Conversion Report Summary 2009

Linus Gregoriadis, Research Director, Econsultancy Email: linus.gregoriadis@econsultancy.com Website: http://econsultancy.
com Twitter: @LinusGreg @Econsultancy
Conversion Report 2009

in association with RedEye
http://econsultancy.com/reports/conversionreport
Summary
Many companies are dissatisfied with conversion
rates, though there has been industry improvement in last 12 months. The more segmentation and testing, the better performance. Certain practices strongly correlate with higher conversion satisfaction. Lack of ownership is a major issue. Those with someone responsible for conversion rates are more likely to have experienced improved performance.
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| Conversion Report 2009 |
Overview
Methodology Findings Types of conversion and measurement Tools and strategies Best practice Segmentation People and processes Questions
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Methodology
Online survey in July and August 2009 Over 700 respondents, including
384 client-side organisations 344 agency / supplier-side respondents
Majority of respondents UK based Biggest sectors: Retail, FS, publishing
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Type of conversion and measurement
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| Course Title
Types of conversion
Sales Sign-ups / registrations 73% 70%
Page views Downloads

Information / brochure requests Video views
| 6 | Conversion Report 2009 |
43% 39%
38% 19%
Types of conversion rates measured

80% 70% 68%
60% 54%
50% 44%
40%
35% 30%
20%
10%
0% Overall site conversion to sale Overall site conversion to response Lead conversion rate Basket conversion rate
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Methods used to measure conversion

70%
60%
58%
50%
45%
40%
30% 26% 23% 20%

17% 15% 10%
5% 0% Number of sales Number of key visits actions visits Sales leads Sales number Number of key Number of sales We don't of started actions (visit (visit measure baskets bounced) bounced) conversion rates
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Satisfaction with online conversion rates

39% of companies are not satisfied with their online conversion rates, but 70% report an improvement in the last 12 months.
Very satisfied 2%
Satisfied
23%
Neither satisfied nor dissatisfied
36%
Dissatisfied
31%
Very dissatisfied
8%
Tools and strategies
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| Course Title
Improving online conversion

Methods currently used Methods planned
Customer journey analysis Copy optimisation Online surveys / customer feedback Cart abandonment analysis A/B testing Event-triggered / behavioural email User testing Segmentation Expert usability reviews / consultancy Multivariate testing Pinchpoint analysis
48% 47% 42% 34% 32% 30% 30% 27% 23% 17% 5%
39% 38% 43% 24% 46% 35% 32% 34% 27% 39% 10%
How valuable do you find the following methods for improving conversion rates?
Proportion of respondents saying highly valuable
A/B testing Customer journey analysis Multivariate testing User testing Cart abandonment analysis Segmentation Event-triggered / behavioural email Online surveys / customer feedback Copy optimisation Pinchpoint analysis Expert usability reviews / consultancy
53% 49% 48% 47% 46% 39% 35% 33% 32% 26% 25%
Testing is a key factor for improving conversion

Company respondents who said they were very satisfied with their conversion rates carried out more than four times as many tests per month on their web properties as those who were very dissatisfied with their conversion rates.
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Are your chosen technologies in the following areas a help or a hindrance in your attempts to improve conversion rates?
Proportion of companies saying positive impact
90% 80%
80%
70% 60%
60%
59%
56%
55% 48%
50% 40%
30%
44%
44%
43% 39%
20%
10%
0%
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Are your chosen technologies in the following areas a help or a hindrance in your attempts to improve conversion rates?
Proportion of companies saying negative impact
30%
25%
24%
23%
22%
20%
17%
15%
12%
10%
9%
8%
6% 5%
6%
6%
0%
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Best practice
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| Course Title
Which of the following best practices do you carry out?

Respondents are most proficient at identifying key performance indicators, with 38% of respondents saying they do this well and only 5% saying they dont do this.
We do this well We need to improve
Identifying key performance indicators Compelling and effective calls to action Align keywords, calls to action and landing pages Integrate email and web analytics Benchmark competitors Funnel analysis Mine internal search data Journey analysis Integrate user testing and web analytics Remove bottlenecks and blockages to conversion Systematic testing of what we are doing Test multiple landing pages
38% 26% 23% 21% 21% 19% 15% 14% 14% 13% 12% 10%
56% 66% 58% 52% 55% 55% 56% 60% 53% 69% 60% 52%
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Four practices most strongly correlated with conversion rate satisfaction

Removing bottlenecks and blockages Identifying KPIs Using compelling and effective CTAs Aligning keywords, CTAs and landing pages
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Most effective technique for improving online conversion rates

Remove the Use of A/B testing number of steps Testing landing pages involved to get the conversion. Building a new website Using analytics to optimise the copy / layout Redesigning page layouts Changing email providers to implement a new email campaign Simplifying and revamping the checkout process A/B testing and performing journey analysis to ensure call-to-actions are clear and effective throughout particular user journeys. Completely redesign and build of website to aid customer ease of use and purchase.
Reduce 'death by landing pages' i.e. keep landing pages to a minimum and instead link leads straight into the relevant sales journey or actionable journey e.g. to enable user to analyse their portfolio, assess their risk profile or use another type of tool.
Start measuring the journeys and funnels for key transactions, to understand the actual rather than perceived behaviour. Segmentation of our audience into usable and measurable profiles - work out who needs to see what and when. Serve relevant messages at the right time and conversion rates increase... what a surprise!
Track user data and behaviour on the website. Due to budget limitations, we have a hard time improving the methods to increase conversion rates.
How do you measure the effectiveness of changes made to your website?

90% 82% 80%
70%
60%
50%
40% 33% 30% 30%

30%
22%
20%
19%
10%
5%
0% Review web analytics data Review ecommerce / CMS data Internal data Testing by colleagues in the company Online surveys / customer feedback User testing Expert reviews
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Specifically for email marketing, which of the following do you test?

Subject line Creative Timing Segmentation and targeting Frequency of contact Offer
We dont test email marketing We dont do email marketing
50% 39% 35% 33% 31% 30%

22% 6%
Segmentation
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| Course Title
In what ways do you segment your customers and visitors?

Demographic
Geographic Behavioural Customer engagement
39%
36% 33% 28%
Transactional (RFM) Preferences / interests / hobbies

Propensity models Media interaction Psychographic / attitude / satisfaction We dont do any segmentation
21% 20%
10% 8% 6% 13%
Uses of segmentation
60% 56% 50% 50%
40%
32% 30%
21% 20% 20%

19%
10%
0% Customer analysis Email personalisation Search marketing Website personalisation Offline follow-up (e.g. direct mail / call centres) Email dynamic content
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Segmentation improves conversion

Organisations whose online conversion performance had improved over the previous 12 months looked at twice the number of segments as those organisations whose online conversion rates have not improved.
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What types of transactional segmentation do you carry out?

80% 71% 70% 64% 60% 59% 57%
50% 45%
40%
30%
20% 12% 10%
0% Items purchased Frequency of purchase Recency of purchase Value of purchase Customer lifetime value Profit
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What types of behavioural segmentation do you carry out?

70%
61% 60%
50%
49% 47%
40%
40%
39%
38% 33%
30%
25%
20%
10%
0% Email opens / Links clicked clicks Campaigns arrived from Pages seen Channels arrived from Search terms used Responses clicked Banners seen
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What types of media interaction segmentation do you carry out?

60% 50%
48%
48% 43%
40%
30%
29%
20%
10%
0% Clicks from multiple campaigns Interaction between different media channels Interaction with various search terms Viewed multiple campaigns
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People and processes
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| Course Title
Conversion rates are hindered by a lack of ownership

If an organisation has someone directly responsible for conversion they are more than twice as likely to have experienced improved conversion rates in the last 12 months.
Yet 40% of client side companies said they didnt have anyone directly responsible for conversion.
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Do you have anyone in your organisation who is directly responsible for improving conversion rates?
Yes, one person Yes, more than one person
40%
20%
No
40%
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How much control do you feel your organisation has over conversion rates?
50% 46% 45%
40% 36% 35%
30%
25%
20%
15%
13%
10% 5%
5%
0% No control Very little control Quite a lot of control A great deal of control
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Barriers to improving conversion rates

50% 45%
40% 35% 39%
47%
30% 25% 25% 20% 15% 10% 5% 0% 24% 23% 20%
18%
18%
14% 12%
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Biggest factor in improving conversion rates

Assign real ownership of this and not have it blocked by IT and other departments.
Proof that the changes made do improve conversion rates so that they are open to doing more changes/ testing in the future.
The client being aware of the importance of conversion rates in terms of how it affects their bottom line otherwise it is not important to them if it does not make financial sense.
Creating more resource dedicated to improving conversion rates and owning the testing/measurement strategy around to keep things consistent.
Business awareness of what true conversion is & the difference between a 'micro' & a 'macro' conversion, i.e. unique visitors/add to cart is a 'micro conversion' & a truer reflection on site performance.
Trained staff who understand what to do and who are motivated.
Having a clear strategy and integrated systems and processes that clients can control and update themselves, and employing or training someone to do so properly is absolutely key.
Dedicated team focused on regular analysis and reporting.
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Conversion maturity model
Increasing number of tests and segments

Optimised Processes Managed Processes
Systematic testing of what we are doing
Compelling & effective calls to action
Structured approach to improving conversion

Align keywords, calls to action & landing pages
Defined Processes Starting Out

Identify KPIs Benchmark Competitors No segmentation Test multiple landing pages
Funnel Analysis
A/B & multivariate testing

Online surveys
Customer journey analysis Event triggered/ behavioural email

Behavioural segmentation
Preference segmentation
Customer engagement segmentation
Basic
Intermediate
Advanced
Optimised Very satisfied
Time
Dissatisfied Neither Satisfied Q. How satisfied are you with your conversion rates?
Source: Econsultancy / RedEye Conversion Report | 35 | Conversion Report 2009 |
Summary
Many companies are dissatisfied with conversion
rates, though there has been industry improvement in last 12 months. The more segmentation and testing, the better performance. Certain practices strongly correlate with higher conversion satisfaction. Lack of ownership is a major issue. Those with someone responsible for conversion rates are more likely to have experienced improved performance.
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Questions?
Download the full report: http://econsultancy.com/reports/conversionreport

All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright Econsultancy.com Ltd 2009.
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Making best use of the Conversion Report 2009

Mark Patron, CEO, RedEye Email: mark.patron@redeye.com Website: http://www.redeye.com
______________________________________________________________________________________________________________________
in association with RedEye

http://econsultancy.com/reports/conversionreport
Improving conversion by 10% can be a lot cheaper than spending 10% more with Google Lead Gen. SEO/PPC Affiliates Banner ads Soc. network Offline media
Google is very efficient here
Conversion Website Email Usability
Retention Email Website Usability Soc. network Offline media

Customer retention will become more important
Average conversion is only 2%, efficiency is poor
but it is more complex, hence this report
Type of conversion and measurement
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| Course Title
Importance of clear objectives
As they say in the army: its difficult to fulfill your mission if you are not clear about your objective.
Importance of good KPIs

To measure conversion, best practice is to remove bounces from conversion rate, and monitor and improve bounce rates at a campaign level.
70%
60%
58%
50%
45%
40%
30% 26% 23% 20%

17% 15% 10%
5% 0% Number of sales Number of key visits actions visits Sales leads Sales number Number of key Number of sales We don't of started actions (visit (visit measure baskets bounced) bounced) conversion rates
Tools and strategies
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| Course Title
A/B testing Customer journey analysis Note 3 of top 4 involve testing Multivariate testing User testing Cart abandonment analysis Segmentation Event-triggered / behavioural email Online surveys / customer feedback Copy optimisation Pinchpoint analysis Expert usability reviews / consultancy
53% 49% 48% 47% 46% 39% 35% 33% 32% 26% 25%
Testing
One of the best investments you can make. Test the big things. Brainstorm and prioritise possible tests. Without properly constructed tests no
learning is reliable. Use a control where campaign value is high, otherwise use champion/challenger. Valid sample size - check confidence limits. Test one thing at a time and compare like with like. Order of importance: targeting/segmentation, offer, timing, creative
Specifically for email marketing, which of the following do you test?

Report findings almost opposite of perceived best practice! Subject line 50% This is probably because easier to test creative
Creative - 4th Timing - 3rd

Segmentation and targeting - 1st Frequency of contact Offer - 2nd We dont test email marketing We dont do email marketing
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39% 35%
33% 31% 30% 22% 6%
Therefore need to simplify more complex things
Segmentation
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| Course Title
Segmentation makes communications more relevant

KISS. Use a simple segmentation schema to start
with. For example a product or interest based segmentation and then develop to a more behavioural view and financial view of your customers and prospects. Make it actionable. Don't segment unless you have a great hypothesis to test against and some thoughts on how to build action around these. Use product segmentation to measure variances in performance, and behavioural segmentation for triggers and action plans. Make sure segment sizes are significant and meaningful.
Segment sales funnel to improve conversion

Impressions Click throughs Landing Pages Call to Action
Align keywords, calls to action & landing pages for best results. Requires flexible segmentation
1,000 100
10 1
People and processes
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| Course Title
Improving conversion requires both technology and people

a computer can tell you down to the last dime what youve sold. But it can never tell you how much you could have sold.
Sam Walton, founder of Wal-Mart
If you have $1,000 to spend on an analytics solution, spend $100 on the tool and $900 on the people.
Avinash Kaushiks 90/10 rule
Improving conversion is a continuous process. There is no magic bullet.
Measure & Optimise
Set Goals & KPIs
Test
Analyse
There are many ways to improve conversion.

Segmentation Multivariate testing Cart abandonment analysis Pinch point analysis Segment conversion analysis Segment navigation analysis Event triggered emails Segmented emails Online surveying Benchmarking
The problem for the marketer is that choice can be bewildering.
If it was easy, everybody would be doing it!
Improving conversion is like eating the proverbial elephant. You cannot do it in one go.
Companies lack of resources is cited in the report as the biggest barrier to improving conversion.
This report shows how to prioritise that lean resource to get the biggest bang for your buck. How to prioritise?...
A/B testing Customer journey analysis Multivariate testing User testing Cart abandonment analysis Segmentation Event-triggered / behavioural email Online surveys / customer feedback Copy optimisation Pinchpoint analysis Expert usability reviews / consultancy
53% 49% 48% 47% 46% 39% 35% 33% 32% 26% 25%
Conversion maturity model - complexity
Increasing number of tests and segments

Optimised Processes Managed Processes
Systematic testing of what we are doing
Compelling & effective calls to action
Structured approach to improving conversion

Align keywords, calls to action & landing pages
Defined Processes Starting Out

Identify KPIs Benchmark Competitors No segmentation Test multiple landing pages
Funnel Analysis
A/B & multivariate testing

Online surveys
Customer journey analysis Event triggered/ behavioural email

Behavioural segmentation
Preference segmentation
Customer engagement segmentation
Basic
Intermediate
Advanced
Optimised Very satisfied
Time
Dissatisfied Neither Satisfied Q. How satisfied are you with your conversion rates?
Source: Econsultancy / RedEye Conversion Report | 56 | Conversion Report 2009 |
How to prioritise
High
Easy wins
Do these next
How valuable
Do these later
Dont do
Low
Complexity from Maturity model
High
Aggregation of marginal gains
Turn process into timeline

Months 0-12 Deliverability Strategy Design & Creative Overhaul Subject Line + Creative Testing Segment by engagement CRM review eg Welcome emails Months 12-24 Build customer lifecycle Test contact points + frequency Focus on conversion Behavioural Triggers Video Email Months 24-36 Target all communications based on preference and behaviour. Predictive modelling Combine online and offline comms
Email
Timeline (Months)
12
18
24
30
36
Analytics
Months 1-12 Set online KPIs Set up database Report on trends and KPIs Identify pain points Make recommendations and monitor effectiveness of change
Months 12-24 Develop Online Behavioural Analysis Online Customer Segmentation Customer Surveys
Months 24-36 Segmentation Triggers Web Usability Content Value Analysis Benchmarking
Online data is like trying to drink from a fire hydrant.

Online, we have access to so much data, it is like trying to drink from a fire hydrant.
We are only scratching the surface. This report helps understand how to start to leverage the power of that data, and prioritise the many opportunities for improvement.
Summary
Prioritise Simplify Test Segment Ownership Remove bottlenecks & blockages
Finally, lets put all this in perspective

Internet e-commerce is little over ten years old. Compared to, say, TV advertising online marketing has a long way to go. Yet, the Internet is potentially the media that can provide the richest user experience of all. It is up to all of us to make that happen.
Questions?
Download the full report: http://econsultancy.com/reports/conversion-report

All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright Econsultancy.com Ltd 2009.
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Linus Gregoriadis, Research Director, Econsultancy Email: linus.gregoriadis@econsultancy.com Website: http://econsultancy.

com Twitter: @LinusGreg @Econsultancy

Conversion Report 2009

| Conversion Report 2009 |

| Conversion Report 2009 |

Majority of respondents UK based Biggest sectors: Retail, FS, publishing

| Conversion Report 2009 |

Type of conversion and measurement

Page views Downloads

Types of conversion rates measured

| Conversion Report 2009 |

Methods used to measure conversion

30% 26% 23% 20%

| Conversion Report 2009 |

Satisfaction with online conversion rates

Neither satisfied nor dissatisfied

Tools and strategies

Improving online conversion

Testing is a key factor for improving conversion

| Conversion Report 2009 |

| Conversion Report 2009 |

| Conversion Report 2009 |

Which of the following best practices do you carry out?

| Conversion Report 2009 |

Four practices most strongly correlated with conversion rate satisfaction

| Conversion Report 2009 |

Most effective technique for improving online conversion rates

How do you measure the effectiveness of changes made to your website?

40% 33% 30% 30%

| Conversion Report 2009 |

Specifically for email marketing, which of the following do you test?

50% 39% 35% 33% 31% 30%

In what ways do you segment your customers and visitors?

Transactional (RFM) Preferences / interests / hobbies

21% 20% 20%

| Conversion Report 2009 |

Segmentation improves conversion

| Conversion Report 2009 |

What types of transactional segmentation do you carry out?

20% 12% 10%

| Conversion Report 2009 |

What types of behavioural segmentation do you carry out?

| Conversion Report 2009 |

What types of media interaction segmentation do you carry out?

| Conversion Report 2009 |

People and processes

Conversion rates are hindered by a lack of ownership

| Conversion Report 2009 |

Yes, one person Yes, more than one person

| Conversion Report 2009 |

40% 36% 35%

| Conversion Report 2009 |

Barriers to improving conversion rates

30% 25% 25% 20% 15% 10% 5% 0% 24% 23% 20%

| Conversion Report 2009 |

Biggest factor in improving conversion rates

Trained staff who understand what to do and who are motivated.

Dedicated team focused on regular analysis and reporting.

| Conversion Report 2009 |

Conversion maturity model

Increasing number of tests and segments

Structured approach to improving conversion

Defined Processes Starting Out