Going from 1.5% to 2% is worth
That's 100 more orders and $10,000 more revenue a month, from the visitors you already have.
Or buy the same growth with ads
Getting the same $10,000 a month from ads at a 3.00× ROAS would cost about $3,333 a month and leave $847 in profit, against $4,180 from the higher conversion rate.
| Rate | Orders | Revenue | Profit |
|---|---|---|---|
| 1% | 200 | $20,000 | $8,360 |
| 1.5% | 300 | $30,000 | $12,540 |
| 2% | 400 | $40,000 | $16,720 |
| 2.5% | 500 | $50,000 | $20,900 |
| 3% | 600 | $60,000 | $25,080 |
| 4% | 800 | $80,000 | $33,440 |
Want more visitors to buy? 30 minutes with Dair, the founder.
What a higher conversion rate is worth
Every visit is worth your conversion rate times your order value. Lift the conversion rate and every visitor you already pay for is worth more, with no extra ad spend. Buying the same growth with ads costs money on every order, which is why the profit gap is so wide.
The numbers already in the calculator above.
- Orders at 1.5%
- 20,000 × 1.5% = 300
- Orders at 2%
- 20,000 × 2% = 400
- Extra revenue
- 100 × $100.00 = $10,000
- Extra profit (41.8%)
- $4,180
Read your conversion rate the right way
A conversion rate moves for reasons that have nothing to do with your store. Check these before you celebrate, or worry.
Compare like with like
Shopify counts sessions, not people, and a sale or a slow season moves the rate on its own. Compare the same weeks year on year, or test changes properly with the A/B test calculator.
Traffic mix moves the number
Visitors from your email list buy more readily than people seeing your brand for the first time. Your rate can drop simply because ads brought in more new visitors, which isn't a problem if those visitors are profitable.
Fix the biggest leak first
Product pages that don't close the sale and carts that get abandoned are two of the usual leaks. We cover them, and two more, in The 4 places Shopify stores lose sales, and fix them in our conversion optimization work.
Questions about conversion rates.
Don't see your question? Ask Dair directly on the call.
Divide your orders by your sessions and multiply by 100. 300 orders from 20,000 sessions is a 1.5% conversion rate. Shopify shows your online store conversion rate in Analytics, based on sessions rather than unique visitors.
Price, traffic and devices all move it. A store selling $1,000 furniture will convert lower than one selling $30 accessories and still be doing well, and visitors from cold ads convert lower than people searching for your brand. The most useful comparison is your own store, last month and last year.
They matter equally. Revenue per visit is conversion rate times order value, so a 10% rise in either grows revenue by 10%. Start with whichever has the more obvious problems in your store.
Because buying the growth is the alternative. More orders from the visitors you already have don't cost anything extra in ads, while buying the same revenue with ads costs money on every order. The calculator shows both, so you can see which leaves more profit.
Run it as an A/B test, with half your visitors seeing each version, and only call a winner once the result is statistically significant. Comparing this month with last month mixes in seasons, sales and changes in your traffic.
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