Ecmod 1 12 11 ppt

Ecmod 1 12 11 ppt
How to Improve your Website 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% 26% 37% 25% 11% 1% 24% 34% 28% 12% 0% 5% 10% 15% 20% 25% 30% 35% 40% Very satisfied Quite satisfied Neither satisfied nor dissatisfied Quite dissatisfied Very dissatisfied 2010 2011 Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Methods currently used for improving conversion rates 53% 47% 46% 44% 38% 37% 32% 28% 25% 24% 23% 0% 10% 20% 30% 40% 50% 60% Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
Best practices carried out by organisations 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% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 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 place Over last 3 years down from 3rd to 7th place Source: Econsultancy/RedEye Conversion Rate Optimization Report 2011
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? 50% 33% 29% 15% 50% 67% 71% 85% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Large increase Small increase No change Decrease Change in sales Yes No Does your organisation have a structured approach to improving 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 3% 2% 2% 4% 24% 35% 44% 65% 50% 49% 44% 23% 24% 14% 10% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Large increase Small increase No change Decrease Change in sales 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 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 Sales Average 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.
Value of methods used for improving conversion rates 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% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 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 Analysis Business 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 Improvement Increased Conversion, AOV, RPV, X-Sell, UX Quick wins e.g. Fixing issues Optimising Landing pages X-Sell / merchandise optimisation Behavioural email Document Knowledge Conversion Rate Optimisation (CRO) process
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
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% ROI with abandoned basket email campaign • Halfords Autocentres over 5,000% ROI from triggered behavioural email • Monarch Airlines abandoned booking dynamic content behavioural email ROI 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 at http://econsultancy.com/reports/conversion-rate-optimization-report Download RedEye’s white paper, A Structured Approach to Conversion Rate Optimization at http://www.redeye.com/events/whitepapersandreports/a-structured- approach-to-conversion-rate-optimization/econ/ Free trial abandoned basket email at www.ondemand.redeye.com mark.patron@redeye.com

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