Increase Repeat Purchases with Cohort Analysis

In my daily work with ecommerce brands, I see two types of companies: The first type focuses on acquisition and conversion. The second relies on retention. The second type is winning. Why? Overall acquisition costs for both B2C and B2B have gone up by 50% in the past five years. Sooner or later, relying on […]

The post Increase Repeat Purchases with Cohort Analysis appeared first on CXL.

In my daily work with ecommerce brands, I see two types of companies:

  1. The first type focuses on acquisition and conversion.
  2. The second relies on retention.

The second type is winning. Why?

Overall acquisition costs for both B2C and B2B have gone up by 50% in the past five years. Sooner or later, relying on new customers will break you. To offset these costs, you need to earn more repeat purchases from existing customers.

Repeat purchases are often cheaper because people already know the brand. As a result:

  • They’re converted via email.
  • They’re converted via organic or direct traffic.

Thus, with the same ad budget, you get more orders—three times more, according to research.  That means better margins, more profitability, and cost-efficient scaling.

This post gives you a data-backed approach to win more repeat sales. The key is to identify and persuade your most valuable cohorts.

Why to monitor the post-purchase experience by cohort

google analytics cohort analysis
In Google Analytics, the Cohort Analysis Report is time-based, though you can apply a segment to a cohort.

Cohorts vs. segments: What’s the difference?

In marketing, cohorts are groups of customers who exhibit similar behaviors during a certain time span (e.g. buyers during a holiday promotion). Segments include any “subset of your Analytics data” (e.g. mobile purchasers).

As Alistair Croll and Benjamin Yoskovitz detail in their book, Lean Analytics, cohort analysis has special relevance for the customer lifecycle, enabling marketers

to see patterns clearly against the lifecycle of a customer, rather than slicing across all customers blindly without accounting for the natural cycle a customer undergoes. Cohort analysis can be done for revenue, churn, viral word of mouth, support costs, or any other metric you care about.

This post uses the broader definition of “cohort”—“a group of persons sharing a particular statistical or demographic characteristic”—to avoid toggling between “cohort” and “segment,” even though some “cohorts” listed below are not explicitly time-bound.

Benefits of cohort analysis

When it comes to increasing repeat purchases, cohort analysis provides three key insights:

  1. The post-purchase behavior is directly influenced by the initial experience, so the motivation for the first order—incentive, timing, product, exposure—is a strong unifying factor for the cohort.
  2. Also, cohort behavior often reflects the use of the product over time. For replenishable products, if most people place their next order on the fifth week, that’s when they run out of it. Or for products like clothing, shopping every three months suggests when people get ready for the new season. Such details help identify when it makes sense to push marketing and when there’s no point.
  3. Lastly, cohorts provide buying behavior insights to adjust your marketing so every customer feels the communication is personal. Since one customer inevitably falls into more than one cohort, the analysis gives meaning to their lifecycle behavior from different perspectives—the product they bought, the campaign that converted them, when they ordered, and so on.

So which are most important?

Which cohorts to monitor

You can probably come up with dozens of characteristics by which to segment your customer base, but start with these five:

  1. By first product bought. The first item the customer purchases determines all next interactions with your brand.
  2. By month of first order. The temporal tipping point signals a customer’s motivation for buying.
  3. By campaign of first order. The most telling cohort, perhaps, is which promotion locked in the sale.
  4. By coupon used at first order. The exact coupon code that converted people speaks volumes about the kind of promotions that influence their decision to buy.
  5. By traffic source. Where customers come from to shop for the first time may influence their behavior.

The behavior of each cohort helps you identify which customers have the greatest influence on profitability.

How repeat purchases influence profitability

Without cohort analysis, it’s hard to make connections between customers and profitability, especially at scale. Cohort analysis consolidates the data from individual customers into meaningful bundles from which you can draw conclusions.

Each cohort has a distinct financial performance. Usually, there are one or two strong cohorts with lots of high-value customers that drive profitability (while dragging less-profitable customers behind). The good cohorts repay their Customer Acquisition Costs (CAC) quickly and bring higher margins over a long period, accumulating the lion’s share of returns.

cohort analysis chart
Cohort metrics can help drive more repeat customers.

Three characteristics help identify the most valuable cohorts:

Average order value (AOV). A larger AOV can make up for a shorter customer lifespan. If you’re looking to boost short-term results to placate investors or expand into a new market—and paid acquisition is a must—a focus on AOV can earn more revenue for the same CAC (and, often, the same shipping fees). Increasing the AOV boosts the margin on individual orders, especially if one of the products is more profitable than others.

Number of orders per customer. This metric reveals the longer-term relationship. Some product categories don’t drive many repeat orders. For those that do, each consecutive order comes at a lower CAC (or even free). Even if the first sale is at no margin—as often happens in competitive niches—the next ones offset the loss. With a strategy in place to boost repeat purchases, occasional spikes in CACs will be more manageable.

Lifetime value (LTV). LTV reflects both the average order value and the number of orders per customer. High LTV numbers mean your brand enjoys true customer loyalty (not to mention they are highly appreciated by VCs in case you seek funding). Companies with a high LTV have a strong brand image, earn word-of-mouth and organic referrals, and enjoy “search monopolies”—conversions by brand name search.

Once you gain visibility into the LTV of each cohort, you’ll begin to learn a lot about your customers.

CAC and LTV balance
Profitability is a balance between CAC and LTV. (Image source)

What you’ll learn about your customers

Before you start increasing repeat purchases, you have to find the gaps and opportunities in the data. Along the way, you’ll learn a lot about the post-purchase experience consumers have with your brand.

1. Get a complete view of the customer lifecycle

To improve the customer experience and drive more repeat sales, you want to see how repeat purchases are already happening naturally:

  • When do the second, third, or fourth orders happen in your store?
  • When do most people in the cohort reach the end of their customer lifecycle?

Mapping the entire customer lifecycle reveals connections between marketing, sales, and the customer. You gain a better understanding of how often customers need your products, which is a good starting point for more personalized and better-timed email marketing, rather than the popular blanket approach that constantly bombards customers with promo emails.

2. Understand purchasing habits

It’s not just about what happens over time, but also how:

  • How much do people spend at each consecutive order?
  • Does this amount change over time?
  • Do they buy a lot in a few orders or place numerous small-amount orders?

Some cohorts will accumulate huge lifetime values over just six weeks; others will spread out equal-order values over long, long periods. Knowing such details about your customers’ spending allows you to tailor your communication to stimulate the desired behaviors—like rewarding repurchases or prolonging the customer lifetime.

The key is to take what they already do and gently nudge them to do it more often. Such marketing is non-intrusive and better fits consumers’ needs.

3. Find out what drives customer loyalty

As mentioned above, the first order—which product a consumer purchased and the motivations that led to that purchase—shapes the rest of the journey.

Products

Unfortunately, not all products bring the same level of satisfaction, and some drive customers away. In categories like food, clothing, and beauty, look for products with mostly one-time buyers and low repeat rates.

Of course, this won’t work in other categories—like bikes or baby gear—that people typically buy once. To measure the performance of those products, I suggest throwing some add-ons in your mix (e.g. maintenance, upgrades) to drive repeat purchases and assess satisfaction with the initial purchase.

compare cohorts by ecommerce product
Comparing product cohorts can help identify the most profitable segments of your customer base.

Detecting unsatisfactory items as soon as possible might save your reputation, marketing budget, and customers. Drop sub-par products and concentrate on the ones that consistently bring repeat purchases and good reviews.

We had a client selling personalized jewelry who discovered through a retention analysis that 40% of his products didn’t drive any repeat purchases. He scrapped them from his store, giving more visibility to the others that worked well.

When you know exactly which products people use, the lifecycle will show you how often they need complementary products (e.g. filters, cleaning supplies), how long before they’ll replace it, or when they’ll stop using it (i.e. when the purchases of complementary products stop).

Some products have clearly defined periods of use. If you sell diapers, for example, you can estimate quite accurately the needs of first-time buyers: They’ll probably stay with your shop for three years, at best. So when you notice outliers—with a longer lifespan, for example—you can test a bundle offer as they may have kids at different ages.

Marketing strategies

Some changes you make will influence conversions at the specific time you implement them. So time-based cohorts (by time of first order) are closely connected to what was happening in your store and on your site at that time.

Maybe last month you changed how you share social media content and attracted new followers. Or you lowered shipping costs in a country and won new business. Or, perhaps, you added a few colors to your product line. Maybe your search rankings improved, making it easier for potential buyers to find your site.

Any of these changes can bring an influx of better-fit customers with a higher repurchase rate. Monitoring how people who bought in the same month behave afterward sheds light on the long-term effect of those adjustments.

Marketing campaigns and promotions

Knowing how each promotion works in the long run solves many digital marketing mysteries:

  • Where you should put your money;
  • How to formulate a campaign to attract the desired people and behavior;
  • Which channels are home to long-term customers, and so on.

Where loyal customers come from is important for social media management, ad placement, partnerships, affiliate links, media features, etc. For more post-purchase conversions, you’d better double down on the ones that bring strong cohorts with high retention rates.

A retention analysis of coupon codes reveals a lot about your customers. Not just the revenue a coupon brings, but which messaging and discounts works, where it should be placed, whom to target, which products to include, etc. People in the “Last chance, 70% discount” cohort will have completely different behavior than the ones in the “New Collection, Early Bird” cohort.

Now it’s time to apply your knowledge—and win more repeat sales.

How to drive repeat purchases by cohort

Our client, Barrington Coffee Roasting Co., had a problem: tons of traffic but no conversions. They analyzed their traffic and retention and realized that channels like Google Ads brought low-quality traffic and little brand loyalty. They shifted their efforts to review sites that did bring quality traffic, and ROI increased with unchanged budgets thanks to repeat purchases.

Data-driven marketing tailors marketing campaigns to consumer behavior. Cohorts offer valuable context and suggest which behaviors to target. You’re able to time your marketing messaging more closely to the purchasing cycle, drive engagement in a way that feels natural and useful (instead of salesy and pushy), and focus your marketing money in the channels that matter.

Here’s how to do it for four key cohorts.

By first product bought

This segmentation gives plenty of opportunities for ongoing engagement.

  1. Ask for feedback after a sensible period of time (so the customer has time to test the product). You can automate this step, but try to have customer service reps reply personally to positive and negative reviews (and, in the case of the latter, fix the problem).
  2. Give usage tips to encourage more frequent use. The more people use the product, the more involved they are with your brand.
  3. Create a separate social media group for users of various products and invite them to join a relevant one. You’ll be able to craft specific content to share with each group, and user-generated content will help foster a real community.
  4. Offer add-ons when you see a drop in the cohort repurchasing rate. If fewer and fewer people are placing a third order, for example, that’s when you should offer an accessory, an upgrade, or a replacement of the old item at a special price.
  5. Send just-in-time emails for replenishable products like cosmetics, food, or anything else that needs to be replaced. Time communications to arrive before consumers run out. Use the average time between orders as your guide the first few times. Then, you can sub-segment each cohort even deeper and send almost one-on-one emails to match individual repurchase times. This is convenient for consumers and keeps you top-of-mind at the perfect moment.
  6. Offer recycling or replacement service at the end of the estimated product lifecycle. The Department of Planning, Transport and Infrastructure in South Australia has had sweeping success the past two years with their OLD4NEW campaign to replace life jackets on boats. They issue vouchers for new and safer replacements to be redeemed at participating stores—bringing extra sales to stores while doing public good.
australian life jacket buy-back program

The Australian government timed a voucher campaign to incentivize boat companies to upgrade life jackets—and boost sales at retailers. (Image source)

By month of first order

The time of the first purchase can give you clues on how to engage afterward.

  1. For holiday shoppers, one of nearly every store’s biggest cohorts, when are the next orders placed? Look for changing seasons and major holidays. Those shopper may, more often than not, be shopping for gifts and incentivized by special offers. Sending those offers proactively (e.g. two weeks before Mother’s Day) will be well received.
  2. Look at the timing of campaigns. What was the main initiative during the months when you attracted your best cohorts? Keep the cohorts engaged with content related to the initial campaign.

By campaign of first order

The campaign that brought in a new group of customers says a lot about their motivations and shopping habits.

  1. Which campaigns brought in the most loyal customers? What was the message? Replicate those to try to attract as many similar customers as possible. Give your most loyal customers early bird offers, limited edition items, and premium service.
  2. Maintain the lightmotif for niche campaigns—keep the post-purchase experience consistent to preserve the connection. This may even mean creating a different style of communication for niche cohorts.
  3. Don’t expect high customer retention in cohorts from deep-discount campaigns. Those customers seeks deals and are not brand loyal, so they can be stimulated to buy again only with more discounts. The good thing is that you can do it for the deal-hunting cohorts only and not eat your margins with the rest.
  4. Products included in a promotion also signal customer’s preferences. Some want only the newest models and others shop for clearance items. Effective marketing is to give each their own and not waste budget or effort on trying to change behaviors.

By traffic source

Where your loyal customer came from informs the place for post-purchase engagement, too. If they trust social networks, blogs, magazines, etc., enough to buy from links or ads in those sources, they’re more likely to do so again.

  1. If long-tail keyword searches attract high-value cohorts, optimize your site them.
  2. If direct traffic doesn’t increase customer loyalty, work on your reputation and brand image. People obviously type it in with the intention to buy but, for some reason, are disappointed.
  3. For cohorts coming from social media, tailor the content to their product preferences.
  4. For cohorts from referral sources, like an affiliate link, measure their lifetime ROI against the cost. Then, monitor behavior for drops in sales and work with the referrer to increase engagement.

What to do with cohorts that don’t buy again

Some cohorts will not become repeat purchasers. Their lifecycle map is a dead end. Here are a few tactics to turn that around:

  1. Remove products leading to one-time purchases. By now, you should know which products fail to stimulate loyalty (or stimulate below-average loyalty). Consider dropping products if they don’t lead customers down the path you want them to take.
  2. If a cohort looks dead but AOV or LTV are quite good—accumulated in a few big orders, perhaps—ask for feedback. You’ll learn what it may take to reactivate a potentially lucrative cohort.
  3. Try to replicate the customer engagement of more successful cohorts. Proactively reach out via email around the time for reorder (average time between orders) to activate the inactive cohort.

Ecommerce analytics tools to help with cohort analysis

While some level of cohort analysis is possible in Google Analytics or with (clunky) spreadsheet calculations, ecommerce analytics tools provide cohort data that expedites and deepens analysis.

G2 Crowd lists more than two dozen providers in the ecommerce analytics category. For cohort analysis, there are five primary providers, listed alphabetically below:

  1. Custora
  2. Glew.io
  3. Kissmetrics
  4. Metorik
  5. Metrilo

Conclusion

Cohort or segment analysis is one way to track and analyze buyer behavior and its effects on your ecommerce business over time. This kind of segmentation sheds light on how a common first-order trait influences the customer journey and deepens understanding of buyers’ needs.

When you routinely perform cohort analysis, more opportunities to drive repeat purchases appear. You’ll be able to ditch the blanket approach and build a more meaningful relationship with each customer. Relevant offers and adequate timing turn marketing from an intrusion into a useful interaction.

Best of all, in my opinion, is that the retention-heavy strategy comes at practically no cost—it continually brings in more sales without pouring more money into marketing.

The post Increase Repeat Purchases with Cohort Analysis appeared first on CXL.

What is Click Through Rate? Learn How to Increase It in 6 Steps

A marketing campaign with a low click-through rate (CTR) isn’t going to provide you with the return on your investment (ROI) like you expect. Only when your prospects are clicking-through can they progress through the rest of your marketing funnel. Whi…

Click-Through-Rate

A marketing campaign with a low click-through rate (CTR) isn’t going to provide you with the return on your investment (ROI) like you expect. Only when your prospects are clicking-through can they progress through the rest of your marketing funnel. While your conversion rate may calculate how much you’re spending on cost per lead and […]

The post What is Click Through Rate? Learn How to Increase It in 6 Steps appeared first on The Daily Egg.

How to Centralize Your Data and Improve Audience Analysis

In today’s environment, marketers and their analytics teams are tasked with addressing many challenges. Some of which include reaching the right audience, personalizing the customer’s experience, and how much budget to allocate to digital and tradition…

In today’s environment, marketers and their analytics teams are tasked with addressing many challenges. Some of which include reaching the right audience, personalizing the customer’s experience, and how much budget to allocate to digital and traditional channels. One key area I see being a lower priority time and again is the need to centralize all the marketing data in one location. As more data (site analytics, digital media, search, CRM, third party, etc.) is readily available, this often causes teams to struggle with not only the sheer volume of data, but also identifying a single place to house it. The following issues are what typically hold teams back from building an easy-to-use view into their customer data:

Challenges:

1. Like the clothes in my teenage son’s room, data tends to be all over the place within different silos in the organization (hard drives, multiple databases, etc.).  Every campaign cycle, team members must go through a difficult exercise of data gathering, formatting, and manipulation.

2. Struggles with identity resolution across different data sources (“Are Jim and James the same person at the same address?”). Unable to cleanse and properly match these customers as the same individual causes waste in marketing programs, poor customer experience, and makes measuring the success of a campaign difficult.  

3. Looking to take small, incremental steps but facing internal pressure to move extremely fast while also, somehow, keeping costs down. In addition, there may be pressure from other teams and resources who believe that getting data into one place will incur lots of hours and money.

4. Having smart people on staff who are aligned with taking a more analytical view of marketing campaign performance and building more intelligent audiences for upcoming programs, but that team’s strength isn’t in data management.

The Solution

The best way to address these issues is straightforward and would require a centralized storage platform that enables querying:

This would organize and put your data into a single location. Instead of the monthly exercise to pull data from multiple systems, the data would flow automatically into the platform and appear in pre-built tables that are ready to be queries. Your PII (personally identifiable information) data would be organized so that all individuals, addresses, and contact information are cleansed and in easy-to-locate tables.

Leverage cloud technologies:

Cloud has helped to revolutionize the data storage model and lowered the barriers of entry to all sized marketing teams. As your data needs grow, the technology scales. If you need to pivot direction, there is no long-term investment in lots of hardware and software.

Start to analyze and visualize all your data:

Each data source typically comes with their own tools for analysis and reporting but the issue is that particular tool only works with its own data. Bringing together disparate data sources for analysis will help measure and inform your campaigns both past and future.  

Do you want to mitigate the pains of onboarding a centralized storage platform?  Learn more about Merkle’s entry-level, cloud-based data management solution called the Rapid Audience Layer (RAL). Click here to get started

A/B Testing Ideas To Turn Your E-commerce Store Into A Conversion Magnet

Is your e-commerce website experiencing high traffic but low checkouts? Is your cart abandonment rate at an all-time high? Are you losing prospect customers because something on your website is putting them off and are not sure how to make visitors leave the site only after finishing a purchase? This blog will help you unlock […]

The post A/B Testing Ideas To Turn Your E-commerce Store Into A Conversion Magnet appeared first on Blog.

Is your e-commerce website experiencing high traffic but low checkouts? Is your cart abandonment rate at an all-time high? Are you losing prospect customers because something on your website is putting them off and are not sure how to make visitors leave the site only after finishing a purchase?

This blog will help you unlock the true potential of your online store. Keep reading to learn a few ideas while you are A/B testing for e-commerce to turn your store into a CONVERSION magnet. But don’t take our word for it. A/B test them to see what works for your e-commerce store.

Have A Prominent CTA

Your Call-To-Action (CTA) button should stand out as soon as a visitor lands on your website. This is where the real action takes place – whether or not visitors finish their purchases and convert, if they fill out the sign-up form or not, and more such actions that have a direct bearing on your conversion rate. A/B test different copies, placement & sizes for your CTA till you find the winning variation. Some key characteristics of a magnetic CTA:

  • Be Creatively Persuasive: CTA text should be persuasive and creative at the same time and should encourage visitors to act-in-the-moment.
  • Make it Unmissable: If your CTA is too small to be noticed or placed in the wrong spot and visitors have to look for it, they are most likely going to leave your page without converting.

Add An Omnipresent Search Bar

Support your website navigation with an omnipresent search bar. Build an omnipresent search bar keeping in mind two metrics: Precision and Recall.

  • Precision is the percentage of retrieved search results that are relevant.
  • Recall is the percentage of all relevant results that the search system actually retrieves.

Imagine that on your website, you have 1000 products, of which 300 are mobile phones. When visitors search for mobile phones, they get 500 results. Of those 500 search results, only 100 of them are mobile phones; the remaining 400 are not relevant to the search. That means the precision is 100/500 or 20%. The recall would be 100/300 or 33%, as the search engine only found 100 of the 300 mobile phones available on the site, which means that 200 mobile phones didn’t show up on your search-results page at all. A perfect search engine would give only 300 results, corresponding to the 300  mobile phones available on the site, so it would have 100% precision and recall.

Building an omnipresent search bar keeping in mind precision and recall:

  • It will improve your website’s search performance and UX.
  • It allows visitors to quickly locate a product category or something specific without having to scroll through endless product pages to find what they are looking for.
  • It enables visitors to narrow their options and supports their ability to return to an item previously located.

If you do not have an omnipresent search bar, you may try A/B testing it against your existing design.

Ease Your Site Navigability

Good navigation reduces a visitor’s cognitive load. If your website navigation is stressing the visitor, it is time to rethink its functionality and make navigational paths shorter and simpler. The higher the mental load on the visitor, the higher the chances of them bouncing off your website. Each click should direct visitors to the desired page.

Here are some ideas that can help you up your navigation game:

  • Match visitor expectations by placing your navigation bar in standard places like horizontal navigation on the top and vertical down the left to make your website easier to use.
  • Too many navigation options can confuse visitors and lead them off your website. If your page has too many links, A/B test each one of them to determine which one is distracting your visitors most.

Enlisted items should be the most relevant ones. With fewer items, visitors are more likely to spot important items. Each item removed means added importance to the remaining ones.

Keep It Visually Neat

Because everything seems so essential, e-commerce entrepreneurs find it very challenging to simplify their website. As e-commerce stores, you do not have the liberty to go imageless with your website. Customers like to see every detail in high-definition before they buy.

But it is time to be brave and make cuts to the website. Get rid of every element that is a distraction:

  • Home page and landing page

Add plenty of white space and high definition images, feature product videos instead of images or test out different layouts. De-clutter your pages using clickmaps to analyze dead clicks and identify distractions. The less cluttered your home page and landing page, the more likely that visitors easily find what they are looking for.

  • Product page

Your product page should address your potential buyer’s concerns and hesitations without getting cluttered:

  • Provide all necessary context: Based on the products you sell, find creative ways to provide all necessary context so prospective buyers do not get overwhelmed with an unorganized copy while looking for answers to their queries. Provide clear copies, size charts, color options, and visual guides and instructions if a product needs assembly.
  • Customer reviews are critical: Add customer reviews for every product possible. Do not omit negative reviews as they add credibility to your store.
  • Keep your copy simple: Do not confuse prospective buyers with descriptions that are decorated with over-complicated language. Keep it simple and fun to read.
  • Create urgency: Your product page should create a need among prospective buyers to purchase your products. A  ‘soon going out of stock’ pop-up, keeping a countdown like ‘3 more left’ or highlighting exclusive product discounts can be some ways to nudge a prospective buyer to purchase immediately.

Zalora, the fastest growing online fashion retailer in Asia, optimized its product page and increased conversion by 12.3%.

Ease Your Checkout Process

Many prospective buyers to convert into buyers, make sure they do not get thrown off by a complicated checkout process. A well-designed checkout allows shoppers to complete their purchase quickly and conveniently, while a poor user-experience can cause friction and cart abandonment.

Here are some ideas that may help you optimize your checkout process:

  • Add multiple payment options (and test each payment option)
  • Introduce single page checkout (and reduce the freedom and excuse to delay purchase)
  • Highlight shipping and return offers (create a sense of urgency through them)
  • Add a progress bar to your checkout (let your customers know where they are in the process and how much longer it will take to complete their purchase)
  • Allow guest checkout
  • Reduce form fields
  • Add “similar products” recommendations

Test Rotating Carousels On The Website Home Page

Automatic rotating carousels are often thought of as an easy solution to provide better navigation to all the important content on the site. Before implementing these, A/B test your ideas because they may have worked for other websites, but the story can be entirely different for your website.  

There can be two parts to A/B testing the addition of rotating carousels:

  • First, A/B test to see how your visitors are reacting to the carousel addition.
  • Once the result comes in (and if it is positive), A/B test the format of your carousel.

There are different types of carousels that you can test to be used on your website like automatic sliders, visitor controlled slider, horizontal carousels, vertical carousels, carousels with images, carousels with videos, etc.

Add Social Proof

Social proof such as recommendations and reviews comes from experts of the particular fields, from celebrities and customers themselves. There is a strong correlation between the number of online reviews an e-commerce website has and its sales.

Express Watches, an authorized Seiko watch dealer that ships to over 23 countries, witnessed a 58.29% increase in sales by adding a customer review widget to their website.

Click here to know about more ways to use social proof for higher conversions.

Inform Prospective Buyers About Abandoned Carts

According to research, 67% of online shopping carts are abandoned right before a user completes their purchase. Prospective buyers add products to their cart and forget about them.

To prevent the loss of customers through abandoned carts, you can set up cart abandonment notifications on your website. While some prospects may go ahead and delete the items they don’t intend to buy, such notifications can act as reminders for items that people would have added and perhaps forgotten about.

By nurturing prospective buyers with more information and creating an urgency that nudges them to take action, the chances of them converting to customers increases. Yo! Free Samples, an online store giving out free samples and coupons, nailed 99% revisit to their website using push notifications.  

Highlight Your Offers And Discounts

E-commerce businesses often roll out multiple offers in the form of discount coupons, website-wide flat discounts, loyalty points, free gifts, exchange offer and so on. If visitors are not aware of them, the offers will not produce the desired result.

Showpo, an online pure play women’s fashion company, highlighted certain offers on its product page and increased its conversions by 6.09%.

Put Up Noticeable Trust Signals

Trust signals are qualities of your website that inspires trust in the minds of your visitors. They usually take the form of badges, certificates, money back guarantee, 100% satisfaction or testimonials. As business owners, you have to give visitors reasons to trust you. The best way to do this is to provide your shoppers with hard evidence that you are a trustworthy website to buy from.  

For example, if you want prospective buyers to make payments on your website, popular payment trust seals that you can add are McAfee, TrustArc, and Verisign to reassure them that their personal data is safe with you. You may also add industry (specific) association logos and certificates to establish the credibility of your website.  

Parting Words

The list of A/B testing for e-commerce ideas enumerated above is in no way exhaustive. You can either draw inspiration from these or come up with your own testing ideas to improve your store’s conversion rate. However, the bottom-line to optimizing your e-commerce website seems to be the same for all the pages: they should be straightforward, relevant and informative.

All you need to know is how to combine and balance functionality, usability, security, and design. Adopt a continuous testing approach until you turn your e-commerce store into a conversion magnet. Following a structured CRO process will enable you to pinpoint exact problem areas and allow you to use learning from each test to improve your subsequent tests. If you are unsure about how to start, here is an 8-week DIY Guide to help you kickstart your CRO program.

The post A/B Testing Ideas To Turn Your E-commerce Store Into A Conversion Magnet appeared first on Blog.

Pro Tips For Growing Your Ecommerce Store

“If I’m not sleeping, then I’m active on Shopify.” Does that quote sound like something you’d say? Recently, we announced the addition of Crazy Egg to the Shopify App store. We talked a little bit about why we were so psyched about the laun…

ecommerce shop tips

“If I’m not sleeping, then I’m active on Shopify.” Does that quote sound like something you’d say? Recently, we announced the addition of Crazy Egg to the Shopify App store. We talked a little bit about why we were so psyched about the launch; namely, that a lot of you use Shopify daily to run […]

The post Pro Tips For Growing Your Ecommerce Store appeared first on The Daily Egg.

How to Craft Meaningful Email Experiences for Healthcare Professionals

With the start of 2019, there’s plenty of good news for pharmaceutical marketers regarding CRM. Many healthcare professionals (HCPs) say they are generally ok with getting the promotional emails the industry is sending. Yes, it’s true. Far from being a…

With the start of 2019, there’s plenty of good news for pharmaceutical marketers regarding CRM. Many healthcare professionals (HCPs) say they are generally ok with getting the promotional emails the industry is sending. Yes, it’s true. Far from being an outmoded component in your multi-channel marketing mix, email continues to be the most preferred source of marketing content for HCPs. For some of you, this might be a surprise, but let’s dig into the facts:

According to the 2018 report from Medical Marketing Service, the Annual Pharmaceutical and Medical Device Physician Preferences Survey reveals that:

In fact, email beats out sponsored meetings, medical journals, sales reps, direct mail, and websites. In addition to this good news, let’s also unpack two more results from this survey. For those HCPs who open your email:

This is excellent data confirming that some CRM strategies are working well. From a more balanced frequency of sends and resends to greater levels of personalization, to well-orchestrated and segmented cadences and new, triggered campaign approaches, marketers are engaging in smarter strategies, and analytics are supporting those efforts. But as you plan for future CRM campaigns, you need to consider how you’re going to continue this trend. The following are two of the most important questions that you should all be asking of your creative campaign strategies:

1) How meaningful are these experiences for our customers?
2) How are you expecting them to engage beyond reading the content?

These two questions directly relate to meaningful engagements and a higher propensity to click-through from your emails to a deeper engagement.

Focus on clear messages

In people-based marketing strategies that align to user-specific segmentation and increasingly more personalization, you need to also consider the core messages. In the little time that most healthcare professionals have to consume our email content, brevity and focus are critical to getting your message across and achieving the desired response.

Long ago, a previous agency mentor of mine instructed me to focus my content development on creating authentic and honest connections with HCPs. He also recommended making my content simple and easy to understand, with clear motivation for why and how to act on a communication. Considering how pharmaceutical and medical device marketing has progressed since then, his direction was richly prescient.

Keep it simple

Nearly half of your customers are reading your content. The more you can produce singularly focused, non-personal promotions for your clients, the more you will be to sustain this positive trend with email. This isn’t to say that you don’t have more complex information to convey — regardless of whether it’s messaging on safety and efficacy or adherence and support. You do. But it’s essential to ensure that your messages are simple, direct, relevant, and effective. In other words, avoid the clutter and help drive the action you want from your CRM campaigns.

Drive more meaningful clicks

Even in the face of open rates that are above the benchmark average, many of marketers  continue to struggle with lower click-through rates. Going back to my second question regarding creative campaign strategy: How are you expecting them to engage beyond reading the content? In a true omni-channel campaign, your CRM should link to deeper engagements.

There are a variety of factors behind low click-throughs. Some which can be solved by a quick check of the email creative to determine:

As you move toward clearer and more concise communications, the greater the chance that HCPs will continue to view your communications in a positive light — and engage with the content and CTAs. That’s a recipe for more relevant and meaningful engagements for your audience and greater success for you.

Icon Design for Faster Visual Search

Icons have many uses on a mobile interface. You can use them to call attention to information, signify a state, or represent task actions. When representing task actions, the icons become buttons.

Icons have many uses on a mobile interface. You can use them to call attention to information, signify a state, or represent task actions. When representing task actions, the icons become buttons. The style of your icon buttons can make or break the user’s task performance.

When faced with an array of icon buttons, users need to be able to find what they want fast. Doing so allows them to initiate and engage their task in less time. But there are factors that can slow their visual search down. Designers need to consider these factors when they’re using icons in order to optimize the user’s search time.

Visual Noise

The more detail on an icon, the more visual noise it has. Visual noise compounds when users view an array of detailed icons together. Searching and targeting an icon takes more time because the user is overstimulated with each icon’s internal detail of lines, shapes, and shades.

In contrast, an array of simplified icons has lower visual noise which allows users to search and target icons faster. The internal details of each icon is minimal, which makes the icon shape more distinct and quicker to recognize.

icon_search-detail

Research found that simplified icons are faster to recognize than detailed icons. However, if simplified icons are made too simple, they become unrecognizable. There are certain characteristic cues icons need for recognition.

Another study confirms that simplified icons provide a faster search than detailed ones, especially at larger sizes. In the study, detailed icons were slower than blank generic ones because they added visual noise to the interface.

Figure to Background Ratio

What also affects icon search speed is figure to background ratio when they’re placed on a background shape. A low figure to background ratio makes icons small and indistinguishable at a macro view. This forces users to zoom in on the icons at a micro view to tell them apart, which takes more time and effort.

A high figure to background ratio makes the icons larger and more distinguishable at a macro view. Users don’t need to zoom in on the icons because they can distinguish them at a glance. This allows for a faster search due to shorter eye fixations and less cognitive effort.

icon_search-size

A study found that icons with at least a 50% figure to background ratio improved search times and were preferred by most users. It also found that icons placed on circle pads (circle or squircle background shapes) improved search times.

Display Polarity

Icons with a positive display polarity have a dark color on a light background. They yield a slower visual search than icons with a negative display polarity (light on dark background).

In the image, the corresponding icons in both dashboards are the same. But the icons with negative polarity appear slightly larger and more clear than the positive polarity icons. Greater visual clarity allows users to search and target icons faster.

icon_search-polarity

Research found that most users prefer negative polarity icons over positive polarity icons. This is due to the higher contrast of the icon’s outer shape and internal detail.

Color

Icon color can also speed up visual search by drawing attention and making a target stand out. Users are able to recognize icons with familiar colors quicker than black and white ones.

The same study found that blue, green, and red are the most preferred colors for icons, while purple, orange, yellow are the least preferred. The different meanings of icons did not affect icon color preferences.

icon_search-color

It’s interesting to note that blue, green, and red are the primary colors for computer screens and other light source devices. This makes them appear more pure, while purple, orange, and yellow appear more faded or washed out. The pureness and familiarity of blue, green, and red make them the most optimal icon colors.

More Than Meets the Eye

There’s more than meets the eye when it comes to icon design. With so many styles to choose from, it’s hard to nail down which one to choose for the best user experience.

These guidelines only apply when your priority for user experience is a fast icon search. But if the priority for your icon is aesthetic appeal or strong brand identity, following these guidelines might not be in your best interest.

Whatever the case, the speed of icon search is a hallmark of user experience on mobile devices. Helping users find information or complete tasks faster goes a long way in meeting their needs.

The Results Are In: Must-Attend 2019 Conferences for Digital Marketers

*This is a guest post by Angela Zhou, Engagement Marketing Intern at CPC Strategy 2019 Conferences for Digital Marketers   For digital marketers, industry… > Read More
The post The Results Are In: Must-Attend 2019 Conferences for Digital Markete…

*This is a guest post by Angela Zhou, Engagement Marketing Intern at CPC Strategy 2019 Conferences for Digital Marketers   For digital marketers, industry... > Read More

The post The Results Are In: Must-Attend 2019 Conferences for Digital Marketers appeared first on Retail Performance Marketing Blog - CPC Strategy.

Fab-UX 5 – Issue 115

The weekly UX Design newsletter from Loop11. Create your free account today! Designer-developer collaboration in 6 memes invisionapp.com Development fundamentals for UX designers uxdesign.cc Best of 2018 UX Design Case Studies casestudy.club 7 tips to …

The weekly UX Design newsletter from Loop11. Create your free account today! Designer-developer collaboration in 6 memes invisionapp.com Development fundamentals for UX designers uxdesign.cc Best of 2018 UX Design Case Studies casestudy.club 7 tips to design faster & a why speed is important. uxdesign.cc UI/UX sketching techniques 101 uxdesign.cc

Omnichannel Retail Trends Brands Can’t Afford to Miss 2019

As consumers grow and change, so do online retail trends — and with more and more Gen Z’ers aging into shopping dominance, keying… > Read More
The post Omnichannel Retail Trends Brands Can’t Afford to Miss 2019 appeared first on Retail Pe…

As consumers grow and change, so do online retail trends — and with more and more Gen Z’ers aging into shopping dominance, keying... > Read More

The post Omnichannel Retail Trends Brands Can’t Afford to Miss 2019 appeared first on Retail Performance Marketing Blog - CPC Strategy.