--- description: Capterra’s latest study in the online retail sector reveals data-driven strategies to increase online conversions in a challenging economic climate. image: https://gdm-localsites-assets-gfprod.imgix.net/images/capterra/og_logo-e5a8c001ed0bd1bb922639230fcea71a.png?auto=format%2Cenhance%2Ccompress title: Rising cost-of-living: How to increase conversions online --- # 4 research-backed strategies to boost conversions by leveraging an eCommerce tech stack Canonical: https://www.capterra.com.au/blog/6492/data-driven-strategies-to-increase-online-conversions Published on 26/06/2024 | Written by Andrew Blair. ![4 research-backed strategies to boost conversions by leveraging an eCommerce tech stack](https://images.ctfassets.net/63bmaubptoky/4j1TlNXzjTqnJHHT8Jjsn0/9a2e4d69c010757174531dc315430201/image__8_.png) > Capterra surveyed nearly 500 frequent online shoppers in Australia to find out what strategies businesses should utilise to drive conversions in a time where consumers are feeling the pinch of rising living costs.  ----- ## Article Content Capterra surveyed nearly 500 frequent online shoppers in Australia to find out what strategies businesses should utilise to drive conversions in a time where consumers are feeling the pinch of rising living costs. In this article1. Engage your audience with relevant social media ads and offers2. Leverage user reviews to build consumer trust3. Optimise on-page search filters and recommendations to enhance the user experience4. Utilise loyalty programs to boost customer retentionMeasure the performance of each strategy and adjust to market conditionsIn a challenging economic climate, where inflation has reduced the purchasing power of nominal income, shopping behaviour has shifted. As a result, consumers are more cautious with their spending, leading to a longer decision-making process and increased sensitivity to price. This is especially true when it comes to online shopping, when consumers have seemingly unlimited options of where and how to shop. Businesses that sell products or services online must ensure, with the help of eCommerce software, that their websites are robust and give consumers confidence when making a purchase online.  Following from the previous report Online shopping habits: A study of generation variances in Australia, in this article we explore what influences online consumers to complete the buyer journey. We will present four strategies that can help increase conversions, from generating better leads with the use of relevant social media advertising, to building consumer trust with user reviews. Furthermore, we will discover how businesses can enhance the user experience on their online stores and what they can do to keep their customers coming back.   The strategies outlined in this report are based on data collected from the Capterra 2024 Elusive Online Consumer survey, which was conducted online among 497 frequent shoppers in Australia. The full methodology is available at the end of this article.Key findingsOnline shoppers will tolerate social media ads in certain circumstances: 42% of respondents are open to receiving ads for products that are relevant to their interests. Reviews can make or break brand trust: 62% of respondents cite user reviews as an important decision-making factor when buying new products or services online.Price is a deciding factor when browsing online shops: 84% of respondents who use filters to narrow down search results when shopping online typically filter by price.Rewarding consumers keeps them loyal: 48% of those who typically repeat purchases from the same vendor say loyalty programs motivate them to repeatedly buy from a brand.1. Engage your audience with relevant social media ads and offersAdvertising on social media is highly effective for generating traffic to an eCommerce website. However, in the information age, consumers are exposed to masses of online advertising which can cause ‘ad fatigue’. According to the results from our survey, an overwhelming 92% of respondents agree that they see too many ads on social media.Ad fatigue poses a significant challenge for businesses by diminishing the effectiveness of their advertising efforts over time. When consumers are repeatedly exposed to the same ads, they tend to become less responsive, and are more likely to ignore them. In fact, nearly half of respondents say that they have blocked specific advertising or unfollowed a brand in the past 12 months in response to social media advertising. On the contrary, social media advertising can have a positive effect when consumers resonate with a product that appeals to them, causing them to engage by looking up information about a product, following a brand, or even making a purchase. However, brands must find a balance when it comes to their level of interaction with consumers on social media platforms. On one hand, respondents say they find it acceptable when brands advertise products that are relevant to their interests (42%), and send them offers or discounts (41%). But, on the other hand, 36% of respondents say they prefer not to interact or engage with brands on social media at all. Tip \#1: Use audience segmentation and personalisation to engage with consumers Marketing automation software enables businesses to automate their marketing functions such as campaign creation, market segmentation, and response analysis. These tools can help advertise products that are relevant to your target market by segmenting an audience based on behaviour, demographic, preferences, and past interactions. This can ensure the right message reaches the right audience and positively influences conversion rates.2. Leverage user reviews to build consumer trustBuilding consumer trust is paramount to increasing conversion rates. If someone trusts a brand, they are more likely to shop on their website or recommend them to a friend. One of the most effective ways to gain trust is by leveraging user reviews, which in turn can influence purchasing decisions. Actually, 62% of respondents cite user reviews as an important influencing factor when buying new products or services online in the past 12 months.Although reviews are trusted and influential to drive conversions, again, it’s important to strike the right balance. In the current social media landscape, online consumers can be quite sceptical of fake or disingenuous reviews. Particularly, online consumers are detracting from buying into paid or influencer campaigns: only 18% of respondents say they trust reviews made by social media influencers, compared to 76% who trust reviews made by social media users who are not influencers. This may therefore suggest that a more effective strategy for eCommerce businesses would be to share genuine user reviews on social media or rely more on review websites.Most respondents (59%) cite review websites as their most trustworthy source for product reviews. Therefore, online retailers should make use of review websites to collect and display reviews and ratings on product pages. These review websites or platforms can be integrated into an eCommerce website to automatically solicit reviews post-purchase. Reviews that contain certain attributes, as seen in the chart below, are considered more trustworthy and influential by online shoppers.Tip \#2: Manage and monitor reviews to enhance consumer trustReputation management software includes review and social media monitoring as core features, which helps businesses keep on top of what is being said about their products or organisation in various blogs, social networks, and media. Businesses can then manage their reviews by addressing positive reviews with gratitude or by responding to negative feedback to improve the perception of their product or service. Notably, it is important not to hide or filter negative reviews, since online shoppers tend to value seeing negative feedback, as well as positive. Businesses that manage reviews demonstrate a commitment to customer satisfaction and transparency, thereby enhancing consumer trust. 3. Optimise on-page search filters and recommendations to enhance the user experienceA seamless and efficient user experience is imperative to keep prospective buyers browsing on an eCommerce website and to keep them coming back for more. An actionable way to achieve a better user experience on your website is by incorporating well-designed search filters to help consumers find what they are looking for or align with factors that influence purchases, such as price. Search filters are almost a no-brainer to incorporate into an eCommerce website, so much so that 97% of respondents say they use them to narrow down their product search when shopping online. Businesses can track which path consumers take through their site with web analytics tools  and better understand how their search filters operate as a sales tool. Of the respondents that use search filters, the following filters are the most popular:Price (84%)Size (66%)Brand (48%)Colour (43%)Delivery (37%)However, standard filters may not be enough to encourage customers to complete their purchases. For example, potential buyers that filter by price may not want to just see products listed in ascending or descending order but may be looking for products suited to their specific budget. Online consumers may want to see products within a specific price range instead. Apart from filters not being applied correctly, filters that are not specific enough was the second most cited challenge respondents encountered when using search filters. Aside from filters, product recommendations can offer prospective buyers a tailored shopping experience and improve the discoverability of products that they might not have found on their own. Product recommendations can also simplify the shopping journey for consumers by matching products with how they interact with search filters. For instance, recommended products that are on sale may entice budget-focused consumers to bag a deal. Just over three-quarters (78%) of respondents say they find recommendations based on current discounts or deals to be valuable. Furthermore, about one in five (22%) of respondents say that they would be interested in using AI-driven recommendations to shop online.Tip \#3: Conduct regular user testing to improve the customer experienceUser testing software helps perform tasks in realistic conditions to test and evaluate the interface, prototypes, and functionalities of websites. User testing also allows businesses to gather feedback from actual users navigating their website, highlighting areas of friction and opportunities for improvement. Online retailers can continuously refine their eCommerce stores based on user feedback and behaviour and create a more intuitive shopping experience, leading to higher customer satisfaction and increased conversions. Ecommerce software can also be used to define filters and recommendations based on user feedback. 4. Utilise loyalty programs to boost customer retentionFostering customer retention in a challenging economic environment is just as important as acquiring new ones. Harnessing the power of loyalty programs is an effective strategy to foster long-term customer relationships and drive repeat business. In fact, loyalty programs were cited by 48% of respondents that tend to make purchases from the same brand as a moitvating factor to do so.Notably, most respondents participate in loyalty programs associated with everyday items that consumers more frequently purchase.Although loyalty programs may be associated with types of businesses —such as supermarkets— where consumers make regular purchases, there is opportunity for businesses to employ loyalty program tactics that reward their customers in different ways based on the frequency of purchases.Tip \#4: Deploy a loyalty program that works for your type of businessChoose a meaningful loyalty program for your business and customers by defining a strategy based on how your target audience is likely to shop for your products or services. Here are some popular types of loyalty programs that can get you started:Points-based: Customers accumulate points for every purchase and can spend them on rewards.Cashback: Members earn a percentage of their spending back as cash to use with the same retailer they made a purchase from.Card stamp: Customers receive an electronic stamp for every purchase. Customers are rewarded with something for free when they have collected a certain amount of stamps. Fee-based: Members pay for a subscription or upfront payment that gives them specific ongoing benefits they can use anytime, such as free shipping.Tiered: Customers who spend more unlock a higher level with better rewards.Measure the performance of each strategy and adjust to market conditionsAs seen in the data presented above, fostering these eCommerce tactics can help businesses increase conversions in challenging market conditions. To recap, businesses can focus their efforts on the following actionable measures:Evaluate what content resonates with your target audience and moderate social media engagement with online consumers.Collect genuine user reviews to build consumer trust and leverage review websites to display reviews and ratings on product pages.Design your website in a way that helps online consumers find products that are suited to their requirements and provide product recommendations.Choose and deploy the right loyalty program that suits your type of business to drive repeat purchases.Implementing these strategies with the aid of eCommerce software can streamline operations and provide valuable insights into customer behaviour. Additionally, businesses must track the performance of each strategy as well as consumer behaviour when the market shifts. Looking for eCommerce software? Check out our catalogue\! ## Disclaimer > Methodology Capterra's 2024 Elusive Online Consumer Survey was conducted online in April 2024 among 5,585 respondents in the U.S. (n=500), Canada (n=500), Brazil (n=497), Mexico (n=470), the U.K. (n=499), France (n=271), Italy (n=496), Germany (n=496), Spain (n=359), Australia (n=497), India (n=500), and Japan (n=500). The goal of the study was to learn about how today's online consumer shops. Respondents were screened to have shopped online several times a month or more often. ## About the author ### Andrew Blair Andrew is a Content Analyst for Capterra, giving SMEs insights into tech, software and business trends. 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