What Devices, Channels and Industries are Vital for your Higher Conversion Rate in 2016 and Beyond
In this article, we will learn about
- How different devices (desktop, tablets, smartphones, etc) are performing in terms of conversion rate?
- How different marketing channels perform in terms of conversion rate?
- Industries that are leading the conversion rates and what are the average conversion rates for different industries.
Ecommerce industry heavily relies on conversion rates no matter what channel they are using. It serves as the main KPI for reviewing the success of e-commerce businesses. The call to action that you include in your emails, social media posts, videos, or PPC ad are what convert into a sale and hence increase your conversion rate.
As an e-commerce business, it is important to analyze your website’s conversion rate as it can help you identify your mistakes and give you a chance to improve.
In this article, we will learn about what conversion rates look like in 2016 for few major industries. The conversion rates vary from sector to sector, from one platform to another.
What are the Conversion Rates by Device?
Internet users are no longer using desktops of laptops as their primary devices to visit websites. In fact, more than 50% of the users now access the internet using mobile devices.
We now live in an era of multiple devices as one person can have a laptop, a tablet, and a smartphone. The Monetate Ecommerce Quarterly surveys calculate conversion rate across different devices quarterly.
- According to their analysis, the last quarter of 2015 saw 3.48% conversion rate globally. It was 0.06% higher than the last quarter of 2014 which indicates a slight increase in the conversion rates.
It is not surprising to see the last quarter having highest conversion rate in the year as the last two months of the year consist the holiday season and people shop online more as compared with other time of the year.
Conversion Rate by Different Devices
The conversion rate for traditional devices remained higher but tablets are catching up.
- The rate for traditional devices (desktop, laptops) was 4.43% in the last quarter of 2015 whereas for tablets the rate was 3.75%.
- For the same quarter, the conversion rate was 1.53% for smartphones.
According to Custora E-commerce Pulse, the first quarter of 2016 saw 70% of conversion rate attributed to traditional devices and 30% attributed to mobile devices. These numbers indicate that people are getting more comfortable to buy things on their tablets. As a business, you can use this trend to your advantage by having a tablet/mobile friendly website.
The conversion rates are low for smartphones indicating that people use their smartphones to browse for things rather than buying. However, these conversion rates can rise as the number of smartphone users increased.
- The mobile penetration rate in South East Asia is a whopping 112% and in Singapore, this rate is 75%, the highest in any ASEAN country.
Businesses should prepare to use smartphone to their advantage in Singapore and beyond. Singapore has the highest e-commerce penetration rate in the entire South East Asia.
Conversion by Channels
In terms of search engines
- AOL Search has the highest conversion rate of 4.48%.
- Yahoo has a higher rate (2.80%) than Google (1.71%).
Social media has lower rates as compared to Google and Yahoo as Facebook, the biggest social media platform, has conversion rate of only 1.08% but if you combine all social media networks, the conversion rate is almost same as of Google.
It has been established that email marketing has more power than social media when it comes to conversion.
- 90% of the emails end up in the recipients’ inbox whereas a Facebook post is seen by only 2% of the followers in their News Feed.
The above conversion rates clearly show that your efforts as an e-commerce business should focus more on SEO and email for now as there is a greater chance of conversion on these channels.
In Singapore, Ebay remains on top across all channels followed by Amazon, Q0010, and Alibaba.
Conversion Rate for Different Industries
Conversion rate depends on the effectiveness of your marketing strategy and the methods a business is using. According to the latest statistics shared by WordStream, some top businesses, almost 10% do 4 times better than the average conversion rate.
There is also a lot of difference in conversion rate based on the industry as well as the region.
- For the travel industry, the average conversion rate in Europe over the desktop is 4.2% and in Asia, it is 2.7%. This rate on the desktop platform is 2.4% in the US.
This shows that travel businesses are doing better in terms of marketing and conversion in Europe and Asia.
Here is an interesting data from Adobe Digital Index (ADI). According to the above-displayed data, the conversion rate for retail industry on desktop drops Year-over-Year but increases on smart devices. This indicates retail industry need to optimize their websites for better mobile experience.
- According to Marketing Sherpa, the conversion rate for financial services is 10%.
- Media also shares this rate as it gets successful conversion of 10% while the conversion rate for Education and Healthcare is 8%.
- For technology, equipment, and hardware, the conversion rate is 5%.
All of these numbers show that the conversion rate of different sectors is higher than e-commerce websites. Part of the reason is that e-commerce is a gigantic industry and it survives online only unlike other businesses.
Therefore there is more effort required for conversion rates by e-commerce websites than it is by none-commerce websites resulting in a much bigger competition. Still, there is a thing or two to learn from these businesses as well as their conversion rates are higher.
How to Assess Conversion Rates?
The conversion rate can make more sense to you as a business owner if you break it down according to some criteria. You can break it down to types of visitors, the location of visitors, or the purpose of the visitors. This way, the data will be more meaningful and detailed and you can improve drastically by working on the weak areas of your marketing.
- Identify conversions from new visitors, registered visitors.
- Distinguish by platform (Paid search, email, social media).
- Product category.
- Time of the year (Summers, Christmas, New Years).
E-commerce is a big industry and Singapore has a lot of potential in this field. The people have adequate spending power and the technology is there to get your name out there. With smartphone penetrating so fast among Singaporeans, much like other parts of the world, the focus should be on increasing conversion rates for mobile devices.