Every individual in today’s world is a customer and gaining insight into their behavior and level of engagement can explain the difference between a successful quarter, year, or even a business. This is where eCommerce funnel optimization becomes a game changer. Through the analysis of user data, conversion path optimizations, and A/B testing, we managed to boost AOV (Average Order Value) by 40% within the few months.
This blog post describes such; unraveling the specifics of the exact approaches we took down with more details that every eCommerce brand can follow.
What is eCommerce Funnel Optimization?
Simply put, eCommerce funnel optimization is the enhancement of all the stages of the customers’ life cycle to sale for the purpose of increasing conversion rates and sales. It uses analytics, heat maps, and A/B testing to diagnose how users engage with your company’s website and subsequently optimize the rates of engagement to eliminate friction and increase the likelihood of a high-value purchase.
Now we are going to discuss the steps to boost eCommerce through data-driven funnels.
Step 1: Diagnosing Funnel Leaks with Analytics
We had to identify which part of the conversion funnel users were exiting before we could begin the optimization process. It is for this reason, through the use of Google Analytics and Hotjar that we learnt that
- Bounce rates on product pages
- Cart abandonment rates
- Exit rates at checkout
We discovered high friction at two key points:
- We found many product pages that have minimum descriptions, no social proof, and very little information about the product.
- some of the issues identified include having long check out pages or not supporting the guest check out option
Step 2: Enhancing the Buyer Journey with Smart CRO Tactics
Once we identified some of the pain points we proceeded to apply Conversion Rate Optimization techniques to improve the buyer journey:
- Completed a set of products’ descriptions by focusing on the value and the features to be obtained.
- We also included a customer feedback section and trust icons for credibility.
- Implemented guest checkout and auto-fill the fields in an effort to ease the last part of the checkout process.
This increased our cart abandonment and checkout rate by 18% within the first month of the campaign.
Step 3: Leveraging Upsell and Cross-Sell Strategies
We also added deliberate upsell triggers and cross-sell packages in a bid to boost the average order size:
- Upsell Strategy: In other cases, when a user decided to add a product to cart, we showed the opportunity to buy a premium version OR add a new feature at a reasonable price.
- Cross-Sell: For instance, when a customer is browsing a product or getting to the check-out page, we suggest to him relate products depending on his/her previous purchasing patterns.
These little tweaks and changes added an average of $12 or thereabout per transaction for many key product categories.
Step 4: Creating Personalized Funnels Based on Segmentation
We segmented users by:
- Traffic source (social, organic, email)
- Device type (desktop, mobile)
- Purchase behavior (new vs. returning customers)
This allowed us to tailor sales funnel experiences. For example:
- When accessed through a mobile device, viewers were shown a version of the page with ‘buy now’ icons.
- Customers who visited the store before were given certain discounts for their repeated business and loyalty.
Such personalization variations resulted in the overall increased consumer repurchase rate of 25% and an increase of the mobile conversion rate.
Step 5: Building Trust and Urgency
Mechanisms as such that trust and urgency is an important factor in influencing the final call to conversion. We implemented:
- Countdown timers on the product pages, if the products have some offers for limited time only.
- Inventory notifications (“Only 3 left in stock!”)
- Putting the customer testimonials and ratings at the forefront
These additions gave the impression of urgency to the product thus persuading more users to make the purchase.
Step 6: Continuous A/B Testing and Iteration
The major improvement was due to one thing, and that is constant testing. We conducted A/B testing on the following features on a weekly basis:
- CTA button colors and placement
- Product image sizes
- Checkout form fields
- Free shipping thresholds
Every test helped to make some further refinement to the funnel, and sometimes these were small 2-3% improvements and these add up to the overall big picture.
Step 7: Post-Purchase Optimization
The funnel does not stop at the point of generating the desired action: checkout. So, in an effort to keep AOV growing, we focused on the quality of the post-purchase experience:
- Thank-you page offers: Immediate upsell opportunities after purchase
- Follow-up emails: Cross-sell recommendations and referral bonuses
- Replenishment reminders: Automated emails for consumable products
To this extent, it helped increase the overall customer LTV since they return for more services.
The Results
In just 90 days, we achieved:
- 40% increase in average order value (AOV)
- 18% higher conversion rate from cart to checkout
- 25% boost in returning customers
This is the result that you can expect after a carefully structured data analysis approach for the improvement of the eCommerce funnel.
Final Thoughts: Scaling Smarter with Funnel Optimization
Just like with any other business strategy, it is not an option but a necessity to do eCommerce funnel optimization nowadays. As advertising costs increase, and customers and clients become more demanding, you need to optimize the flow through the funnel to optimize revenue. For example, simple tactics such as CRO improvements and an upsell approach, A/B testing, and customer journey personalization all combined resulted in the additional factor of 40% of our AOV.
By following these strategies effectively and adjusting them based on results in real-time, your brand is sure not only to increase conversions effectively but become profitable as well. It’s time you plug the holes and create a better, more effective funnel from scratch.
FAQs
Q1: What tools do I need for eCommerce funnel optimization?
Google Analytics, Hotjar, Klaviyo and the A/B testing tools like Optimizely or VWO are must-have tools.
Q2: How long before I see results?
While this can be achieved in a week, major outcomes overhauling the full funnel may take anywhere between 60 to 90 days.
Q3: Does funnel optimization only work for large brands?
No. Small brands also stand to benefit from include elimination of frustrating factors as well as incorporating upsell measures.
Q4: What’s the difference between CRO and funnel optimization?
CRO is a subdiscipline of funnel optimization that largely concerns the actions taken within a website. Consumer funnel optimization can cover both prepurchase as well as post purchase strategies.
Q5: Can I outsource funnel optimization?
Yes, there are many such agencies that can do eCommerce funnel audits and their implementation as well. It is recommended to look for those with past experiences and cases that have been dealing with such institutions.