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 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
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 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 11, 2009
With shoppers spending less and actively seeking bargains, it only makes sense to make sure your ecommerce website has an “outlet” or “clearance” area. Here are a few tips to consider when creating a clearance area:
1. Tailor it to your target audience. For example, Mack’s Prairie Wings, who sells duck hunting gear, calls their clearance area the “Bargain Blind” to appeal to hunters.
2. Make it easy to shop the clearance area. Categories allow shoppers to easily navigate through all the different types of clearance areas. Make sure your navigation clearly shows which categories are in the clearance area. For example, American Musical Supply uses the term “outlet” in their left navigation to clearly show shoppers what categories they can find in the clearance area.
3. Make sure to clearly show savings. Give shoppers the original and discounted prices so they can see how great the deal is. Chadwicks of Boston does a nice job of this – giving not only the prices, but the percent off as well.
4. Make sure you let visitors know if an item is in stock or not. Waiting until the shopping cart to tell visitors that an item is out of stock only frustrates them and sets a tone for mistrust. American Musical Supply clearly shows “in stock” status, even in their clearance area.
5. Your ecommerce software should allow you to easily add items to your outlet pages, at the click of a button. If it doesn’t work easily, the odds of keeping it up to date decrease significantly.
Leave a Comment » | General eCommerce, eCommerce Usability, eMerchandising | Tagged: ecommerce, ecommerce software, online clearance, online outlet | Permalink
Posted by Anna Slyter
March 2, 2009
Customer rankings and reviews are getting a lot of attention, and rightly so. It’s estimated that anywhere between 58-76% of web shoppers use customer-generated content, like reviews, to make buying decisions. So why are they so interesting to online shoppers?
Internet shoppers have come to expect more than just some fluffy marketing copy written by some detached marketing person. Not that I think marketers are without value – I am one, after all. I’ve just learned that the way I think is not the same as all the other people in this world; what is important to me may not be what is important to you.
Customer reviews allow you to publish multiple viewpoints and provide product information that you have never thought of before. For example, I had heard about an author and wanted to buy one of her books. So, as usual, I went to Amazon.com to find one of her books. They had a great description of the book:
I was debating between buying the audio and paper versions. Without reviews, I would probably have gotten the audio version since I spend a lot of time in my car. However, after reading the audio book reviews, I changed my mind. Here’s one I found:
The marketing copy for this audio book doesn’t ever address what the reader sounds like. And why would he/she? It’s the content, not the delivery that is important, right?
Not if you’re like me, a ‘voice person.’ I absolutely can’t stand to listen to someone who has an annoying voice. If I would have gotten this book, there’s a good chance I’d have just tossed it without listening to more than a chapter – and I would not have been happy about it. The description alone wouldn’t have helped me to make an informed decision. An opportunity to build trust would have been missed.
So how on earth can you, as a lone marketer, possibly anticipate every little factor that shoppers want to know so they can make the best informed decision and walk away happy? To put it simply, you can’t.
The great part is that you don’t have to. Customer reviews give you a whole team of people who are interested in, or have already purchased your products. They come from different backgrounds and lifestyles and have differing values. They round out your product copy with multiple viewpoints and different opinions.
Take advantage of customer reviews and give your online shoppers what they need to make an informed buying decision.
Leave a Comment » | General eCommerce, Social Media, eCommerce Usability, eMerchandising | Tagged: customer reviews, ecommerce, ecommerce software, increase conversions | Permalink
Posted by Anna Slyter
February 25, 2009
I’m a big fan of web design conventions, especially when I’m shopping online. They save time and reduce confusion because I know what to expect from websites I visit. If I’m trying to find an address, I know to look for a link that says, “contact” or “contact us.” If I get lost, I know I can click the logo and get back to the home page.
I know that if I want to use the internal site search, I can find it in the header on a website, to the center or right hand side of the page….or can I?
Lately, I’ve been noticing that internal site search has been creeping out of the normal spot in the header, down into the left navigation. My first reaction was, “you can’t do that – that doesn’t follow conventions!”
So I did a little research. I looked at the screen shots of the top 100 e-tailers in Internet Retailers’ Top 500 Guide from 2008. I figured with their success, they have to be doing something right. Here’s what I found for search box placement:
Centered in header – 16%
Right side of header – 36%
Left side of header – 28%
In the left navigation – 5%
Clearly, having internal site search in the header was more common, which would (at least partially) validate the idea of search box placement in the header as a convention. But search and navigation both do the same thing. They both help visitors find what they are looking for – why not have them together on the left side of website pages?
Maybe it makes complete sense from an ecommerce usability standpoint, especially with many sites now using that left navigation area for filtering search results, like Bluefly.com does.
Is the convention for placement of the search box changing? What about for the use of the left navigation area for filtering – is that a trend that will become a convention? It’ll be interesting to watch and I can’t wait until the 2009 Top 500 Guide is out so I can see if there has been a shift over the past 12 months. Stay tuned!
Leave a Comment » | eCommerce Usability, eMerchandising | Permalink
Posted by Anna Slyter
February 17, 2009
It’s been said that there is no substitute for a good salesperson. I can agree with that on a lot of levels. But what about on your ecommerce website, when your salesperson isn’t there to answer questions or demonstrate products?
Here are 5 ways to make your website one of your best salespeople:
- Detailed product information
Do you give shoppers all the information they need to make a purchase? Make sure you give shoppers all the details and specifications they need, but be cautious about overwhelming them with information. National Camera has a lot of information on their products, but organizes it in a clear way with lots of white space on the page. It’s easy to skim the page top find the details I want. 
- Multiple Images and Views
Does your product come in different colors or look different from the front than it does from the back? How about the little details – can you get a close-up? A lack of an image in the right color or from a different view has stopped plenty of shoppers from buying what see can’t see, especially with clothing. J Crew makes sure their shoppers can see how their jacket looks from the front, back, side, and up close. I can mouse over each thumbnail and get the larger image if I want to see the different views. I can also click on the small swatch to see the jacket in a different color. 
Zoom features, like Nordstrom’s has, give shoppers more control of seeing close-ups for the details they want to see. Either way, multiple and detailed images can give your conversions a great boost.
- Product Videos
Do your shoppers need to see how people use their products or point out features and details that a single, still image can’t? If you answered yes, then product videos are a great asset.Just from this short video at Lowepro, I know that this bag has a tripod holder, adjustable inside compartments, side pocket for memory cards, and a water bottle holder. I also could see how to get my camera out of the back without having to set the pack on the ground. They answered all my questions quickly and I didn’t have to read a thing.
- Customer Reviews
Who do shoppers trust more than anyone else? Other people, like themselves, that have bought and used the products. Conversion rates increase dramatically when shoppers can see what other people have to say. To make an even bigger impact, consider tailoring your reviews to your products like American Musical Supply does. I can see a lot more information on this review than on simple rating systems or general “comments” boxes. This is especially helpful when the information is new and is helping me to know what questions to ask when I’m new to the products.
- Related Items and Additional Products
What are you doing to merchandise additional products on your ecommerce site? Try suggesting related items, accessories or giving “customer also bought” suggestions to pump up your average order value. Combine it with a deal for buying multiple items like Amazon does to make the offer even more attractive. I’m looking for deals when I shop online now more than ever and features like this get my attention. 
This will give you a great start to turning your ecommerce website into your best salesperson.
What else are you doing to give your customers a great online experience?
1 Comment | General eCommerce, MulitChannel Retail, Online Marketing, eCommerce Usability, eMerchandising | Tagged: ecommerce, ecommerce software, increase conversions, increase online sales | Permalink
Posted by Anna Slyter
