Conversion Goals and Types for Ecommerce Stores
In Ecommerce, conversions are the moments when a visitor takes an action that brings them closer to becoming a paying customer.
While making a sale is the ultimate goal, there are several other “micro” conversions that also drive long-term success.
Setting and tracking these goals helps you build a clear path to better conversion rates and revenue growth. Let’s break down the different types of conversions and how to set effective goals for each.
Why Define Conversion Goals?
Defining conversion goals allows you to focus your optimization efforts on actions that align with your business objectives.
When you know exactly what actions you want visitors to take, it becomes easier to build a site experience that encourages those actions.
These goals act as milestones, showing you where visitors are in the buying journey and where they might be dropping off.
Setting and tracking these goals lets you pinpoint areas for improvement and measure the effectiveness of your CRO efforts over time.
Types of Conversion Goals for Ecommerce
For an Ecommerce store, conversion goals can be broadly categorized into macro conversions (major goals, like purchases) and micro conversions (smaller actions that lead up to a purchase). Let’s dive into each.
1. Purchases (Macro Conversion)
Definition: The ultimate goal of an Ecommerce site—when a visitor makes a purchase. This is often called a macro conversion because it’s the primary goal that directly impacts revenue.
Goal Setting: Start by setting a specific purchase conversion rate goal. For instance, if your current purchase rate is 2%, you might aim to increase it to 3% over the next three months. A small percentage increase in purchase rate can translate into significant revenue growth.
Tracking: Most Ecommerce platforms and analytics tools (like Google Analytics) offer built-in options to track completed purchases. Set up Ecommerce tracking in Google Analytics to see both the number of sales and detailed metrics, such as revenue and average order value, for each transaction.
2. Adding to Cart (Micro Conversion)
Definition: When a visitor adds a product to their cart, it’s a strong indicator of purchase intent. Tracking add-to-cart actions gives insight into whether visitors are interested in your products.
Goal Setting: Define a target for your add-to-cart rate, perhaps aiming to increase it by a specific percentage. For example, if 10% of visitors currently add items to their cart, you might set a goal to increase this to 12%.
Tracking: Many Ecommerce platforms offer built-in add-to-cart tracking. In Google Analytics, you can track this by setting up a Goal for “Add to Cart” button clicks or by using enhanced Ecommerce tracking to get detailed insights.
Optimization Tips:
- Make sure your Add to Cart button is easy to find and prominent on product pages.
- Highlight product benefits clearly to motivate visitors to add items to their cart.
- Remove barriers to adding items, such as unnecessary options or complicated selections.
3. Checkout Initiation (Micro Conversion)
Definition: When a visitor initiates the checkout process (e.g., clicks the “Proceed to Checkout” button), it shows a high level of purchase intent. Tracking this metric helps you understand how many visitors are moving past the product interest stage to serious consideration.
Goal Setting: Set a goal for increasing the number of visitors who start the checkout process. For instance, if only 5% of visitors who add items to their cart proceed to checkout, aim to increase this to 7%.
Tracking: In Google Analytics, set a Goal for checkout initiation. Enhanced Ecommerce tracking can also provide deeper insights, such as where in the checkout process visitors drop off.
Optimization Tips:
- Minimize steps in the checkout process to avoid drop-offs.
- Offer guest checkout options to reduce friction for new customers.
- Clearly display all costs upfront to prevent visitors from abandoning checkout due to unexpected fees.
4. Completing Checkout (Macro Conversion)
Definition: Completing checkout is the final step in the purchasing process. This is the point where visitors move from considering the purchase to actually completing it. A smooth, optimized checkout experience can significantly reduce abandonment and increase revenue.
Goal Setting: Define a target to reduce checkout abandonment rate. For example, if 25% of visitors abandon their checkout, aim to reduce this to 20%.
Tracking: Enhanced Ecommerce tracking in Google Analytics lets you track each step of the checkout process. This way, you can identify exactly where visitors are dropping off.
Optimization Tips:
- Remove distractions from checkout pages (such as unnecessary links or navigation).
- Use trust symbols (secure checkout badges, SSL icons) to reassure customers.
- Allow visitors to save their cart and return later, reducing abandonment.
5. Newsletter Sign-Ups (Micro Conversion)
Definition: Getting visitors to sign up for your newsletter or email list is a valuable micro conversion. This builds a relationship with potential customers and gives you a channel for ongoing engagement, increasing the chances of future sales.
Goal Setting: Set a monthly target for newsletter sign-ups. If you currently get 200 new subscribers per month, aim for 250.
Tracking: In Google Analytics, set up a Goal for the newsletter sign-up page or confirmation message. Many email marketing tools also offer integration with analytics platforms, so you can track sign-ups easily.
Optimization Tips:
- Make your sign-up form short and simple to increase completion.
- Offer an incentive, such as a discount code or free resource, to encourage sign-ups.
- Use exit-intent pop-ups to capture potential sign-ups before visitors leave the site.
6. Click-Throughs on Promotions (Micro Conversion)
Definition: Tracking clicks on promotions or banners (like a sale announcement or product bundle offer) helps you understand how engaging these promotions are. High click-through rates indicate that visitors are interested, which can lead to higher conversions.
Goal Setting: Define a goal for increasing the click-through rate on specific promotions. If 3% of visitors currently click on a sale banner, aim to increase it to 4%.
Tracking: Use Google Analytics to track clicks on specific buttons or banners through Event Tracking. You can also use UTM tags to track traffic from specific promotions across your site.
Optimization Tips:
- Position promotions prominently on the homepage or in a sticky banner to increase visibility.
- Use clear and compelling language to communicate the promotion’s value.
- Experiment with limited-time offers to create urgency and boost clicks.
Prioritizing Conversion Goals: Where to Start?
Not all conversion goals will have the same impact on your revenue. Start by prioritizing the goals that directly affect sales (like purchase and checkout initiation). Here’s a simple approach to prioritization:
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Start with Macro Conversions: Focus on improving the primary goals that drive revenue directly, like completed purchases and checkout initiation.
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Optimize High-Intent Micro Conversions: Next, look at high-intent actions, like adding to cart and initiating checkout.
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Capture Leads with Lower-Intent Micro Conversions: Lastly, optimize for lower-intent conversions, like newsletter sign-ups and click-throughs on promotions, which build engagement over time.
By focusing on the high-impact goals first, you’ll see faster results from your CRO efforts and set a strong foundation for optimizing other conversions later.