A few weeks ago, I participated in a seminar series put on by the people at Tealeaf. If you haven't checked out Tealeaf, spend some time on the site. The company measures a visitor's experience on your site by tracking all interactions and transactions. It's a natural complement to your Web analytics tool, and the organization has partnered with a number of Web analytics companies.
The Tealeaf team shared some great case studies and tips with the people who attended the seminar. One thing that really caught my attention: a Shop.org and Forrester survey that e-commerce conversion rates have been dropping for the past few years.
If this the case, it's surprising that as companies spend more money tuning their businesses and understanding their customers, they're converting fewer visitors on a percentage basis. Think of the millions of dollars spent over the past few years on Web analytics, surveys, user studies, site redesigns, optimization efforts, and the like. Does this mean these efforts aren't worth it? Again, at first blush, it might look like these efforts have been wasted, as conversions have been declining.
Obviously that isn't the case. So what's causing this decline? I think it comes back to one thing: visitors are in control. It's never been easier to find someone to buy something from. If you aren't getting what you need within one experience, it's easy to go onto the next.
Think about the following as it relates to e-commerce:
Other factors also contribute to declining conversion rates. What does this all mean? Declining conversion rates, visitors in control, more choices? It means you need to work even harder to create and offer easy, rewarding, and compelling reasons to buy at your site. You may say that if everyone uses shopping bots to find the best prices, then it's a price game. That isn't always the case. How many times have you chosen an option in the shopping bots results that wasn't the lowest? It happens all the time: who's easier to buy from, who do you trust, who in general are you most comfortable with. These factors, along with pricing, lead to a purchasing decision.
With Thanksgiving only a few days away, we're entering the prime shopping season and a key time for retailers, online and off-. What have you been doing to maximize your conversion rate the past few months?
Is it too late for this year? Not to make small incremental changes. Tackle a landing page, test a few versions of the page, and see if you can sneak a small improvement out. But all this doesn't need to revolve around the holidays, you should be doing this all year long.
You should look at Web analytics data. But you must also understand the customer experience data, attitudinal insight, and offsite factors that will impact your business.
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Many of ClickZ's leading expert contributors will be at ClickZ Live, the new online and digital marketing event kicking off in New York (March 31-April 3). Hear from the likes of: Jeremy Hull, Lisa Raehsler, Andrew Goodman, Bryan Eisenberg, Mathew Sweezey, Aaron Kahlow, Stephanie Miller, Simms Jenkins, Jeanne S. Jennings, Dave Hendricks and more!
As president of the Americas regions for the digital agency POSSIBLE, Jason is responsible for leading the long-term stability and growth of the region. Jason has 20-plus years experience in digital strategy. He is a long-time advocate of using data to inform digital strategies to help clients attract, convert, and retain customers. Jason supports our clients and employees in driving new engagements and delivering great work that works.
Jason speaks frequently about helping marketers take advantage of data to make smarter business decisions and improve the success of their organizations. He is the co-author of Actionable Web Analytics: Using Data to Make Smart Business Decisions.
Follow him on Twitter @JasonBurby.
March 19, 2014