Sorry for missing yesterday’s post folks. I referenced a mastermind group I’d setup with a few other business owners in Devon in my post earlier this year – well yesterday we descended on Bovey Castle on Dartmoor – a truely inspirational venue, perfect for reflection on business and setting goals for the future. I’m now fully energised again and ready to work at my optimimum level again.
This weeks post was originally written for The Web Squeeze a few weeks ago and has been received really well so I thoughtmy iambanksy readers might like to read it. Enjoy.
Conversion rate optimisation (CRO) is the driving force, the buzzword that gets e-commerce specialists excited, and the latest online market figures make it easy to understand just why.
2008 saw a single year increase in online sales of 16% across the market. Since 2000, Internet sales have risen by 3,500% to £42bn and it’s expected that by 2010 this figure will have climbed to a staggering £72bn.
Statistics like these prove that traditional concerns around issues such as security, limited or inaccurate product information and delivery logistics are on the wane and shows just how vital it is to business to put themselves in a position to capitalise to the full.
However, this is also about a seismic shift in consumer habits on the back of an ever more sophisticated online culture. Our confidence in, and dependence on, online technologies, from desktop computers to mobiles and handhelds, is greater than it has ever been before.
Forward thinking businesses are recognizing this and also realising that the disciplines of analysis and adjustment associated with CRO are techniques just as relevant in all areas of measuring the success of a web presence. Each business is unique, and what works for one may not work for another.
Nothing should be left to assumptions. Don’t assume something is working – measure, analyse and build until you are sure it does.
In a large competitive market, just a fractional increase in market share can represent a significant boost to profits.
The e-commerce ‘boom’ showed how incredibly easy it is to establish an online shop, just as the subsequent bursting of the e-commerce ‘bubble’ demonstrated the harsh realities of creating a success of one.
CRO is more likely to become achievable if a business understands that their online stores have a much greater value than simply being a means of processing direct online sales.
The key to making the very most of your online store is to make it ‘intelligent’. There are an ever increasing number of excellent analytic tools that can provide the sort of data and insights on customer habits and regular reviewing of this allows the online store to tell you its own weaknesses to be corrected and strengths that can be built on as part of ongoing optimisation strategies.
Those who treat an online store simply as a static sales point are missing a huge opportunity to generate fresh sales from new and existing customers.
The journey between an initial visit and a completed sale can yield a great deal of information about your customers, their habits, where they came from, their likes and dislikes and ultimately what their experience of engaging with your business online is like.
A clearly focussed and customer-driven online store is vital in building brand loyalty and staying ahead of the competition. The bottom line is that those who engage in the changing dynamics of selling online will generate more revenue than those who do not.
If analytic data from your online store is going to have any genuine value it must be built on firm foundations, in other words, the fundamental basics of an online store need to be in place.
Using analytics for conversion optimisation is about fine-tuning and development, and you can’t fine-tune or develop a model that does not work in the first place.
Begin at the beginning, even if you have a well-established website, or sites, already. Make sure that usability is and remains at the heart of it. A small adjustment that enhances your customers experience of using the site may pay big dividends. Again, we go back to the mantra – measure, analyse and build.
Product information pages and purchasing forms must load quickly and be easily navigated. Forms and payment fields should be clearly titled and constructed and display essential information on the likes of shipping and billing in a prominent, logical, and easy to follow way.
There should be as many secured payment options as possible and plenty of calls to action. There is no point in having fantastically engaging sales pages if the customer can’t find the ‘checkout’ or ‘add to basket’ buttons.
If the online store satisfies these basic requirements then the data it yields can give you genuine insight into your customer‘s journey though your online store. From it you can act on two distinct fronts; optimising conversion and increasing sales through some seriously targeted marketing.
The essence of conversion optimisation is no great mystery. The point is to guide as many people as possible all the way to clicking the ‘place order’ button as smoothly as possible, at the same time ensuring that by the end of the process your brand and products have been enhanced in the customers’ eyes.
If they have arrived via a search engine, knowing the key phrases they used to get to you is invaluable in building effective Search Engine optimisation strategies and content. If they have followed a link from elsewhere – supplier database, social network, customer’s website etc… – you should know exactly where and how.
There is no better test of the robustness of your sales process than looking at customer abandonment. Latest data capturing techniques can model the journeys of all those who visit your site and show you exactly at what point during that journey they jump ship.
Armed with this information you can revisit this part of the site, take some independent soundings as to why it isn’t working (sometimes you are too close to the whole thing to see what might be obvious to an outsider) and tweak as necessary until the results improve. Every obstacle removed smoothes the path to higher sales.
The data your online store can provide is also invaluable when it comes to joining up and targeting marketing campaigns and strategies.
A proven way of retaining existing customers is ‘right touch’ marketing – complementing online advertising by introducing new products or services to specific customers who have bought or registered an interest in related items. Think along the lines of Amazon’s highly success ‘Customers who bought this also bought these’.
Going a step further, you can also introduce VIP shopping for regular retail and wholesale customers, an excellent means of increasing sales while imbuing a sense of exclusivity in the brand.
New product or service launches can be targeted at an audience who have already demonstrated interest in a particular area of your business. All this information can be provided by your online store if you make use of the ever growing number of analytic tools that make it an intelligence gatherer and provider rather than simply a processor of credit card details.
If you enjoyed this article you may well be interested in a fantastic article our head of development at Optix Solutions wrote on the use of voucher codes in ecommerce.