Market Performance Index Apparel, Accessories & Footwear

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  • Market Performance Index Apparel, Accessories & Footwear

    1. 1. What E-Retailers Must Know About How Shoppers Use Their Sites MarketLive Performance Index July 2007
    2. 2. Web Analytics in Use <ul><li>Overwhelming volume of data </li></ul><ul><li>Identifying actionable metrics </li></ul><ul><li>Taking action on findings </li></ul><ul><li>Establishing concrete benchmarks to measure progress and improvements </li></ul><ul><ul><li>Site Specific </li></ul></ul><ul><ul><li>Competitive Landscape </li></ul></ul>Daily Challenges for Web Merchants
    3. 3. Web Analytics in Use “ The Conversion Rate is seriously flawed in that it does not lead directly to any kind of tangible improvement in a Web site's customer experience. It's too ambiguous and too binary — it's either ‘up’ or ‘down’ — to be directly relevant.” Forrester Research
    4. 4. Competitive Benchmark: Pulse of E-retailing <ul><li>Provides e-commerce benchmark data from robust set of MarketLive merchants </li></ul><ul><ul><li>Online Revenue </li></ul></ul><ul><ul><ul><li>Earning from $2M - $200M </li></ul></ul></ul><ul><ul><li>Business Type </li></ul></ul><ul><ul><ul><li>Cataloger </li></ul></ul></ul><ul><ul><ul><li>Brand Manufacturer </li></ul></ul></ul><ul><ul><ul><li>Brick & Mortar Retailer </li></ul></ul></ul><ul><ul><ul><li>Online Pure Play </li></ul></ul></ul><ul><ul><li>Categories </li></ul></ul><ul><ul><ul><li>Apparel, Accessories & Footwear </li></ul></ul></ul><ul><ul><ul><li>Home Furnishing & Decor </li></ul></ul></ul><ul><ul><ul><li>Health & Beauty </li></ul></ul></ul><ul><ul><ul><li>Gifts </li></ul></ul></ul>MarketLive Performance Index Source: MarketLive 100 Index, June 2007
    5. 5. Competitive Benchmark: Pulse of E-retailing <ul><li>Provides a holistic view of consumer behavior online </li></ul><ul><ul><li>Benchmarks standard KPIs </li></ul></ul><ul><ul><li>Exposes under valued and overlooked metrics </li></ul></ul><ul><li>Publicly available, published quarterly at www.marketlive.com </li></ul><ul><li>Highlights specific verticals and categories </li></ul><ul><li>Tied to Intelligent Selling Tactics </li></ul>MarketLive Performance Index Source: MarketLive Performance Index, June 2007
    6. 6. Reducing the “1-and-Out”
    7. 7. Reducing the “1-and-Out” <ul><li>1-and-Out Rate </li></ul><ul><ul><li>Percentage of single-page visits on the site </li></ul></ul><ul><ul><li>Goal: A low number </li></ul></ul><ul><li>Factors Affecting the 1-and-Out </li></ul><ul><ul><li>Customer expectations (4-second rule) </li></ul></ul><ul><ul><ul><li>Site/Brand Credibility </li></ul></ul></ul><ul><ul><ul><li>Site Design & Performance </li></ul></ul></ul><ul><ul><ul><li>Meeting user goals </li></ul></ul></ul><ul><ul><ul><ul><li>Can target users easily recognize whether visit goals can be met? </li></ul></ul></ul></ul><ul><ul><li>Source of traffic </li></ul></ul><ul><ul><ul><li>Consistent marketing/promotional messaging on landing page </li></ul></ul></ul>33% of visits end after just one page
    8. 8. Reducing the “1-and-Out” <ul><li>Home Page Effectiveness </li></ul><ul><ul><li>Home page typically represents the highest percentage of single-page visits on Web site </li></ul></ul><ul><ul><li>Cater to multiple shopping behaviors and needs </li></ul></ul>Intelligent Selling Tactic #1 <ul><ul><li>… consistently provided a broader mix of relevant merchandising targeted at core customer segments. </li></ul></ul>Top MarketLive Performers
    9. 9. Reducing the “1-and-Out” MarketLive Index Top Performer <ul><ul><li>Do you know how your most value customers like to shop? </li></ul></ul>
    10. 10. Reducing the “1-and-Out” MarketLive Index Top Performers <ul><ul><li>Merchandising must convey directive call-to-action; focus on specific user benefits </li></ul></ul>Intelligent Selling Tactic #2
    11. 11. Reducing the “1-and-Out” <ul><li>Beyond the Home Page </li></ul>*Source: MarketLive Performance Index, June 2007 <ul><ul><li>Look for spikes in single-page visits that might signal an ineffective paid search campaign, natural search results link or affiliate referral. </li></ul></ul>Intelligent Selling Tactic #3 75% of single page visits occur beyond the home page*
    12. 12. Reducing the “1-and-Out” <ul><li>Marketing Effectiveness - Paid Search Analysis </li></ul><ul><ul><li>Highly targeted search term: “skort” </li></ul></ul><ul><ul><li>Strong/elevated paid ad placement </li></ul></ul><ul><ul><li>Effective ad copy </li></ul></ul>*Source: MarketLive Performance Index, June 2007 Paid Search result for “skort”
    13. 13. Reducing the “1-and-Out” <ul><li>Marketing Effectiveness -Paid Search Analysis </li></ul><ul><ul><li>Skorts category page has site’s highest “1-and-out” rate </li></ul></ul><ul><ul><li>Issue: existing category landing page does not effectively express the merchants depth of product selection </li></ul></ul>Landing page for paid search ad: “skort”
    14. 14. Reducing the “1-and-Out” <ul><li>Marketing Effectiveness - Paid Search Analysis </li></ul><ul><ul><li>Linking directly to the product detail page supports the paid ad promise of available “…in a variety of colors…” </li></ul></ul><ul><ul><li>Take advantage of cross-sell opportunities to promote additional print styles </li></ul></ul><ul><ul><li>Lead your users to the most relevant landing page </li></ul></ul>Intelligent Selling Tactic #4
    15. 15. Reducing the “1-and-Out” <ul><li>Marketing Effectiveness - Paid Search Analysis </li></ul><ul><ul><li>Highlight the variety of colors & prints available, with merchandising text or additional imagery </li></ul></ul><ul><ul><li>Call out availability of additional SKU options on the directory page: “More Colors Available” </li></ul></ul><ul><ul><li>Consistently communicate marketing/promotional messaging on landing pages </li></ul></ul>Intelligent Selling Tactic #5 Available in a dozen colors and prints More colors available
    16. 16. Converting Browsers to Shoppers
    17. 17. <ul><li>Visit-to-Cart Rate (Customer Engagement Rate) </li></ul><ul><ul><li>Measures the percentage of visits that lead to an open cart </li></ul></ul><ul><ul><li>Why it is important </li></ul></ul>Converting Browsers to Shoppers <ul><li>What are the shoppers’ expectations? </li></ul><ul><li>Do paid search or email marketing campaigns match messaging that’s actually on the site? </li></ul><ul><li>Does merchandising match shoppers’ needs? </li></ul><ul><li>Does the site engage users beyond the home page? </li></ul><ul><li>Is product content relevant and useful? </li></ul><ul><li>Are promotions timely & targeted to key customer? </li></ul><ul><li>Does the shopper trust the brand? </li></ul><ul><li>Does the shopper have concerns about security and online shopping? </li></ul><ul><li>Is pricing in line with customer expectations? </li></ul><ul><li>Are shipping and handling charges appropriate? </li></ul><ul><li>Does the checkout process allay shoppers’ privacy and security concerns? </li></ul><ul><li>What are the return policies? </li></ul><ul><ul><li>Does the shopper have concerns about security and online shopping? </li></ul></ul><ul><ul><li>Is pricing in line with customer expectations? </li></ul></ul><ul><ul><li>Are shipping and handling charges appropriate? </li></ul></ul><ul><ul><li>Does the checkout process allay shoppers’ privacy and security concerns? </li></ul></ul><ul><ul><li>What are the return policies? </li></ul></ul><ul><ul><li>Can shoppers easily find the products most relevant to their needs? </li></ul></ul><ul><ul><li>Does the merchandising engage multiple types of shoppers? </li></ul></ul><ul><ul><li>Does the site engage the user from the home page onwards? </li></ul></ul><ul><ul><li>Is product content relevant and useful? </li></ul></ul><ul><ul><li>Are promotions timely and targeted to key customer interests? </li></ul></ul>A pure indicator of the effectiveness of your site’s design, product mix, merchandising, and content to engage the user
    18. 18. Converting Browsers to Shoppers <ul><li>Factors Affecting Visit-to-Cart </li></ul><ul><ul><li>Effective Product Discovery Methods </li></ul></ul><ul><ul><ul><li>Navigation </li></ul></ul></ul><ul><ul><ul><li>Search </li></ul></ul></ul><ul><ul><ul><li>Merchandising </li></ul></ul></ul><ul><ul><li>Product Page Effectiveness </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Stock Availability </li></ul></ul>Less than 10% of visits lead to a cart What are you doing to engage your customers?
    19. 19. Converting Browsers to Shoppers <ul><li>Navigation Effectiveness </li></ul><ul><ul><li>By offering many paths to products, merchants connect shoppers with products more efficiently – and provide a richer, more engaging experience </li></ul></ul><ul><ul><li>Offer many paths to products. </li></ul></ul>Intelligent Selling Tactic #6 MarketLive Index Top Performer
    20. 20. Converting Browsers to Shoppers MarketLive Index Top Performer
    21. 21. Converting Browsers to Shoppers <ul><li>Product Page Effectiveness </li></ul><ul><ul><li>Low visits-to-carts from the product page signals that customer expectations are not being met </li></ul></ul>
    22. 22. <ul><li>Product Page Effectiveness </li></ul>Converting Browsers to Shoppers <ul><ul><li>Design a more effective product detail page for “Information Needy Shoppers” </li></ul></ul>Intelligent Selling Tactic #7 <ul><ul><li>… consistently implement effective selling tactics on product pages: </li></ul></ul><ul><ul><ul><li>Comprehensive product information </li></ul></ul></ul><ul><ul><ul><li>In-Stock Messaging </li></ul></ul></ul><ul><ul><ul><li>Visual hierarchy with prominence to “Add the Cart” </li></ul></ul></ul><ul><ul><ul><li>Alternative Images </li></ul></ul></ul><ul><ul><ul><li>Image Zoom </li></ul></ul></ul>Top MarketLive Performers Fold
    23. 23. <ul><li>Product Page Effectiveness </li></ul>Converting Browsers to Shoppers
    24. 24. Easing Checkout
    25. 25. Easing Checkout <ul><li>Checkout Abandonment Rate </li></ul><ul><ul><li>Measures the number of open carts that begin the checkout process compared with the number of actual completed orders. </li></ul></ul><ul><li>Factors Affecting Checkout Abandonment </li></ul><ul><ul><li>Forced account registration </li></ul></ul><ul><ul><li>Shipping Fees & Sticker Shock </li></ul></ul><ul><ul><li>Availability of vital information when needed </li></ul></ul><ul><ul><li>Clear & streamlined checkout process </li></ul></ul><ul><ul><li>Privacy & Security Concerns </li></ul></ul>
    26. 26. Easing Checkout <ul><li>Forced Account Registration </li></ul><ul><ul><li>Alarming trend : merchants requiring customers to register an account in order to complete their purchase </li></ul></ul>Forced registration increases fall-off by 187% Require only what you need <ul><ul><li>Guest Checkout: </li></ul></ul><ul><ul><li>8% Fall-off at this stage </li></ul></ul><ul><ul><li>Forced Registration: </li></ul></ul><ul><ul><li>23% Fall-off at this stage </li></ul></ul>
    27. 27. Easing Checkout <ul><li>Forced Account Registration </li></ul><ul><ul><li>Sites that required mini-registration (email only) experienced a 12% higher fall-off rate at that step of checkout versus sites that allowed guest checkout </li></ul></ul><ul><ul><li>Implement “Mini-registration” model when requiring registration. </li></ul></ul>Intelligent Selling Tactic #8 <ul><ul><li>Mini-registration: </li></ul></ul><ul><ul><li>9% Fall-off at this stage </li></ul></ul>
    28. 28. To Do List…Start Tomorrow <ul><ul><li>Reducing the “1-and-Out” </li></ul></ul><ul><ul><li>Cater to multiple shopping behaviors and needs </li></ul></ul><ul><ul><li>Merchandising must convey directive call-to-action; focus on specific user benefits </li></ul></ul><ul><ul><li>Look for spikes in single-page visits that might signal an ineffective paid search campaign, natural search results link or affiliate referral. </li></ul></ul><ul><ul><li>Lead your users to the most relevant landing page </li></ul></ul><ul><ul><li>Consistently communicate marketing/promotional messaging on landing pages </li></ul></ul><ul><ul><li>Turning Browsers into Shoppers </li></ul></ul><ul><ul><li>Offer many paths to the same product. </li></ul></ul><ul><ul><li>Design a more effective product detail page for “Information Needy Shoppers” </li></ul></ul><ul><ul><li>Easing Checkout </li></ul></ul><ul><ul><li>Implement “Mini-registration” model when requiring registration </li></ul></ul><ul><ul><li>And more…available in the research report </li></ul></ul><ul><ul><li>Ensure that search results pages are more engaging and actionable. </li></ul></ul><ul><ul><li>Move information back up the purchase path to prevent last-minute snags in checkout. </li></ul></ul><ul><ul><li>Attaching ROI to Customer Reviews </li></ul></ul><ul><ul><li>Use Signposts to Drive Shoppers to Completion </li></ul></ul>Intelligent Selling Tactics That Drive Results

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