How to Calculate Your Checkout Conversion Funnel
Your checkout success funnel can be a gold mine of lost revenue opportunity and it takes less than a few minutes to calculate this on your own.
Most eCommerce platforms (i.e. like Magento, Shopify, etc) have unique URLs when you reach the Shopping Cart, Checkout Page, and Checkout Conversion pages.
For example: Magento’s cart page is “checkout/cart” and checkout page is “checkout/onepage” and checkout success page is “checkout/onepage/success”.
By using unique pageviews (not total sessions!) for each one of these URLs you can calculate your cart=>checkout=>checkout success rate.
For example, if you have 100 unique pageviews on your checkout order review page URL and 30 unique pageviews on your checkout success page URL, then your checkout to checkout success rate is 30%.
If you’re using Shopify then you can quickly implement Goals in Google Analytics; other platforms this isn’t as easy out-of-the-box.
Why is Checkout to Checkout Success Conversion Important
- Understanding the % of your customer traffic that makes it into the cart and/or checkout and ultimately completes their purchase is one of the most important funnel metrics you need to have your eyes on as a top tier digital marketer. You can’t optimize lifetime customer value without a purchase…so let’s ensure users can complete their purchase without a lot of unnecessary friction!
- If you are investing time and money driving traffic into the top of your funnel (e.g. using services like Taboola, Outbrain, Adroll, Criteo, etc) then ensuring your checkout is performing “normal” is fairly important otherwise you’re wasting money with your top of funnel digital marketing if you have a poor performing checkout.
- Let’s do some business case analysis for a 30 day duration:
- Constants: 10,000 unique pageviews on your checkout page & an Average Order Value (AOV) of $75
- Your checkout to checkout conversion rate is 30%
- So 3,000 unique pageviews (10,000 pageviews x .3 = 3,000) on your checkout conversion page with an AOV of $75 equals $225,000 in revenue
- Now, let’s assume you’ve optimized your checkout and have moved your checkout to checkout success conversion up to 40%
- So now 4,000 pageviews (10,000 pageviews x .4 = 4,000) at $75 AOV = $300,000 (that’s a +$75,000 increase in revenue!)
- Would a $20,000 investment in fixing your checkout be worth it (i.e. you make your money back)? YES!
How to fix your Checkout to Checkout Success Conversion Funnel %
You can boil it down to: reducing friction and build trust (and maybe a bit of reinforcing the value/brand users are purchasing).
Use HTML5 input for phone, email and numbers (e.g. credit card) inputs. Everyone knows that credit cards are numeric only, so why bother showing the normal alpha keyboard on mobile/tablet devices? That is unnecessary friction for users.
For example, use “tel” for credit card # so a user uses the telephone input instead of the tiny keyboard on iPhones).
Here’s an example of all HTML5 input tricks for your developer.
When users enter the checkout and complete billing and/or shipping addresses but then leave checkout (to add more items to their cart!) and come back, then save the customer address data so they can begin where they left off vs starting over from scratch.
Default users to checkout as a guest (don’t force them to sign in and/or create an account to complete their purchase!).
Offer mobile friendly payment methods like Apple Pay, Paypal, and/or the new Visa/Mastercard payment options.
If your checkout has multiple steps/pages to complete an order (e.g. billing address, shipping method, payment method etc), then support the ability for a user who hits their browser back button to go one step back in the checkout process and not a full page redirect that wipes out all data on the page.
- Have confidence builders and/or badges (you’ve probably read this a thousand times..but the reality is it works)
- Include customer service details within checkout like live chat, email, phone # so users know they can contact support with questions or issues.
- Reinforce shipping and return policies like free shipping and/or returns. Free shipping can boost AOV, conversion rate, and lifetime value of customers. Here’s some good research from Practical eCommerce.
- Use an EV SSL. Extended validation (EV) certificates use the highest level of authentication and were specifically created to boost and maintain customer confidence in eCommerce through a rigorous verification process and specific, EV certificate-only browser cues like the green address bar.
Is your site optimized for mobile and touch devices?
Segment your checkout funnel by device category!
If your mobile or tablet checkout to checkout to checkout success rate is less than 75% that of your desktop, then test your site on your own phone or iPad (or other devices) and look for obvious bugs that need fixing.
If a user has done the hard work on a mobile device to get all the way to checkout then what would you do to simplify the process for them? Considering testing hypothesis you have to improve this #.
What do you find as no brainers for helping increase your checkout to checkout success funnel?