Conversion chain: With small steps to big results

The conversion chain a powerful lever

Conversion increase through the communication adjustment screw

The current times are getting fast paced, here comes a new smartphone in the market which has more features. Next up is a new, safer car with even more sophisticated technology. The current products offer customers ever greater benefits. That in itself is nothing new.

Only the speed at which all this happens increases significantly. Customers also expect this development from a good online shop. Thus, the usage behavior of online shoppers has also changed significantly in recent years. In the past, everything was Googled and it was enough if you had everything optimized for SEO for Google.

Today, marketplaces and social media channels are becoming increasingly important in marketing efforts. And one more thing has changed, the prices for online marketing have increased significantly. This means you either get fewer customers for the same marketing costs or you have to invest more money per customer you gain. This makes it all the more important to pick up every single visitor and do the best possible business with them. Unfortunately, many entrepreneurs still regard all applied shop measures as individual measures and thus overlook a decisive economic factor.

What’s the factor?

Let’s take a very simple example. Let’s assume you get 1,000 visitors per day to your shop through a marketing measure and of these 1,000 people 20 buy something from you, then you have a conversion rate of 2% %. Of course.

Here only often the consideration of the agencies or however also that of the owners stops. But this rate alone is not at all meaningful. You yourself know that in order to make a sale at all, there are many individual steps that take place one after the other.

In each of these steps, you have the chance to pick up your customer and encourage them to buy. This chain is made up of many individual elements, let’s call them mini-conversions.

So we recommend taking a complete look at your conversion chain and not just conversion rate.

The view of the conversion chain

To see the explanations of the respective conversion steps, simply click on the respective point.

Mini-Conversion 1

First, you or your agency configure a campaign. This is then played out. Here you have your mini-conversion 1. The configuration of your campaign determines how many people will see your ad.

Mini-Conversion 2

Let’s say 10,000 people see your ad in a day and you manage to get your ad clicked at a rate of one percent. So you have 100 visitors in your shop, your mini-conversion 2.

Mini-Conversion 3

So the initial 10,000 people have become 100 visitors to your shop. Of these 100 visitors, in this example, half leave your shop immediately, the other half start browsing your site. Your mini-conversion 3.

Mini-Conversion 4

These 50 people who are now browsing your site are now looking to see if you have a product that they think is right for them. 30% find that you are selling a product they would like and browse further. Your mini-conversion 4.

Mini-Conversion 5

So now there are 15 people left in your shop who have found a product they are interested in. These people are now looking to see if they feel you can be trusted and therefore get a good fair deal. Let’s say 30% of those 15 people in this example have that feeling. Your mini-conversion 5.

Mini-Conversion 6

So now there are 5 people left with you who are interested in a specific product and who trust you. These people are now thinking, “Do I even have the money to buy this product now?” and two people unfortunately find that they have just had so many other expenses that a purchase now is unfortunately not possible. Your mini-conversion 6.

Mini-Conversion 7

Now there are 3 people left with you. They are now looking at buying the product from you at that price. Two people decide to do this. Your mini-conversion 7.

And congratulations you have generated two orders.

But not only that. In this example, we have built a conversion chain of 7 elements.

Let’s write this down another way:

Mini-Conversion 1 * Mini-Conversion 2 * Mini-Conversion 3 * Mini-Conversion 4 * Mini-Conversion 5 * Mini-Conversion 6 * Mini-Conversion 7 = 2 %.

or with numbers: 10000 * 1 % * 50 % * 30 % * 33,33 % * 60% * 66,66 % = 2 orders

Why is this chain so important?

The individual numbers are really not that important, the mark is the most important thing here, because translated it means nothing else than, you have a lot of adjusting screws on the way to an order, on which you can put your hand and every single one influences your total turnover extremely positive.

Let’s look at this on a shorter and thus also clearer chain: One hundred visitors lead to 5 orders in two steps.

100 * 50 % * 10 % = 5 orders

You can now increase the 100 visitors to 200 visitors, then you have if everything else remains the same of course also twice as many orders. Only to make 200 visitors out of 100 in the normal case, you usually have to spend considerably more money. The result would then look like this:

200 * 50 % * 10 % = 10 orders

But if you manage to turn the last 10% in the chain into 20%, the same thing happens. Even so you will receive twice as many orders with still 100 visitors.

100 * 50 % * 20 % = 10 orders

The beauty of it is, you can do this without doubling the cost. Because these further steps of the chain are all within your website. If you manage that more people start to browse in your shop, that twice as many people trust you or that more people find a product more easily, etc., then your site will make an economic leap upwards and that without your costs rising just as much at the same time.

Knowing your personal conversion chain offers you another decisive advantage, because you don’t have to optimize a single step until you can’t anymore. You’ve got a big chain, with lots of steps. If you do a little hand at several of these steps all over the place, the effect is just as great, maybe even greater, and it’s much easier.

Let’s take a look at it, and let’s take our great example again for this. Originally, it looked like this:

10000 * 1 % * 50 % * 30 % * 33,33 % * 60 % * 66,66 % = 2 orders

Now we improve all factors on the website by only 10% %. Doing something just 10% better is usually very easy because you can focus on the easy things to accomplish. So we stay with mini-conversion 1, since we don’t change our marketing configuration, and only start to increase the 10% in the shop. Thus, it becomes:

50 ->55
30 -> 33

All in all our new chain looks like this

10000 * 1 % * 55 % * 33 % * 36,66 % * 66 % * 73,33 % = 3,22 orders

Every single step on your website just got a little bit better. Anything by 10% %.

But what does that mean in terms of the bottom line?

3.22 orders, up 61% (3.22/2-1).

That is, you improve a few steps by 10% each %.and the result is over %..

Yes exactly, that’s what happens when you improve steps that are one after the other. If just 10% more people go to the next step and then this again lets through 10% more than before, etc. then you achieve an enormous amount with relatively little effort.

You are curious and would like to know what this conversion chain means for your shop? Great, just use our calculator and be surprised by your possible additional purchases.

For the first two parts of our conversion chain, most business owners use agencies. From mini-conversion 3, many entrepreneurs are on their own. A few years ago it was relatively easy, it was enough to include a nice product picture with the manufacturer’s details in the shop.

Today, customers have completely different ideas of what a great online store should be. Good communication is the key to successful selling. This no longer applies only to direct sales in retail stores, but also to online shops.

Your customers expect that you, as the shop owner, know from the very beginning what they want to buy. Captivate your customers. Think of your shop from your customers’ point of view.

[thrive_accordion_group title=“What does a good shop look like from the customer’s point of view?”][thrive_accordion title=”Tipp 1 – Startseite optimieren” no=”1/5″ default=”yes”]Why is the start page so important for your visitors? Even if many of your shop visitors enter your shop via advertisements or search engines, the home page is certainly the most frequently visited page of your shop – just take a look at your shop statistics.

Why is that? Your visitors want to know where they are and who is offering them something. In addition, the home page is also called up when general information is sought.

The task of the home page is to welcome your visitors, offer them orientation and inspire confidence. You can only achieve this through good communication.

There are many possibilities how a good communication on your homepage can look like. It is important that the following questions of your visitor are answered clearly and if possible at first glance, i.e. within a few seconds:

Where am I?

The easiest way to answer this question is with an immediately visible shop name, your shop logo and possibly a suitable slogan.

What can I order here?

Give your visitors an overview of your assortment and use clearly understandable category names. Less is more: There should be a maximum of 7 main categories, otherwise they cannot be perceived within a few seconds.

What does shipping cost?

Use a highly visible info text or a clearly recognizable infographic to show your customers how you handle shipping costs. If you then still manage to integrate the word “free shipping”, as for example with:

“Free shipping already from 50 € order value”.

“Free shipping within Germany”

“only 6,99 € shipping costs – from 100 € order value free shipping costs”.

You increase the probability significantly that the customer orders from you. Can I trust this shop? There are several ways to strengthen the trust in your shop:

[/thrive_accordion][thrive_accordion title=”Tipp 2 – Verkaufsstarke Produktbeschreibungen” no=”2/5″ default=”no”] Your customers don’t care much about keywords or semantic terms. They are important, we agree with you. But they should be integrated in such a way that your customers are picked up. Because your customers want information, advice and above all a good feeling when buying. That’s why you need good sales copy.

This is especially important if you sell products that are also offered in some other shops. This gives you the opportunity to stand out from the crowd and make your product something special through your text.

What distinguishes a sales-boosting text?

Think from your client’s point of view, this is not about providing the client with a list of technical terms. Here it is imperative that the customer receives added value from this information.

Prepare all information clearly. You get a lot of information about each product. One of the biggest challenges is to filter out the most important information for your customers. Once this has been accomplished, the information should be sorted in order of importance. As always, the most important thing should always be first in the text.

Pay attention to a good visual layout, so your customer has the opportunity to quickly recognize what advantages your product offers him.

Now that the customer has all the facts, a good text still needs an emotional component. This can be something like: “The operation of this product is child’s play”, “This energy-saving lamp illuminates your home with a warm light that invites you to read” or “After you have tried this product, you no longer want to miss it, because ….”.

A good text keeps your customer longer on your site, the longer he is on your site, the more trust he builds to your shop and the more likely he is to buy from you.

[/thrive_accordion][thrive_accordion title=”Tipp 3 – Infoseiten / Landingpages” no=”3/5″ default=”no”] For each assortment there is additional information that might be of interest to the customer, such as care instructions, recipe ideas, assembly instructions, tips for the right choice of gift or information on the materials and their origin.

However, if your customers don’t find this information on your site, they may look elsewhere and find your competitor’s offerings.

Don’t let this cause your customers to churn and order elsewhere in the future. Provide interesting and useful information!

If your shop does not offer the possibility to manage information in the form of landing pages or info pages, the problem can usually be solved very easily with a (WordPress) blog on a subdomain.

In a blog you can offer everything that is relevant to your customers.

You kill two birds with one stone: On the one hand you increase customer loyalty through information and communication and on the other hand you can generate additional organic traffic through targeted links from the blog to your shop.

[/thrive_accordion][thrive_accordion title=”Tipp 4 – Deine Thank-You-Page” no=”4/5″ default=”no”] “Thank you for your order” – and now?

Your customer has made his purchase and will now leave your shop. The feeling with which he leaves your shop depends not least on how you say goodbye to him on the so-called Thank-You-Page, the order confirmation page.

[/thrive_accordion][thrive_accordion title=”Tipp 5 -Sei anders, bleibe in Erinnerung” no=”5/5″ default=”no”] Use a great shipping confirmation email. Be creative and pick up your customer on an emotional level.

What would something like that look like?

Hello xy ..,

today is a perfect day for you! Your lovingly selected product, has well and safely packed an exciting travel adventure to … started. We have just delivered it into the safe hands of our faithful carrier.

Your package will be guarded by him until it reaches its destination.

Delivery Dates:

has arrived.

We can well understand your impatience and therefore show you here (carrier’s traking code) where your good piece is at the moment.

If you still have a question about your order, pick up the phone immediately or write us an email, because only if we know what is bothering you, we can make your life easier.

Thanks so much for shopping with us, see you next time.

Your team from … Shop

You think such a text is excessive? He’s definitely different! It is a text that is spoken about, one that is passed on. So you have the additional possibility of a recommendation marketing of your customers. Then the next buyer is also excited to receive such a loving mail.[/thrive_accordion][/thrive_accordion_group]

Sebastian Richter
Sebastian Richter
Sebastian ist Inhaber und Geschäftsführer der webRichtUng GmbH.

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