ecmod 1 12 11 ppt

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

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Custo

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Usabi

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Segm

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Copy o

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Exper

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bility

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Compe

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ench

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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

mark.patron@redeye.com