The Importance of Packaging in Retail Omnichannel

Every consumer has a different way of interacting with a product or a website. The way in which each customer searches is called the customer journey or user journey. Through this mapping, you can find out the various possible interactions made by consumers.

Knowledge of each consumer's behavior analysis can help you determine the most appropriate steps to introduce a product in business development. The success of these exploration efforts can be measured using the conversion rate metric.

What is Conversion Rate?

Conversion rate is a value that describes the proportion of users who go through a certain user journey as a whole and the proportion of decline in that journey. This metric is also used to measure customer engagement.

For product and marketing teams, more context and information is needed to get real results from conversation rate scores. The decisions made by the product and marketing team will also be different to do conversion rate optimization (CRO). By understanding both, you can create specific strategies to improve the customer experience.

From a marketing point of view, the conversion rate is defined as an effective way to compare the use of different marketing channels. As one example, the conversion rate can be used to measure the success of a campaign from a mobile user.

Why Conversion Rate is Important for Products and Marketing

Basically, increasing the conversion rate is not only aimed at generating revenue. User-based optimization efforts aim to make the function of a product clear, efficient, and easy to use. From a product and marketing standpoint, here are the reasons conversion rates are important for business.

1. Get to know consumers better

To truly meet consumer needs, you have to be able to find solutions to problems by putting yourself in their shoes. A truly effective optimization effort will help you understand every aspect of the customer journey and product journey.

To get a more complete picture of the individuals who interact through a website, you need to understand how to improve the user experience based on their needs and difficulties. Running consumer-oriented experiments allows you to uncover new angles to apply to your funnel and product design.

2. Knowing the right target market

Websites that have a lot of traffic, but have less conversion value can mean errors in the consumer profile. For example, people who use a website only aim to search for information, but never buy or subscribe.

If there are many visitors who come to view or find information about a product without buying, maybe the message conveyed is too complex. You need to retrace the purpose of making products targeted at consumers, especially online businesses.

You can make changes to your marketing strategy or content to attract more people to sign up for the newsletter. On the other hand, you might be able to change the goal of a target consumer who has only seen a product list to complete a purchase.

3. Perform product design validation

Unlike the case with the marketing team, the value of the conversion rate can provide an opportunity for the product team to validate design changes. This will relate to prioritized feature functionality when a design change causes an increase or decrease in conversions.

By monitoring the customer journey, the product team can see which funnels are easiest for users to navigate. In addition, a sudden decrease in conversion rate can also indicate a bug that has occurred in a certain conversion benchmark.

A drastic drop in conversion rates can usually be immediately followed up by changing the design of certain features. On a website, you must ensure a customer-friendly flow to ensure certain conversion actions.

With some of the things above, you can find out the role of the conversion rate in a business from a marketing and product perspective. Even if it's just a basic metric, you can define certain development steps to improve your business goals in the future.