What Is eCommerce Conversion Rate & Why You Should Care

A beginner’s guide in layman’s terms for retail & eCommerce marketers & business owners.

If you’re a small business owner or marketer in the Retail & eCommerce space, the words ‘eCommerce Conversion Rate’ should ring a bell. And, in case it doesn’t, we’ve included a brief definition below in layman’s terms:

Mathematically, your eCommerce conversion rate is the percentage of the total number of transactions over the total number visits over a given period of time.

To illustrate this, let’s say that in January 2018, you had a total of 5,000 visits to your organic dog food website, The Prideful Pooch. During that same period, your site processed a total of 128 transactions. Your eCommerce conversion rate would then be factored as:

If you’re using Google Analytics (which you should be), your eCommerce conversion rate is automatically populated provided that you have eCommerce tracking enabled. Pretty simple, right? If you’re still with us, your next question is probably: why should I care and where should my eCommerce conversion rate be? We’re glad you asked.

On the topic of why you should care: your eCommerce conversion rate is a key performance indicator (“KPI”) associated with how effective your website and marketing is at converting site visits to actual purchasers.

Here’s a real-life use case:

Let’s say that you own Stick It to Me, a brick and mortar retail store that sells customized post-it notes. Let’s also say that in any given day, you have 50 people visit your store. And, of those 50 people, only 2 people end up buying anything. It’s the end of the month and you’re processing payroll, paying taxes and tackling all of the other unsavory things associated with running a business.

In taking a look at your books and quickly realize that you’ll be out of business in a few months if your business doesn’t process at least 7 transactions per day. Perhaps you panic. Perhaps you make frantic calls to the bank asking for a small business loan. Perhaps you start to drink, who knows?

After the dust settles, you take a deep breath, take an honest look around your store and come to the conclusion that with some careful planning, you can increase your revenue with some creative thinking. With sales stagnant, you don’t have the money to renovate your store, but you do have some control over what your customers see and what they interact with when they enter your store. With a new sense of determination, you’re committed to ensuring that one out of every five customers that visit your store end up leaving with something.

After a period of testing sales promotions, sending email newsletters, trialing different in-store displays, and placing merchandise strategically, you’ve done it. Suddenly, it’s April and you’ve exceeded your expectations! Now, one out of every three people that enter your store end up purchasing something. Enthralled with your progress and extra zeros in your bank account, you plan a nice vacation for you and your partner and start planning an in-store remodel.

Overly elaborate anecdotes aside, let’s take a look at the math:

January 2018

  • 50 potential customers per day = 1,500 shop visits per month
  • 2 transactions per day = 62 transactions per month
  • Average transaction value = $126.25
  • Total monthly revenue = $7,827.25
  • Conversion Rate = 4.13%

April 2018

  • 50 potential customers per day = 1,500 shop visits per month
  • 5 transactions per day = 150 transactions per month
  • Average transaction value = $103.77
  • Total monthly revenue = $15,565.50
  • Conversion Rate = 10%

That’s nearly a 100% improvement in monthly revenue without costly advertisements and other promotions to get new shoppers in the door.

Why the lengthy example? Because in a digital world, it’s easy for us to forget the fact that our website visitors are people, and should be treated as such. For those of us that don’t devote most of their careers to drawing parallels between what happens on the web and real life, a certain cognitive dissonance between what happens online and offline is normal.

With a firm understanding of eCommerce conversion rates and why they’re critical for your business, it’s time to take a look at how you can go about to introducing some process to monitoring and improving them.

1) Establish a benchmark: You can’t know where you’re going unless you know where you are. Take a look at the last 365 days of your business using the math outlined above and outline our eCommerce conversion rate by month. We’ve already mentioned this, but Google Analytics is an excellent, industry-preferred tool for measuring all of your important web analytics, including eCommerce conversion rate. Get started by integrating Google Analytics on your website and ensuring that you have eCommerce tracking integrated.

2) Set some goals: With your background research finished, it’s time for you to dream a little bit. Take a look at your historical data and set some goals keeping in mind the (lengthy) example outlined above. Come up with some baseline and stretch goals for your eCommerce conversion rate. As a benchmark, we recommend 10% to 20% growth on the benchmark and 30%+ for your stretch goal. The stretch goal should be aspirational…shoot for the stars. You can do it. While every business is different, take a look at these eCommerce conversion rate benchmarks to gain some insight on where your business ranks.  

3) Get real about your business: Having a firm understanding of what’s important to the customers currently visiting your store is critical to coming up with strategies for how to get them to purchase. Ask yourself: are my customers price sensitive? Do they come to my store because I offer something that no one else does? Is the shopping and purchasing process easy?

4) Promote a sense of urgency: Perhaps one of the biggest kept secrets in the world of marketing is promoting a sense of urgency among your customers.

5) Measure, cycle, rinse repeat.


Completely lost? Contact us for a consultation on how we can help.

Charitable Companies: Our 5 Favorite Brands That Give Back

Charitable Companies

Thanksgiving in the U.S. is one of the biggest times of years for consumers to bust out their wallets. With Black Friday, Cyber Monday, and other crazy seasonal discounts and sales, it’s hard not to focus on buying things. The Thanksgiving season is also very much about giving back, though – I know, crazy right?

Charitable companies with rock-solid mission statements are among some of our absolute favorites. While much of this time of the year is racked with anxiety and stress and buying, buying, buying, it’s always nice to take a look around and appreciate those businesses that are focused on giving back. Putting your money into the businesses that give back on a local community, regional, or even international scale, makes your purchase all the more worth it.

Let’s take a look at some of our absolute favorite initiatives from brands that give back. 

1. Pura Vida Bracelets

Who doesn’t love stylish, handmade jewelry to complement a holiday outfit? Pura Vida Bracelets is one of our all-time favorite charitable companies, with a mission to help support simplicity in life and the incredible craft of artisan jewelry and other goods. “Pura Vida” means “pure life” in Spanish, a Costa Rican philosophy that encourages the appreciation of life’s simple treasures. Following in line with this philosophy, the organization gives artisans full-time jobs while also helping to fund close to 200 charities around the world. With each purchase, Pura Vida donates 10% of proceeds to important causes affecting our planet.

Head to the Pura Vida Bracelets website here

2. Sudara

Being a women-run agency, our hearts are always with the millions of women around the world who are being held against their will in many capacities. Sudara is one such business that is actively fighting against slavery and sex-trafficking in India by providing women with safe opportunities to learn skills and move towards long-term careers. By offering real hope and true opportunity to these women through living-wage jobs, skills training, Sudara is helping women to gain more control of their lives and open up their futures to even more possibilities.

Head to the Sudara website here

3. Warby Parker

Being able to help someone see is a true gift in this world. So many communities around the world don’t have access to the kinds of vision care that’s needed to support a healthy, happy life. That’s why Warby Parker has stepped in to help bridge that gap and offer better vision to more people in need. With their charitable system, when you purchase a pair of glasses through their store, a donation is made to one of their non-profit partners who will help get someone set up with a fresh pair who really needs them.


Head to the Warby Parker website here

4. House of Light Goods

In the country of Mexico, there is a poverty-stricken crisis going on, with unemployment, imprisonment, and other important elements playing a role in the absence of many fathers. Unfortunately, this leaves mothers without the right resources or funds in a vulnerable place in trying to care for their children; this is where House of Light Goods comes in. A non-profit small business that provides real employment opportunities to single mothers in Mexico, House of Light Goods offers a safe place to work, and spaces for children to learn and play, funded by the purchase of a handmade scarf.

Head to the House of Light Goods website here. 

5. Amazon Smile

While Amazon is one of the biggest, most high-performing companies in the world, we can’t deny their influence on giving back. When you shop through their Amazon Smile portal, you can automatically have .5% of your purchase donated to charities of your choice! With absolutely no change in the overall price for you, the buyer, Amazon is set up to help you give back to organizations like the ASPCA, American Red Cross, The Nature Conservancy, and many more.

Head to the Amazon Smile website here.


Are you a company looking for charitable activities to launch in 2019?

Get in touch with our team – we’d love to talk shop and help brainstorm ways for you to give back!

How to Use the Psychology of Color for Your Brand’s Personality

psychology of color

Quick…. Think of your favorite brands from your childhood. What do you remember about them? How did they make you feel?

We probably don’t spend too much time thinking about why we find certain things more visually appealing than others. But the truth is that those feelings actually have deeper roots than we think.

Color is a critical part of all of our experience.  We become instantly attracted to or repulsed by the combinations of colors we experience, simply by walking into a room, reading a menu, or looking at a brochure. And yes, this absolutely extends to the decisions we make when we are deciding on making a purchase, both big or small.

What’s up with Color?

From logos to landing pages, to print media or full websites, color is something that creates a visceral reaction in humans. We can’t help it! Colors create an emotive response from each of us, whether based in culture, past experience, or personal preference. There is no way that we are not affected by color, even from our earliest ages.

No small feat for something that technically, doesn’t actually exist. Color is essentially based in perception, and businesses know this. The way we experience brands are rooted in those perceptions, but even knowing that doesn’t stop the way that we feel when we derive a common meaning from each of those colors.

Let’s take a look at some popular brands and how they use color to shape our decision-making experiences.



Meaning: Excitement, Passion, Strength, Energy, Violence

In branding: In some of our most popular brands, we tend to associate the color red with energy, excitement, strength, and passion. Coca Cola uses this perception to their advantage, as they take the top spot as a reliable industry leader in refreshing beverages. Target is adept at using this in its logo to inspire confidence in their customer base that yes, you can find exactly what you need within their doors.

Example: Coca Cola, Target


Meaning: Trust, Loyalty, Dependability, Friendliness, Calm, Tranquility

In branding: Ah, trusty blue. Few colors are as popular in branding, because blue and its many hues are able to communicate so many different but important messages to consumers. Nothing shows this better than Facebook’s logo. At its essence, Facebook is essentially a space to connect with friends, and nothing conveys this more efficiently than through the use of the color blue. Even Blue Apron is in on the action, as there are few things more relaxing than the comfort of a good meal at home.

Example: Facebook, AT&T, Blue Apron



Meaning: Energy, Positivity, Happiness, Extraversion

In branding: Yellow can be a tricky color to brand with, because it can create such distinct reactions in people. At its core though, yellow tends to represent energy and positivity. IKEA utilizes this effectively by featuring the color prominently in its logo. What could be more exciting than the possibility of a creative new beginning for your living space?

Example: Denny’s, IKEA, Post-It


Meaning: Freshness, Energy, Vitality, Health, Nature

In branding: We can often find green where we need to express some vitality or freshness, which makes it a really popular color for brands that want to associate their products with health or nature. Whole Foods is a great example of this, and its name has become synonymous with fresh, healthful products.

Example: Starbucks, Whole Foods, TicTac, Sprite


Meaning: Excitement, Warmth, Confidence, Friendliness, Optimism

In branding: Well, hello there Orange. Often associated with friendliness, extraversion, and excitement, it’s no wonder brands use orange to inspire optimism in their customers. Check out how Tinder uses the color in its super simple logo to inspire people to use their dating platform. Get out there!

Example: Home Depot, Nickelodeon, Tinder



Meaning: Wisdom, Royalty, Spirituality, Honor

In branding: There’s something about purple that inspires a sense of respect. Depending on its warmth and hue, brands often use purple to evoke feelings of authority with their customers. We often tend to associate the color with a sense of wisdom and royalty. Is it any coincidence then, that Hallmark uses a crown in its logo? We think not.

Example: Hallmark, BBC



Meaning: Elite, Exclusivity, Sophistication

In branding: There’s a timelessness to the color black that we’ve come to rely on. Often exclusive, sophisticated, and always impactful, businesses have come to rely on the color to communicate the message of sophistication. Think about how Uber uses black all through its branding, from its logo, to it’s “elite” “black car” upgrades; this message is an intentional one.

Example:  Uber, Louis Vuitton, Apple



Meaning: Romance, Innocence, Femininity, Innovation

In branding: Depending on its shade, the color pink can communicate so many things. When it’s soft, its more obvious qualities of romance and femininity are highlighted, and brands like Victoria’s Secret know this and use this to appeal to its clientele. When it’s used at a deeper shade, like magenta, you’ve got a sense of fun and innovation behind it. Think Lyft’s pink mustache campaign, which serves to communicate the direct opposite of older brother and chief competitor, Uber.

Example: Victoria’s Secret, Dunkin’ Donuts, Lyft


Meaning: Earth, Nature,  Reliability, Dirtiness

In branding: Brown is another color that can be so effective when used well and can go so wrong when used ineffectively. It often serves to communicate a connection with nature and a sense of reliability. Brands like Cotton and UPS know this and use the color to craft a message around reliability with their brands.

Example: UPS, Hershey, Cotton

Color and Your Brand

It’s almost impossible to dive into the meanings of all colors, just like it is almost impossible to detail each person’s experience with those colors. But what’s crucial to know is that color is indeed important, and it absolutely has an effect on our deepest and earliest emotional responses. These feelings, of course, affect our buying choices, and even the way we elect to engage with our favorite brands. For marketers, it’s critical that we are taking this unique psychology into consideration when building out brand personalities.

If you aren’t sure how to get started making sure your brand’s personality is well communicated, don’t worry! We can help you with that, and more. Hit us up!