[MUSIC PLAYING] COREY FERREIRA: Driving targeted traffic to your store isn't enough. We need to ensure our store does enough to convince a prospective customer that our product is right for them and that our business is trustworthy. Again, conversion rate optimization could be an entire course in itself, so I'll provide some basic tips. The first thing we need to realize is that improving conversions can be done at any step of the funnel, meaning we're not only optimizing our product page or home page for convergence.
There are other components, like our ads, cart page, and checkout process. However, the best place to start is the product page. It's the page you'll likely be sending traffic to and it's usually the page that makes or breaks the purchase decision. Three things to think about when designing your product page and writing copy are price, trust, and urgency. Price might be one of the most important things when it comes to a customer deciding whether or not to purchase your product.
We don't want to set a price too high that will scare off customers. But in my opinion, more importantly, we don't want to set a price too low that it lowers our price perceived value and destroys our margins. In most cases, I recommend setting a price higher than your competitors, but again, this is dependent on what you're selling. It's different for every store owner. Trust and social proof are important, because often the first question running through a customer's mind is, can I trust the store, and will they actually send me my order, and is a product as described.
Reviews, customer photos, and money back guarantees are just a few of the ways we can work to build trust. Lastly, urgency. So we all procrastinate and we even do it when we're shopping. Oh, I don't need this right now. I'll buy some other time. Urgency encourages our customers to act immediately, not to put off their purchase decision. This can be done by creating flash sales and letting your customers know when there's a limited quantity.
Again, there are other parts of the funnel to look at optimizing for conversions. Remember that each step and action a customer makes, influences their purchase decision. Average order value. Now that we understand how to get customers to buy our products, we should understand how to get them to buy more. Your average order value is the total revenue you have divided by the total number of your orders. So if your store made $10,000 last month and you had 200 orders, your average order value is $50.
So let's look at ways we can get customers to checkout with larger carts. Product recommendations. Recommending other products as customer shop is one of the more popular ways to encourage customers to add more to their cart. Many Shopify themes include related products on the product page, but there are also apps if you search, say, prod recommendations that also do this. Cross-selling and upselling.
Instead of simply recommending products, suggest complimentary products that makes sense either after customer adds to their cart or after checkout. For example, buying a new camera, don't forget the SD card or extra battery. Buying a new pair of running shoes, don't forget the shoe laces. Again, searching upsell within Shopify App Store will provide you a few nice options to get this done in your store. Order minimums.
A great way to encourage high order values is to set order minimums. For example, free shipping on orders over $125 or free gift on all orders over $100. Loyalty program. Your store's average order value is important, but so is the lifetime value of a customer. Maybe your customers checkout with small carts. But if each customer keeps coming back and places several orders over the course of a year, that's still great.
Loyalty programs are a great way to keep customers coming back. All right, so now you have a better understanding of the marketing end of our business, what are some things we should avoid? We'll cover that in the next lesson. I'll see you there. [MUSIC PLAYING]