July 10th, 2007

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On Tuesday July 10th ScanAlert will be releasing its latest research report regarding consumer conversion cycles. I have yet to look over the full report, but from what I’ve gathered thus far it looks like consumers are taking longer these days to convert—80% longer, in fact. According to the report, consumers are now taking an average of 34 hours and 19 minutes to buy products they have found on ecommerce sites, up from 19 hours when the same study was conducted in 2005.

This is surprising news to everyone in the ecommerce industry and should definitely be considered by anyone who is currently measuring their conversion rates according to immediate sales; that kind of instant gratification shopping seems to be a thing of the past and does not give a full picture of one’s sales success. Online shoppers are getting smarter and savvier these days and ecommerce sites need to step it up if they wish to lessen the time gap between first click and sale.

With competition only a few clicks away consumers are now doing a great deal of comparison shopping, and they’re not just looking for the cheapest deal anymore. Studies for the past seven years show that price is rarely the main deciding factor in making the sale. Shoppers are more interested in factors such as shipping speed, guarantees, on-site merchandising, merchant name-brands, and trustworthiness to name but a few.

There are many things you can do help prevent conversion delay. Anne Holland, Content Director of MarketingSherpa.com suggests becoming more human to potential customers. The importance of merchant brand cannot be stressed enough, so it’s wise to place “about us” sections in conspicuous places, and not just on the site’s homepage; with good SEO and SEM, the homepage is often bypassed completely. I suggest placing drop-down menus with the “about us” option on all pages so that it can be accessed from whatever pages are initially clicked from the search engines. Make it personable. Be smart. Be funny. But whatever you do, be memorable.

Really stress the reasons why someone should buy your product or service as opposed to that of your competitor. Do you have any big clients worth noting? Did your company receive some kind of special recognition in the past that might impress potential customers? It’s also wise to include photographs of your company in action because, as they say, a picture is worth a thousand words. Also, pictures provide tangible evidence of a real, thriving business which can be helpful in this day and age of rampant internet fraud. Alleviating consumer fears by creating an environment of trust is key and can ultimately lead to quicker conversions.

In addition to having a decent “about us” section, it is also a good idea to collect consumer email addresses as soon as possible rather than at the typical time of checkout; if the consumer doesn’t make it all the way to that point, chances are you’re too late. You can’t rely on consumer memories to get them back to your site. Even if they try looking at their browser history they can easily confuse you with some of your competitors that research shows they’re definitely looking at. And you certainly don’t want them to re-do the search in some engine and click your sponsored link for a second time when you’ve already paid for them to do it the first time, especially when grabbing their emails in the first place is so easy to do. Perhaps you can entice new users with special discounts via email through a DHTML overlay, that way they’ll have a link to your site in their email inbox along with specials that make you stand out. As Anne put it, “If you wait to ask for email permission until the actual checkout, then you’ll miss the opportunity to promote fleeing shoppers.”

It is also a good idea to have some worthwhile content on each of your pages. While not every shopper reads all of the product information provided on an ecommerce site, it’s still wise to provide it. This is especially true if you’re selling big-ticket items; people don’t want to spend a ton of money on a product they know nothing about. The key is to give more information than your competition gives, and this can be anything from product reviews to shipping/in-stock data and everything in between, but don’t rely solely on data feeds from the manufacturer. This is usually not enough information to create conversions. In this case, more is better—always. Even random trivia can do the trick. You can also provide consumer forums where your potential customers can get real, honest product reviews from your past customers. They’ll probably appreciate the honesty which will contribute to that warm, fuzzy atmosphere of trust I spoke about earlier.

Another way to get a leg up on the competition is to offer unique extras and specials that are exclusive to your company and to your website. For example, you might consider offering free gifts to those who purchase a certain amount of your top-selling product, especially if you’re in the business of selling a product that truly can’t be found elsewhere. According to Anne of MarketingSherpa, the “extras” can be as simple as providing PDF format eBooks that have some kind of practical and/or entertainment value to them. Some examples include how-to guides, simple recipes, or expert advice. The trick is to provide gifts that won’t add to your shipping costs (hence the suggestion of downloadable eBooks.) You can also offer up coupons and discounts for subsequent purchases, or anything else that extends your brand. Get creative for the best results.

These are just a few things to think about. Surely more will come up for you when you get a chance to read the full report by ScanAlert when it is released tomorrow. If you have a better understanding of eConsumer behavior, chances are you’ll be able to win the battle against sluggish conversion rates, if not the war.

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3 Responses to “Hot New Research On Conversion Cycles”

  1. Worldwide Trading Enterprises Ltd Says:

    Conversion rates are of particular interest to my at the moment. I have spent a large amount of time this week trying to work out why our conversion rates are down. We are getting more traffic from search engines for wholesale related product searches but people have stopped buying. Our website is quicker, more comprehensive, we have more products and more specials than before.

    I even attempted to be a customer gone to google and done a search for something we sell, checked the text displayed by the search engine and arrived at the landing page just like a customer. I then went through the process of browsing for products on our site, filing a shopping basket and checking out. I was paying special attention to “is what I expect a customer to do clearly displayed”. Ok so I made some tweaks as a result of what I saw but only minor ones, corrected a little bit of bad grammer and the like.

    I still have no idea why our conversion rates are down. After reading your article I have decided to do some work on “About us” – we have a customized disclaimer on every page of our site matchin ghte page that tells retail buyers to get lost and instructs wholesale buyers on what to do. We have an indepth profile on our first page – infact the entire first page is a profile.

  2. TopTenCrystal Says:

    Thanks for the reply. I’m glad you were able to get some use out of this blog. You’ll have to let us know if your little tweaks make a difference in your conversions, especially if they do. If you try anything else that seems to help speed things along, let us know. We’d love to hear about it. Good luck to you!

  3. TopTenWholesale Says:

    Hey Worldwide Trading,

    Have you tried usability testing? I am a big fan of user testing through either ad agencies or independent user testing agencies. There are all sorts of new techniques out there ( some even offer biometric type testing by studying users eyeballs when they view your site).

    You should also try polls and other types of QA forms that customers and users can fill out for you.

    In all, there are so many reasons conversions can fall that spending the cash on the research is well worthwhile investment.

    Good luck!

    Jason

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