Understand the Shopify Conversion Rate Calculator to Optimize Sales
Conversion rate is one of the most important metrics that Shopify merchants need to monitor and optimize. It directly affects your store’s sales, revenue, and growth. Thus, having a comprehensive understanding of the Shopify Conversion Rate Calculator is necessary for developing your Shopify store.
This article will let you know the method for calculating the conversion rate, the effective Shopify conversion rate, affecting factors, and tools for tracking this metric. Explore it with us!
How does Shopify calculate conversion rate?
Conversion rate is a measure that tracks the percentage of visitors who successfully perform a desired action on your website. This action can be signing up for a newsletter, registering for a trial, purchasing a product, and more.
The metric depends on two elements: the total number of conversions and the total number of visits to your website. Dividing the former by the latter will result in the conversion rate, showing the percentage of visitors who completed the targeted action on your site.
Conversion rate = (Total conversions / Total visits to your website) x 100
In this formula:
- Total conversions: This represents the number of times visitors complete actions on your website, such as filling out a form, making a purchase, or subscribing to a newsletter. Each type of action should be tracked separately.
- Total visits to your site: This indicates the total number of visitors to your website within a given timeframe, including all interactions and sessions, whether or not a conversion took place.
Shopify has a built-in tool for automatically tracking and calculating conversion rates. You can choose Analytics in your admin dashboard, then click Online store conversion rate. The report will show you the number of actions added to the cart or reached checkout and the sessions converted. The conversion rate will be automatically calculated based on the sessions that resulted in online store orders and the total number of sessions.
What is a good Shopify Conversion Rate?
According to a survey conducted by LittleData, the average Shopify conversion rate is 1.4%. If your rate is below 0.5%, there’s likely potential for improvement. If your rate exceeds 3.3%, you have an excellent ecommerce conversion rate, placing you in the top 20% of all Shopify stores.
From the study, we can see that a good Shopify conversion rate is above 1.4%. Meanwhile, a rate over 3% can be considered exceptional.
However, we shouldn’t rely on this benchmark only. That’s because many factors can influence the conversion rate. For instance, if you’re selling high-end clothes, it’s likely that your conversion rate will be lower compared to someone selling inexpensive, impulse-buy fashion items. That means we need to consider the numbers in the practical context of stores.
What factors can affect Shopify Conversion Rate and how to improve them?
Achieving a high conversion rate on Shopify relates to different aspects of your e-commerce strategy. Let’s explore the main elements that influence your Shopify conversion rate and how to enhance them.
Different traffic sources
The source of your traffic plays an important role in your conversion rate. Traffic can come from various channels, such as organic search, social media, paid ads, email campaigns, and referrals. Each source has its characteristics and can impact conversion rates differently.
Organic search usually brings visitors that are actively searching for products or solutions. Thus, they tend to have a higher conversion rate. Meanwhile, traffic from social media platforms can be more engaged or more casual, depending on the platform and the type of content shared. Social media visitors might come with specific expectations based on targeted ads or posts.
Paid traffic, whether through Google Ads or social media ads, can be highly targeted. However, the quality may vary depending on the ad’s precision of targeting. Besides, traffic from email campaigns typically includes subscribers who are already interested in your brand or products, so it can also have a good conversion rate.
To optimize your traffic sources for a higher conversion rate, you should have suitable strategies for each source.
- Organic traffic: Focus on SEO best practices, including keyword optimization, high-quality content, and a user-friendly site structure.
- Social media: Create engaging content and clear calls to action to convert visitors. You can utilize platforms like Akohub to automatically send DMs to followers, which will help you convert comments into orders.
- Paid traffic: Continuously monitor and adjust your ad targeting and ad copy to attract visitors who are more likely to convert.
- Email marketing: Ensure your email content is relevant, personalized, and includes clear calls to action to drive conversions. Don’t forget to use email marketing apps like Klaviyo to automate your efforts.
Product price
The next factor that contributes to the conversion rate is the pricing of your products. If you sell high-priced items, you might have lower conversion rates because these products require more consideration than lower-priced products. Meanwhile, they can make up for ROI as they drive higher average order value.
So, how can you optimize pricing for a better conversion rate? Focus on establishing pricing strategies! This requires you to research thoroughly to know how your prices compare with competitors. Implementing such research will help you provide competitive prices to attract and convert customers.
In addition, you can use price anchoring by showing original prices next to discounted prices. This technique will make customers feel that they are getting a good deal. So, it contributes to improving conversions. You can also offer different pricing options, serving different customer needs and increasing conversions as well.
Brand’s unique selling point
Your brand’s unique selling point (USP) helps set you apart from competitors and influence conversion rates. A strong USP communicates the unique benefits of your products or services clearly and effectively, making customers want to purchase.
You should highlight your USP by making sure it’s displayed on your website and materials. It should be integrated into your product descriptions, landing pages, and overall branding.
In addition, maintain consistency in your USP across all marketing channels. A clear, cohesive message reinforces your brand’s value and can enhance customer trust and conversion rates.
Web design
The design and usability of your website are essential for conversion rates. A well-designed site enhances user experience and can lead to higher conversions.
To optimize your website, you will need to ensure that it’s easy to navigate. That means it should have a clear menu and an intuitive layout. A confusing or cluttered site can frustrate visitors and lead to higher bounce rates. Your website needs a responsive design. You should optimize it for all devices so that it brings a smooth experience.
In addition, the website can’t lack high-quality visuals, which contributes to better conversion rates. You should upload and arrange appealing images and videos to display your products. Also, use compelling CTAs with contrasting colors, persuasive text, and strategic placement. All these things contribute to increasing the likelihood of conversion.
To streamline your web design process, you may consider using apps designed for Shopify’s web builder. PageFly is a great option for this purpose, as it can help you create an attractive website that drives substantial sales and conversions.
Technical problems
Technical issues on your website can be major barriers to conversion. If customers are purchasing and face technical issues, they may be disappointed and abandon their carts. In particular, slow-loading pages can frustrate users and lead to higher bounce rates. A complicated or lengthy checkout process can lead to cart abandonment.
Addressing these problems is crucial for maintaining a smooth user experience. You need to simplify your checkout process by minimizing steps, offering guest checkout options, and providing multiple payment methods. Shopify apps like Qikify are useful for these purposes.
To optimize your site’s speed, you can compress images before uploading, utilizing browser caching, and using a reliable hosting provider. In addition, don’t forget to ensure that all aspects of your website, including the checkout process, are optimized for mobile users. Test your site regularly on various devices to identify and resolve any issues arised.
Discounts and promotions
Discounts and promotions can be effective tools to boost conversion rates. They create a sense of urgency and encourage customers to complete their purchases.
You can utilize Shopify discount apps like BOGOS to easily create and manage your offers. Here are some of the offers that you should consider strategically providing:
- Time-limited offers: Implement time-limited promotions or flash sales to encourage immediate action. You may highlight the urgency with countdown timers or limited-time offers.
- Coupons and discounts: Offer coupons or discount codes to attract price-sensitive customers. Clearly display these offers on your website and in your marketing materials.
- Free shipping: Providing free shipping can be a significant motivator for customers to complete their purchases. Consider incorporating free shipping thresholds or promotions to increase conversions.
Top 3 tools to track and calculate Shopify conversion rate
Google Analytics
Google Analytics is among the most commonly used tools for tracking and calculating Shopify conversion rates. It provides comprehensive insights into user behavior, helping you know how visitors interact with your site.
By configuring conversion goals in Google Analytics, you can measure specific actions like transactions, revenue, and product purchases. Its e-commerce section also lets you know the information on product clicks, product page views, add to cart, checkout steps, and more.
To establish your Google Analytics for your Shopify store, you can refer to this guide. After establishing, you can go to your Google Analytics dashboard, choose Conversions, then choose Ecommerce, and head over to Overview. At this tab, you will see your store’s performance within a time frame and your conversion rate.
With Google Analytics, you can have more data to optimize your conversions. You can go into Audience and then choose Demographics to understand your demographics better to improve your campaigns. You can also measure each product’s performance through Conversions > Ecommerce > Product Performance. Google Analytics lets you identify your highest-converting channels to focus on. You can easily see that by clicking on the Acquisition tab, choose Traffic acquisition.
Shopify Analytics
Shopify Analytics is an integrated tool designed specifically for Shopify merchants to track and measure conversion rates directly within the Shopify platform. This built-in analytics tool provides a user-friendly interface and essential metrics that help you understand how your store is performing.
With Shopify Analytics, you can access various reports and dashboards that showcase key performance indicators. They include conversion rates, sales, average order value, and more. It offers insights into how well your store converts visitors into buyers, highlighting areas such as top-performing products, sales channels, and customer demographics.
Within the conversion tab, you can observe the numbers on sessions, added to cart, reached checkout, sessions converted, and conversion rates. These detailed metrics will help you understand the performance throughout your customers’ buying journey. So, you can adjust the right matters to improve the conversion rate.
Improvely
Improvely is a Shopify app that can help you with conversion tracking and analytics for your Shopify store. This app provides detailed insights into how your marketing efforts and traffic sources impact your conversion rates.
Improvely allows you to attribute conversions to specific marketing campaigns and channels. Its conversion tracking features display the source of each new customer and sale. Thus, you can clearly observe and optimize your traffic sources to get more sales.
It also provides click fraud alerts, which let you know if someone is wasting your advertising budget. This feature helps protect your budget. Its intuitive dashboard makes it easy for you to follow metrics and data. Improvely is free to install and use if your site has 1,000 visits per month. Yet, it will charge $2 per 1,000 additional website visits.
Conclusion
Understanding the Shopify conversion rate calculator helps you decide on the right strategies to optimize your store’s conversions. Various elements can affect your conversion rates in different ways, so you will need to monitor carefully to understand which are the key ones to improve. Don’t forget to install suitable analytics tools to support you with the work!
Shopify conversion rate calculator FAQs
Why is my Shopify conversion rate so low?
This can be due to different matters like poor website design, slow page load times, a complicated checkout process, or mismatched traffic sources. Other potential issues include high product prices, unclear value propositions, or ineffective marketing strategies. You should analyze carefully to decide the key reasons and optimize your site based on them.
How do I get high conversion rates on Shopify?
You can enhance your website design for an improved user experience. Streamlining the checkout process is another method. Besides, don’t forget to use targeted marketing strategies which include high-quality product images, compelling CTAs, and appealing offers and discounts.
What Shopify theme has the highest conversion rate?
You can try themes like Debutify or Symmetry. They are popular for their high performance and conversion-focused features. They have fast load times and are built with customizable design elements as well as conversion optimization tools. So, they are effective for improving sales and user engagement.
What is conversion rate optimization in Shopify?
Shopify conversion rate optimization means improving different elements of your store to increase the percentage of visitors who complete a desired action, such as making a purchase. This includes optimizing website design, streamlining the checkout process, and implementing effective marketing strategies. The goal is to boost sales and maximize the effectiveness of your traffic.
Author information
Ann is a dedicated SEO content writer with extensive experience in crafting engaging blog content. With a passion for writing about Shopify themes and apps, she brings a wealth of knowledge and expertise to her writing. Her work helps brand drive traffic to their website and connect with audience effectively.