What Is Conversion Rate Optimisation? 5 CRO Strategies To Build A 100Cr Brand

Conversion rate optimisation refers to the process of refining your online store in a manner that it encourages more and more visitors to convert into paying customers. To give you an example, let’s consider an eCommerce store that’s visited by 1000 shoppers per month. Out of these shoppers, only 20 of them make a purchase. The conversion rate, in this case, is 2%. In its essence, CRO involves employing a variety of smart and strategic tactics to increase this conversion percentage, thereby maximising business revenue generated from existing traffic.

For instance, a well-executed CRO strategy can involve optimising product pages, streamlining the checkout process, and strategically placing calls-to-action (CTA) buttons to trigger purchases. By enhancing the user journey and reducing friction points, CRO aims to turn a higher percentage of store visitors into paying customers.

Calculating conversion rate is a fundamental step in understanding the performance of an eCommerce website. The formula is simple:

Conversion Rate = Number Of Conversions X 100 Number of Visitors

For example, if a website has 10,000 visitors in a month and 2600 of them make a purchase, the conversion rate would be 26%.

This metric is a key performance indicator (KPI) that provides insights into the effectiveness of the current website design, content, checkout funnel, and overall user experience. Regularly monitoring and analysing conversion rates can help eCommerce businesses identify areas for improvement and track the impact of CRO strategies over time.

Building a 100Cr eCommerce brand requires a comprehensive and strategic approach to conversion rate optimisation. Here are five key strategies to elevate your eCommerce business to new heights.

Did you know that it’s easier to sell to customers who have already purchased from you? The probability of selling to a new customer is just around 5-20%. However, for existing ones, the probability can go as high as 70%. This is where upselling and cross-selling come into play.

Upselling is the act of persuading a customer to upgrade to a high-priced item or a more premium version of a product. If you can give a discount for product upgradation, you basically give customers a better deal and increase the average order value. It’s a win-win!

Here’s a conversion rate optimisation example of this strategy:

Cross-selling, on the other hand, is offering complementary or related products to what the customer is already buying. It makes customers’ lives a lot easier as no one would want to receive their shaving razors only to realize that they don’t have shaving foam or an after-shave cream.

Here’s what an example of conversion rate optimisation with cross-selling looks like:

These strategies do the following:

But there’s a thing you need to keep in mind, upselling and cross-selling only help in conversion rate optimisation when they are meant to improve the customer experience rather than aimed at selling more.

You can improve the experience by providing personalized recommendations based on a customer’s interests, intent, and previous purchases. And when customers receive personalized recommendations that align with their interests and previous purchases, they are more likely to return to the brand for future purchases. This, in turn, can help build a 100 cr brand.

One of the most crucial aspects of conversion rate optimisation is making the purchase completion process as easy as possible. If the checkout process is cumbersome, confusing, or time-consuming, customers are more likely to abandon their carts and leave your website without making a purchase.

According to a report, over 80% of customers abandon a cart after adding a product to it. And the reasons behind this are complex processes, lack of payment options, technical glitches, account creation, etc.

Making the purchase completion process easy is critical for driving revenue growth and taking your eCommerce brand closer to the 100 cr mark. If the checkout process is smooth and streamlined, customers are more likely to complete their purchases, increasing sales and revenue.

Here are some ways to make the purchase completion process easy and seamless for your customers:

With a solution like GoKwik, you can provide a frictionless and fast checkout experience to your customers by giving them multiple payment options, easy CoD, automated address correction, and much more. It’s one of the best conversion rate optimisation tools that eCommerce businesses must have.

Two-way communication is crucial for both brands and customers. According to a report, 82% of customers expect immediate responses from brands on purchase-related questions.

Enabling ease of communication not only helps in building trust and loyalty with customers but also in conversion rate optimisation. You can add a widget on the website to invite questions about products and help shoppers make informed purchase decisions.

Platforms like WhatsApp can be leveraged for two-way communication to provide a personalised shopping experience. This is where GoKwik comes in. You can set automated replies to customers’ queries with WhatsApp business API, send automated reminders, and much more.

With easy communication, you can also offer quick query resolutions to customers and make them feel more comfortable buying from the brand. And, the more comfortable they are with you, the more they’ll purchase.

When it comes to driving sales, nothing beats FOMO.

More than 60% of millennials make a purchase within 24 hours of experiencing FOMO. In fact, most 100 crore brands are already leveraging it at the right stages of the buyer journey to maximise their profits.

One of the simplest ways to create FOMO is by using live sales notifications on the site, even when someone is just browsing through it. These notifications can encourage people to check out what others are looking at or buying, creating a sense of urgency and excitement, just like how H&M does it. When a potential customer is in the consideration phase and on the product page, showing how many people are currently viewing the item or have it wishlisted can help nudge them toward making a purchase. Here’s an example from AJIO.

And when they’ve moved the item to checkout, using scarcity or time-sensitive deals can be a powerful way to encourage them to take action and complete the purchase.

That’s how you leverage FOMO at the right stages of the buyer journey to create a sense of urgency and excitement. This conversion rate optimisation strategy helps you drive more sales, taking you closer to the 100 crore valuation.

RTO (Return to Origin) is one of the biggest challenges eCommerce brands face today. It not only eats into a lot of business revenue but can also hamper the climb to the coveted 100 crore mark.

For instance, Man Company, a leading eCommerce brand, discovered that the majority of its customers preferred the COD (Cash on Delivery) payment option, which in turn increased the possibility of returns.

To tackle this issue, they turned to GoKwik’s RTO API, which put risk flags on the incoming traffic to determine whether the customer should see the COD option or not. As a result, the Man Company was able to significantly 20% decrease its RTO problem by putting strong constraints on a mere 3% of customers.

By using GoKwik’s RTO API, you can easily identify high-risk orders and take measures to prevent RTO from the get-go. This not only helps in increasing customer satisfaction and loyalty but also maximizes your revenue by reducing the cost of returns.