Table Of Contents
- Introduction
- 1. Define conversion goals
- 2. Data Collection
- 3. Segmentation Analysis
- 4. Funnel Analysis
- 5. Technical Performance Analysis
- 6. Comparative Benchmarking
- 7. Conversion Rate Optimization (CRO) Tips
- 8. Reporting and Continuous Improvement
- Conclusion
Introduction
When was the last time you conducted a Conversion Rate Analysis? If it's been a while, or if you've never conducted one, this guide (a primer) should give you the basics of what you need to do to conduct a conversion rate analysis.
Before diving into the steps below, it's best to define what a conversion rate analysis is.
Conversion rate analysis is the process of analysing the effectiveness of a conversion goal. In the eCommerce realm that means analysing the purchase event by means such as:
- What are the steps,
- What are the current friction points and
- What can be done to create an up-lift in purchases
The goal here is to get more people to purchase.
This process is best undertaken by breaking it down into bite sized chunks (eight key steps).
The key highlights of this process include:
- Comprehensive data collection strategies
- Detailed segmentation and funnel analysis
- Integration of quantitative research
- Continuous improvement framework
Lets dive in.
1. Define conversion goals
The first step in the process is to clearly identify what constitutes a "conversion" for your specific business
In an eCommerce business a typical conversion goal would be a purchase event -- but this may not ring true for all.
eCommerce businesses can also operate with more than a purchase goal in mind. Some examples include:
- You might have a loyalty program and the goal is for members to download a document
- It could be increasing your database size, which means that members need to sign up to your email opt-in form.
The goal here is to define what makes sense for you. Make sure that this aligns with the goals of this analysis otherwise all steps below fall short.
2. Data Collection
Our next step is to dig into quantitative data sources. The best examples in this context are platforms such as:
- Google Analytics
- CRM systems (SalesForce, HubSpot, PipeDrive)
- eCommerce platforms (Shopify, BigCommerce, Adobe Commerce)
Once you've identified what sources, you'll need to identify key metrics and compile these into a database/spreadsheet or some kind of system. Some key metrics include (Again, what makes sense to your business and goals. Commonsense people!):
- Total website/page visitors
- Number of conversions
- Conversion rate
Calculated as (conversions / total visitors)
- Traffic sources (Where are your users coming from?)
- User journey/path to conversion (This can be achieved easily with Funnel analysis in GA report exploration)
- Device and browser information (mobile vs desktop)
- Time spent on site/page
3. Segmentation Analysis
This is where the fun starts. Take all the data that you've compiled above and find out the conversion rates to the below segments (Don't worry this isn't rocket science)
In case you forgot (Or didn't look), conversion rate is calculated as
(conversions / total visitors)
Breakdown Conversion Rates By:
- Traffic source
- Demographics
- Device type
- Geographic location
- New vs. returning visitors
- Campaign/marketing channel
Put these into a spreadsheet (It makes it a lot easier to manage and track side-by-side)
4. Funnel Analysis
This is where things start to get interesting and will require you to know where your clients are in the funnel otherwise this makes zero sense. Find out more about marketing funnels here
Map the Conversion Funnel based on the stage:
- Awareness stage
- Interest stage
- Consideration stage
- Conversion stage
- Retention stage
This means working out where they started, what they did where they left.
For example: Customer A entered via landing page (Awareness stage) > click onto a collection page > product page > cart > exited
How to calculate.
(Number of Users Progressing to Next Stage / Total Users in Previous Stage) × 100%
Example Calculation
- Stage 1 (Awareness): 10,000 visitors
- Stage 2 (Interest): 7,500 visitors
- Stage 3 (Consideration): 5,000 visitors
- Stage 4 (Intent): 1,000 visitors
- Stage 5 (Conversion): 100 customers
Conversion Rates:
- Awareness to Interest: 75%
- Interest to Consideration: 66%
- Consideration to Intent: 20%
- Intent to Conversion: 2%
Identify drop-off Points for the above funnel stage
- Calculate conversion rate at each funnel stage
- Pinpoint where users are abandoning the process
- Determine potential friction points (Could be messaging, tech issues etc.)
5. Technical Performance Analysis
This is where it starts to get into the technical depths. You may need to team up with a development partner to help. We can help.
Furthermore it might also require software like LuckyOrange to find technical issues that you can't pick up from your end (might be different browsers, mobile devices etc.) -- I've seen this happen many times.
The first step is to scan ALL PAGES through Google Page Speed insights. This will give you an overview of what is or isn't performing through Google's eyes. For a deeper dive, I have written a detailed article on eCommerce performance and speed for success in 2024.
Once you've run the relevant pages through Google Page Speed Insights, you should focus on the following key areas to evaluate:
- Page load speed (Are scripts loading slower on certain pages?)
- Mobile responsiveness (Is there a difference in size/lag/experience for mobile devices?)
- Cross-browser compatibility (Is it the same across Chrome, Safari, Firefox?)
Besides the raised technical issues, I suggest that you look at the site through the eyes of a marketer.
Are there any issues with the following:
- UI elements (Do they detract from the page? do they stand out more than they should? are they on brand?)
- Call-to-action (CTA) design and placement (Is there enough CTA’s or are the CTA’s not clear enough? Do all CTA's work?)
If you take the above two points (key areas for technical and UI) you should be able to get 95% of the way. There is 'always more' that can be done based on the results of audit but they're typically reserved when you have done 'everything else you possible can'. Think of them as the 1%ers, with the ROI getting less and less as you move towards more granular activities.
6. Comparative Benchmarking
The next part, benchmarking. Yes that old chestnut.
If you have access to historic, competitor or industry benchmarking you're already way ahead.
Shopify and Klaviyo has some great benchmarking features within their platforms. Covering industry specific metrics like email open rates, email click-through-rates, AOV and LTV. While they're not always 100% accurate, it's worth to have a quick glance to see how you're pacing against.
Furthermore there's plenty of other industry statistics available online, a key mention is Statista; Otherwise a quick google will help.
Once you've established a rough ball-park to reference against (Industry or competitors) you'll need to work within your team to understand what metrics you're going to chase.
If you're not sure what to focus on, I wrote another article on The most common KPIs for eCommerce brands.
I would use these metrics to establish a dashboard and compare Week on Week, Month on Month, Quarter on Quarter, Year on Year. Only once you have a benchmark can you whether you're moving towards or away from your own goals.
7. Conversion Rate Optimization (CRO) Tips
Now I'm a big believer in not taking CRO tips from online as they're typically stupid. The best I've seen is, 'All buttons should be blue'.
CRO isn't simply following 'best practices' online. It's way more nuanced and complicated that 'best practices'.
In saying the above, I have outlined top level tips that will no doubt help anyone.
Recommended Optimisation Tactics:
- Improve page load speed (within reason. No point spending weeks on optimisation if there's not a direct return or ROI. Measure before and after!)
- Identify tech issues (Is there any bugs on your site? use Lucky Orange or qualitative measures to dive in (Surveys, pop-ups etc.)
- Enhance mobile experience (Since the majority of users are now mobile-first, are you prioritising mobile devices from a design and development POV?)
- Clarify value proposition (Is your messaging and product value prop aligned? )
- Build trust signals (testimonials, security badges, payment badges, delivery expectations, FAQ’s)
- Optimise CTAs (Are they verbs? buy now, add to cart)
8. Reporting and Continuous Improvement
Once you've successfully conducted your Conversion Rate Analysis its worth to constantly revisit.
Add in monthly/quarterly/yearly reviews (within reason) focusing on:
- Compiling comprehensive conversion rate reports
- Comparing against previous periods
- Highlight key insights
- Recommending action items based on findings
- Setting new optimisation goals
Conclusion
Improving e-commerce conversion rates is not a one-time effort, but a continuous, strategic process of analysis, optimisation, and refinement. The journey to increasing conversions by 20% or more requires a disciplined, data-driven approach that touches every aspect of your online business.
The Path to Conversion Excellence
Success in e-commerce conversion rate optimization stems from:
-
Clarity of Purpose
- Precisely defining what constitutes a conversion for your unique business
- Understanding that conversions go beyond simple purchases
-
Data-Driven Decision Making
- Leveraging comprehensive analytics tools
- Collecting and analyzing granular metrics
- Breaking down performance across multiple dimensions
-
Holistic Performance Assessment
- Examining technical performance
- Understanding user journey and drop-off points
- Comparing against industry benchmarks
-
Continuous Improvement Mindset
- Regular monthly and quarterly reviews
- Systematic tracking of key performance indicators
- Willingness to experiment and adapt
Critical Success Factors
- Reduce Friction: Constantly identify and eliminate barriers in the customer journey
- Build Trust: Implement robust trust signals and clear value propositions
- Optimise Experience: Prioritise mobile responsiveness, page speed, and intuitive design
- Personalize Interactions: Segment and tailor experiences based on user characteristics
Final Recommendation
Conversion rate optimisation is not a destination, but an ongoing voyage of discovery and improvement. By applying the structured approach outlined in this guide, e-commerce businesses can systematically enhance their performance, create more compelling user experiences, and ultimately drive sustainable growth.
Start small, measure meticulously, iterate continuously, and watch your conversions transform.
