The Conversion Optimization Report
The Conversion Optimization Report
The Conversion Optimization Report
Anthony OConnell
network one www.one.ie
Contents
Introduction
Conversion Rates by Retailer Segment Conversion rates vary depending on if the visitor is new or returning Conversion rates vary by traffic source Social shoppers convert less than search engine shoppers... Top 10 Online Retailers By Conversion Rate Conversion Rate Optimization Key findings
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Analytics
Key Performance Indicators Some KPIs to consider KPIs can be analyzed from a number of perspectives including
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Test
How Valuable Do You Find the Following Methods of Increasing Conversion? A/B versus Multivariate Testing (MVT) What to Test Specifically for your website what do you test? Key Pages and Funnels Tested Key Pages And Funnels Tested Benchmarks For Internet Retailers Retail Industry
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Leave a scent
Example Take Action
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Key Findings Verbs beat adverbs, adjectives, and nouns in terms of their potential to attract Twitter shares! Buttons labeled submit have low conversion rates Case Study Case Study Case Study Take Action
Key Findings Page elements most consistently having a very significant impact on landing page optimization Case Study Case Study
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31 33 38 40
Direct the gaze of pictures of people where you want them to look.
Earn Trust
Key Findings Top consumer e-commerce fears you need to address Case Study Case Study Case Study Take Action
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Key Findings Top Reasons For Abandoning Shopping Carts Case Study Take Action
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Key Findings Response rates for remarketing programs Case Study Case Study Take Action
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Anthony OConnell
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Introduction
I know that half of my advertising dollars are wasted I just dont know which half. John Wanamaker (1838 1922). 100 years later its possible to track which advertising results in a sale and its a lot less than 50%. 2% - The average conversion rate whether you are selling elephants or iPods, says Avinash Kaushik, Analytics Evangelist at Google This report provides knowledge and tactics to escalate conversion rates. The conversion rate is the percentage of visitors to a website who complete a desired action. In most cases its the ratio of browsers to buyers, however a successful conversion may refer to newsletter subscriptions, social media connection or any other activity that occurs due to a subtle or direct request for the visitor to take action. Conversion rates vary widely depending on industry, the value of the product or service for sale, source of traffic to the website, and whether a visitor is new or returning. E-commerce websites report an average conversion rate of 2.2%, according to shop.org. Conversion rates across online retail range from 1% for the bottom 30% of ecommerce sites (based on overall performance) to 6% for the top 20%, according to the report Retail Ecommerce Search Accuracy, Relevancy and Profitability in the Age of Consumer Choice, published by Aberdeen Group in 2011.
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7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2010 2011
Source: Compete.com
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Schwans 25.3%
40.6%
Blair.com 17.7%
1800 petmeds.com
vitacost.com
16.4%
QVC
16.0%
ProFlowers
15.8%
Office Depot
15.4%
14.9%
Conversion Rate
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Key findings
ROI of LPO is ubiquitously positive, but a challenge to calculate.
B2B Positive ROI B2C Negitive or No ROI ROI not calculated Don't know Both B2B2C 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Negative or No ROI 3% 0% 2%
Source Marketing Sherpa Landing Page Optimization Benchmark Survey 2011 Page 9 Learn how to escalate conversion rates at www.one.ie
Anthony OConnell
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Analytics
You cannot manage what you cannot measure. (Peter Druker) What you do not measure, you cannot control. (Tom Peters)
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Social sharing rate page views / number of times the page is shared (e.g. on Facebook, Twitter, Google +, Pinterest etc.) Comments the number of comments on a blog post or web page Bounce rate the percentage of visitors who leave your website after looking at one page only Exit rates the percentage of visitors who leave your website from a specific page
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Test
A/B testing and multivariate testing were the highest ranked method for improving conversion rates according to Econsultancy
A/B Testing Multivariate Testing Customer Journey Analysis Usability Testing Segmentation Highly Valuable Cart Abandonment Analysis Online Surveys/ Customer Feedback Copy Optimisation Event-triggered behavioural email Expert usability reviews Competitor Benchmarking 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quite Valuable Not Valuable
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A/B Testing Multivariate Testing Customer Journey Analysis Usability Testing Segmentation Cart Abandonment Analysis Online Surveys/ Customer Feedback Copy Optimization Event-triggered behavioral email Expert usability reviews Competitor Benchmarking
Highly Valuable 52% 51% 49% 46% 42% 40% 36% 32% 31% 29% 22%
Quite Valuable 45% 45% 47% 51% 52% 56% 55% 61% 63% 62% 66%
Testing B2B lead generation forms increased conversion rates by an average of 40%. Ecommerce page tests increased conversion by 20-25% according to Hubspot
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What to Test
Be careful what you choose test otherwise you will waste time and money.
Call to action buttons Page layout Navigation Copy Promotions and offers Checkout process Images Product selection process Security fields
2011 72% 71% 65% 63% 49% 49% 43% 34% 13%
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Home Page Other funnels Free download, webinar, or other items requiring a form RFP or other lead gen process Product, solution or other offer page Shopping cart or subscription process Free account setup (no payment involved) Payment page Cagegory, listing or similar page Other pages Thank-you page Contact us, about us or similar page Shipping information page 0% 10% 20% 30% 45% 44% 40% 37% 36% 35% 40% 50% 60% 55% 54% 54% 52% 50%
61% 60%
70%
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Home Page Free download, webinar, or other items requiring a form submission Product, solution or other offer page RFP or other lead gen process Shopping cart or subscription process Free account setup (no payment involved) Payment page Category, listing or similar page Thank-you page Contact us, about us or similar page Shipping information page Other funnels Other pages
61% 55% 54% 54% 52% 50% 45% 44% 37% 36% 35% 60% 40%
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2.10% 67.90% 22.52% $137.18 $2.31 6.04% 37.06% 8.57% 10.31 43%
1-and-out rate is the percentage of visits ending after just one page, also know as bounce rate
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Leave a scent
People navigate the web by scent. Bryan Eisenberg author of the bestselling book Call to Action: Secret Formulas to Improve Online Results, says scent was first described by Xerox Parc to outline the parallels between humans information-gathering techniques on the web and animals food-gathering techniques in the wild. He says, people seek information through the scent given off by their trigger words. According to research performed by usability guru Jared Spool, when visitors found the trigger word on the landing page, they were successful at completing their task 72% of the time; if the trigger word wasnt on the page, they were only successful 6% of the time. The scent of the key words kept them on the right path; lacking that scent, they stopped searching that particular trail.
Example
A customer searches for milo baughman chairs on Google
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She clicks on the ad and goes to the landing page (a category listing page) on the website
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And places an order. All along the way the keywords she searched for are displayed, showing her that shes on the correct path.
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Take Action
Use keywords in headings and product descriptions (this will also increase results for search engine optimization and lower costs for pay per click advertising. Use breadcrumbs Use recently viewed items Show clearly which products have been added to the shopping cart Show clearly which products your customers are going to buy on the payment page. Use trigger words to lay a scent from your advertisements all the way to the sale.
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Key Findings
Calls to action were the highest reported type of test in the RedEye Econsultancy Conversion Rate Optimization Report 2011.
Verbs beat adverbs, adjectives, and nouns in terms of their potential to attract Twitter shares!
Adverb
Ajective
Noun
Verb
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
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14% 17%
An effective call-to-action should provide you with an opportunity to go beyond the transactional act of clicking on an offer, and create a relationship with a prospect. Its just the beginning of someones journey with your brand. (Hubspot)
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Anthony OConnell
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Case Study
Firefox conducted an A/B test for 2 different download buttons on over 300,000 visitors and nearly 30,000 clicks. The Original: Try Firefox 9.73% conversion rate
The Winner: Download Now - Free 10.07% conversion rate (increase of 3.44%)
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Case Study
37signals conducted multivarate tests for different call to actions on sign-up buttons on their home page. They tried different permutations such as Free Trial and Sign-up for Free Trial. but the phrase See Plans and Pricing resulted in a 200% increase in subscribers Jason Fried, founder of 37signals believes its because people are afraid if they click a link that says Free Trial then theyll somehow automatically sign-up for something and be trapped. However, See Plans and Pricing encouraged them to explore, without the fear of commitment.
Case Study
Carelogger, increased their conversions by 34% with a red button instead of a green one.
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Anthony OConnell
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Take Action
Use verbs to stimulate action Use clear commands to tell your audience exactly what to do Tell your audience exactly what they will get if they complete the desired action Use powerful, contrasting colors Use whitespace effectively Convey a sense of urgency Overcome perceived barriers. e.g. if your product is free tell them it is free.
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Anthony OConnell
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Key Findings
Page elements most consistently having a very significant impact on landing page optimization
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Headline copy Content of images Body copy Form layout Headline copy 41% 40% 33% Content of images 42% 36% 43% Body copy 41% 41% 33% Form layout 44% 34% 38%
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Anthony OConnell
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The most engaging press release headlines are between 90 and 150 characters. Dan Zarella, The Science of PR
Case Study
37 Signals used Google Website Optimizer to randomly rotate five different headline and subhead combinations on the sign-up page. The original: Worst performer
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Anthony OConnell
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Case Study
Carelogger tested 2 different headlines, one which highlighted the benefits. The original: Worst performer
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Case Study
Corkscrew Wine Merchants focused their headline and image on one item, a discount. The original: 12.5% conversion rate
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Optimize Images
Images play a vital role in the percentage of visitors who convert to customers. 83 % of eBay shoppers skip listings without images, listings with galleries get 15% more activity and listings with super-size photos generate a 24 percent spike in sales eBay.
Direct the gaze of pictures of people where you want them to look.
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Create Urgency
Urgency results in significantly higher conversion rates.
Case Study
Canada Dream tested 2 different booking forms. The original: Worst performer
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Earn Trust
If customers dont trust you they wont do business with you.
Key Findings
Top consumer e-commerce fears you need to address
Fear of credit card information being stolen Its not a real store Youll sell my information I cant tell what the product is really like Not being able to track orders Not being able to get help
Source Richard Johnson, Why Are People Afraid of E-Commerce? September 2010
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Case Study
The AA reminded customers that they could trust them and increased trust scores by 33%.
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Case Study
Express Watches customers are more concerned that they are an authorized dealer than price. The original: 1.8% conversion rate
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Case Study
Candy Favorites added a McAfee secure seal to increase conversion by 7.5%
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Take Action
Make sure forms are encrypted by SSL. Add secure payment logos near payment buttons. Add hacker proof logos. Add social proof, for example, show which facebook friends have subscribed to your service. Add testimonials - make testimonials believable using full names, video, photos and links to websites. Add logos of media outlets that have written about your company.
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Key Findings
Google Trusted Stores program, which rates retailers performance in customer service and shipping increases conversion rates by 3.1% and average order size by 5.5% according to Tom Fallows, Group Product Manager, Google Shopping. 77% of online shoppers use reviews and ratings when purchasing (Jupiter Research) 63% of consumers indicate they are more likely to purchase from a site if it has product ratings and reviews. (CompUSA and iPerceptions study) 86.9% of respondents said they would trust a friends recommendation over a review by a critic, while 83.8% said they would trust user reviews over a critic. (MarketSherpa)
Take Action
Add customer reviews on product pages Get proactive in getting customers to provide reviews e.g. send an automated email with a coupon for money off if they review the product. Add Google Rich snippets to your reviews. This will display stars in Google search results and ads.
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Key Findings
Only 64 percent of shopping carts filled on an e-commerce site will ultimately result in a purchase, according to JupiterResearch, 2006. In 2010 Forrester Research reported shopping cart abandonment rates of 55%. Two years later, Fireclick and DigitalRiver found abandonment rates to be 72.31%. The main reason behind shopping cart abandonment is a bad customer experience followed by indecision according to Forrester Research. Econsultancy found 36.75% of users abandon due to the process being too long. Additional charges is the most common reason for users abandoning an online purchase according to Econsultancy; 74.5% of consumers identify high delivery charges as a reason to abandon an online basket. The main reasons for abandoning the checkout process are hidden charges (70.8%), concerns about payment security (58.4%) and technical problems or slow loading pages (44%) according to Econsultancy(July 2011).
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18%
15%
12%
Didnt want to pay shipping charges Total cost more than anticipated Used shopping cart for research Didnt want to wait for the product Purchased offline Checkout Process too complicated Other
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Source: Forester, Oct 2005. Rethinking The Significance Of Shopping Cart Abandonment
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Anthony OConnell
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Case Study
The official Vancouver 2010 Olympic store tested different checkout processes. The original: Multi-step checkout process
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Take Action
Eliminate unnecessary steps and only ask for information that is completely necessary in completing the transaction. Take out the fax number as a required field, for example. Let the visitor know that you value their privacy and that you have a secure site. Answer all your customers questions, in context. Let them know about shipping, returns and guarantee and tax without having to interrupt the buying process. . Remind customers about what theyre buying Provide a running total of all costs Provide easy access to purchase terms, payment types accepted, and return policies, from the shopping cart
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Key Findings
50 percent of Internet purchases are concluded more than an hour after the shopping cart was created (ScanAlert). Average time-to-purchase varies depending on the product type - from infant products (averaging just under nine hours) to luxury personal items, consumer electronics, and golf equipment which average two to three days (ScanAlert). 14% of online purchases take longer than a week to complete (ScanAlert). 67% of online shoppers that have abandoned a cart check multiple channels for prices before purchasing (Forrester Research). One third of shoppers use the Web for research before making the purchase in a store (Forrester Research).
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Case Study
ASOS increased online retail sales by 58% to 324.8m by introducing a saved items are and other changes identified from a competitor benchmarking project.
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Take Action
Make your shopping cart persist, without customers having to register or login to see the cart when they return. Inform your customers that their shopping cart will be waiting for them when they return.
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Key Findings
Almost 30% of Web transactions reach a point where shoppers want to speak to someone before they buy (ATG).
Case Study
Jenny Craig used Click to Call to double conversion rates. Click to Call users are three times as likely to sign up for Jenny Craigs weight loss service as those who dont use Click to Call.
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Case Study
Lessaccounting.com added a phone number that rang straight through to voice mail and increased conversions by 1.8%
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Take action
Display your phone number prominently on your website. Provide a live chat option. Insert a form where customers can ask questions. Make it easy for customers to email you without having to fill in long contact forms. Dont interrupt the buying process by making customers search for answers, instead provide answers in the context where an answer is needed. Pop-up windows can be used to uninterrupt the buying process, keeping the customer on the right page. Anticipate questions and concerns, and answer them before your customers think of them. Reassure your customers that you are available and ready provide support.
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Provide Promotions
Everyone loves a deal.
Key Findings
All the top 10 retailers have promotions and special offers on their front page. One in five online shoppers used a coupon code on their most recent purchase and almost 60 percent said that they wouldnt have made their most recent online purchase without a coupon code (Compete.com). 37 percent of consumers use coupons most of the time (Compete.com). Three in four consumers say free shipping would encourage them to purchase more products online (Kantar Media). The subject-line keywords that have the highest open rates, include coupon (16.3%) (Epsilon)
Take Action
Provide coupons. Provide free shipping. Provide buy 1 get 1 free promotions. Provide free gifts. Provide special reward points programs. Increase conversion rates by creating a sense of urgency with limited time or limited quantity offers.
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Remarket
Remarketing enables business to capture lost sales using advertising or email.
Key Findings
Response rates for remarketing programs
Average Open Rate Average Click Thru Rate Average Conversion Rate
Retail abandoned basket 17% Travel and leisure post-holiday trigger 23% Insurance saved quote not buy 22%
Average Click Thru Average Rate Open Rate 28% 23% 29% 62% 75% 55%
Anthony OConnell
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54 percent of all carts successfully recovered are regained within the first few hours after abandonment (SeeWhy). Average conversion rates for recovery emails that are sent immediately after abandonment are 11 percent, this falls to 6% after the first day and to 3% after a week (SeeWhy). Retargeted consumers are nearly 70% more likely to complete a purchase as compared to non-retargeted consumers (SEOmoz). Retargeted consumers spend, on average 50% more than those served with non-retargeted banner ads (SEOmoz).
Case Study
Yankee Candle used Remarketing on the Google Display Network to re-engage shoppers, increase conversion rates by 600% and cut cost-per-conversion in half. Using Googles tracking codes to tag visitors, Yankee Candle compiled a list of 41,000 visitors who had placed items in their shopping carts in the last 60 days, but who had not completed their purchases. Yankee Candle then showed both text and image ads with discount offers to these previous visitors across sites in the Google Display Network to encourage over 10% of their customers to return and complete their purchases.
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Case Study
JetBlue Airways used remarketing to send emails to visitors of its website who dropped off while booking a flight. There were two goals 1. to finish booking the flight and 2. to join or login to its loyalty program. The company identified 4 places where customers could abandon their flight booking session and sent customized emails one day after the process was abandoned. If you look at the content of the email, were not really pushing anything. Theyre pretty simple. Its a gentle reminder to return to JetBlue, says Danielle Compitello, Email Marketing Manager at JetBlue. Compared to their standard email campaigns, JetBlues retargeting emails campaigns achieved... 150% increase in open rates. 170% increase in click-through rates. 200% increase in conversion rates (sales). 1,640% increase in revenue per email (when compared to JetBlues standard email promotions).
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Take Action
Add tracking code to your website to tag and segment visitors for remarketing campaigns Setup an automated email system to send emails to visitors who abandon carts Act quickly, send the first email within the first few hours after they abandoned their cart. Use advertising to retarget visitors who abandoned carts. Brand advertisements with your website colors to stimulate brand recognition Retarget people on special occasions Retarget showing daily deals Retarget showing new products Retarget to thank customers Remember people get annoyed if they are told the same thing over and over. Use frequency capping to prevent over exposure and a sequence of ads to engage your audience in meaningful conversations.
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