e-commerce success stories & recommendations - cleverbridge networking event (cne)
DESCRIPTION
cleverbridge key account managers, Mike Batko and Andy Peterson provide examples and action-oriented best practices for increasing e-commerce conversion rates, average order value and customer satisfaction / user experience.TRANSCRIPT
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