When it comes to online business, the number one metrics that reflect the business success are the conversion rate and customer retention. Every business would love to have excellent customer retention and as well as conversion rate.
In this article, we will focus on how UX and Analytics impact both the above metrics. We will also discuss how improving analytics and UX can help you increase both customer retention and conversion rate.
The eCommerce business is booming with each passing year. It is no doubt that there is still huge potential in the field. The increase in mobile phone user will fuel eCommerce growth.
As a business, your job is to make sure that the visitors have the best time possible on your site. A sale only takes place with positive experience built up. It rare to find a visitor arrives at a website and buying in its first visit. With regular visits, the chance of conversion increases, finally resulting in a sale.
To get started, let’s first discuss the critical analytics that can improve conversion and customer retention.
If you are setting up a website for eCommerce for the first time, it is always a good idea to design your UX mindfully. By this, we mean that you should be wary of the impact that UI has on the customer experience. Due to competition and array of options, it is common for visitors to jump to a rival site or app in minutes.
Customer optimization(CO) is a strategic plan that lets you build site more efficient, enjoyable and interactive. So, how do you measure user interaction? Let’s look at the following key performance indicators(KPIs). As a business owner, you need to take note of these KPIs and also ensure that are in good health.
- Member activation rate: How many days does it take for a new member to make its first purchase? This KPI is essential to know the time it takes for your audience to make a purchase decision. As an owner, your job is to ensure that it takes less time for them to become a loyal customer.
- Orders per active customer: Take proper note of the orders per customers for an active month.
- Abandonment rate: This is one of the most important KPI metric that you need to take note of. It is the rate at which users abandon their cart during the checkout process.
According to the Baymard Institute, 68.53% of the visitors abandon their cart. The reason can be a slow checkout process, too many forms, hidden cost and so on. As a business owner, you need to ensure that your payment system works out of the box. Also, the process should be as simple as possible. Generally, it should be completed within a few clicks.
- KPI for retention: This is also one of the most important KPI. You need to measure the retention rate of the users in term of the day, week and month. By doing so, you will be able to distinguish users based on how long they stay. Try to study what they like and dislike. For example, why users abandon your site by just visiting once? Is your site slow or you don’t show them relevant content to them? By figuring this out, you can improve your customer retention.
These four KPIs will keep you at the top of your game. If you can find the issues, you are already halfway improving customer retention and conversion rate.
We recommend doing a thorough analysis of each of KPI and then moving forward to implement a solution. You may also want to take feedback from users and try to find the bottleneck to your whole system.
Improving UX design
Another way to strengthen your business is to improve user experience design. UX design is essential to business growth and success, be it for your website or app. It is always a good idea to select a website builder that uses right UX design decisions. This will help you create an eCommerce website that will require less tweaking in the future.
A good UX design will significantly improve user retention. You need to get started from the homepage of your app. Try to find optimal experience by removing issues such as technical glitches, bad design, asking too much information from a new user, and so on. Any eCommerce website or app should follow the modern design philosophy and keep things clean and simple for its users. If you do it right, you can improve your website user’s retention and conversion rate considerably.
To get a better understanding, keep the following points in mind.
- Simple account creation and login: New users hate signing up for a new website. It makes it even more cumbersome if account creation takes too many steps or forms to fill up. Try to minimize the steps to a bare minimum. Also, ensure that login into account doesn’t feel a big task. If you do it right, you will instantly see a huge spike in user signup and retention.
- Try to be minimalistic: The app interface should be as minimalistic as possible. It will improve user attention and ensure that they see only essential things.
Users experience can also be improved by getting a better hosting, introducing gamification, or minimize steps. Also, the user experience can be improved by asking for feedback. There is no one better than the user who can tell you what needs to be changed or improved. It is also a good idea to test your eCommerce app or website before releasing. Do beta testing and ensure that you get all the points right from the start. However, don’t be too hard on yourself if you miss something as it takes patience and a good number of iterations to bring the best version possible.
So, what do you think about the points mentioned in the article? Do you agree? If not, don’t forget to share your views and opinions in the comment section below.