How can retailers increase conversions online?
The popularity of online retail is growing at pace, but the vast majority of etail browsing by shoppers never become purchases. How can retailers improve the rate of conversion online?
Head of data and analytics at iProspect UK Dr Karandeep Singh says: “It is important to understand the components responsible for driving conversion directly or indirectly.
“Direct components include relevancy of the context, clarity of the content, sense of urgency within the content; indirect elements include distraction in the structure and weaker value proposition.”
Singh says in-depth analysis can allow retailers to break down who is shopping with them and why.
Segmenting for insight
“Different conversion rates and average order values, when segmented for different audiences, help not just understand quality of traffic, but also improve the strength of a retailer’s proposition,” he says.
“What [ecommerce marketers] also need to be focusing on is the ‘leaking buckets’, which is the incremental traffic that will fall out of the funnel without converting”
Karandeep Singh, iProspect UK
Singh suggests breaking down shopper purchases into first-time customers and repeat visitors, as well as analysing the portion of full-price purchases compared with promotional sales, will enable retailers to find non-converting shoppers and target them more effectively.
“The majority of ecommerce marketers are still focusing on increasing traffic to their digital assets, but what they also need to be focusing on is the ‘leaking buckets’, which is the incremental traffic that will fall out of the funnel without converting,” says Singh.
“The majority of the focus, though, should actually be on conversion optimisation, which usually takes a back seat when it comes to defining digital strategy, as spending on media and search are still a priority for the majority out there.”