closing the mobile revenue gap...lost opportunities on mobile cyber monday broke online sales...

Closing the Mobile Revenue Gap Surprising Findings from a Global Study

Rob LongEcommerce Evangelist

@RobEcommerce

Mark ConatserSoftware Engineer

@HiConversion

Ivona NamjesnikMarketing and Sales Director

@Namjesnik_

Joel HartCEO

@Mediotype

Quentin MontaltoCOO

@Quentalto

Lost Opportunities on Mobile

Cyber Monday Broke Online Sales Records but Mobile Still Lagging

VISITORS REVENUE

Mobile Revenue

Gap

48.6%

51.4%

66%

34%

2018 Cyber Monday sales topped $7.9 billion, making it the largest online shopping day in history.

Sales from smartphones hit a record $2 billion, but still only made up 26.3% of overall sales.

Mobile overall represented 51.4% of site visitors, making it the first Cyber Monday where more than half the traffic came from mobile.

Data Source: Adobe News: Adobe Analytics Data Shows Cyber Monday Broke Online Sales Record with $7.9 Billion”

It Takes a Community to Close the Mobile Revenue Gap

Cross-merchant collaboration and publication of results

Enabling systematic approach and data roll up

Providing professional services and data interpretation

29 AGENCIES & SIs

PARTICIPATING MERCHANTS

TECHNOLOGY PARTNERS

EXPERT KNOWLEDGE

COMMUNITY SITE

Mobile Optimization Initiative by the NumbersClosing the mobile revenue gap – a global community effort

14

252Mid Market Merchants

participating in US, Asia, Europe and Latin

America

$899MValue of transactions and payment volume tracked

8.2%Average improvement in Revenue Per Visitor

by implementing experiment findings

$826kBusiness value of

implementing Optimizations for a merchant with $10

million in annual online revenue

Data Source: HiConversion/ Mobile Optimization Research Program. Analyzed experiments via Merchants with +5M in annual online volume, March 15 2019. Research findings available at https://mobileoptimized.org

REVENUE PER VISITOR (RPV)

How We Measure Successes and Failures

RPV will show you what’s working and what’s not working on your site.CR and AOV are best viewed as factors that contribute to the growth or decline of RPV.

RPV = TOTAL REVENUE EARNED IN A TIME PERIOD

TOTAL # OF VISITS IN SAME TIME PERIOD AS ABOVE

What Are We Testing?

See: mobileoptimized.org/experiments/

120 LIVE EXPERIMENTS TODAY

• Coupon Collapse• Floating Checkout Button• Simplified Cart Header• Auto Cart Update• Zip Code Auto Fill• Credit Card Auto Detect• Security Icon Placement• PayPal Checkout• …and more

© 2019 PayPal Inc. Confidential and proprietary.

Shopping experiences should be season specific.

Pre-season

• Shoppers are focused on brand and product details

• Discretionary spending

CAREFUL CONSIDERATION

MODERATE MOTIVATIONIMPULSE BUY

HIGHER MOTIVATION

LOWER VELOCITY

LOWER MOTIVATION

STARTS

High-Season

• Shoppers are focused on products on the list

• Convenience and frictionless experience supersedes price

Post-season

• Back to normal• Careful consideration

ENDS

Seasonal Changes in User Behavior

© 2019 PayPal Inc. Confidential and proprietary.

Coupon Collapse

Coupon Collapse – Average Results

• Exposed Coupon forms can present an unnecessary distraction to users, who may be tempted to leave the site in search of a code that will save money, at a very critical point in their path-to-purchase.

• To remove unnecessary distractors from the checkout flow, we collapsed the existing open fields for promo code and gift card inputs into expandable elements. Without removing the option to use a coupon, we are focusing attention on the checkout button.

#1

Data Source: HiConversion/ Magento Mobile Optimization Research Program. Research findings available at https://mobileoptimized.org/home/

Mobile RPV Lift

+0.48%Desktop RPV Lift

+3.41%

© 2019 PayPal Inc. Confidential and proprietary.

#1 Coupon Collapse: Before and After

CONTROL TREATMENT

Users Leave to Hunt for Codes

Users Click to Expand Forms

© 2019 PayPal Inc. Confidential and proprietary.

The Results: All-Time vs. Holidays 2018 (Nov. 23 – Dec. 21)

5

What It Means

Things to Consider

DESKTOP

CR AOV

-0.31% +0.65%

PHONE +2.14% -4.23%

NON-HOLIDAY

-2.06%

Data Source: HiConversion/ Magento Mobile Optimization Research Program.

DESKTOP

CR AOV

+2.10% +2.28%

PHONE +12.01% +2.10%

HOLIDAYS 2018

+14.87%

+4.91%

RPV

-1.14%

RPV

• This experience resonates much more strongly during the Holidays than during other parts of the year. Mobile performance increased significantly while Desktop also improved moderately.

• Coupon Collapse may not work for a site year-round, but implementing it for the Holidays should be strongly considered.

© 2019 PayPal Inc. Confidential and proprietary.5

Data Source: HiConversion/ Magento Mobile Optimization Research Program.

Simplified Header

Simplified Header

• When adding items to a cart, shoppers want a fast and easy way to checkout or continue shopping.

• Removing items not directly related to these two actions should increase the likelihood of a completed sale while not hurting Average Order Values.Desktop RPV Lift

+2.84%

#2

Mobile RPV Lift

+0.43%

© 2019 PayPal Inc. Confidential and proprietary.5

#1

CONTROL TREATMENT

#2 Simplified Header

Too Many Links Distracting Users

Focus on Checkout

<logo><logo>

© 2019 PayPal Inc. Confidential and proprietary.5

Data Source: HiConversion/ Magento Mobile Optimization Research Program.

The Results: All-Time vs. Holidays 2018 (Nov. 23 – Dec. 21)

5

What It Means

Things to Consider

DESKTOP

CR AOV

+1.65% +1.00%

PHONE +0.65% -0.15%

NON-HOLIDAY

DESKTOP

CR AOV

+1.71% +1.39%

PHONE +3.55% +2.46%

HOLIDAYS 2018

+6.10%

+3.29%

RPV

+2.75%

RPV

• Again, this experience resonates more strongly during the Holidays than other parts of the year. Mobile performance increased significantly while Desktop also improved moderately, just as we saw with Coupon Collapse.

• This is another experience that all merchants should strongly consider playing specifically during the holidays, if not year-round.

+0.25%

3

DESKTOP RPV Lift

+8.84%

Auto Cart Update - Simplify

• Online shoppers demand a frictionless checkout experience

• Implementing Auto Cart Update functionality reduces the steps shoppers must take, and provides them with current cart information at all times

#1#3 Auto Cart Update

Data Source: HiConversion/ Magento Mobile Optimization Research Program. Analyzed experiments via 63 Magento Merchants with +5M in annual online volume, April 2019. Research findings available at https://mobileoptimized.org/

#1

CONTROL TREATMENT

#3 Auto Cart Update

The Results

• Strong desktop results suggest shoppers are more likely to edit cart quantities on desktop than on mobile

• Merchants in this experiment had a 95.5% success rate

What It Means

Things to Consider

• Merchants with a high percentage of returning visitors should pay special attention to the results for those visitors

RESULTS DISTRIBUTION(Phone)

95.5% SUCCESS RATE

DESKTOP

RPV CR AOV

+8.84% +4.99% +3.66%

PHONE +4.90% +2.81%

TABLET -0.18% +0.21% -0.48%

Average Lift

+8.19%

RPV Lift

Data Source: HiConversion/ Magento Mobile Optimization Research Program. Analyzed experiments via Magento Merchants with +5M in annual online volume, December 2018. Research findings available at https://mobileoptimized.org

Negative Lift

3

MINI-CART RPV Lift

+4.96%

PayPal Express Checkout -Shortcut

• Online shoppers are increasingly impulse buyers. Those who are paying with PayPal can complete a purchase and completely bypass entering credit card information and shipping details when they already have a funding source linked to their PayPal account.

• Injecting PayPal Express Shortcut to the mini-cart may lead to an RPV lift.

But will it lead to a decline in AOV?

#1#4 Add the PayPal Express Checkout - Shortcut

Data Source: HiConversion/ Magento Mobile Optimization Research Program. Analyzed experiments via 63 Magento Merchants with +5M in annual online volume, Sept 2018. Research findings available at https://mobileoptimized.org

#1

CONTROL TREATMENT

#4 Add the PayPal Express Checkout - Shortcut

The Results

5

• AOV was not negatively impacted

• PayPal Express Checkout Shortcut placed in different location on the top of the checkout funnel worked well in the test

What It Means

Things to Consider

• Page look and feel or layout creates positive or negative impact on the PayPal lift

EXPERIMENT RESULTS DISTRIBUTION

78.29% SUCCESS RATE

DESKTOP

RPV CR AOV

+3.49% +3.72% -0.30%

PHONE +4.04% +0.19%

TABLET +4.23% +4.27% -0.15 %

Average Lift

+4.96%

Negative Lift

-20% -10% 0 10% 20+%RPV Lift

Data Source: HiConversion/ Magento Mobile Optimization Research Program. Analyzed experiments via 63 Magento Merchants with +5M in annual online volume, Sept 2018. Research findings available at https://mobileoptimized.org

Unexpected Results…

#5

PHONE RPV Lift

-7.09%

Removing Breadcrumbs

CONTROL TREATMENT

Data Source: HiConversion/ Magento Mobile Optimization Research Program. Analyzed experiments via Magento Merchants with +5M in annual online volume, March 15 2019. Research findings available at https://mobileoptimized.org

• If a merchant’s navigation is effective, Breadcrumbs become redundant. We are testing the effects of removing the Breadcrumb trail to see if it reduces distractions for the buyer.

Removing Breadcrumbs– Reduce Distractions

The Results

5

• So far, no results indicate that this treatment provides a positive user experience. However, a subset of merchants (38.1%) are seeing a modest RPV lift among mobile users.

What It Means

Things to Consider

• Shoppers love Breadcrumbs! If a merchant currently does not use Breadcrumbs on their site, they should consider implementing the feature to see if there is any increase in RPV.

RESULTS DISTRIBUTION(Phone)

Only 38.1% of Phone visits are seeing a modest RPV lift from this treatment.

DESKTOP

RPV CR AOV

-3.79% -5.65% +4.62%

PHONE -14.16% +8.77%

TABLET -18.49% +1.02% -15.94%

-7.09%

Average Lift

Negative Lift

RPV Lift

Data Source: HiConversion/ Magento Mobile Optimization Research Program. Analyzed experiments via Magento Merchants with +5M in annual online volume, March 15 2019. Research findings available at https://mobileoptimized.org

Upcoming ExperimentsJoin Us

FREE SHIPPING THRESHOLD + REMINDER

BASELINE TREATMENTSOffering Free Shipping at a defined

threshold may encourage users to Buy More and Checkout

Additionally, Merchants that offer Free Shipping at a defined threshold may benefit from emphasizing the offer across the site or in key CTA areas

QUICK FULFILLMENT CALLOUT

BASELINE TREATMENT

Holiday Shoppers will feel more at-

ease if they know their

purchase will arrive quickly

• Learn more: Read more in-depth results and background on our findings

• Join the Initiative: Reach out to us to start running experiments on your site

What’s Next?

18

https://MobileOptimized.org