Introduction

The most successful eCommerce brands in the world allocate at least 5% of their budget to conversion rate optimization (CRO).1 An effective CRO strategy evolves over time—based on historical data, market trends, and customer expectations—and gradually increases the ROI of your business’ online storefronts. So what exactly are we talking about when we talk about CRO? First of all, there are many different types of conversions. Depending on your company’s sales and marketing goals or KPIs, you may consider it a conversion any time a user:

● Purchases a product on your eCommerce website

● Creates a customer account
● Signs up for your email newsletter
● Shares about your products or services on social media
● Requests to speak with a sales representative

To calculate your online store’s conversion rate over a set period of time, you’ll use this basic formula: Number of conversions / Total number of visitors X 100 = Conversion rate. So if your site gets 1,000 visitors in a week, and 10 of those visitors purchase an item, set up a call with a sales rep, or perform some other action that counts as a conversion, then your conversion rate will be 1%.

Keep in mind, the average eCommerce conversion rate is around 3%, as of 2023.