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

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Rome 2013 #CNE13 E-commerce Success Stories & Recommendations

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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.

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Page 1: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Rome 2013

#CNE13

E-commerce Success Stories & Recommendations

Page 2: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Who Are We?

Mike Batko

• Key Account Manager• 6+ years digital goods

ecommerce focus• Loves live music,

hates techno• Android4Life

Page 3: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Metrics to Be Discussed

• Conversion Rate

• Average Order Value

• Customer Satisfaction / User Experience

Page 4: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Conversion Rate

cleverbridge calculation:

Sessions ofNumber

Orders Paid ofNumber Rate Conversion

Page 5: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Conversion Rate: Agenda

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

Page 6: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Conversion Rate: Review vs. No-Review

Page 7: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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

Page 8: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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

Page 9: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Conversion Rate: Pricing in Developing Markets

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

Page 10: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Conversion Rate: Pricing in Developing Markets

USD currency and USA price point displayed to Indian customers

Page 11: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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

Page 12: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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.

Page 13: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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

Page 14: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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

Page 15: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

“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

Page 16: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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

Page 17: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Conversion Rate: In-Application Order Process

Page 18: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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

Page 19: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Conversion Rate: In-Application Order Process

Original “Trial Activation” screenNew “Trial Activation” screen

Page 20: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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.

Page 21: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Average Order Value

cleverbridge calculation:

Orders Paid ofNumber Total

Orders Paid of Value Total AOV

Page 22: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Average Order Value: Agenda

• Backup CD

• Word choice with cross-sells

• Pre-cart merchandising

Page 23: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Average Order Value: Backup CD

- Versus -

Page 24: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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!

Page 25: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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!”

Page 26: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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.

Page 27: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Average Order Value: Pre-Cart Merchandising

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

“cool factor” for the premium versions.

Page 28: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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?

Page 29: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Customer Experience: Agenda

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

Page 30: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Customer Experience: Upgrade Management

Page 31: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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.

Page 32: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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%

Page 33: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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.

Page 34: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Customer Experience : User accounts

What does this button mean to you?

Page 35: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Customer Experience : User accounts

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

Page 36: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Customer Experience: Holidays and Seasons

Page 37: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

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.

Page 38: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Special Thanks

Page 39: E-commerce Success Stories & Recommendations - cleverbridge Networking Event (CNE)

Thank You!

Share your feedback at #CNE13