Why is Conversion Rate Optimisation Important?

Published on by Lewis Crutch

When a customer lands on a website and searches for a specific product, they usually select it, add it to the basket and purchase it. As a result, this would lead to the online retailer making profit on the order and this is known as a successful conversion.

However, with online shopping this isn’t always the case and it’s certainly not as easy as I’ve made it sound. Just because there is a guest visiting a website does not guarantee that they will make a purchase while they are there, they may simply be browsing your stock and it can be quite hard to encourage them to continue with the order and this results in a lower conversion rate.

The ultimate goal for online retailers is to be improving their conversion rate from traffic to increase their sales, and profits within the business.

There are a couple of views that some businesses have about their online presence and website that are completely wrong:

a) If they have a website then traffic will come, people will buy and they’ll get rich

b) If they have traffic then that’s where their work ends and the traffic will either buy or they won’t buy

They need to understand why customers are deciding not to follow through with their orders – why are they not engaging with the site? Is it the layout? Is the landing page not showing them what they want to see? There are a number of reasons why and this will result in the customer clicking away (bouncing) from the site.

It’s important for online retailers to ensure their site is fully optimised to achieve a high conversion rate through optimisation from the traffic they’ve already attracted to their site.

Conversion Rates can Always be Improved

It’s important that an online retailer understands the users behaviour when they are on a website when they develop a successful e-commerce strategy.

You should research what your customers require from your site and what they respond to best. You will then be able to tailor your site to suit the needs of them. As a result of this, they will have a better experience while on your site and will be more likely to want to make a purchase and convert.

A website should be based around the individuals that will use it, and the checkout should be tailored entirely around the requirements of users to ensure that they continue with their conversion. This should be carried out through extensive insight and analysis of their customer behaviour.

Reduce PPC Costs

In the past, PPC was a strong tactic used for bringing new customers onto an online retail store. You’d simply enter your search term and be greeted with an advert directing you onto a relevant store. It was great for providing lesser known brands to more exposure and traffic.

However, today, it is not always one of the most efficient ways to do this, as many of the clicks do not convert into sales.
It’s quite common that many online retailers are reducing their spending budgets but the actual conversion rates from the ecommerce platform are dropping.

By having a strong Conversion Rate optimization will help make the most out of the clicks you do get on your ppc ads, and turn them into conversions which in turn will see them covering the costs of paying for them.

Reconnect with the Audience

Sometimes a conversion does not happen simply because the consumer might not be ready to complete the cycle. And unfortunately there is not too much you can do to tactically to make them change your mind.

However, through the use of well placed ads around products they have been searching for on your platform will allow you to start promoting deals and promotions tailored to their needs, or even generating unique, and personal messages to them while they are browsing.

Another technique to encourage guests to convert is to target them by email marketing. It’s common that once you’ve been browsing on a site, or have something in your basket, that you will have an email that is triggered off to remind you that you haven’t completed the purchase and are subtly directed back onto the site to complete your conversion.

Increase Site Wide ROI

One of the most important factors about Conversion Rate Optimisation is that it increases your websites profits. Even if you find that there has only been a small increase in conversion rate, it can lead to a huge difference overall to your profits. This is because unlike when you advertise on other avenues, the money that has been made from conversion will go straight back into your company and not through other third parties who may have been promoting your company such as marketing companies or advertisers.

Gives you More Budget to Invest in Profitable channels

Once your conversion rate is fully optimised, and you see sales and profits on the up, you will soon have extra money available to promote your brand and give it the exposure it deserves.

There are many avenues which you could take to do this- and it could be online or offline to give it that edge and extra publicity.

It actually pays for you to use the profit the company has made and put it back into advertising. This way you will not have lost any money in paying for the promotion as it would have paid for itself as a result of more visits and conversions due to the optimisation of the conversion rate.


The ultimate goal of conversion rate optimisation is to ensure that your online store in converting visits into purchases. So no matter if there is only a slight increase within traffic, you will soon see that the conversion costs will increase and you can spend time on other avenues to promote your brand to continue attracting new customers.