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What E-Retailers Must Know
About How Shoppers Use Their Sites
MarketLive Performance Index July 2007
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Web Analytics in Use
1. Overwhelming volume of data2. Identifying actionable metrics3. Taking action on findings 4. Establishing concrete benchmarks to measure
progress and improvementsa. Site Specificb. Competitive Landscape
Daily Challenges for Web Merchants
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Web Analytics in Use
“The Conversion Rate is seriously flawed in that it does not lead directly to any kind of tangible improvement in a Web site's customer experience. It's too ambiguous and too binary — it's either ‘up’ or ‘down’ — to be directly relevant.”
Forrester Research
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Competitive Benchmark: Pulse of E-retailing
+ Provides e-commerce benchmark data from robust set of MarketLive merchants> Online Revenue
Earning from $2M - $200M
> Business Type Cataloger Brand Manufacturer Brick & Mortar Retailer Online Pure Play
> Categories Apparel, Accessories & Footwear Home Furnishing & Decor Health & Beauty Gifts
MarketLive Performance Index
Source: MarketLive 100 Index, June 2007
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Competitive Benchmark: Pulse of E-retailing
+ Provides a holistic view of consumer behavior online> Benchmarks standard KPIs
> Exposes under valued and overlooked metrics
+ Publicly available, published quarterly at www.marketlive.com
+ Highlights specific verticals and categories
+ Tied to Intelligent Selling Tactics
MarketLive Performance Index
Source: MarketLive Performance Index, June 2007
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Reducing the “1-and-Out”
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Reducing the “1-and-Out”
+ 1-and-Out Rate> Percentage of single-page visits
on the site
> Goal: A low number
+ Factors Affecting the 1-and-Out> Customer expectations
(4-second rule) Site/Brand Credibility Site Design & Performance Meeting user goals
– Can target users easily recognize whether visit goals can be met?
> Source of traffic Consistent marketing/promotional
messaging on landing page
33% of visits end after just one page
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Reducing the “1-and-Out”
+ Home Page Effectiveness> Home page typically represents
the highest percentage of single-page visits on Web site
…consistently provided a broader mix of relevant merchandising targeted at core customer segments.
Top MarketLive Performers
Cater to multiple shopping behaviors and needs
Intelligent Selling Tactic #1
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Reducing the “1-and-Out”
MarketLive Index Top PerformerDo you know how your most value customers like to shop?
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Reducing the “1-and-Out”
MarketLive Index Top Performers
Merchandising must convey directive call-to-action; focus on specific user benefits
Intelligent Selling Tactic #2
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Reducing the “1-and-Out”
+ Beyond the Home Page
*Source: MarketLive Performance Index, June 2007
Look for spikes in single-page visits that might signal an ineffective paid search campaign, natural search results link or affiliate referral.
Intelligent Selling Tactic #3
75% of single page visits occur beyond the home page*
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Reducing the “1-and-Out”
+ Marketing Effectiveness - Paid Search Analysis> Highly targeted search term:
“skort”
> Strong/elevated paid ad placement
> Effective ad copy
*Source: MarketLive Performance Index, June 2007
Paid Search result for “skort”
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Reducing the “1-and-Out”
+ Marketing Effectiveness -Paid Search Analysis> Skorts category page
has site’s highest “1-and-out” rate
> Issue: existing category landing page does not effectively express the merchants depth of product selection
Landing page for paid search ad: “skort”
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Reducing the “1-and-Out”
+ Marketing Effectiveness - Paid Search Analysis> Linking directly to the product
detail page supports the paid ad promise of available “…in a variety of colors…”
> Take advantage of cross-sell opportunities to promote additional print styles
Lead your users to the most relevant landing page
Intelligent Selling Tactic #4
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Reducing the “1-and-Out”
+ Marketing Effectiveness - Paid Search Analysis> Highlight the variety of colors
& prints available, with merchandising text or additional imagery
> Call out availability of additional SKU options on the directory page: “More Colors Available”
Consistently communicate marketing/promotional messaging on landing pages
Intelligent Selling Tactic #5
Available in a dozen colors and prints
More colors available
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Converting Browsers to Shoppers
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+ Visit-to-Cart Rate (Customer Engagement Rate)
> Measures the percentage of visits that lead to an open cart
> Why it is important
Converting Browsers to Shoppers
• What are the shoppers’ expectations?• Do paid search or email marketing campaigns match
messaging that’s actually on the site?• Does merchandising match shoppers’ needs?• Does the site engage users beyond the home page?• Is product content relevant and useful?• Are promotions timely & targeted to key customer?• Does the shopper trust the brand?• Does the shopper have concerns about security and
online shopping?• Is pricing in line with customer expectations?• Are shipping and handling charges appropriate?• Does the checkout process allay shoppers’ privacy
and security concerns?• What are the return policies?
• Does the shopper have concerns about security and online shopping?
• Is pricing in line with customer expectations?
• Are shipping and handling charges appropriate?
• Does the checkout process allay shoppers’ privacy and security concerns?
• What are the return policies?
• Can shoppers easily find the products most relevant to their needs?
• Does the merchandising engage multiple types of shoppers?
• Does the site engage the user from the home page onwards?
• Is product content relevant and useful?
• Are promotions timely and targeted to key customer interests?
A pure indicator of the effectiveness of your
site’s design, product mix, merchandising, and
content to engage the user
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Converting Browsers to Shoppers
+ Factors Affecting Visit-to-Cart> Effective Product Discovery
Methods Navigation Search Merchandising
> Product Page Effectiveness
> Pricing
> Stock Availability
Less than 10% of visits lead to a cartWhat are you doing to
engage your customers?
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Converting Browsers to Shoppers
+ Navigation Effectiveness> By offering many paths to
products, merchants connect shoppers with products more efficiently – and provide a richer, more engaging experience
Offer many paths to products.
Intelligent Selling Tactic #6
MarketLive Index Top Performer
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Converting Browsers to Shoppers
MarketLive Index Top Performer
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Converting Browsers to Shoppers
+ Product Page Effectiveness> Low visits-to-carts from the
product page signals that customer expectations are not being met
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+ Product Page Effectiveness
Converting Browsers to Shoppers
Design a more effective product detail page for “Information Needy Shoppers”
Intelligent Selling Tactic #7
Fold
…consistently implement effective selling tactics on product pages:> Comprehensive product
information > In-Stock Messaging> Visual hierarchy with prominence
to “Add the Cart” > Alternative Images> Image Zoom
Top MarketLive Performers
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+ Product Page Effectiveness
Converting Browsers to Shoppers
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Easing Checkout
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Easing Checkout
+ Checkout Abandonment Rate> Measures the number of open
carts that begin the checkout process compared with the number of actual completed orders.
+ Factors Affecting Checkout Abandonment> Forced account registration> Shipping Fees & Sticker Shock> Availability of vital information
when needed> Clear & streamlined checkout
process> Privacy & Security Concerns
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Easing Checkout
+ Forced Account Registration> Alarming trend: merchants
requiring customers to register an account in order to complete their purchase
Guest Checkout: 8% Fall-off at this stage
Forced Registration:23% Fall-off at this stage
Forced registration increases fall-off by 187%
Require only what you need
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Easing Checkout
+ Forced Account Registration> Sites that required mini-
registration (email only) experienced a 12% higher fall-off rate at that step of checkout versus sites that allowed guest checkout
Mini-registration: 9% Fall-off at this stage
Implement “Mini-registration” model when requiring registration.
Intelligent Selling Tactic #8
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To Do List…Start Tomorrow
Reducing the “1-and-Out”
1. Cater to multiple shopping behaviors and needs
2. Merchandising must convey directive call-to-action; focus on specific user benefits
3. Look for spikes in single-page visits that might signal an ineffective paid search campaign, natural search results link or affiliate referral.
4. Lead your users to the most relevant landing page
5. Consistently communicate marketing/promotional messaging on landing pages
Turning Browsers into Shoppers
6. Offer many paths to the same product.
7. Design a more effective product detail page for “Information Needy Shoppers”
Easing Checkout
8. Implement “Mini-registration” model when requiring registration
And more…available in the research report
9. Ensure that search results pages are more engaging and actionable.
10. Move information back up the purchase path to prevent last-minute snags in checkout.
11. Attaching ROI to Customer Reviews
12. Use Signposts to Drive Shoppers to Completion
Intelligent Selling Tactics That Drive Results
