Kyle Henderson, Head of Research
Malcolm Stewart, CEO! Three Things that Kill eCommerce Conversions (and How to Fix Them)

Your Presenters Kyle Henderson Founder
& Head of Research YouEye @kylehenderson Malcolm Stewart CEO YouEye @malcolmmalcolm Thue Madsen Marketing Associate KISSmetrics @thuelmadsen

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1! Research Scope and Summary
Keep the shopping and the checkout process separate When click-through rates a ack What’s in a review? 2! Three Major Findings! 3! Future Studies and Q&A! Table of Contents!

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About YouEye (www.youeye.com) Market research
and customer insight solution combining the power of quantitative and qualitative data. We specialize in behavioral analytics and sentiment analysis, delivering in depth research faster and more cost-effectively than traditional methods. We serve customers with three core responsibilities: eCommerce Optimization – give meaning to your KPI’s and drive conversion performance through customer insights Marketing – advance your brand and messaging strategies, testing customer engagement with content and calls to action Product Experience – test in a user’s natural environment and native device with the industry-leading mobile SDK integration Section One!

Research Scope and
Summary
1!

Research Scope and Summary •
YouEye conducted a study across 3,000 participants and a dozen eCommerce environments to identify pa erns in user behavior measured against the typical key performance indicators. • In addition, 400 in depth interviews were conducted. • This research was conducted in home, driven by the participants on their natural schedules, environments, and devices. • Because this study was conducted independently and for research purposes, the names of some companies and participants have been removed to protect anonymity. Section One!

Three Major Findings!
2!

The Biggest Lesson Protect the
Check-Out Process!

Section Two! Protect the Check-Out
Process Customers exhibited two distinct behavior pa erns when shopping vs. checking out!

The Ideal Process What first-time
customers say they want… … appears different from what actually converts them Section Two! Browse and Search Products! ID Product and Determine Fit! Read Reviews! Comparison Shop! Determine Value! Initiate Purchase! Provide Name and Email! Ensure Security! Provide Payment Info! Evaluate Customer Satisfaction & Service! Confirm Order! Browse and Search Products! Establish Customer Satisfaction & Service! Provide Name and Email! ID Product and Determine Fit! Read Reviews! Determine Value! Initiate Purchase! Evaluate Security! Provide Payment Info! Confirm Order! ComparisonShop!

Doing it right: • This
site produced the highest positive sentiment and strongest feedback of any retailer we studied Section Two!

Doing it right:
Section Two!

Customers love customer service! Section
Two!

Take every chance to instill
confidence in the customer Section Two!

Confirm and Reconfirm
Section Two!

Don’t make the customer travel
backwards Section Two! I only create an account if it’s a store I know I’ll shop at again. If it’s my first time visiting, I check out as a guest. — Participant! I didn’t have an account, and the sign in bu on took me to the account setup thing. I felt like I was moving backwards and ended up not buying. — Participant!

Section Two! In Stock? If
not, don’t show or say when is it expected.

The Poorly Placed Discount Section
Two! I was absolutely ready to buy until I saw the discount code option. I actually stopped shopping, looked around for a discount code, and when I couldn’t find one, decided to wait for a sale. — Participant! I hate when I see the spot for offer codes and I don’t have one. I feel like I’m being cheated or missing out on something and I won’t complete the purchase. — Participant!

The Poorly Placed Discount •
57% of participants who encountered a discount code field were less likely to complete their purchase if they did not have a code. • 73% of those participants le the site to search for discount codes • 50% of those participants came back to complete their purchase • Of the 27% who stayed, 95% expressed a lower perception of value and lower likelihood to make a repeat order • Discount codes convert well if the customer has the code prior to entering the shopping process • 16% of participants expressed frustration at not having a code when given the option at during the shopping process • Suggestion: discount code interactions have positive impact at the beginning of the customer journey, not then the end. Section Two!

Protect the Check-Out Process Customers
exhibited two distinct behavior pa erns when shopping vs. checking out! Section Two! Product Pricing" 52%were comfortable with the price range of products they were researching " 78%were comfortable with the product prices when entering the checkout process" Payment Security 21%entered an eCommerce website expressing a moderate level of concern regarding payment security" 68%expressed a moderate-to-high level of concern when prompted to enter payment information" Shipping 94%expressed an increased likelihood to shop when made aware that free shipping was available" 41%who were not made aware of shipping costs during shopping abandoned the checkout process when first seeing the cost" Competition" 42%abandoned the shopping process to comparison shop or had multiple sites open simultaneously" 26%abandoned the checkout process to comparison shop" Shopping! Checkout!

Key Takeaways Section Two! Protect
the checkout process" Don’t prompt your customers to reconsidertheir order when the credit card is in hand" Minimize the opportunities your customer has to say no: every step in the checkout process is another chance for abandonment" Timing is Everything WHEN you emphasize each facet of your value proposition is just as important as WHERE" Emphasize free shipping at the start of the customer journey, and emphasize security at the end during checkout" Less is More Simple navigation and accurate search were vital in customer engagement; don’t display out of stock items – it annoys your customers" User experience should guide your customers down the conversion funnel, not present an a la cart menu of decisions to make" Shopping! Checkout!

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When CTR’s A ack Invasive
Campaigns Produce High Click-Throughs, but Hurt NPS!

Section Two! Click-throughs via Invasive
Ads and Opt-Ins Understand how your data interacts – Chasing numbers at the start of the funnel can lead to poor performance at the end.!

Size Ma ers These ads
produce significantly higher CTR’s, but is that always a good thing?! Section Two! These kind of ads drive me nuts. They’re so obnoxious and get in the way of me using the site; they’re the equivalent of the sleazy sales guy at the store. — Participant!

Content Ma ers, but So
Does Timing Less disruptive, but room for improvement! Section Two! I wish these ads wouldn’t pop up immediately. When I’m visiting a new site, I want to look around and see if I’m interested first — Participant! I like the offers, but I get annoyed when this is the first interaction I have on a website. — Participant!

Convenience Ma ers Simple but
effective for building your house list! Section Two! I really like being able to sign in with one click and I like having the option to avoid more junk mail. — Participant! This thing didn’t popup until I was browsing around for awhile. I felt much more comfortable giving them my info once I had had a chance to look around. — Participant!

Key Takeaways Section Two! Leverage
Social in Signups!" 48% of participants liked having the option to sign in with their social media accounts" Of the participants who did not want to submit their email, 21% expressed a greater willingness to sign in with social; there was also no significant variance in response between age groups 36-45 and 46-55" Make Retargeting Easier 74% of participants willing to sign on with Facebook said they were more likely to click on an ad from the retailer when retargeted" Social sign on is essential in a mobile environment" " Ad Sizes" 90% of participants were frustrated or annoyed by ads or opt- in windows 400x400 px. or larger" Only 17%were frustrated or annoyed by ads or opt-in windows 336x280 or smaller" Content Ma ers, Even In a Window 27% of participants said having a discount offer for their initial purchase motivated them to submit their email in an opt-in window" 67% of participants reported that seeing a “100% satisfaction guarantee” in the pop-up window made them more likely to convert (either to an ad or to opt-in)"

Key Takeaways Section Two! Invasive
Ads: Higher Click- Throughs, Lower NPS" There was almost 0%improvement in conversion rates for large invasive ads" However, 70%of customers who interacted with invasive advertising reported a decreased likelihood of shopping with the retailer and an average 1pt decrease in their net promoter score! An additional 12% expressed negative sentiment but did not specifically state that they would be less likely to shop." Misleading Data 22% of invasive ad click throughs were reported as mistakes by the participants" Understanding why your customers are behaving as they are is just as important as understanding the raw numbers that big data provides" The Best Solution Responsive design that is triggered by customer interaction with the site. Responsive ads and opt-ins are viewed 65% more positively." Your customers want to feel as if they’re driving their experience with the site. Elements that remove the perception of control from the customer are received very negatively."

What’s in a Review? What
Customers Look for When Looking to Each Other!

Section Two! What’s in a
Review? The right reviews can move the dial, reducing abandonment and driving conversions!

The Power of the Review
Let’s take a look at how good reviews are structured: Section Two! I’m more skeptical of reviews that claim the product is perfect. I’m shopping for value and like when the reviews are more realistic. — Participant! A strong four star review is more powerful than a weak five star review • Emphasize value • Confront weaknesses • Address specific use cases • Offer comparisons to competing products

The Power of the Review
Let’s take a look at reviews that disengage customers from the shopping process: Section Two! I get worried when I see reviews about products breaking. I start imagining what I would do in that situation and feel stressed. — Participant! 38% of participants placed a significantly higher value on articulate negative reviews than vague positive reviews, regardless of average review score. The most harmful reviews: • Specifically de-emphasize value • Criticize product durability • Outline customer service issues • Offer comparisons to competing products

The Power of the Review
If you can, leverage social, photos and multimedia from customers! Section Two!

Key Takeaways Section Two! First,
Display Reviews!" 25%of retailers studied didn’t allow customers to review, and 33% of retailers that allowed reviews had fewer than 5 per item – there’s a huge opportunities to encourage customer feedback." Customers were 2xmore likely to complete a purchase if products were positively reviewed vs. not reviewed at all." Highlight Strong Positive Reviews Only half the retailers studied ranked their reviews based on usefulness. Many prioritized reviews marked “useful” but didn’t deprioritize reviews marked “not useful”. Many also failed to give customers the ability to rate reviews." 62%of people who were “on the fence” expressed a greater comfort in purchasing a er reading strong positive reviews." Respond to Negative Reviews Even if a customer’s negative review cannot be resolved, companies that responded to negative reviews generated significantly stronger positive sentiment from their customers." 63%of participants who encountered a strong negative review were more likely to ignore the review if it received a sympathetic response from customer service; they were more likely to complete their purchase." Ask Guiding Questions to Reviewers" Almost 90% of the eCommerce sites we encountered that did allow customers to leave reviews simply provided them a textbox prompted with sentences like: “Leave a review.”" 89%of participants noted the higher quality of reviews on sites that asked guiding questions to reviews like: “How do o en do you use this product?” or “Would you buy this product again?”""

Future Studies and Q&A!
3!

Future Studies We’re compiling data
on the following topics for future studies being released later this year: • Mobile eCommerce Optimization Best Practices • Pre-Sales Priming - Acquiring Customers Before They Shop Join our community and subscribe to our blog at: Section Three! YouEye allowed us to understand why customers behave as they do by capturing and analyzing a breadth of behavioral data that complements our analytics-based systems. ! — Fred Jabbour, VP @ Spotse er (acquired by Apple)! malcolm@youeye.com! youeye.com/blog! Want to partner with us for a study or have your own eCommerce study performed? Email me at:

Questions?! Kyle Henderson Founder &
Head of Research YouEye @kylehenderson Malcolm Stewart CEO YouEye @malcolmmalcolm Thue Madsen Marketing Associate KISSmetrics @thuelmadsen