October 15, 2009
This is a question that I hear time and time again. Everyone wants to know how to evaluate their conversion rate performance. Well, fact is, there is no such thing as an average conversion rate …at least one that carries any meaning. It is kinda like asking what is the average height of every person on the planet? If such a number could be calculated, it would be useless.
When reviewing your conversion rate performance, it is continuous improvment that counts. Actual conversion rates will vary just like actual mailing response rates. The actual rate will depend upon the product, the customer or prospect segment being targeted, the offer, the timing, etc. etc. What is meaningful and actionable is to track your conversion rates by incoming unique visitor streams and test programs or actions that deliver a better result. (i.e. Test against the control.)
Let’s say you are evaluating customer conversion rates. They will be much higher than prospect conversion rates. Also, higher if they are multi-buyers with higher RFM performance. Conversion rates will also be boosted if you have a lot of unique or hard to find products and if you have a high percentage of consumables (repeat purchase needed) items in your offer. List, offer, creative, pricing, media channel will also affect the conversion rate. You goal is continous improvement over time on like for like marketing programs. So, catalog multi-buyers, after a mailing of a new catalog might convert at 15-20%. Lapsed customers responding to a reactivation mailing or email might only respond at 2%.
On the prospect side, here again it depends on the offer, list/segmentation, prospect profile, promotional vehicle , timing, price, landing page, etc. Having said that, I would not be surprised to see a prospect response online of .5-2.0%. If you hit 5% you have a real winner!
Remember too, conversion rates are just one short term measurement. Important, yes. Are they everything? No. Your overiding measurement should always factor in your expected LTV (lifetime value) of a new or repeat customer. It is not what you spend to get a new customer, nor is it solely about the conversion rate or AOV but rather what you get in return over a one, two or three year period. It’s all about measuring the necessary steps to achieve the maximum ROI over the LTV of the customer.
So don’t be mislead by an average conversion rate statistic that is higher or lower than your current conversion rate. Keep focused on the detailed performance measurement of all prospect and customer streams that come to your site and make sure you are testing to achieve continuous improvements.
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Catalog, General eCommerce, eCommerce Usability, eMerchandising | Tagged: direct marketing, ecommerce conversion rates, lifetime value, RFM, testing against control | 
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Posted by terryjukes
October 8, 2009
By Terry Jukes, President, Ability Commerce (terryj@abilitycommerce.com)
Search engines allow us to shop even when we have no clue of what it is we want to buy.
Recently, I needed a replacement part for my small fishing boat. I knew it was a part of a fishing rod rack, a fitting or holder or flange than went through the cabin wall….but had no clue what to call it. It attached by two screws that were 3” apart and the diameter of the hole was 2”. I went shopping online….but just what was I shopping for?
Into the Google search box I entered “replacement boat parts” and got the predictable overwhelming result. Next it was “fishing rod holder” only to learn about the difference between fishing rod holders and all their component parts and fishing rod racks and all their component parts. Along the way I noted several key sites that were in the business of selling replacement boat parts…obviously, a huge product category that needed further refining.
Next, I typed in “fishing rod rack, flange, 2” diameter” hoping that the item specification search might lead me to the item. This returned hundreds of pages of results.
Next I tried going to several of the key sites I had noted and used their internal site searches. Sadly, many of these sites had dismal site search functionality. (Functionality most online merchants need to improve!). It took several sites before I came across a photo of the item I needed (I had to have a photo to be sure of a match…do all the items on your site have photos?) of the item I needed. Only problem was, it was the manufacturers’ site and they would not sell direct. After searching for “find a retailer” and not finding anything (make sure your manufacturers list you as a retailer.) I sent them an email and got no response after several days. (Let’s face it, manufacturers aren’t good at customer service.) Next it was a phone call and a voice mail message….then another reminder email. (I was desperate to buy their product!) Finally I got a reply….”Yes, we manufacture that item, but we only sell retail, we will find a retailer for you”. Another week past. After a reminder email from me, the manufacturer admitted that they could not find a retailer who stocked the item (a good reason for them to sell direct!) and relented on their no-retail policy. They took my credit card over the phone and sold me the product directly. I got it two days later via UPS. (For not being a retailer, they seemed to know how to take my order efficiently!)
The point of this story is simple. Firt, I am amazed at how poor most sites are at meeting my expectations, failing to answer even the most basic questions. (Heh, where can I buy your product??) Second, I, like most other addicted online shoppers, have long since evolved from brick and mortar shopping mentality to the “let’s Google it” world and Google (or our search engine of choice) has us very well trained. We use Google to solve problems, not just buy products. Our searches are intuitive and cumulative. The answer to the first search leads us to the next search, and so on. It is like peeling back the layers of the onion. It is “the onion search”. It is an important distinction for the online marketer. Imagine if I had seen a site called www.hardtofindplasticboatparts.com or www.fishingrodrackparts.com. Imagine how that product offering and site might have ranked in my search results as I described my problem or perceived need in the search box. Better still imagine if the merchant had a “Let us find it for you!” button on their site. Imagine too if the part marketer made sure that all the product specifications were included in the product description and keywords so that there would be a faster match between me “the searcher” and “the seller”. Imagine if more online marketers realized that shoppers have problems and often search for solutions, not knowing what actual item or product they really need. Ask yourself how well your site and your items sell during “the onion search”. I am sure you will see opportunity and when you do, send me some examples of how you made more money by peeling onions.
Leave a Comment » | General eCommerce, MulitChannel Retail, Online Marketing, SEO (Search Engine Optimization), eCommerce Usability, eMerchandising | Tagged: new ways of online buying, online merchandising, online shopping habits, selling solutions online | Permalink
Posted by terryjukes
May 20, 2009
A couple of studies by eDigitialResearch and etailing consulting firm IMRG, had some interesting information about UK shoppers. It shows some great opportunities for multi-channel retailers in the UK market. Here are just a few:
- Three quarters of the shoppers surveyed say they prefer returning goods to retail stores and 52% prefer hopping online with multichannel retailers.Great news for those already in the multichannel world – just by having a store or catalog, you start with an advantage. Head starts are always good!
- Satisfaction scores were down a bit in April compared to last fall, 78.3% and 79.6% respectively. With the importance placed on having a “conversation” with your shoppers – this could be a great opportunity. Talk with your customers and find out what they think you can improve about your shopping experience. Give them the opportunity to voice their desires – and then follow up with action.
- 50%of those surveyed said they would cancel a web purchase if their preferred payment method wasn’t an option. Competition is just a click away, and shoppers will simply leave if you don’t offer what they demand. Make sure your ecommerce website offers their preferred payment methods and other UK-specific ecommerce features that they have come to expect.
- 45% said they would spend more time looking for bargains online too. If your ecommerce platform is flexible enough, this one should be easy. Online promotions, coupons, “outlets,” and “bargain bins” attract the attention of shoppers looking for a deal. You can also try updating your meta-descriptions to include “sale” or “discount” pricing for better conversion from search engine results pages.
How are you planning to meet the needs of UK shoppers?
Leave a Comment » | Catalog, General eCommerce, MulitChannel Retail | Tagged: ecommerce software, multichannel retailing, online shopping, UK ecommerce | Permalink
Posted by Anna Slyter
May 16, 2009
We all want to enjoy the additional traffic from ranking at the top of the first page of search results. We all know that “content is king” when it comes to search engines. But when you have 5,000 or more SKU’s, it’s easy to make the case that unique content just takes too much time to create.
Using the descriptions from the manufacturer might seem like a great way to save time, however, there is a downside.
If your competitors use the same manufacturer descriptions that you use, how will the search engines decide which content is more worthy of ranking? You’ve given up one of the most effective ways to influence search engines in your favor.
More importantly, how will your shoppers decide which ecommerce store is the one that gives them better information and they want to shop at? If you don’t give them something more, chances are, they will decide based on price. Unless you are the lowest price, you risk losing the sale. You also miss the opportunity to provide a better customer experience, risking the future business of those shoppers.
Make sure you update product descriptions with more than just what the manufacturer has to say. Consider some of the following ways to beef up your product descriptions:
- Reword manufacturer descriptions
- Make sure to use the keywords your customers use to find your products.
- Write product descriptions in the “language” of your shoppers – make them feel comfortable by the words you choose.
- Add “expert opinions” either by in-house or outside experts.
- Use customer reviews to generate additional content without you or your staff having to write it.
- Include additional specifications that might not be in the short description, but will help customers with their buying decision.
- Add related items or accessories to product pages. This lets you alert shoppers to other items they may want.
What other ways can you think of to make your customer reviews more valuable?
Leave a Comment » | Online Marketing, SEO (Search Engine Optimization), eCommerce Usability, eMerchandising | Tagged: ecommerce, ecommerce software, ecommerce website, merchandising, Online Marketing | Permalink
Posted by Anna Slyter
May 8, 2009
Earlier this week at ACCM, I attended a session titled: Kooky, Unconventional & Outrageous: Take Your Web, Email and Catalog Copy from Boring to Breakthrough
It was a great reminder about how to consistently and creatively convey your brand message in your copy and the importance of understanding your target market. Carol Worthington-Levy from Lenser, Caroline Offutt from ThinkGeek.com and Rhett Gadke from Bounty Hunter Rare Wines all gave some great tips, including:
- Write your copy as if you are the friend of the members of your target audience – speak their language and address their concerns.
- Know your audience or you could come across as ‘bogus,’ which makes your copy ineffective.
- Get your company ‘voice’ into everything you do: website, product descriptions, catalogs, blogs, social media, and emails.
- Take risks, but always stay true to your core message and values.
Sounds simple right?
Not always. One marketer I spoke with was trying to be creative, but faced serious challenges because she wasn’t clear about the company’s core message. She was getting mixed messages from different departments within the company, and felt like there was “no guiding star that set a course for the company’s direction.”
This marketer was concerned that her new campaign wasn’t going to speak to their target audience or convey why customers should buy from them instead of competitors. She was also concerned that her campaign might totally miss the mark and do more damage than good.
What to do? Play it safe and risk being boring or take a chance on a campaign that could alienate the market? It’s a tough decision when you don’t know what you stand for or have a strong idea of who you’re trying to reach.
Does this situation sound familiar to anyone else? What did you do to solve it?
Leave a Comment » | General eCommerce | Permalink
Posted by Anna Slyter
April 27, 2009
Jakob Nielson had a great usability article in his April 27 edition of Alertbox. http://www.useit.com/alertbox/headlines-bbc.html To summarize, he discussed the importance of really good headlines for news sites. He recommended they be:
- “short (because people don’t read much online);
- rich in information scent, clearly summarizing the target article;
- front-loaded with the most important keywords (because users often scan only the beginning of list items);
- understandable out of context (because headlines often appear without articles, as in search engine results); and
- predictable, so users know whether they’ll like the full article before they click (because people don’t return to sites that promise more than they deliver).”
It got me thinking about what makes a really good headline for products on the category pages of an ecommerce website. I think all 5 of Mr. Nielson’s qualifications for headlines work for your ecommerce category pages too.
- Short. An ecommerce store is no different from a news site when it comes to how much people will read online.
- Rich in information scent. Product descriptions on category pages need to clearly explain the products with enough information to get shoppers interested enough to click to the product page or add to cart.
- Front-loaded with keywords. Again, I totally agree, users will only scan so much on your pages, make it easy for them to see the terms they are searching for. Additionally, it helps search engines to judge how relevant your page is for those keywords.
- Understandable out of context. Your product descriptions may be automatically generated for meta tags. Don’t fill them with SKU’s or product numbers, unless shoppers use those exact numbers to perform searches, as they may see these in search engine results pages.
- Predictable. Make sure you give shoppers what they expect when they click on your category pages. If they feel they hit a “bait and switch” they just might shop somewhere else instead.
What do you think – what other ‘rules’ for news can we apply to our ecommerce world?
Leave a Comment » | General eCommerce, Online Marketing, SEO (Search Engine Optimization), eCommerce Usability, eMerchandising | Permalink
Posted by Anna Slyter
April 23, 2009
Your ecommerce plan probably includes a goal to increase online sales – and that is a metric you might use to judge how much budget to allocate to your ecommerce efforts. Online sales alone, however, only give you part of the picture.
Your ecommerce website has value beyond direct online sales. Customers often start researching products online before they make an offline purchase.
A recent article in Internet Retailer gave the following quote:
“Although direct online sales account for only 6% of total retail sales, 75% of consumers routinely research products on retail web sites before making offline purchases, and by 2013, 40% of total retail sales will be initiated on the web, Forrester predicts.”
It’s yet another reason why your ecommerce website has to provide all the information your customers want, in addition to a consistent brand experience across channels. Earlier this year we did a post with 5 ways to make your ecommerce site a better salesperson.
Information is important for your shoppers. You can (and should) have a great deal of information on your site, but it has to be organized for customers to easily view it. Here are a few points to consider about how to display information on your ecommerce website for maximum readability.
- Layout matters. People will leave ecommerce websites that are confusing or difficult to scan. Keep your layout clean to make sure your online shoppers can easily see the information most important to them.
- Options are important. Make sure it’s easy for shoppers to see the options for your products. Do you have different colors, finishes, sizes, or other options? If you have only a few options to show, consider a “list display” like the one from American Musical Supply. It’s clear they have some color choices on this guitar, and it’s easy for me to see all options and then choose the one I want.
- Make it easy. If you have a lot of options, and shoppers may choose multiple items from one product page, try a “grid display”. Options are clearly displayed, and shoppers can choose multiple options/products from one page. Macy’s gives the customer control over which items in a set they want to add to their carts – from a single page.
- Clutter won’t cut it. Pop-up information lets you provide a wealth of information on one page, but only display minimal information until the shopper hovers over or clicks a link. Just make sure you test features like this so you don’t overwhelm visitors by showing pop-ups every time they move their mouse (to avoid usability problems.) Hancock’s of Paducah uses pop-up to give their shoppers a quick way to see larger images without making their shoppers click to another product page.
- Brands have power. Display brands to encourage brand-loyal shoppers. You can also give them the choice to navigate by brand into the products they most want, making it a snap for them to get what they want. Overstock.com makes it easy for their shoppers to sort by brand.
- Online shoppers scan, not read. You can use icons to give a fast, visual source of information to shoppers. Just make sure the icons make sense to your ecommerce shoppers, or the impact is lost. American Musical Supply uses icons on their site to clarify free shipping and extended warranties.
Your ecommerce software should make it easy to display the most important information to your shoppers. If it doesn’t, you might want to check out another ecommerce solution that gives you additional creative freedom.
Leave a Comment » | MulitChannel Retail, Online Marketing, eCommerce Usability, eMerchandising | Permalink
Posted by Anna Slyter
April 15, 2009
Internet Retailer had a great article about a recent survey of online spending by Opinion Research Corp.
According to the article, 22% of online shoppers plan to buy more on the internet this year, even though 45% say they are cutting spending. Additionally, 36% said they bought more online last year.
That leaves a great big opportunity for etailers, but it’s important to remember that expectations of online shopping have gotten higher too. To get – and keep – valuable customers, you need to make sure your site is up to their standards.
The survey also revealed some of the top frustrations that online shoppers have.
“Here are the top frustrations with online shopping mentioned by those responding to the Ouch Point survey, with the percentage of respondents citing each one in 2009 and 2008:
- Not being able to speak to anyone who can answer questions: 25%, 21%
- Learning that items are back-ordered or out of stock after they are in the shopping cart: 11%, 17%
- Receiving an item that doesn’t look anything like it did on the Internet: 11%, 21%
- Web sites that malfunction as the payment is being processed: 9%, 14%
- Not being able to find an item: 8%, 13%
- Unclear shipping information: 5%, 5%
- An uncertain return policy: 5%, 7%
- Not receiving an acknowledgement after an order has been placed: 2%, 5%”
I think it’s really interesting to see that the vast majority of shopper frustrations have improved from 2008 to 2009. All improved or held steady, except the biggest complaint: not being able to speak to anyone who can answer questions.
Since this is the main frustration of online shoppers (at least in this study) wouldn’t it make sense to improve this area as soon as possible? Wouldn’t that give you the biggest impact for the most shoppers? I’d venture to say yes – especially since the fixes can be pretty easy.
A ProfitABILITY Blog post from January of this year talks about the importance of making sure you have alternative communication options for online shoppers.
Prominently displayed customer service numbers and Chat options can help to reduce shopper frustration and keep your shoppers from going elsewhere. Shopping online doesn’t mean that your customers no longer need service.
Leave a Comment » | Call Center, General eCommerce, eCommerce Usability | Tagged: eCommerce Usability, online shopping, shopper frustrations | Permalink
Posted by Anna Slyter
April 8, 2009
With the rising number of emails consumers get every day, it’s no wonder that getting subscribers to open your emails is getting tougher all the time.
So how do you get your subscribers to open your emails? You’ve got to give them something that sets you apart from the hundreds of other emails they see each day and makes them WANT to open your emails.
We all like a good sale, but let’s face it, deleting one of a dozen “sale” emails is pretty easy to do. Another one will come along in 5 minutes.
American Musical Supply recently updated their weekend email newsletter to include new features that are less about selling and more about creating a user experience. The new “Weekend Warrior” emails have had great success.
What did they add?
A musician inspired comic strip and a rock-and-roll trivia question designed around the musicians and bands their customers like best. (In only 3 weeks, the trivia question has earned the highest click-through rate in the weekend email.)
They’re also making sure that their readers can find them at the social media sites they most like to use. They’re doing their best to meet their ecommerce customers on the customer’s terms.
Additionally, they added a “Tech Tip” to the email, providing more information that is centered on information their shoppers want to know.
The new “Weekend Warrior” emails worked – why did they work?
- Because they are FUN – not just a same-old sales pitch.
- They were designed around AMS’s shoppers, with information RELEVANT to musicians.
What other creative email ideas have you seen?
Leave a Comment » | General eCommerce, Online Marketing, Social Media, eMerchandising | Tagged: ecommerce, email marketing, enewsletters, Online Marketing, Social Media | Permalink
Posted by Anna Slyter
March 31, 2009
Sometimes it seems like there is no problem a good ecommerce website can’t fix. Paper and postage costs too high? Use your email marketing to reach customers rather than mailing. Need new customers? Optimize for search engines and find a whole new audience that is looking for your products. Want to decrease customer service calls? Add or improve a “frequently asked questions” page on your ecommerce website that addresses your customers’ concerns.
What more could you want from a channel? The $21 billion that e-tailers lost out on last year, that’s what.
A study released on March 17, 2009 by Javelin Strategy and cosponsored by eBillme and First Data said a fear of online shopping caused $21 billion in lost sales during 2008. The survey also suggests that smaller online merchants will suffer the most, since 40% percent of online identity theft victims will only purchase from well known sites such as Amazon.com.
I don’t know about you, but I see 3 great opportunities for multi-channel retailers.
- You can improve your current ecommerce website to address the concerns of these security-minded shoppers. The Javelin Strategy survey reported that these five factors would convince customers to shop more frequently:
- Assurance that information is being processed securely (83%)
- Offering zero liability against identity theft (81%)
- Stronger security at the store website (80%)
- A guarantee that the purchase will match quality expectations (80%)
- A guarantee for the best price online (79%)
- Consider selling your products on Amazon to reach that 40% of identity theft victims who will purchase from them. Selling on Amazon lends trust to your company and can help you reach new customers. With the right Amazon integration software, you can easily integrate with your back end systems to maximize efficiency.
- Use your direct marketing expertise to reach out to security-conscious shoppers and highlight your other channels. Maybe they can order online and then come to the store to pick up and pay. Perhaps they can call in their order and pay by money order. That’s a great strength of catalogs and brick and mortar – you can meet shopper expectations in multiple ways.
Are you using your direct marketing experience to make you shoppers feel secure? Tell us about it.
Leave a Comment » | Catalog, General eCommerce, MulitChannel Retail | Tagged: amazon integration software, ecommerce, ecommerce software, multichannel retail, online sales | Permalink
Posted by Anna Slyter
