The purpose of this study is to find out the hypothesis of what are the factors that contribute to increasing the conversion rate of e-commerce websites. The result of this study was found that there are two components that are significant in order to increase the conversion rate. Under the e-commerce business, there is a conversion rate that is the percentage of visitors to your e-commerce sites that complete a desired goal (a conversion) to turn to a sale of your products and services.
For example, a good product image and the content of the products offered are one of the factors that contribute to a high or low conversion rate on an e-commerce site. In addition, this research will consider different models such as RACE and AARRR models to support and solve the low conversion rate of e-commerce websites. In addition, the research also includes 13 ways why e-commerce has a low conversion rate to understand the main issues.
As for the problem in my workplace, since I now work within the e-commerce platform where I sell car accessories online through Facebook and the website, the main problem I have faced is the low conversion rate. This problem is the biggest problem my company is currently facing; Facebook makes more profit on our turnover because of the low conversion rate. The way to solve this problem, according to the lesson in digital marketing class, I will apply RACE model and AARRR metrics to solve my company's low conversion rate.
For AARRR Metrics, it is used to increase the conversion rate of the e-commerce site.
Other studies why E-Commerce has low conversion rate
- Website visitors can’t understand your offer
- Your calls to action aren’t clear and optimized for conversions
- The copy could be more attractive
- Your site delivers a poor user experience
- The landing pages have distracting elements
- You don’t have an exit popup
- The form is too long or complicated
- Your website isn’t optimized for search
- The pages aren’t mobile friendly
- You haven’t added videos or images of your products
- Tracking isn’t set up correctly
- The pages don’t have contact information or live chat
- The user doesn’t trust you
The reason we need to apply AARRR is because it is widely accepted as the five most important metrics for a startup to focus on. According to the Neil Patel, the consultant of Amazon, NBC, GM, HP and Viacom companies, clarity is the key actor when we have to communicate with our audience. We may need to place a top bar on our website and e-commerce site to advertise a specific offer.
Therefore, the headline and call to action should be relevant to the main offer we made. User experience is one of the most important factors to consider when evaluating your conversion rate. In some cases we need to ask questions to get feedback from our customers.
In addition, to shorten the forms, make sure that we have a clear objective in what we are asking for (Patel N, 2018). Running ads will be able to get enough clicks, but we also need to appear organically for relevant search terms (Patel N, 2018). According to Neil Patel, Amazon.com's consultant, the more traffic we earn, the more opportunities we have to convert potential.
More traffic doesn't automatically generate more conversions, but we need to get more eyes on our content. The results were somewhat surprising and showed that, contrary to popular belief, price alone is not the most important factor in explaining low mobile conversion rate (Roesler P, 2018)”. According to Neil Patel, the consultant of Amazon.com, it is improved for mobile view to be friendly (Patel N, 2018).
If we're not sure we've set up tracking correctly, please go back to Google Analytics. The last thing we need to do is make a decision about our website and marketing campaign based on incorrect data (Patel N, 2018). This research will be conducted to analyze the hypotheses of the people who purchased the product online.
Also, using quantitative research methodology, we apply factor analysis to analyze the relevant factor that contributes to the increase in conversion rate. In the research, we want to understand the importance of conversion rate through different online marketing of website and Facebook page.
Quantitative Research
Characteristic and demographics of 100 respondents
Screening questions
General questions
Specific questions
Furthermore, for the credibility of the research, there are 2 components which are good online marketing and sufficient advertising campaign. For the artwork, it should be professional, pleasant and beautiful in order to attract the attention of customers. For video and image factors, videos should be short and to the point in order to grab the customer's attention.
Therefore, the administrator must create content that will capture the attention of customers. The price of the product must be customer-friendly and match the competition on the market. To conclude the data analysis, there are two components which consist of ten factors to increase the conversion rate.
By receiving a good feedback from the customers, it can lead to an increase in the conversion rate on the e-commerce site. The message of the content must be very interesting to capture the customers' attention. Finally, in the first component, the price of the product must be customer friendly as well as be reasonable compared to the competition.
For the second part, namely sufficient advertising campaigns, the e-commerce site owner must have sufficient advertising budget to compete with the other competitors. So, if the e-commerce owner performs well under the ten factors we discussed earlier, it will increase the e-commerce conversion rate. For the recommendations, the e-commerce owner needs to focus on two components to increase the conversion rate.
For videos, it must have a good production, therefore the owner must invest to attract the customer's attention. Service will be an additional campaign to add more value to the customer so that the price is suitable for each of the customers. The second component to consider is a sufficient advertising campaign. The e-commerce platform owner must have sufficient advertising budget to compete with the competitors in the market, as the competition is today.
In conclusion, this paper has discussed the problem in my workplace which is low conversion rate on e-commerce websites. Moreover, this research also provides the in-depth information about the two components and the ten factors to focus on the increase in the conversion rate of e-commerce websites.
