Improving website conversion for ecommerce

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A business case example of how to improve your website conversion rates. Provides a good overall to the numerous ways of doing this.

A business case example of how to improve your website conversion rates. Provides a good overall to the numerous ways of doing this.

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  • SEO – Search Engine Optimisation
    SEA – Search Engine Analysis
    SEF – Search Engine Friendly
  • This chart shows that average conversion rates for visits to sale of 4 percent. Note that these are typically for large brands, so conversion rates for less well-known brands that don’t have the credibility, trust
  • Stimulus: when the consumer becomes aware of a need.
    First moment of truth: when the consumer enters the buying process and sees if your product or service fits their need.
    Second moment of truth: after owning your product or service, the consumer decides whether or not it lived up to their expectations.
  • Zero moment of truth: when the consumer goes in search of answers to fulfill their need. This includes social media, search engines, word of mouth, reviews, and more.

Transcript

  • 1. Driving Online Conversion Rates For Finoak Ltd
  • 2. Content • Expectations • Conversion • Home Page • Home Page Design • Search Navigation • Shopper Champion • Cart Abandonment • Checkout • Action Plan • Appendix 2
  • 3. Expectations • Focused on conversion rates, although conversion is only one of several key components of an effective ecommerce strategy • Reduced marketing terminology as the audience is from a variety of disciplines • Tried to balance the report to provide theory, insights, learnings, live examples and practical advice • Variety of recommendations – easy to difficult, now to future, low cost to high cost • Always making it relevant to Finoak • Purple font = insights and quotes 3
  • 4. Conversion 4
  • 5. What is Conversion example If 100 visitors come to an e-commerce site on a given day, and during that day 6 purchases were made, your conversion rate would be 6% (6/100 * 100) = 6%. © Copyright Firstwave Marketing Ltd 5
  • 6. What is Conversion Optimisation definition Conversion optimisation is the process of maximizing the percentage of web site visitors who complete a desired action (conversion rate) © Copyright Firstwave Marketing Ltd 6
  • 7. What is Conversion Optimisation benefits By optimising or maximising the number of visitors who take a desired action – e.g. make a purchase you can increase your sales and thus profits. When you increase your website traffic and your conversion rate together, sales can increase dramatically. © Copyright Firstwave Marketing Ltd 7
  • 8. Website Strategy Traffic Traffic Conversion Conversion Retention Retention Drive Drive Increase Increase Encourage Encourage © Copyright Firstwave Marketing Ltd 8
  • 9. Website Strategy process © Copyright Firstwave Marketing Ltd 9
  • 10. Average conversion rates Source: 2012 Ecommerce report from Channel Advisor-IMRG © Copyright Firstwave Marketing Ltd 10
  • 11. Conversion rates vary by activity © Copyright Firstwave Marketing Ltd 11
  • 12. Home Page 12
  • 13. 1. Add Personal Brand Message There is a huge amount of competition in your chosen industry, so it’s imperative to create a strong competitive advantage. In the main, this is created through your positioning and unique product offering but there are opportunities to create a personal, engaging brand message that will make visitors feel special, engendering a warmth to the brand, making consumers feel that they are making a great choice when purchasing from Finoak. Some competitors have brand messages but none feature them prominently on their home page and none have a handwritten sign-off. Recommend adding a brand message with a sign-off (The Finoak Team). © Copyright Firstwave Marketing Ltd 13
  • 14. Brand Message Examples MOCHA UK has its brand MOCHA UK has its brand message half way down its message half way down its home page, in a small home page, in a small (unreadable) font size (unreadable) font size BOUF features its brand message BOUF features its brand message below the fold line, so not in view below the fold line, so not in view when landing on the homepage when landing on the homepage © Copyright Firstwave Marketing Ltd 14
  • 15. Brand Message Examples AMARONI places its brand AMARONI places its brand message in a prominent message in a prominent position on the home page – position on the home page – it’s a little too large though it’s a little too large though KEEP IT KIND display a hand KEEP IT KIND display a hand written, friendly sign-off written, friendly sign-off © Copyright Firstwave Marketing Ltd 15
  • 16. 2. Display Value Proposition (VP) ‘Why should I do business with you online?’ is the question on the subconscious minds of all site visitors and especially first time visitors. Therefore the website has to emphasise why they should buy from you rather than from a competitor. The VP is a statement / series of bullets that clearly identify the advantages a customer will receive by purchasing from you •Best prices •Fast delivery •Secure payment •It’s easy Recommend to display your VP as one of the first things visitors see on your home page. It should also be visible in all major entry points (of the site) and be present on the shopping cart page. Ensure the VP has stand out, thus capturing the visitors attention. © Copyright Firstwave Marketing Ltd 16
  • 17. VP Home Page Example THE WHITE COMPANY present THE WHITE COMPANY present their VP horizontally across the their VP horizontally across the top of their home page top of their home page © Copyright Firstwave Marketing Ltd 17
  • 18. VP Home Page Example HOME & HARDWARD present HOME & HARDWARD present their VP vertically on the right their VP vertically on the right hand side of their home page hand side of their home page © Copyright Firstwave Marketing Ltd 18
  • 19. VP Cart Page Example ZAPPOS continue ZAPPOS continue reinforce their VP reinforce their VP in the Shopping in the Shopping Cart Page Cart Page © Copyright Firstwave Marketing Ltd 19
  • 20. 3. Improve Visual Clarity of Product Offering When a browser lands on the home page there is only a maximum of a 3 to 8 second window to grab their attention and motivate them to hang around a little longer and explore the site. When landing, one sees a single large central image. If it’s displaying a category that doesn’t interest then, exiting the site is very probable. It’s worth viewing your analytics to check your bounce rate – less than 50% is excellent, over 70% is poor. There is currently an six image transition set at 5 seconds. This should be set on a 3 second transition. However I would recommend providing split images that show several of your leading product Categories on a single and then having these on a transition © Copyright Firstwave Marketing Ltd 20
  • 21. Product Offering Display Example A good example of A good example of featuring numerous featuring numerous product categories on a product categories on a single image single image © Copyright Firstwave Marketing Ltd 21
  • 22. Product Offering Display Idea A large selection of A large selection of products shown, products shown, displaying the versatility displaying the versatility of the site offering of the site offering 22
  • 23. 4. Add Gift Section Gift purchasing one of the top reasons for consumers to shop online. Quite often if a visitor doesn’t find anything suitable for themselves they will still visit the Gift Page / Section, in order to gain some inspiration and source something a little different that the intended recipient will appreciate. Strongly recommend a Gift tab on the home page in a prominent position, that then leads to a page of gifting ideas. © Copyright Firstwave Marketing Ltd 23
  • 24. Gift Section Example PEDLARS provide a PEDLARS provide a dominant and engaging dominant and engaging gift section gift section © Copyright Firstwave Marketing Ltd 24
  • 25. Gift Section Example JOESPH JOESPH has a JOESPH JOESPH has a Gift Set section Gift Set section © Copyright Firstwave Marketing Ltd 25
  • 26. 5. Add Top Sellers & New Arrivals These techniques are not exclusively unique to ecommerce, in fact they’re traditional good practice trading competences. ‘Top sellers’ arms visitors with knowledge and information of the site’s best selling items, providing the added confidence that visitors are purchasing a popular / well liked item. ‘New arrivals’ provides excitement and inquisitiveness to new visitors and an element of freshness and interest to returning visitors. It also provides useful content streams for Social Media. Recommend a ‘top seller’ and ‘new arrivals’ box on the home page in a prominent position. There are numerous naming options for these two sections to decide upon. © Copyright Firstwave Marketing Ltd 26
  • 27. Top Seller & New Arrival Example © Copyright Firstwave Marketing Ltd ROSE & GREY name ROSE & GREY name their sections New their sections New Arrivals and What’s Hot Arrivals and What’s Hot HOUSE OF FRASER HOUSE OF FRASER name their sections name their sections What’s New and Top What’s New and Top Picks Picks 27
  • 28. 6. Keep Above the Fold Line The fold is a term to mean the portion of your site which can be shown when first entering the site without scrolling down at all. Jakob Nielsen, Ph.D. (often called ‘the smartest person on the Web’), states that Web users still spend 80% of their time reading ‘above the fold’. So, although not all your content has to sit ‘above the fold’... your most important content should. An effective website places key information and calls to action in easy-to-view areas 'above the fold’. Nielsen states that most users decide whether or not a web site provides them value within a mere 10 seconds. Recommend including core branding elements, VP, primary site navigation, contact information, range imagery, basket, all ‘above the fold’(see pages 36 &37). © Copyright Firstwave Marketing Ltd 28
  • 29. Home Page Design 29
  • 30. Incorporating Recommendations into the Home Page Current Home Page FOLD LINE FOLD LINE 30
  • 31. Incorporating Recommendations into the Home Page Current Home Page CONTACT DETAILS BASKET STRAPLINE PAGE DESCRIPTION PRODUCTS RANGE IMAGES FOLD LINE FOLD LINE 31
  • 32. Incorporating Recommendations into the Home Page Recommended Home Page (option 1) CONTACT DETAILS PAGE DESCRIPTION PRODUCTS BASKET BRAND BRAND MESSAGE MESSAGE DEAL OF THE WEEK RANGE IMAGES VP FOLD LINE FOLD LINE 32
  • 33. Incorporating Recommendations into the Home Page Recommended Home Page (option 2) CONTACT DETAILS BASKET PAGE DESCRIPTION PRODUCTS BRAND MESSAGE + VP RANGE IMAGES NEW ARRIVALS DEAL OF THE WEEK BEST SELLERS FOLD LINE FOLD LINE 33
  • 34. Search Navigation 34
  • 35. 7. Improve Browse / Sorting Capabilities Having user friendly browse/sorting capabilities is particularly important for ecommerce sites as potential buyers want to locate their desired items quickly and efficiently. It’s almost expected by visitors as they are now familiar with this type of sorting format as something that is employed by the majority of successful ecommerce sites. Recommend enabling the visitor the ability to drill down into different browse sub-categories and then sort items by price (high low and low high), top sellers, special offers, by brand, alphabetically and by top customer review ratings (discussed later in this document). © Copyright Firstwave Marketing Ltd 35
  • 36. Browse & Sorting Example MOCHA UK provide MOCHA UK provide classic browse and sort classic browse and sort function function © Copyright Firstwave Marketing Ltd 36
  • 37. 8. Include Internal Site Search If your site visitors can’t find what they are looking for by browsing or using your navigation menus, then they will usually try one last thing before giving up and leaving to one of your competitors. And that is by trying to ‘search’ your site for what they are looking for, via the internal site search function. Recommend installing an internal site search box to help visitors find what they need more quickly. Visitors’ searches can even be used to inspire new product offerings. If you see that many visitors are searching your site for a particular type of product that you don’t yet offer, you could consider offering this. © Copyright Firstwave Marketing Ltd 37
  • 38. 8. Internal Site Search HABITAT & JOHN LEWIS both HABITAT & JOHN LEWIS both use internal site search on the use internal site search on the their home page their home page © Copyright Firstwave Marketing Ltd 38
  • 39. Site Search & Sort Best Practice CRUTCHFIELD use internal site CRUTCHFIELD use internal site search, browse and sorting search, browse and sorting capabilities (best practice site) capabilities (best practice site) © Copyright Firstwave Marketing Ltd 39
  • 40. Shopper Champion 40
  • 41. 9. Deal (Offer) of the Week Everyone likes to ‘grab’ an bargain and by giving your customers additional value for good quality products can greatly improve conversion and loyalty to your store without really hurting your bottom line. In fact, these short term but regular discounts can help strengthen customer loyalty and widen your market. Discounting items will also allow you to dispose of old inventory and can help push slower selling lines. Recommend placing a small section on the home page (maximising its visibility). Also regularly announce these offers across your Social Media platforms, this will help with content and should drive even more customers into your site. © Copyright Firstwave Marketing Ltd 41
  • 42. Deal (Offer) of the Week CHEMIST DIRECT go extreme CHEMIST DIRECT go extreme and have a countdown clock and have a countdown clock M&S use strong, M&S use strong, clear messaging clear messaging CRATE & BARREL communicate a ‘timed’ CRATE & BARREL communicate a ‘timed’ offer to create urgency. They also include a offer to create urgency. They also include a call to action message call to action message © Copyright Firstwave Marketing Ltd 42
  • 43. 10. Discount First Purchase As a short term / occasional tactic to boost sales it can really benefit, especially when targeting first time buyers who will be influenced to purchase because of the offer. It doesn’t just increase sales but provides a platform to build client relationships, as once consumers have tested your products, this can lead to repeat business and also generate positive word of mouth. The offer can also increase traffic, so make sure the offer is communicated across all Social Media platforms (great for SM content) and marketing / advertising touch points. Recommend a simple 10% off first order – with no sign-up required to be eligible (as sign-ups are barriers to participation). © Copyright Firstwave Marketing Ltd 43
  • 44. Discount Example MADE have a 10% ‘welcome gift’ MADE have a 10% ‘welcome gift’ (lovely personable language). (lovely personable language). However sign up is needed! However sign up is needed! © Copyright Firstwave Marketing Ltd 44
  • 45. 11. Use Proactive Chat Many online consumers want help from a live person while they are shopping online; in fact, 44% of online consumers say that having questions answered by a live person while in the middle of an online purchase is one of the most important features a website can offer*. Proactive chat provides the visitor to opportunity to engage in a live chat interaction. The invitation can be an image or a small chat window with a message that says, for example, "Questions? I'm available for chat!“ This type of customer support will help in reducing abandonment and driving customer satisfaction. Recommend the adoption of a manual based ‘proactive chat’, so the visitor initiates the conversation, rather than the brand / website. © Copyright Firstwave Marketing Ltd Source: *Forrester Research 45
  • 46. Proactive Chat Example Manual proactive chat button, Manual proactive chat button, can be found on every page of can be found on every page of Honey Tree’s website. An Honey Tree’s website. An ‘online’ message is also shown. ‘online’ message is also shown. © Copyright Firstwave Marketing Ltd 46
  • 47. Proactive Chat Example If the visitor has a question they If the visitor has a question they click on the button and a simple click on the button and a simple form opens up. form opens up. If online – recommend no visitor If online – recommend no visitor details taken, if offline then details taken, if offline then email address would be email address would be required. required. © Copyright Firstwave Marketing Ltd 47
  • 48. Consumers Old Decision Journey © Copyright Firstwave Marketing Ltd Source: Google/Shopper Sciences, Zero Moment of Truth Macro Study, Apr 2011 48
  • 49. Consumers New Decision Journey Google’s ZMOT Model © Copyright Firstwave Marketing Ltd Source: Google/Shopper Sciences, Zero Moment of Truth Macro Study, Apr 2011 49
  • 50. Reviews influence purchase behaviour •83% of consumers say that product reviews influence their online purchasing decisions •70% of online shoppers actively seek out product reviews before they buy •57% of shoppers trust customer reviews as a research source along with other corroborating information •41% of shoppers read between four and seven reviews before they felt comfortable with a purchase Source: 2010 Social Shopping Study by PowerReviews © Copyright Firstwave Marketing Ltd 50
  • 51. 12. Product Reviews Use a simple review comment box with a 1to 5 ranking system - this will provide reassurance and confidence to shoppers. Encourage consumers to provide a review either through persuasive email correspondence or through enticement of discount off next purchase (once product(s) have safely been received). Initially reviews may have to be ‘manufactured’ in order to populate; until ‘real’ reviews appear. © Copyright Firstwave Marketing Ltd 51
  • 52. Product Review Examples OCADO informs consumers if there have been OCADO informs consumers if there have been reviews and the ranking score reviews and the ranking score Click on ‘review’ and the full comment is Click on ‘review’ and the full comment is reavealed. reavealed. © Copyright Firstwave Marketing Ltd 52
  • 53. 13. Encourage Cross Sell Cross selling is where a complementary product is displayed to a customer when they view another similar product. It’s a very effective way of encouraging complementary products to be sold together. It will improve the number of items in a single order and therefore increase the average purchase value. It's also recommended to use as a technique for selling higher margin items, by showing high margin products with lower margin ‘loss leader’.  Desk work would be required to make a comprehensive list of the paired / complementary products. © Copyright Firstwave Marketing Ltd 53
  • 54. 13. Cross Sell Examples AMAZON are leaders in this activity AMAZON are leaders in this activity © Copyright Firstwave Marketing Ltd 54
  • 55. Cart Abandonment 55
  • 56. Average Cart Abandonment 50% CONVERSION RATE (VISIT TO ADD TO BASKET): 8% CONVERSION RATE (VISIT TO SALE): 4% © Copyright Firstwave Marketing Ltd There is a typical 50% abandonment from basket through checkout to sale, even with the efforts of checkout optimisation Source: 2012 Ecommerce report from Channel Advisor-IMRG 56
  • 57. Why Customers Abandon Checkout Top 3 reasons are nondesign / usability issues Top 3 reasons are design / usability issues 44% Shipping/handling too high 44% Shipping/handling too high 14% Didn’t want to register 14% Didn’t want to register 41% Not ready to purchase 41% Not ready to purchase 12% Felt site was asking for TMI 12% Felt site was asking for TMI 27% Wanted to compare prices 27% Wanted to compare prices 11% Checkout too long/confusing 11% Checkout too long/confusing © Copyright Firstwave Marketing Ltd Source: Forrester Research Inc. 57
  • 58. “Shipping and handling costs too high” • “For whatever reason, a free shipping offer that saves a customer $6.99 is more appealing to many than a discount that cuts the purchase price by $10.” David Bell, Wharton School of Business • Cart abandonment spikes when cart total is low and when shipping charges are close to the cart total © Copyright Firstwave Marketing Ltd 58
  • 59. 14. Offer Free Delivery Provide free delivery on orders over a certain price point. Currently the average basket spend is £28 (Aug data), so potential to offer fee delivery on £39. This will motivate purchase and up-weight their spend. £39 chosen as it’s a c33% increase on the average cart spend, and ‘9’s are psychologically more impactful. © Copyright Firstwave Marketing Ltd 59
  • 60. Free Delivery Example Macy’s offer free ‘everyday’ Macy’s offer free ‘everyday’ shipping offer at $99. This shipping offer at $99. This threshold (may be more threshold (may be more persuasive than $100) persuasive than $100) © Copyright Firstwave Marketing Ltd 60
  • 61. Free Delivery Example A ‘carrot’ shows the dollar A ‘carrot’ shows the dollar amount remaining before amount remaining before free shipping. free shipping. Placing it proximal to the Placing it proximal to the cart total may make it more cart total may make it more noticeable noticeable © Copyright Firstwave Marketing Ltd 61
  • 62. 15. Rebalance Costing Ratio Ensure deliver cost is never higher than 25% of the total value of the total purchase. For example; the bambo business card holder 37% of cost is delivery (£4.49+£2.69) verses 16% for a bamboo laptop stand (£25.99+£4.89). Therefore consider altering the pricing to £5.49+£1.69. Obviously this is just one example, you will need to work through your product item to locate the other occurrences. © Copyright Firstwave Marketing Ltd 62
  • 63. “Not ready to purchase” • “24% of web buyers confess using the shopping cart as a wish list to save products for future consideration”. • “61.2% of items are left behind in shopping carts without being purchase”. • “Retargeted customers are 70% more likely to convert and will spend over £50% more than the average visitor”. © Copyright Firstwave Marketing Ltd Source: Experian marketing / SEOM & Forrester Research 63
  • 64. 16. Activate Remarketing Remarketing allows you to display relevant and targeted messaging to prospects who have previously visited your site, while they browse other websites. This strategy allows you to direct prospects back to your site and move them further down the purchasing funnel by providing additional details about your product or offering. Recommend a 10% discount with promocode. © Copyright Firstwave Marketing Ltd 64
  • 65. Remarketing Life Cycle © Copyright Firstwave Marketing Ltd 65
  • 66. Remarketing Example Retarget people if they’ve not completed a checkout process with coupon code offer – i.e. 10% saving © Copyright Firstwave Marketing Ltd 66
  • 67. 17. Re-enforce Value Proposition Visitors often abandon their baskets / halt their purchase because they want to compare prices on other sites. So ensure that the value proposition is in view in the shoppers cart. This will provide the shopper with further reassurances of; value, quality, security. Even better the value proposition could remain present on every page. © Copyright Firstwave Marketing Ltd 67
  • 68. Include value propositions Include value propositions in the cart summary in the cart summary © Copyright Firstwave Marketing Ltd 68
  • 69. Checkout 69
  • 70. Finoak’s Good Practice Shipping & handling Shipping & handling costs are provided costs are provided at the 2nd price at the 2nd price moment moment 59% expect ‘total cost’ before checkout OneUpWeb © Copyright Firstwave Marketing Ltd Don’t need to Don’t need to register with the register with the site to buy site to buy 23% of shoppers will abandon checkout if forced to register Forrester Research 70
  • 71. Finoak’s Good Practice Users often abandon their online purchase at the checkout area. This can be because they aren’t user friendly, too long and too much information is requested. Forms are simple to Forms are simple to complete complete © Copyright Firstwave Marketing Ltd Minimal Minimal information is information is required required 71
  • 72. 18. Inline Validation Finoak use inline validation in the Secure Payment Page but using it in the Checkout will help to increase form completion and satisfaction rating – which will improve the shopper experience. • • 22% increase in success rates 22% decrease in errors made • 31% increase in satisfaction rating • • 42% decrease in completion times 47% decrease in the number of eye fixations (easier to visually process) – Source: Etre / Luke Wroblewski © Copyright Firstwave Marketing Ltd 72
  • 73. Inline Validation Good Practice STANDARD FORMAT If online & in If online & in slideshow slideshow Click here Click here INLINE VALIDATION If online & in If online & in slideshow slideshow Click here Click here http://www.youtube.com/watch? http://www.youtube.com/watch? feature=player_embedded&v=FWDDRG93 v=hlU74LIPauo&feature=player_embedded puY © Copyright Firstwave Marketing Ltd 73
  • 74. Finoak’s Website CHECKOUT PAGE © Copyright Firstwave Marketing Ltd SECURE PAYMENT PAGE 74
  • 75. 19. Employ Address Verification By integrating address verification into your checkout forms, users can enter partial address data and have the full, validated address automatically pasted in.  This also has the secondary benefit of ensuring you won’t have any returned products due to an inaccurately entered address. Current © Copyright Firstwave Marketing Ltd Address Verification 75
  • 76. 20. Regularly Test Website Speed Avoid the website running too slow. Regularly test site speed all the way through your funnel, not just the home page! © Copyright Firstwave Marketing Ltd 76
  • 77. Key Take Outs 1. 2. 3. 4. 5. Love Your Homepage Succeed with Site Search Be the Shoppers Champion Reduce Cart Abandonment Tighten up the Checkout Process © Copyright Firstwave Marketing Ltd 77
  • 78. Action Plan 78
  • 79. Action / Improvement Plan # Activity 1 Improve Clarity of Product Offer 4 Add Gift Section 5 Add Top Sellers & New Arrivals 6 Keep Above the Fold Line 7 Improve Browse & Sorting Capabilities 8 Include Internal Site Search 9 Deal of the Week Feature 10 By When Display Value Proposition 3 Cost of Implementation Add Person Brand Message 2 Ease of Implementation Give Discount First Order © Copyright Firstwave Marketing Ltd 79
  • 80. Action / Improvement Plan # Activity 11 Encourage the Cross Sell 14 Free Delivery on Larger Orders 15 Rebalance Costing Ratios 16 Use Remarketing 17 Re-enforce Proposition 18 Use Inline Validation (Checkout Page) 19 Employ Address Verification 20 By When Consumer Product Reviews 13 Cost of Implementation Apply Proactive Chat 12 Ease of Implementation Regularly Check Web Speed © Copyright Firstwave Marketing Ltd 80
  • 81. Appendix : Other bits & pieces • • • Checkout: add second email address box to confirm accuracy of information Secure Payment Form: methods of payment needs increased prominence Secure Payment Form: need a ‘clear’ address option if delivery address differs from the billing address © Copyright Firstwave Marketing Ltd 81
  • 82. Appendix: Options for segmenting Options for segmenting conversion rate Conversion rate gets more useful as you break it down by different types of visitors with different intent and a different relationship with the retailer. Different conversion rates and average order values can then be segmented for different audiences to understand and work to improve the quality of traffic or strength of propositions, for example: •First time, repeat visitor or registered customer conversion •Referring channel conversion, e.g. paid or natural search, social media, affiliates, display advertising •Search type, e.g. paid or natural, brand, generic or long-tail •Product category type – conversion rates are much higher for simple commodity products for example 82
  • 83. Andrew Curzon m: 07545 344 333 e: andrew@firstwavemarketing.co.uk