalized product recommendations based on user behavior. Sephora knows its customers well and features real user-generated content.
IKEA
Ingka Group introduces IKEA Kreativ, a new AI-driven digital design experience. This intuitive platform provides customers with the first fully integrated and lifelike way to design and visualize their living spaces, accessible from computers and smartphones.
Customers can effortlessly explore the IKEA catalog and experiment with products in realistic spatial settings. They can swiftly swap, move, rotate, stack, and hang IKEA items to choose the perfect options for their needs.
Maximize Your eCommerce ROI with Atwix
Are you searching for a dependable partner to implement effective strategies for boosting eCommerce ROI? Look no further than Atwix, a team with extensive experience in developing eCommerce solutions across various industries.
Let us show you some of our successful projects.
Cabinets
Atwix helped Cabinets significantly improve its ROI. Our team upgraded the store to Magento 2 and implemented Customer Quotes and a Kitchen Cabinets door selection page, streamlining the cabinet-buying process. Integration of third-party applications, such as the Create-a-Kitchen app, allowed customers to visualize their kitchens before purchase.
This collaboration led to the remarkable success, with $1 million in revenues on Cyber Monday.
MeasureUp
Working with MeasureUp, Atwix focused on improving performance and ultimately boosting ROI. We conducted an audit, identifying KPIs such as page load speed and conversion rate. Our developers implemented fixes, including preload requests, render blocking content adjustments, HTML minification, expiration header updates, and removal of outdated logs.
As a result, overall mobile performance rose by 15%. Desktop homepage’s Time to Interactive scores improved by 64%. Notably, customer complaints and support tickets decreased significantly.
Conclusion
When you notice negative trends in your ROI KPIs, you should react quickly and change your strategy to avoid losing revenue. This guide will help you turn curious visitors into loyal customers by upgrading your eCommerce platform, enhancing it with extra features and third-party apps, increasing your site loading speed, and improving the customer experience.
If you have any other questions on boosting eCommerce ROI, feel free to contact us anytime. We will gladly share our expertise with you.
FAQ
Are there ways to boost ROI and get more customers without spending a lot of money?
You can explore cost-effective marketing strategies like social media promotion, email marketing, or collaborating with influencers. Building strong relationships with existing customers can also lead to word-of-mouth referrals.
How can I figure out which products or strategies are the most effective for ROI?
You can use analytics tools to track sales data, customer behavior, and the performance of different products. This helps you identify what’s working and where to focus your efforts for maximum ROI.
Are there ways to use social media to boost eCommerce ROI?
Social media platforms are perfect for engaging with your audience, showcasing products, and running targeted advertising campaigns. You can post user-generated content and reviews to build trust and credibility.