e-commerce success stories & recommendations - cleverbridge networking event (cne)

Rome 2013

#CNE13

E-commerce Success Stories & Recommendations

Who Are We?

Mike Batko

• Key Account Manager• 6+ years digital goods

ecommerce focus• Loves live music,

hates techno• Android4Life

Metrics to Be Discussed

• Conversion Rate

• Average Order Value

• Customer Satisfaction / User Experience

Conversion Rate

cleverbridge calculation:

Sessions ofNumber

Orders Paid ofNumber Rate Conversion

Conversion Rate: Agenda

• Review vs. No-Review • Pricing in developing markets• Browser targeting• In-Application order process

Conversion Rate: Review vs. No-Review

Conversion Rate: Review vs. No-Review

Results:• Typical conversion rate improvement when

switching from a review configuration to a no-review configuration = 10-50%.

• No-review configurations generally outperform the review configuration from 20-80% over the same time period

Not apples to apples – European traffic and ROW traffic can have significant differences

Conversion Rate: Pricing in Developing Markets

Country Number of

Sessions

Conversion Rate

USA 250,000 42%

Germany 140,000 47%

Japan 190,000 39%

UK 60,000 38%

France 75,000 40%

Italy 60,000 12%

Brazil 1,500 6%

Russia 50,000 11%

China 3,500 9%

India 35,000 9%

Software Piracy Rates

Per Capita GDP (USD)

19% 48,665

26% 43,204

21% 45,659

26% 39,459

37% 43,490

48% 35,984

53% 12,422

63% 13,542

77% 4,833

63% 1,382

Sources: Sessions & Conversion Rate: Sample DataPiracy Rates: Business Software Alliance “2011 Global Piracy Study”Per Capita GDP Rates: 2012 - IMF.org

Conversion Rate: Pricing in Developing Markets

USD Currency and USA Price Point is not ideal for the Indian market.

Conversion Rate: Pricing in Developing Markets

USD currency and USA price point displayed to Indian customers

US Cart Indian Cart

Conversion Rate: Pricing in Developing Markets

The price point is a better fit for the market, but currency is still shown in USD

US Homepage Indian Homepage

Conversion Rate: Pricing in Developing Markets

Exchange Rates on Sept, 22, 2012:$49.99 = Rs 2,667.91 | $69.99 = Rs 3,735.29 | $79.99 = Rs 4,275.13

Symantec really has this figured out! The price point makes sense for the market and the display currency is Indian Rupee.

Conversion Rate: Browser Targeting

2012-03

2012-04

2012-05

2012-06

2012-07

2012-08

2012-09

2012-10

2012-11

2012-12

2013-01

2013-02

2013-03

0

5

10

15

20

25

30

35

40

Worldwide Browser Usage - March '12 to March '13

Chrome

IE

Firefox

Safari

Opera

Other

Source:Worldwide Browser Usage: April, 2013 – Statcounter.com

Conversion Rate: Browser Targeting

Browser Top Selling Product Categories

Internet Explorer system utilities, tuners, legacy software, B2B

FirefoxB2B, cloud, web services, tech-savvy, cms/website, game/video editing

Chromecloud, web services, tech-savvy, cms/website, game/video editing

Safari Mac, audio/video editing, game/video editing

Opera Design, game/video editing

“The E-commerce Newbie”• Little online shopping

experience• Likely prefers credit card or

similar payment methods• Needs clear fulfillment

instructions• Needs highly secure cart

“The Digital Prodigy”• Extensive online

shopping experience.• May prefer internet

wallets, PayPal or other “newer” payment methods

• Wants to “get it now”

“The Business Buyer”• Buys on behalf of the

company• Purchase Orders, Wire

Transfers• Has experience buying

online

Conversion Rate: Browser Targeting

Conversion Rate: Browser Targeting

“The Fanboy”• Willing to pay more for brand name• Prefers walled gardens to open ones• Will buy the newest version sight unseen• Feels superior to you• Emotionally fragile

Conversion Rate: In-Application Order Process

Conversion Rate: In-Application Order Process

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10 Day 11 Day 12 Day 13 Day 14 Expired

In-App Conversion Rate During Free Trial Period

Conversion

• Conversion Rates increase throughout the trial period

• Day 1 hit counts are very high (5x-12x greater traffic) Consider special Day 1 messaging

• First 7 days of trial = X average conversion rate

• Last 7 days of trial = 2X average conversion rate

Conversion Rate: In-Application Order Process

Original “Trial Activation” screenNew “Trial Activation” screen

Conversion Rate: In-Application Order Process

•  The new version appears in a pop-up window, draws user attention.

• The headline is more prominent, it highlights the benefit that has already been delivered.

• The left-hand side is concise and describes the most important benefits.

• The right-hand side reinforces the idea of your personal Apple certified support professional.

In an A/B test, the new Activation Screen showed a 7% higher conversion rate, as measured with ZeoInsight.

Average Order Value

cleverbridge calculation:

Orders Paid ofNumber Total

Orders Paid of Value Total AOV

Average Order Value: Agenda

• Backup CD

• Word choice with cross-sells

• Pre-cart merchandising

Average Order Value: Backup CD

- Versus -

Average Order Value: Backup CD

$24.99 Price Point Pick rate: 17.9%

$29.99 Price Point Pick rate: 31.7%

Time to start testing a $40.00 Backup DVD!

Average Order Value: Word Choice with Cross-Sells

Product names can have an impact on pick rates for up-sold products.

Control Variable: “Software Assurance for Nitro Pro”

Challenger 1: “Software Assurance for Nitro Pro – Protect your purchase!”

Challenger 2: “Software Assurance + Premium Support for Nitro Pro”

Challenger 3: “12 Months of Software Assurance for Nitro Pro”

Challenger 4: “Software Assurance – Get Future Updates + Premium Support!”

Average Order Value: Word Choice with Cross Sells

Results:

Customers seem to prefer the brevity of the control variable.

All challenger variables failed to out perform the pick rate and the revenue generated from the simplistic control variable.

Beware of assumptions when testing product names and text variations – only a carefully governed split test can prove the impact of word choice variations.

Average Order Value: Pre-Cart Merchandising

Use positioning, colors and images to demonstrate increasing value and a greater

“cool factor” for the premium versions.

Customer Experience

Calculation• Customer experience can be difficult to quantity. However,

it should not be ignored. • Metrics to consider:

• Cart performance• Surveys/forums• Product usage behavior• Contact/refund rates

• Renewal/churn rates• Product referral rates• Evangelist activity • Others?

Customer Experience: Agenda

• Upgrade management• Mobile targeting• User accounts• Holidays and seasons

Customer Experience: Upgrade Management

Customer Experience: Upgrade Management

Benefits:• Real-time validation, no waiting for upgrade approval.• Improved upgrade rates.• If license key is not validated, purchase can still be made

at full price.

Customer Experience: Mobile Targeting

2012-04

2012-05

2012-06

2012-07

2012-08

2012-09

2012-10

2012-11

2012-12

2013-01

2013-02

2013-03

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Share of non-Windows traffic

Mac OS

Miscellaneous

Phone

Others

Date Mac OS Misc. Phone Others

2012-04 4.05% 1.02% 0.58% 0.46%

2012-05 3.30% 0.59% 0.55% 0.43%

2012-06 2.76% 0.38% 0.57% 0.33%

2012-07 3.36% 0.49% 0.62% 0.36%

2012-08 4.29% 0.75% 0.86% 0.43%

2012-09 5.52% 0.75% 0.82% 0.32%

2012-10 4.14% 0.86% 0.72% 0.30%

2012-11 4.08% 0.66% 0.81% 0.30%

2012-12 3.36% 0.71% 1.08% 0.26%

2013-01 3.35% 0.76% 0.99% 0.30%

2013-02 2.80% 0.57% 1.02% 0.36%

2013-03 2.79% 0.57% 1.16% 0.35%

Customer Experience: Mobile Targeting

• Mobile traffic is served a mobile-friendly cart.

• If you’re sending lots of emails, you should consider a mobile-optimized checkout.

Customer Experience : User accounts

What does this button mean to you?

Customer Experience : User accounts

Of the top 100 grossing ecomm. websites in 2012 a whopping 24% still required an account registration! (Source: smashingmagazine)

Customer Experience: Holidays and Seasons

Customer Experience: Holidays and Seasons

Benefits of holiday promotions:• “Living Website”, contest is fresh and

updated.• Leverage customer emotions.• Convey urgency for time-sensitive special

offers. • Improve conversion rates.

Special Thanks

Thank You!

Share your feedback at #CNE13