Maximizing Sales from eCommerce Sites (Forte Consultancy Group)

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- Description of visitor and customer lifecycle in eCommerce
- Global best practices in boosting eCommerce sales
- Key guidelines for effective eCommerce lifecycle management
- Key eCommerce performance indicators
- Benchmarks on key eCommerce performance indicators

Published in: Economy & Finance, Business
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  • What should you do first to improve your eCommerce website? Improve photos, simplify checkout, add chat, add reviews, add deals, add related products, etc.

    The best way to improve your eCommerce's ROI is to coordinate enhancements with an eCommerce Software Development Expert. It's tough for a novice to know the exact enhancement and buying psychology to maximize purchases.

    I've been fortunate to work with several of these experts. I'd actually be happy to provide a referral to anyone that needs an introduction.

    Brett Miller
    dev @ cspreston . com
       Reply 
    Are you sure you want to  Yes  No
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Maximizing Sales from eCommerce Sites (Forte Consultancy Group)

  1. 1. eCommerce Services Managing Customer Lifecycle in Online Stores Limited Edition November, 2008 Note: This is a limited edition of a comprehensive deck which includes 59 best practices. To receive the complete deck free of charge, please contact info@forteconsultancy.com
  2. 2. eCommerce market presents vast opportunities for companies with the right capabilities and in order to capitalize on such opportunity, we help companies build and grow relations with their customers Moving online store visitors up the relationship ladder LOYAL provides significant opportunities for growth:  Loyal customers have almost double visit to carts  Loyal customers have almost triple conversion rate  Loyal customers have 10% higher cart value Source: MarketLive Performance Index PURCHASED INTERESTED We identify amount of AWARE UNAWARE customers and prospects in each stage and define targets as basis for strategic priorities. 2 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  3. 3. Companies should analyze such relations for eCommerce sites across customer lifecycle… Visited Subscribed Viewed Item Added Item Abandoned Site Abandoned Cart Returned Goods Bounced Payment Initiated Check-out Paid Initiated Payment 3 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  4. 4. …and develop actions and programs for opportunities identified across this cycle Only about 35% of visits are generated from Only 9% of visits search engines. Visited Subscribed Viewed Item end up in carts. Around 40% of Overall cart customers have 1 abandonment rate and out behavior. is around 60%. Added Item Abandoned Site Abandoned Cart Returned Goods Bounced Payment Initiated Check-out Over 50% of 80% of online check-outs are customers do abandoned. not have repeat Paid Initiated Payment orders. Source: MarketLive Performance Index 4 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  5. 5. Information should be at the hearth of all decisions and actions throughout this cycle Mature Decisions Well-Informed Stage Decision Quality • Decisions are based on absolute facts • All actions have consistency We help companies make most • Facts direct business • Key factor for success is accuracy out of their information base and take actions based on them… • Some decisions are based on facts • Some actions have consistency • Facts direct some parts of business • Key factor for success is focus Impromptu Stage • Decisions are based on opinions • Actions have limited consistency • Personal motivations direct business • Key factor for success is experience • Decisions are not consciously made • Actions do not have consistency Guesswork • Daily happenings direct business Stage • Key factor for success is luck Free Fall Stage Maturity 5 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  6. 6. Most leading retail and eCommerce companies leverage customer insights in their operations, using various tools, such as customer segmentation Purchase Behavior Needs Demographics Category Behavior Office Administrator Brand Aspirationals Business Reseller Value-Seeking Price Value Shoppers Institutional Buyer Sophie (Older shopper / Variety-Seeking empty nester) Trendy Quality Seekers Foodservice Entrepreneur Brand-Seeking Caroline (Young, single Price Sensitive Affluents Traditional Club Shopper working woman) Simplicity-Seeking One Stop Shoppers Demanding / Experiential Vanessa (Married with Discovery-Seeking Shopper children) Conscientious Objectors Quality-Seeking Mom / Family CEO Social Shoppers Active Boomer Sample 6 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  7. 7. Such analytics practices require collection of right customer data, through various means… Additional Services for Differentiation of Corporate Golden Questions in Registration Information vs. Individual Registration Customer Clubs for Information Collection and Interest Identification Sample 7 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  8. 8. …which can range from basic customer identification data to in-depth customer and social network profiling Personal Shopper provides highly customized recommendations and value added services in return for detailed demographics, life-style and preference information. Sample 8 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  9. 9. In addition to customer data, it is also critical to analyze pure web traffic data to incorporate Internet user insights into actions Sample Seasonal search engine optimization for ‘shopping’ keyword would result in higher ROI. Search keyword analysis, as well as traffic source/destination analyses can have substantial impact on visibility of online stores. 9 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  10. 10. First step in eCommerce customer lifecycle is visit to the online store, which requires effective acquisition activities Focus Area Objectives Sample KPIs Create Visits  Number of Visits per Month  Unique Visitor Count per Month Attract different types of visitors to site  Advertising Cost per Visitor using alternative channels and  % of Visitors Bookmarked Site approaches, providing differentiating Visited  Page Rank of Homepage value add Guidelines Use search Customize engine acquisition optimization approach by using traffic prospect insights segment Utilize Provide variety of additional acquisition reasons for channels visiting site 10 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  11. 11. Providing alternative means for visit attracts prospects with certain channel habits Sample Case Utilize variety of acquisition channels Enriching means and media of access is inline with the global telecommunications trend towards convergence… Note: This is a sample out of 59 best practices available in ebay’s launch of desktop and mobile version of its shopping complete deck. To receive the complete deck free of charge, environment increases convenience for customers accustomed please contact to use of certain tools and channels. info@forteconsultancy.com 11 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  12. 12. Once visitor traffic is created, the next step is subscription of visitors, in order to enable tracking and acting on customer information Focus Area Objectives Sample KPIs  Subscriber / Visitor Ratio Subscribe Visitors  Total Unique Subscriber Count Motivate subscription at first sight,  Number of Subscriptions per Month providing additional value add and good  % of Subscribers with Full Data Visited Subscribed first impression  Duration From Visit to Subscription Guidelines Call to action Provide for immediate subscription value add for on landing subscription page Make Promote subscription competitive fast and value convenient propositions 12 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  13. 13. Over 70% of customers are interested in in-store pickup service, which can differentiate multi-channel retailers against pure eCommerce players Sample Case Promote competitive value propositions In-store pickup is a lower cost option for retailers, where speed and lower pricing can also be attractive for customers… Note: This is a sample out of 59 best practices available in complete deck. To receive the Circuit City provides in-store pickup for faster and cheaper complete deck free of charge, delivery of online purchases. please contact info@forteconsultancy.com 13 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  14. 14. In order to have subscribers make purchases, the first requirement is creating interest in items and making merchandise easily accessible Focus Area Objectives Sample KPIs  Number of Items Viewed per Visit Create Interest in Items  Number of Items Viewed per Subscriber Make items of interest easily accessible  % of Subscribers Viewing Items and pro-actively communicate relevant  Number of Categories Viewed per Subs. Subscribed Viewed Item information on merchandise  % of Items Not Viewed for Long Time Guidelines Use effective Provide and ability to alternative search with categories alternate for items means Provide Pro-actively creative and recommend instructive items item views 14 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  15. 15. Using alternative categorization schemas for items increase usability and are proven to increase conversion rates by 34% Sample Case Use effective and alternative categories for items Providing alternative categorizations for products let customers reach out to searched items faster and easier… Note: This is a sample out of 59 best practices available in Schwan’s provides alternative categorization, making its complete deck. To receive the complete deck free of charge, products more accessible for customers looking for certain please contact types of offerings. info@forteconsultancy.com 15 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  16. 16. Conversion of interest into purchase intent is a key step, where high performing retailers can increase their bottom-line significantly Focus Area Objectives Sample KPIs  % of Views Resulting in Item Add Create Purchase Intent  Number of Items per Cart Translate interest into action by learning  Value per Added Item from customers’ interests and following  % of Items Viewed but not Added Freq. Viewed Item Added Item up effectively  % of Subscribers Viewing Items Only Guidelines Follow-up Follow-up and promote interest in viewed out-of-stock items’ items purchase Identify and Translate act on interest into subscribers wish lists for using site for future viewing only purchase 16 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  17. 17. Customers who were interested in out-of-stock items are the most likely targets for these items after replenishment Sample Case Follow-up interest in out-of-stock items Personalized e-mails after restock do not only create good sales opportunities, but also provide a good experience for customers… Note: This is a sample out of 59 best practices available in complete deck. To receive the Roots sends e-mails to inform customers about restocked complete deck free of charge, items, which they could not purchase earlier due to stock-out. please contact info@forteconsultancy.com 17 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  18. 18. Keeping customers on-site and cross-selling before check-out require pro-active actions, which can create substantial ROI Focus Area Objectives Sample KPIs  % of Item Adds Abandoned Create Check-out Intent  % of Item Adds Removed Avoid abandonment of added items  % of Cart Value Proceeded to Checkout providing convenient transition to check-  Average Item Time in Cart Added Item Init. Check-out out and following up  Average Time to Checkout Guidelines Provide one Cross-sell click check- before out check-out Make added Make single items item accessible purchase even if faster abandoned site 18 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  19. 19. Single item purchase should be even easier, using already provided information about customer Sample Case Make single item purchase faster Especially for non-grocery retailers, one item purchases are frequent transactions, which should be given extra attention… Note: This is a sample out of 59 best practices available in complete deck. To receive the Amazon provides ability to purchase single item right away complete deck free of charge, without need for visit to check-out screen. please contact info@forteconsultancy.com 19 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  20. 20. Cart abandonment is a major issue for eCommerce sites, where convenient check-out process as well as rigorous follow up are keys to success Focus Area Objectives Sample KPIs  % of Check-outs Abandoned Avoid Abandonment  % of Potential Value Abandoned  % of Abandoned Carts Purchased Later Ensure completion of check-out with  % of Abandonment to Competitor Site convenient processes and cart follow-up Init. Check-out Initiated Payment  % of Subscribers with Abandoned Carts Guidelines Motivate Provide abandoned convenience cart and speed in purchase checkout with benefits Remind and Make cart follow up available in abandoned next visit if cart abandoned 20 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  21. 21. Providing extra benefits for checking out abandoned cart can motivate this transaction Sample Case Motivate abandoned cart purchase with benefits A multi-step reminder and benefits system for abandoned carts can create the highest response rate while keeping cost as low as possible… Note: This is a sample out of 59 best practices available in Zales uses multi-step approach in its offers, first reminding complete deck. To receive the customers about their abandoned cart without any complete deck free of charge, promotions, than offering a discount in second reminder e- please contact mail. info@forteconsultancy.com 21 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  22. 22. Problems experienced in payment process not only mean lost cart sales, but also could become a reason for customers lost forever Focus Area Objectives Sample KPIs  % of Payments Bounced Ensure Payment  % of Potential Value Bounced  % of Bounced Payments Abandoned Process payment securely and using  Payment Attempts per Purchase alternative means Initiated Payment Paid  Number of Fraudulent Cases Identified Guidelines Keep Provide customers alternative informed means for about payment payment process Ensure and Follow-up promote and recover payment failed security payments 22 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  23. 23. Providing gift cards as payment alternatives can even attract those who do not usually shop online Sample Case Provide alternative means for payment Gift vouchers are effective for acquiring new customers and facilitating payment by alternative means… Note: This is a sample out of 59 best practices available in Amazon provides gift cards for both retail and corporate complete deck. To receive the complete deck free of charge, customers, to be used as gifts and incentives for employees or please contact own customers as alternative means for payment. info@forteconsultancy.com 23 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  24. 24. With a first purchase completed, the next stage is to close the cycle, getting customers revisit and repurchase Focus Area Objectives Sample KPIs  % of Subscribers with 2 Purchases Create Repeat Visits  % of Subscribers with >2 Purchases Identify and motivate non-returning  % of Subscribers with >1 Visit customers providing additional  % of High Value Loyalists Paid Visited information and value add  % of Subscribers with Returned Goods Guidelines Regularly Provide provide new value add for content and repeat offerings business Pro-actively Recommend take actions for cross and for dormant up-sales visitors 24 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  25. 25. Pro-active communication offering additional benefits is also necessary to reactivate dormant customers Sample Case Pro-actively take actions for dormant visitors Showing that the company cares about doing business with the customer and offering additional benefits can motivate customers return to site… Note: This is a sample out of 59 best practices available in complete deck. To receive the Avon pro-actively communicates with its dormant customers complete deck free of charge, and uses free shipping to motivate re-activation. please contact info@forteconsultancy.com 25 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  26. 26. Forte Consultancy Group provides services in increasing eCommerce performance, through effective strategies and tactics across customer lifecycle Forte Consultancy Group can assist you … Contact us for details at info@forteconsultancy.com Do you know your own performance across Are you aware of the untapped potential of your site Visited Subscribed Viewed Item customer lifecycle? and have strategies and tactics to realize them? We can assist you in We can assist you in  Assessment of eCommerce current state  Definition of eCommerce KPI and targets  Re-engineering of customer experience  Analysis of current eCommerce performance Added Item Abandoned Site  Design and execution of marketing communications  Design and set-up of performance reporting  Design and execution of one-time and repeating campaigns  Refinement of product portfolio and value propositions Can you use customer intelligence effectively to Abandoned Cart  Refinement of web site design features target customers and take the right actions? with customized approach for each of following objectives We can assist you in Returned Goods Bounced Payment  Creating visits Initiated Check-out   Subscribing visitors Definition of ideal data elements to be collected   Creating interest in items Segmentation of visitors and customers   Creating purchase intent Prediction of site abandonment & churn risk   Creating check-out intent Analysis of cross and up-sales likelihood   Avoiding abandonment Prediction of customer response to offers Paid Initiated Payment   Ensuring payment Automation of advanced recommendations   Creating repeat visits Discovery of main and niche targets for campaigns 26 Forte Consultancy Group © 2008 Forte Consultancy Group. All Rights Protected and Reserved.
  27. 27. Forte Consultancy Group | Istanbul Office The information contained in this document, much of which is confidential to Forte Consultancy Group, is for the sole use of the intended recipients. No part of this  Dereboyu Sok. Sun Plaza Kat:13 document may be reproduced in any form or by any means, electronic, mechanical, Maslak, Istanbul - Turkey photocopying, recording, or otherwise, without the prior written permission of Forte @ info@forteconsultancy.com Consultancy Group.  +90 212 366 02 66

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