The Conversion Quotient
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Jeff Refuse of Amazon explains the concept of The Conversion Quotient: plotting how businesses who adopt Amazon Payments as part of their checkout process experience creating conversion in their online stores.
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The Conversion Quotient
- 1. THE CONVERSION QUOTIENT JEFF RAFUSE - AMAZON PAYMENTS
- 2. Top merchant challenges • Attracting qualified shoppers • Meeting rising consumer expectations • Converting shoppers into customers • Mobile readiness • Managing risk
- 3. The Conversion Quotient Mindshare Investment Value / Utility / Visibility Time / Hassle / Risk
- 4. Getting real about mindshare • What % of your customers create an account with you? • How frequently does your average customer purchase? • What % of your carts are abandoned? • What % like, share, or mention you via social media? • What % rate or provide feedback on their experience? • What % of your customers would recommend you? ?
- 5. 2/3 of online shoppers abandon their shopping carts without paying. Source: Corporate Eye, January 2014
- 6. Two levers 1 Raise Mindshare • Invest More Money • Invest More Time • Test & Optimize Lower Investment • Reduce Time • Reduce Hassle • Reduce Risk 2
- 7. Make it fast Minimize data entry. Remember and pre- populate whenever possible. Eliminate unnecessary clicks. Optimize load times. Make it easy Make it familiar and intuitive, anything less is frustrating. Never make them do the same thing twice. Make it safe Stand behind your products and services. Take security seriously. Look for opportunities to leverage the work and investment of others.
- 19. DOWNLOAD THIS PRESENTATION AT: WWW.SLIDESHARE.NET/MIVAMERCHANT JEFF RAFUSE
Editor's Notes
- 0:60 [The Warmer – Build credibility by reading the merchant’s mind] Here are a few of the challenges most frequently surfaced by the merchants we speak with. [Click] They tell us that attracting quality shoppers is tougher than ever. The level of competition, fragmentation and noise is as high as it has ever been. [Click] They share with us that customer expectations are high and climbing. Consumers want more, better, easier and faster and they want it all for less. [Click] Getting shoppers to register, let alone purchase is difficult – leaving most carts empty or abandoned. [Click] This is compounded in mobile where space is limited, formats are varied, and data entry is cumbersome. [Click] They express frustration with the escalation of compliance and security requirements that continue to leech resources away from revenue-driving initiatives. [Transition to Conversion Quotient] Merchants are making a variety of investments to address these challenges from marketing programs, to security audits, check-out flow revisions and the development of mobile applications. It may prove helpful to have a framework for thinking about ecommerce health and performance when making tradeoffs between such initiatives.
- 0:60 [The Reframe – Recast the unrecognized problem, need, or assumption] The Conversion Quotient is a simple framework we use to illustrate the tension that exists a the point of transaction. There are two primary factors; Mindshare – the relative importance of your product in a prospect’s mind, and Investment - the perceived level of energy required of a prospect to complete a purchase. Mindshare over Investment essentially means that if the prospect perceives the time, hassle, and risk required of them to be outsized relative to the value, utility and visibility expected from the product or service, conversion is unlikely. Imagine a lengthy credit application for a pack of gum. While this is a silly exaggeration, the unfortunate truth is that, as merchants, we often (almost always) overestimate the mindshare our prospects are assigning to the [beloved] products and services we offer.
- 0:60 [The Reframe – Recast the unrecognized problem, need, or assumption] The reality is that few brands can achieve let alone sustain significant mindshare – brands like Starbucks, Apple and Nike are exceptions. The rest of us need to formulate strategies to maximize our conversion quotient even in the absence of significant mindshare. These questions can help us get real about our mindshare: For most merchants, it is a small minority of our visitors that become shoppers, or subscribers, and even fewer that become customers. Those who do, purchase infrequently and don’t share much with us or their network about the experience.
- 0:30 [Rational Drowning – Proof that the problem (Low Conversion Quotient) is real and material. Stats.] If you’re feeling like you have a low conversion quotient, you’re not alone. There’s a lot of data and statistics out there that indicate low conversion quotient is prevalent even among top merchants. Fireclick / Digital River reports an average documented shopping cart abandonment rate of 67.89%. (Fireclick, December 2013) 2 out of 3 online shoppers abandon their shopping carts without paying. (Corporate Eye, January 2014) Note: Need more stats supporting low convertibility of most sites – mobile conversion rates, ____, _____
- 0:60 [Value Proposition – A new way. A new framework for addressing the problem – implicitly tied to our value proposition.] There are two levers which can be used to improve conversion quotient. The first, and most commonly used is an attempt to purchase or earn increased mindshare by investing more time and effort into marketing. These investments, while boosting traffic, typically reduce conversion rate resulting in higher cost-per-sale and diminished profits. It’s important to remember that these new shoppers are not likely to be any more motivated (possibly even less) than your existing shoppers. [Click] We favor pulling the second lever first. By reducing the time, hassle and risk associated with becoming a customer, your conversion quotient increases. Best of all, by making it faster, easier and safer to buy from you, all future investments in marketing will perform even better.
- 0:60 [Value Proposition – A new way. A new framework for addressing the problem – implicitly tied to our value proposition.] In our pursuit of being Earth’s most customer-centric company, we have seen first-hand that improving the customer experience can be a reliable driver of registration, conversion, sales performance and customer loyalty. Make it fast – Save your customers time wherever you can, allowing them to find and purchase what they want in as few taps or clicks as possible. Make it easy – Eliminate frustration by making it easy and intuitive for your customers to get in and get out with what they came for. Make it safe – Protect your customers by standing behind your products and services and by providing a safe and secure environment for commerce.
- 0:60 [Solution and Implementation Map – Map of our solutions linked back to key teaching points: highlighted path to implementation] Login and Pay with Amazon makes it easy for millions of shoppers to buy online with the information already stored in their Amazon account, helping merchants quickly turn visitors into high-value customers, lower acquisition costs, improve conversion rates, and rapidly boost sales revenue. By letting buyers login with an existing account and pay in a few clicks or taps from any device, merchants can deliver a highly rewarding buying experience, enhancing customer retention and remarketing efforts. Merchants can take advantage of straightforward integration with popular e-commerce platforms to quickly bring the convenience and trust of the Amazon account experience to their site — while gaining deep customer insights through comprehensive reporting, and reducing risk through protection from the same fraud detection capabilities used on Amazon.com.
- 0:60 [Solution and Implementation Map – Map of our solutions linked back to key teaching points: highlighted path to implementation] Login and Pay with Amazon makes it easy for millions of shoppers to buy online with the information already stored in their Amazon account, helping merchants quickly turn visitors into high-value customers, lower acquisition costs, improve conversion rates, and rapidly boost sales revenue. By letting buyers login with an existing account and pay in a few clicks or taps from any device, merchants can deliver a highly rewarding buying experience, enhancing customer retention and remarketing efforts. Merchants can take advantage of straightforward integration with popular e-commerce platforms to quickly bring the convenience and trust of the Amazon account experience to their site — while gaining deep customer insights through comprehensive reporting, and reducing risk through protection from the same fraud detection capabilities used on Amazon.com.
- 0:60 [Solution and Implementation Map – Map of our solutions linked back to key teaching points: highlighted path to implementation] Login and Pay with Amazon makes it easy for millions of shoppers to buy online with the information already stored in their Amazon account, helping merchants quickly turn visitors into high-value customers, lower acquisition costs, improve conversion rates, and rapidly boost sales revenue. By letting buyers login with an existing account and pay in a few clicks or taps from any device, merchants can deliver a highly rewarding buying experience, enhancing customer retention and remarketing efforts. Merchants can take advantage of straightforward integration with popular e-commerce platforms to quickly bring the convenience and trust of the Amazon account experience to their site — while gaining deep customer insights through comprehensive reporting, and reducing risk through protection from the same fraud detection capabilities used on Amazon.com.
- 0:60 [Solution and Implementation Map – Map of our solutions linked back to key teaching points: highlighted path to implementation] Login and Pay with Amazon makes it easy for millions of shoppers to buy online with the information already stored in their Amazon account, helping merchants quickly turn visitors into high-value customers, lower acquisition costs, improve conversion rates, and rapidly boost sales revenue. By letting buyers login with an existing account and pay in a few clicks or taps from any device, merchants can deliver a highly rewarding buying experience, enhancing customer retention and remarketing efforts. Merchants can take advantage of straightforward integration with popular e-commerce platforms to quickly bring the convenience and trust of the Amazon account experience to their site — while gaining deep customer insights through comprehensive reporting, and reducing risk through protection from the same fraud detection capabilities used on Amazon.com.