The Conversion Rate Formula for Mobile Commerce
In Mobile Commerce, everything rides on having solid conversion rates. Industry/vertical averages for mobile commerce conversion rates are still being determined, as the comprehensive data on mCommerce sales is still young.
The underlying responsibility of mCommerce managers is to continue to push the needle up on conversion rates. We realized that providing a deeper understanding on what truly makes up the conversion rate equation would help ecommerce managers more effectively improve their own mCommerce conversion rates.
So, we’d like to introduce the conversion rate equation we’ve formulated at mShopper so mCommerce managers can target the different variables more closely. The formula is as follows:
CRT = ATCR * CCR
CRT = (ATCVisitsT / VisitsT) * (ORDERT / ATCVisitsT)
CRT = (ATCVisitsT/ VisitsT) * (ORDERT / ATCVisitsT) = ORDERT / VisitsT
CRT = ORDERT / VisitsT
CR = Conversion Rate, ATC = Add to Cart, CC = Cart Conversion, R= Rate, T = Total
Obviously we could have just gone straight to the percentage value of Order Totals over Visit Totals to calculate the conversion rate, but we wanted to identify a few additional sub-formulas that can now be segmented out for supporting conversion rate optimization.
Those sub-formulas are ATCR, or Add to Cart Rate, and CCR, or Cart Completion Rate.
eCommerce Managers can now focus on those two separate formulas in their pursuit of an overall higher conversion rate.
Increasing Add to Cart Rate is a done through functions like “findability”, user experience (UX) and product data optimization. Increasing Cart Completion Rate is almost purely a UX function.
This blog is part of an ongoing series discussing the many details of creating a high converting mobile shopping experience. In future blogs we will give ideas on how to improve functions like findability, UX, product data optimization and more, so that you can begin to influence ATCR and CCR, and ultimately, CRT, in the right direction.