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Building Shopper Confidence for Increased Conversions and Profit
Jeff Grass, CEO, buySAFE, Inc.
www.buySAFE.com
In partnership with…
Website Conversion -Only 2 or 3 in every 100 website visitors complete checkout
eCommerce merchant non-performance = 61% of all complaints
FBI
What Causes Consumer Uncertainty?
“64% of identity theft originates online”
2) Merchant reliability & performance
Three Big Concerns…
1) Security of personal information / ID Theft
45% of shoppers view price as most important
BizRate Research
3) Getting the best price
0%
20%
40%
60%
80%
100%
Information Security Merchant Reliability &Performance
Concerned Not concerned
A large majority of online shoppers are concerned about both information security & merchant reliability
“Indicate your concern when shopping on a website you are not familiar with” *
* Internet Shopper Survey, August 2009, 959 respondents
And when shoppers feel
concerned, they don’t buy
=Lower sales
Lower profits
The evidence is overwhelming
• ~60% of all online crime complaints received are for issues of merchant non-performance - The Internet Crime Complaint Center and the FBI
• 73% of consumers say shopping is riskier online than offline – CyberSource• 85% of consumers state that trusting the (web) site is most important – VeriSign• 92% of shoppers have concerns when shopping on a new and unknown website -
McAfee Secure• 99% of customers surveyed would either scale back or terminate relationships with
companies that fail at building customer trust - Chief Marketing Officer Council
• 1 in every 30 Americans each year is a victim of identity theft, the largest and fastest growing type of fraud in America - FTC
• 75% of U.S. Internet users don’t like giving out personal information over the Internet - The Pew Internet Project
• 83% of online users worry about their identity being stolen from an online purchase - VeriSign
Information Security
Merchant Reliability
Eliminating uncertainty provides significant revenue gains
If just 1 more shopper in every 1,000 feels confident and buys…
Revenue Impact Analysis
Key Business Metrics CurrentWith converting 1 more in every 1000
visitors
Number of website visitors per year 1,000,000 1,000,000
Transactions completed per year 20,000 21,000
Transactions Completed Per 1000 Visitors 20 21
Website conversion rate 2.00% 2.10%
5.0%
Gross merchandise sales via website per year 2,000,000$ $2,100,000
Average order amount $100.00 $100.00
Increase in annual sales from converting 1 in 1000 more shoppers to buyers $100,000
Opportunity cost measured in lost revenue each day (274)$
Percentage change in website conversion rate
And the profit impact is even more substantial
If just 1 more shopper in every 1,000 feels confident and buys…Profit Impact Analysis
Current With 1 in 1000 more shoppers becoming buyers
Transactions per year 20,000 Transactions per year 21,000
Average sale price $100 Average sale price $100
Total annual sales $2,000,000 Cost of goods sold 75% Total annual sales $2,100,000Cost of goods sold $1,500,000 Marketing & all fixed costs 15% Cost of goods sold $1,575,000
Gross Profit $500,000 Variable expenses 5% Gross Profit $525,000Net Profit 5%
Fixed costs $300,000 Fixed Costs $300,000Variable expenses $100,000 Variable expenses $105,000Total Expenses $1,900,000 95.0% Total Expenses $1,980,000 94.3%
Net Profit $100,000 5.0% Net Profit $120,000 5.7%
Percentage Increase in Net Profit: 20%
Assumptions (as % of Sales)
Annual Net Profit Increase with 1 in 1000 more shoppers becoming buyers:
20,000$
Total Expenses$1,900,000
Net Profit$100,000
Current -without buySAFE
Total Expenses$1,980,000
Net Profit$120,000
With 1 in 1000 more
Information Security
(ID Theft)Merchant Reliability
(Non-Performance)
Assurance(Prevention)
Guarantee(Resolution)
Shoppers feel confident when they are both Assured there won’t be a problem and Guaranteed if a problem does happen
Ways to Increase Shopper Confidence
• Reassure & Guarantee Merchant Performance– The basics:
• Professional website design/usability• Look like a real business: About Company page with real world address• Be accessible: telephone number and/or live chat support• Clear return policies and assurances of reliability
– Customer testimonials, ratings, comments
– Utilize a credible 3rd party signal and guarantee of merchant performance (buySAFE)
• Reassure & Guarantee Information Security– Demonstrate use of good site security:
• SSL certificate, “https”. EVSSL = green bar in browser • Website security validation (3rd party validation - McAfee, VeriSign)• Visible privacy & security policy (3rd party certification – TRUSTe)
– Payment options that limit access to personal info (e.g. PayPal, Google Checkout)
– Provide protection for information security/ID theft issues (buySAFE)
• Reassure & Guarantee Best Price– Lowest price guarantee (vs. other stores vs. same stores)– Your own vs. 3rd party
buySAFE eliminates consumer uncertainty via a unique customer confidence & website conversion solution
buySAFE Guaranteed
1. Merchants are certified and endorsed by a respected 3rd party
2. buySAFE conversion graphics are displayed Endorsement of merchant reliability, stability & good
performance Eliminates any uncertainty
3. Shoppers receive broad 3-in-1 Guarantee Purchase guarantee covering all terms of sales, including authenticity Identity protection for 30 days, for any reason
Lowest price guarantee for 30 days
4. Everyone wins Consumers receive added peace of mind Merchants enjoy higher website conversion, sales & profitability
• •
• • •
How buySAFE works
• •
3-in-1 Certificate of Guarantee Email
Shopping Cart
A comprehensive brand building and consumer confidence solution from start to purchase
Purchase Confirmation Page
Home Page
Another perspective on increasing conversions through checkout…
Alaa Hassan, General Manager
buySAFE provides significant value for many of the biggest online merchantsbuySAFE is now used by over 4,000 merchants, including many of the Top 1000 Internet Retailers
The kind of feedback merchants receive from their buyers
Buyer Feedback Merchant: Bidz Yes, thank you for this insurance/assurance. Your services have always been impressively professional. Now there is an added benefit to sticking with bidz.com and buyz.com. The free trial raises awareness of this because it's practically an unheard of customer perk. Thank you again; Patti Rakestraw This is my first time using BIDZ and it does make me feel better to have this guarantee, so I know everything is legitimate and I'm getting what I ordered in a safe, secure way. Thanks for the guarantee. Happy in PA This is my first purchase from Australia,so far everything is great and can't wait for the goods to arrive.Will be buying more. Regards Steve Hi, Thank you for helping people to buy something they like easily on line with trust , and thanks again for the buy SAFE guarantee. Best Regards Mahin5 Thank you for the free buySAFE Guarantee. This is just another reason to feel that your site is a respectable, reputable, and trustworthy auction site. I just started viewing and using your auctions yesterday and am already a fan!! I will definitely recommend your site to all of my friends. Beverly Henderson Thank you for the buySAFE guarantee. It is very much appreciated. Pam Clark I appreciate this information and will look for the BuySafe Seal whenever I shop at Biz. Thank you.
Public company$150M+/yr salesIR Top 500 #125
www.bidz.com
buySAFE provides internet merchants a unique brand building and website conversion solution
Increases buyer peace of mind, brand loyalty and merchant economics• Increased customer satisfaction• 5-15% increase in conversion and sales• 14% average increase in repeat buyers
Used by over 4,000 merchants, including almost 10% of the Top 1000 Internet Retailers
Easy to try • ~30 minute implementation• No long term contracts, cancel at any time
buySAFE Quick Summary
