There are two forces at work here: 1. Increased competition as people spend more time shopping online—more shopping equals more visits per purchase and conversion rates will naturally fall. 2. Increased mobile visits where shoppers seem to prefer to use smartphones to browse, price check, and find store locations – not purchase.
Lower conversion rates aren’t a bad thing since incremental traffic still means more revenue. What will be bad is if the only metric you look at to measure success on your site is your conversion rate. What about the other 99% of traffic? Is that not worth trying to quantify?
No one gets married on the first date, likewise no one buys something the first time they meet your site. How many little interactions, downloads, engagement, likes, views, subscriptions, reviews does it take to add up to a conversion? Like Avinash says, If you solve for conversion rate are you solving for all your traffic and are you improving the website experience for all your customers?