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Sample conversion-report-2010 Document Transcript

  • 1. Market Data / Supplier Selection / Event Presentations / User Experience Benchmarking / Best Practice / Template Files/ Trends & InnovationConversion Report 2010In association with RedEyeSAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report
  • 2. ConversionReport 2010Published October 2010 Econsultancy London Econsultancy New York 4th Floor, The Corner 41 East 11th St., 11th Floor 91-93 Farringdon Road New York, NY 10003 London EC1M 3LN United StatesAll rights reserved. No part of this publication may be United Kingdomreproduced or transmitted in any form or by any means, Telephone:electronic or mechanical, including photocopy, recording Telephone: +1 212 699 3626or any information storage and retrieval system, without +44 (0)20 7269 1450prior permission in writing from the publisher. http://econsultancy.comCopyright © Econsultancy.com Ltd 2010 help@econsultancy.com
  • 3. Contents 1. Executive Summary and Highlights ................................ 1 1.1. Key findings: ................................................................................. 1 2. Introduction by RedEye ................................................... 3 2.1. About RedEye .............................................................................. 4 2.2. About Econsultancy .................................................................... 4 3. Methodology and sample................................................. 5 3.1. Methodology ................................................................................ 5 3.2. Respondent profiles .................................................................... 5 3.2.1. Annual company turnover ............................................................................. 6 3.2.2. Business sector ............................................................................................... 7 3.2.3. Geography ...................................................................................................... 8 4. Findings ........................................................................... 9 4.1. Types of conversion and measurement ...................................... 9 4.1.1. Conversions relevant to organisation ........................................................... 9 4.1.2. Types of conversion rates measured ........................................................... 13 4.1.3. Methods used to measure conversion......................................................... 17 4.1.4. Satisfaction with online conversion rates .................................................. 20 4.1.5. Improvement in online conversion rates in the last year .......................... 22 4.2. Tools and strategies ................................................................... 24 4.2.1. Methods currently used for improving conversion rates ........................... 24 4.2.2. Methods planned for improving conversion rates .....................................28 4.2.3. Value of methods used for improving conversion rates ............................ 32 4.2.4. Cart abandonment ....................................................................................... 36 4.2.5. Impact of technologies on conversion rates ............................................... 42 4.3. Best practice .............................................................................. 46 4.3.1. Best practices carried out by organisations ................................................ 46 4.3.2. Most effective technique for improving conversion rates .........................50 4.4. Testing ....................................................................................... 52 4.4.1. Areas of testing ............................................................................................. 52 4.4.2. Levels of testing ............................................................................................ 54 4.4.3. Tools and services used to test websites ..................................................... 56 4.4.4. Elements of websites tested......................................................................... 58 4.4.5. Number of tests carried out on website per month .................................. 60 4.4.6. Measuring the effectiveness of changes made to website .......................... 62 4.4.7. Elements of email marketing tested ........................................................... 66 4.4.8. Number of email marketing tests carried out per month ..........................68 4.4.9. Tools and services used to test email .......................................................... 70 Conversion Report 2010 In association with RedEye All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 4. 4.5. Segmentation ............................................................................. 72 4.5.1. Ways of segmenting site visitors and customers ........................................ 72 4.5.2. Types of transactional segmentation carried out ....................................... 74 4.5.3. Types of behavioural segmentation carried out ......................................... 77 4.5.4. Types of media interaction segmentation carried out .............................. 80 4.5.5. Number of different segments ....................................................................83 4.5.6. Uses of segmentation ................................................................................... 85 4.6. People and processes................................................................. 89 4.6.1. Number of staff responsible for improving conversion rates ....................89 4.6.2. Personal involvement in improving conversion rates .............................. 90 4.6.3. Perceived control over conversion rates ..................................................... 91 4.6.4. Incentives based on conversion rates ......................................................... 95 4.6.5. Approach to improving conversion rates ................................................... 97 4.6.6. Barriers to improving conversion rates ...................................................... 99 4.6.7. What would make the biggest difference to conversion rates? ............... 1025. How to improve the conversion process: a four-stage plan............................................................................... 105 5.1. Stage 1: Analyse ....................................................................... 106 5.2. Stage 2: Test ............................................................................ 108 5.3. Stage 3: Optimise .................................................................... 109 5.4. Stage 4: Measurement .............................................................. 113Conversion Report 2010 In association with RedEyeAll rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 5. 1. Executive Summary and Highlights This is Econsultancy‟s second Conversion Report, carried out in association with RedEye. The research is based on a survey of more than 700 client-side and agency digital marketers carried out in August and September 2010. The study looks at the types of conversion and measurement used, as well as tools, strategies and processes employed for improving conversion rates. The report also examines different areas of best practice and identifies which techniques and methods are most valuable for improving conversion rates. The aim is to provide data and a framework to help companies invest their time and resources as effectively as possible, by examining which methods and processes are most likely to yield results. The report includes RedEye‟s four-stage plan for improving the conversion process.1.1. Key findings:  Since last year, there has been a slight decrease in the proportion of companies that are “quite dissatisfied” or “very dissatisfied” with their conversion rates – from 39% to 36%. However, only 26% are “quite satisfied” and not one company reported being “very satisfied”.  As was the case for last year‟s survey, 70% of companies said they have seen an improvement in conversion rates over the last 12 months.  There has been a significant increase in the use of A/B testing, with almost half of companies surveyed (44%) now using this method.  The more ways used to improve conversion the better. Survey respondents whose conversion had improved over the previous 12 months used nearly one and a half times more methods to improve conversion than those whose conversion had not improved.  More than a third of companies surveyed (34%) do not test multiple landing pages. However, the proportion of companies “doing this well” has increased by 8% since 2009.SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 1 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 6. 2. Introduction by RedEye RedEye is delighted to sponsor this second Econsultancy RedEye Conversion Report and would like to thank all the survey participants. The overwhelming response to the survey clearly reflects the growing importance of website conversion to businesses operating online. Why is conversion important? According to ZenithOptimedia $56.8 billion will be spent this year on generating traffic, but only 2 to 3% of visitors will actually convert. Clearly there is a lot of headroom in improving conversion which is a major opportunity for online marketers. So why are conversion rates not better than they are? Our experience is that this is because improving conversion is complex. This is why we have sponsored this research to help improve industry best practice and make it easier for all digital marketers (including ourselves!) to get better results. Coming from the perspective of a business that works with clients to improve their website conversion, the results reinforce a number of the practical trends we see on a day-to-day basis:  If improving website conversion was easy everyone would be doing it! It involves many different technologies, analytical methods and skills.  Improving conversion is like eating the proverbial elephant. You cannot do it in one go; you need to break it down into specific parts. There are many methods and prioritising those methods is important.  Many successful techniques such as testing and segmentation are grounded in direct marketing practices which have been applied successfully offline for many years.  Improving conversion is a continuous process. There is no magic bullet. Looking around the industry you could be forgiven for thinking that improving conversion was simply a matter of buying the latest technology. As practitioners we know this is simply not true. Improving conversion requires both technology and people. It is what you do with the technology that really counts. Having a structured approach to conversion was one of the most predictive variables for website conversion success. A staggering 89% of survey respondents who had a structured approach to improving conversion had seen improved conversion rates in the last 12 months. For this reason we have included a white paper we recently wrote on how to develop a structured approach to improving website conversion. Also, companies‟ lack of resources is cited in the report as the biggest barrier to improving conversion. The white paper will show how you can prioritise scarce resources to get the best results for your money. I hope this report helps you improve your online marketing. Enjoy! Mark Patron, CEO, RedEyeSAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 2 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 7. 2.1. About RedEye RedEye provides an integrated service of web analytics, email marketing and usability. Our services help clients understand their customers, and target and communicate with them more effectively in order to improve conversion. RedEye is the leader in behavioural email. Behavioural email integrates web analytics data with email marketing to send relevant and targeted email campaigns based on a users individual online browsing behaviour. Sending targeted email campaigns based on site behaviour and personalising from data can drive a 30-40% increase in response and conversion. Our behavioural email campaigns typically generate at least a 750% ROI. RedEye‟s data warehouse and web analytics tools are the most accurate possible enabling an extremely in-depth analysis of user behaviour. This includes the ability to look beyond the last click and analyse the full customer journey. This enables companies to precisely attribute media spend leading to effective media planning. RedEye‟s usability services help answer crucial questions of why users behave in a certain way (eg. failure to complete a purchase). Pinpointing these problems allows clients to make the necessary changes needed to improve user experience and ultimately improve conversion. At RedEye we pride ourselves on having an extensive and highly specialised team who work on a strategic, tactical and administrative level to help clients get the most from their online opportunities. RedEye was established in 1997. In 2005 the company bought e-relationship marketing Ltd, „e- rm‟, and began the drive towards integrating email and web analytics in order to increase the return on investment for customers. Capabilities grew and in 2006 a unique behavioural email marketing solution became available. During this time optimum.web Ltd also became part of RedEye, expanding RedEye‟s services to website usability. RedEye now helps many online companies improve conversion. Clients include Monarch Airlines, Interflora, Butlins and Sainsbury‟s Bank. To find out more about RedEye visit www.redeye.comSAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 3 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 8. 2.2. About Econsultancy Econsultancy is a digital publishing and training group that is used by more than 200,000 internet professionals every month. The company publishes practical and timesaving research to help marketers make better decisions about the digital environment, build business cases, find the best suppliers, look smart in meetings and accelerate their careers. Econsultancy has offices in New York and London, and hosts more than 100 events every year in the US and UK. Many of the worlds most famous brands use Econsultancy to educate and train their staff. Some of Econsultancy‟s members include: Google, Yahoo, Dell, BBC, BT, Shell, Vodafone, Virgin Atlantic, Barclays, Deloitte, T-Mobile and Estée Lauder. Join Econsultancy today to learn what‟s happening in digital marketing – and what works. Call us to find out more on +44 (0)20 7269 1450 (London) or +1 212 699 3626 (New York). You can also contact us online.SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 4 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 9. 3. Methodology and sample3.1. Methodology This is Econsultancy‟s second Conversion Report carried out in association with RedEye. There were more than 700 respondents to our research request, which took the form of an online survey1 in August and September 2010. Respondents included both client-side (in-house) organisations who want to improve their conversion rates, and agencies, vendors or consultancies (supply-side) who are involved in trying to improve conversion rates for their clients. The findings are shown for client-side (i.e. „company respondents‟) and supply-side („agency respondents‟) separately. Information about the survey, including the link, was emailed to Econsultancy‟s user base and promoted online via Twitter and other channels. The incentive for taking part was access to a free copy of this report just before its publication on the Econsultancy website. If you have any questions about the research, please email Econsultancy‟s Research Director, Linus Gregoriadis (Linus@econsultancy.com).3.2. Respondent profiles More than half (55%) of survey respondents work for client-side organisations that are trying to improve conversion rates, whilst 41% work for agencies, vendors or specialist consultancies. Figure 1: Which of the following best describes your job role? Response: 702 1 Econsultancy uses Clicktools for its online surveys Conversion Report 2010 Page 5 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 10. 3.2.1. Annual company turnover There is a good representation of organisations across the full spectrum of company size. Just under a fifth of companies (19%) have an annual turnover of less than £1m, whilst over a quarter of respondents (28%) have revenues of between £1m and £10m. Over half of companies surveyed (53%) have a turnover of more than £10m, and 27% of respondents are earning more than £150m annually. Companies Figure 2: What is your annual company turnover (revenue)? Response: 278SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 6 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 11. 3.2.2. Business sector Client-side respondents come from a wide range of sectors, with retail (24%), financial services (12%), publishing (11%) and travel (10%) being the best represented. Figure 3: In which business sector is your organisation? Response: 281SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 7 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 12. 3.2.3. Geography The majority of companies surveyed (70%) are UK-based, whilst most of the remaining ones are based in mainland Europe (12%) and North America (8%). Companies Figure 4: In which country/region are you (personally) based? Response: 281 Just over half of agencies (55%) are based in the UK, whilst 17% are from Europe and 13% are from North America . Agencies Figure 5: In which country/region are you (personally) based? Response: 206 Conversion Report 2010 Page 8 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 13. 4. Findings4.1. Types of conversion and measurement4.1.1. Conversions relevant to organisation The chart below shows that the most widespread types of conversion are sales (85%) and sign-ups / registrations (69%). Significantly more companies than last year (+12%) consider sales to be a more relevant conversion type. Companies Figure 6: What types of conversions or actions are relevant to your organisation? Response: 352SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 9 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 14. 4.1.2. Types of conversion rates measured Nearly three quarters of companies (71%) measure overall site conversion to sale, while more than half of respondents (54%) measure overall site conversion to response. There has been a significant increase in the proportion of companies measuring basket conversion rate, from 35% in 2009 to 42% this year.4.1.3.4.1.4. Methods used to measure conversion The table below summarises the different methods used to measure conversion, while Figure 15 shows the extent to which they are used by company respondents. Methods used to measure conversion Method used Formula Sales as a proportion of overall visits Number of sales / (divided by) visits Key actions as a proportion of overall visits Number of key actions / visits Sales as a proportion of leads Sales / leads Sales as a proportion of started baskets Sales / number of started baskets Key actions as a proportion of ‘unbounced’ visits Number of key actions / (visits – bounced) Sales as a proportion of unbounced visits Number of sales / (visits – bounced)SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 10 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 15. 4.2. Tools and strategies4.2.1. Methods currently used for improving conversion rates More than half of responding companies use customer journey analysis (54%) and copy optimisation (53%) to improve their conversion rates, making these the most commonly used methods [Figure 22].4.2.2. Cart abandonment Figure 34 shows that targeting consumers who abandon shopping carts or „drop off‟ during the buying process is not a widespread practice among companies. More than half of company respondents (53%) do not target these consumers. Companies Figure 7: Do you target consumers who abandon shopping carts or drop off during the buying process? Response: 296SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 11 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 16. 4.3. Best practice4.3.1. Most effective technique for improving conversion rates Survey respondents were asked to identify the single most effective action they had taken to improve online conversion rates. Analysis of verbatim answers revealed that the following techniques are considered to be most effective:  A/B and multivariate testing  Building a new website  Customer journey analysis  Cart abandonment analysis  Improving the checkout process  Copy optimisation  Improved navigation and layout on landing pages/product pagesWhat has been the single most effective thing you’ve done to improve yourconversion rates? SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report SAMPLE QUOTE Conversion Report 2010 Page 12 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 17. 4.4. Testing4.4.1. Areas of testing Figure 48 shows the most common areas that organisations test. Just over three-quarters of company respondents (77%) test their websites, while 60% test landing pages. Companies Figure 8: What areas do you test? Response: 289SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 13 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 18. 4.5. Segmentation4.5.1. Ways of segmenting site visitors and customers As Figure 68 shows, there has been a significant increase across the full spectrum of ways of segmenting visitors and customers. As was the case last year, demographic (58%), geographic (50%) and behavioural (47%) data are the most commonly used ways of segmenting visitors and customers. Responding companies whose conversion has improved over the previous 12 months are more likely to segment their visitors.SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 14 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 19. 4.6. People and processes4.6.1. Barriers to improving conversion rates For half of company respondents, the biggest barrier to improving conversion rates is lack of resources. The lack of budget is a major barrier for 29% of respondents, although this issue has decreased in significance since last year [Figure 98]. Just under a quarter of companies (24%) are hindered by the poor integration between systems, their siloed organisation and conflict of interest between different departments. Around a fifth of responding companies (22%) say poor technology is a problem, but the slight decrease since last year (-3%) provides evidence that technology has become more reliable. Figure 100 shows that significantly more agency respondents than last year (+16%) cite lack of strategy as a barrier.SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report . Conversion Report 2010 Page 15 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 20. 5. How to improve the conversion process: a four-stage plan The following information is based on the RedEye white paper: How to improve conversion – A detailed look at the conversion improvement process2 Every business selling online wants to improve conversion. With it commonly accepted that the average online website conversion rate is only 2% to 3% clearly things could be better. The truth is improving conversion is complicated. If it was easy everybody would be getting better results.5.1. Stage 1: Analyse To improve online conversion it is critical you understand your business and understand your online customers; and understanding begins with analysis. In order to fully analyse your online business here are a few basic areas you need to address.KPIs to consider SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-reportSAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report 2 http://www.redeye.com/events/whitepapersandreports/how-to-improve-conversion/ Conversion Report 2010 Page 16 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 21. 5.2. Stage 2: Test Testing is key to improving website conversion. Once you understand how your customers are behaving on your website you need to assess what will affect behaviour. What actions and changes can you make to positively influence buyer behaviour and increase conversion? Table 1: How valuable do you find the following methods for improving conversion rates Proportion of respondents saying “highly valuable” A/B testing Sample Customer journey analysis ... Multivariate testing ... Cart abandonment analysis .... User testing ... Online surveys/customer feedback ... Event-triggered/behavioural email ... Segmentation ... Copy optimisation ... Expert usability reviews/consultancy ... Pinch-point analysis ...SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 17 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 22. 5.3. Stage 3: Optimise After carefully analysing and testing you will then be in a position to begin to optimise your website based on the information you have extracted about your users.Segmentation check-list SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-reportExamples of segments Purchased any product: SAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-report Conversion Report 2010 Page 18 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010
  • 23. 5.4. Stage 4: Measurement The final stage in the process is measurement. In order to continually improve conversion you need to continually assess your activity and the market place. Remember you cannot manage what you cannot measure. Here are a few of the most important practices to keep your conversion rates ever increasing. BenchmarkingSAMPLE ONLY. Please download the full report from: http://econsultancy.com/reports/conversion-reportThe original RedEye white paper, covering the four stages of the conversion improvementprocess and a range of client case studies can be downloaded for free from the RedEyewebsite: www.redeye.com/events/whitepapersandreports/how-to-improve-conversion Conversion Report 2010 Page 19 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2010