Hi, you've come here looking for a magic formula, and let me tell you before you read any further, there isn't one. You can leave now. However, let me try to help you understand CRO in a different way, without quack formulas that promise success and pilot dogs.
Of course, Shopify is a platform with a remarkable user experience foundation, and yes, I've also read the report that confirms they have the highest converting checkout on the market (up to 15% more than other platforms).
But that doesn't mean we can't do things to try to improve the returns we get from our ecommerce developed with Shopify, and what the hell, life is very expensive and I have to earn a living somehow.
If Forrest Gump said life is like a box of chocolates, I'd say CRO on Shopify is like conducting an orchestra: you need the right instruments (data), a good score (strategy), and to constantly adjust the tempo (optimization). But to know if you're creating a perfect symphony or playing out of tune, you need to measure and analyze your KPIs. So, if you want to improve your online store's conversions, keep reading because this guide is for you.
What are CRO KPIs in Shopify?
Shopify's CRO (Conversion Rate Optimization) KPIs are the key metrics that tell you if your online store is optimized to convert visitors into buyers. But be aware, CRO isn't just about optimizing website conversions; it's also about:
- Increase recurrence.
- Increase the average ticket price (my favorite obsession).
- Or even improve processes to be more profitable.
Imagine you have a lot of traffic on your Shopify store, but it's not translating into revenue. Something isn't working, and without key indicators, it's like trying to find a needle in a haystack. Luckily, there are certain essential metrics that help you understand your store's performance and make data-driven decisions.
Essential KPIs to measure your CRO on Shopify
Below are the most important KPIs for analyzing conversion optimization in your Shopify store:
1. Conversion Rate
The mother of all KPIs. It measures the percentage of visitors who end up making a purchase. It is calculated as follows:
(Number of orders / Number of visitors) x 100
The goal? To optimize the store to increase this number and not miss out on potential customers.
Recommendations?
It simplifies the buying process.
Build up your social proof (customer testimonials and reviews)
It offers a variety of reliable payment methods.
2. Average Order Value (AOV)
This indicates the average amount a customer spends per purchase. Increasing this figure will boost revenue without needing to drive more traffic. This should be your focus from the first day you create your LinkedIn profile as an "Ecommerce Manager."
Some strategies or tips I recommend to improve your AOV:
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Really work on cross-selling/upselling.
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It offers discounts for purchases exceeding a certain amount.
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Create product bundles.
3. Shopping cart abandonment rate
If too many customers fill their carts but don't complete their purchases, it's a sign that something's wrong. The most common issues? Shipping costs, unclear information in previous steps, or a lack of payment options. Start by analyzing these areas; it's a sure thing.
My infallible ones?
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A simple checkout process with just the right number of steps. Here, Shopify is unbeatable right out of the box.
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Create a good workflow with marketing automation that allows abandoned cart reminders via email, push notifications or SMS, or all at once.
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Add trusted items that reduce potential final frictions: offer security, payment, and refund or return guarantees.
4. Bounce Rate
Bounce rate is often a misunderstood metric. To put it simply: if visitors arrive and leave quickly without interacting, something isn't capturing their attention. Of course, the type of project and the bounce rate per landing page must be considered. But here, the action plan involves reviewing the design/UX, the loading speed, and the value proposition the user receives on that landing page.
5. Time on page and number of pages per session
A user who explores more products or spends more time in the store is more likely to buy. If the time spent browsing is short, there may be UX issues.
Here, what usually works best is related to the content:
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Improve the navigation structure.
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Use interactive content and detailed descriptions.
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Implement product videos and buying guides.
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Add personalized product recommendations.
6. Customer Retention Rate
My experience tells me that marketing budgets are typically 80% dedicated to acquisition and the remaining 20% (at most) to retention and loyalty. Big mistake, my friends. If we consider the ROI generated by repeat customers in an organization, we'd realize that further developing the loyalty phase of the customer journey would be a smart strategy. And, since you're not stupid—as Media Markt already pointed out—you probably already have a loyalty program up and running. But you can do even more:
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Implement a rewards program where customers accumulate points for each purchase and can redeem them for discounts or exclusive products. You might find Blue Banana a good example of how to do this.
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Take advantage of marketing automation to send personalized recommendations based on past purchases and reminders when a customer hasn't returned in a while.
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It offers exclusive experiences, such as early access to new collections or events for VIP customers.
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And of course, it provides exceptional after-sales service with order tracking, efficient support, and extended warranties that help build trust.
How to measure these KPIs in Shopify?
The theory is all well and good, but now it's time to get down to business and measure these KPIs. Shopify makes integrating external tools very easy and also has a large repository of apps in its marketplace that can help us out.
1. Use Shopify Analytics
Shopify has a very comprehensive reporting dashboard where you can see the conversion rate, AOV, cart abandonment rate, and many other key metrics.
2. Google Analytics
With Google Analytics (GA4), you can obtain more detailed data on user behavior, traffic sources, and conversion funnels.
3. Clarity or Hotjar
My favorite is Microsoft Clarity, but you can also use Hotjar. If you want to see how visitors interact with your website, heatmaps and session recordings from these tools are essential.
4. VWO or Dynamic Yield
If you're looking to take your optimization to the next level, tools like VWO and Dynamic Yield can make all the difference. VWO allows you to run advanced A/B tests to analyze which changes have the greatest impact on conversions. On the other hand, Dynamic Yield specializes in personalization, adjusting the user experience based on their behavior and preferences to maximize conversions.
5. Shopify Apps
There are many apps in the Shopify App Store that can help you track these KPIs and give you recommendations to improve your CRO. Some of these include:
- Visually
- Shoplift
- Omniconvert
And finally, because I'm getting a bit long-winded, I just want you to understand that measuring and analyzing CRO KPIs in Shopify is key to increasing conversions and optimizing the user experience. It's not about changing things randomly, but about making data-driven decisions.
So, if you want your store to go from "lots of visits, little spending" to "my customers can't resist buying," start analyzing these KPIs and implement the necessary improvements. If you'd like to rely on our Shopify Partner agency to improve your eCommerce CRO, don't hesitate to contact us.
CRO is both a science and an art, but with these metrics in hand, you're already halfway there!
