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How to Improve yourWebsite Conversion
1st December 2011
Mark Patron
Agenda
• What people say works
• What really works
• Testing
• How to reduce basket abandonment
• Segmentation
Why are conversion rates so low?
• Average retail conversion rate has declined from 8.4% to 3.8% over last five years. At same time market has grown from £30.2bn to £58.8bn
• Due to move from “online purchasing” to “online shopping”• For multi-channel retailers little incentive to improve
conversion of online media if online results better than offline
• Improving website conversion is complex • And it’s a lot easier to spend more with Google…
Source: IMRG Capgemini e-Retail Sales Index
Conversion rate optimization ROI
• Adobe Omniture estimates that the industry spends nearly $25 billion on getting people to a site, but only $250 million on conversion rate optimisation (CRO). In other words for every $100 spent on driving traffic to websites, companies spend only $1 converting that traffic into business.
• So spending money intelligently on CRO should be a better investment than spending more money on generating traffic...
Econsultancy/RedEye Conversion Rate Optimization Report 2011
•Over last 3 years surveyed thousands of digital marketers
•Mainly UK-based retail / e-commerce
Satisfaction with online conversion rates is low and declining
0%
5%
10%
15%
20%
25%
30%
35%
40%
0%
26%
37%
25%
11%
1%
24%
34%
28%
12%
2010 2011
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Agenda
• What people say works
• What really works
• Testing
• How to reduce basket abandonment
• Segmentation
Methods currently used for improving conversion rates
0%
10%
20%
30%
40%
50%
60%
53%
47% 46%44%
38% 37%
32%28%
25% 24% 23%
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Best practices carried out by organisations
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
40%
20% 20% 19% 19% 18% 16% 14% 13% 11%
52%
61% 57% 57% 60% 68%63%
59%53% 57%
9%19% 24% 24% 21% 14% 20% 27% 34% 32%
We do this well We need to improve
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
10
What are the biggest barriers preventing you from improving conversion?
Technology is no longer the major barrier it was
Down 4th to 8th placeOver last 3 years down from 3rd to 7th place
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Agenda
• What people say works
• What really works
• Testing
• How to reduce basket abandonment
• Segmentation
How to improve website conversion
•The four variables most strongly correlated with improved website conversion are:
Perceived control over conversion rates
A structured approach to CRO
Having someone directly responsible for CRO
Incentivising staff based on conversion rates
The challenge is becoming one of people and processes
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
How to improve sales
•The top three variables most strongly correlated improved sales are:
A structured approach to CRO…
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Do you have a structured approach to improving conversion rates?
Large increase Small increase No change Decrease0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
50%
33% 29%
15%
50%
67% 71%
85%
Yes No
Change in sales
Does your organisation have a structured approach to improving conver-sion rates?
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
How to improve sales
•The top three variables most strongly correlated improved sales are:
A structured approach to CRO
Perceived control over conversion rates…
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Perceived control over conversion rates
Large increase Small increase No change Decrease0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
3% 2% 2% 4%
24%35%
44%
65%
50%
49%
44%
23%
24%14% 10% 8%
How much control do you feel your organisation has over conversion rates?
No control Very little control Quite a lot of control A great deal of control
Change in sales
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
How to improve sales
•The top three variables most strongly correlated improved sales are:
A structured approach to CRO
Perceived control over conversion rates
Having someone directly responsible for CRO
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
A structured approach to CRO
The more ways you use to improve conversion the better
Companies whose conversion rates have improved over the
previous 12 months are using on average 26% more methods
to improve conversion than those companies whose
conversion rates have not improved.
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
More methods also improves sales
SalesAverage number of methods used
Large increase 4.54
Small increase 4.15
No change 3.33
Decrease 3.55
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Complimentary data helps understand online customer behaviour
Companies with £10m+ revenues who integrated user testing and analytics well were twice as likely to have seen a large increase in sales as those that didn’t do this.
Agenda
• What people say works
• What really works
• Testing
• How to reduce basket abandonment
• Segmentation
Value of methods used for improving conversion rates
A/B te
sting
Mul
tivar
iate
testi
ng
Custo
mer
jour
ney a
nalys
is
Usabi
lity te
sting
Segm
enta
tion
Cart a
band
onm
ent a
nalys
is
Onlin
e su
rvey
s / cu
stom
er fe
edba
ck
Copy o
ptim
isatio
n
Event
-trig
gere
d / b
ehav
iour
al e
mai
l
Exper
t usa
bility
revie
ws
Compe
titor b
ench
mar
king
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
52% 51% 49% 46% 42% 40% 36% 32% 31% 28% 22%
45% 45% 47% 51% 52% 55%55% 61% 63%
62%65%
3% 5% 5% 3% 6% 5% 9% 7% 6% 10% 13%
Highly valuable Quite valuable Not valuable
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
24
Specifically for your website, what do you test?
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Structured approach for testing
• Brainstorm ideas for tests with 4 to 8 key stakeholders. • Test things that will really move the dial, don’t tinker around
the edges. • Compare like with like. • Make sure results are statistically significant. • Test everything and assume nothing. Testing is not there to
prove an idea works, but to assess whether it works. • Build up a knowledgebase of what worked and what didn’t.• Prioritizing test initiatives is the number one process issue
cited by users of online testing software…
Source: Forrester
26
A simple way to prioritise tests
How valuable
High
Low Cost High
27
A more advanced way prioritise tests
Source: RedEye Patent Pending
Optimisation dashboard in more detail
Core Journey AnalysisBusiness goals, Segmentation
Research & Data Repository for quant & qual, design ideas
Prioritisation Quantify, Predicted Uplift, Justification
Testing (A/B, MVT)Test plans, Hypotheses, Design variations,
Implementation, Measuring success
Website ImprovementIncreased Conversion, AOV, RPV, X-Sell, UX
Quick wins e.g.Fixing issues
Optimising Landing pages
X-Sell / merchandise optimisation
Behavioural email
DocumentKnowledge
Conversion Rate Optimisation (CRO) process
Agenda
• What people say works
• What really works
• Testing
• How to reduce basket abandonment
• Segmentation
Ways to reduce basket abandonment
• Have a clear value proposition• Reduce the number of steps in your checkout process• Include a progress indicator on each checkout page• Provide a link back to the product• Be transparent, provide delivery costs early in the process• Include prompts, for example free delivery when you spend
£30 • Make it obvious what to click next
Ways to reduce basket abandonment (cont.)
• Make sure your pages load quickly• Use persuasive copywriting so visitors take action • Implement wireframe templates to finalise page look and
feel• Offer as many payment methods as possible• Minimize required fields in forms• Basket abandonment email…
33
How do you target consumers who abandon shopping carts or ‘drop off’ during the buying process?
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
34
How soon after a customer has dropped off a sale do you target them to complete their purchase?
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Test recency and frequency
35
Free trial basket abandonment
Agenda
• What people say works
• What really works
• Testing
• How to reduce basket abandonment
• Segmentation
The more ways you segment the better
Companies whose conversion rates have improved
are using on average 50% more ways to segment
their visitors and customers than those companies
whose conversion rates have not improved.
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
38
In which ways do you segment your visitors and customers?
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
39
What do you use segmentation for?
Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Behavioural triggered email segmentation is best
Behavioural email results
• Evans Cycles achieves over 100% year on year increase in email revenues
• Clifford James achieve 678% ROIwith abandoned basket email campaign
• Halfords Autocentres over 5,000% ROIfrom triggered behavioural email
• Monarch Airlines abandoned bookingdynamic content behavioural emailROI 17,257%
Conclusion
• Improving your website conversion is a major opportunity to increase sales
• But it is complex• Technology is longer the barrier• A structured process is key• People make the difference
Thank You
Download the full Econsultancy/RedEye Conversion Rate Optimization Report 2011 athttp://econsultancy.com/reports/conversion-rate-optimization-report Download RedEye’s white paper, A Structured Approach to Conversion Rate Optimization athttp://www.redeye.com/events/whitepapersandreports/a-structured-approach-to-conversion-rate-optimization/econ/
Free trial abandoned basket email at www.ondemand.redeye.com