Why is our conversion rate dropping?

Asked 5 years ago

We scaled our ad budget to reach more people and it is working well. The store's traffic nearly doubled. But the problem is that the conversion rate went down 25% although we didn't change the design or the checkout process.

Conversion rate Customers Optimization Traffic

Tom Amitay

Wednesday, April 24, 2019

A lot of factors can impact conversion rates when you scale ad budget and increase traffic. And there's also the question of how you measure the conversion rate. 

1. It's challenging to scale ad budget and keep the exact same customer profile.  The quality or relevancy of your customers may drop when you reach new audiences, and that inevitably leads to lower conversion rates.
2. Facebook ads perform differently on a large budget than a small one. So even if you keep the same audience targeting and just increase the budget, the people you reach may be different than your regular audience, and conversion rates can drop.
3. You should check if the conversion rate went down all across the board or only for the new traffic. You may realize that the original traffic is still converting at the same rate, and only the new traffic isn't.

Also, don't measure only your conversion rate. You should also measure AOV because the combination of the two is what affects your bottom line. For example, if conversion rate drops from 3% to 2% and AOV increases from $50 to $80, then you're making more money than before. 