Optimizing E-Commerce Conversion Rates in a Down Economy

With economic uncertainty feeling like the norm these days, many are looking at businesses that thrived during the recession of 2008, eager to glean clues as to the best way forward through today’s stormy seas. However, decision makers don’t have to travel as far back in time to find a blueprint for success. I believe the better period of time to examine is the “deep COVID” years of 2020–2022, when the best strategy for any brand doing business online was to ensure that it was operating on a stable, scalable platform.

That’s equally important today — although instead of needing a platform that can handle unprecedented and unexpected growth, brands are facing nearly the opposite scenario, with consumers exercising caution in the face of rising inflation and no economic stimulus in sight. Growth may not be the reality now, but that stability and scalability will be invaluable in ensuring your brand is ready when the market shifts. Focusing limited resources on the core site experience simply shows better return on investment than traditional marketing avenues like paid media and search.

Mike Dupuis, chief digital officer at SPARC Group, a fashion industry leader with a portfolio that includes iconic brands like Brooks Brothers and Reebok, describes this reality particularly well. “Paid programs continue to contribute a substantial amount of traffic and revenue, but that's not where we’re increasing our investments right now. Media costs continue to rise and driving efficiency is increasingly complex,” Dupuis says, adding, “we can’t just keep lining the pockets of our paid media partners in order to drive incremental traffic. There’s not unlimited upside there.”

For digital commerce leaders like Dupuis, this has driven the focus back to the core site experience and the question of how to deliver stronger site experiences to optimize conversion. He says the questions to ask are, “How much leakage and friction are we experiencing across our sites, and how much can we reduce or eliminate? Can site optimization drive another three to five points of comp through improved conversion and improved site experience?”

Enter conversion rate optimization (CRO), a set of actions designed to turn more browsers into buyers without spending a penny on acquiring new customers. It’s about making every click count. There are three key elements to making it work:

1. Understand your customers. Use analytics to gain insights into your customers’ behaviors. What are their preferences? Where do they drop off in the buying process? Use this data to inform your CRO strategy.
2. Implement A/B testing. Don’t rely on guesswork. Test different versions of your web pages to see which perform better. This could be as simple as changing the color of a call-to-action button or as complex as redesigning an entire landing page.
3. Optimize the mobile user experience. With more people shopping on their phones, a mobile-optimized site isn’t just an option — it's critical to the success of your business.

The Bottom Line

While these fundamentals are the place to start, there's so much more to CRO. As you begin to execute on recommended site modifications and test and analyze their incremental impact, the path to better performance becomes clear. This approach supports the agility, adaptability and keen understanding of your customers that’s needed to effectively improve user experience and maximize value at every touchpoint. The results will be immediate and undeniable: boosted conversions, increased revenues, and a growing, loyal customer base. And when the market turns, as it inevitably will, you’ll be ready.

Vanessa Cartwright is CEO, North America, for Astound Commerce, a leading full-service digital commerce specialist for global brands.