Tenshi Web Solutions Top Secrets for Merchant Conversion Rates
Merchants are now focused more than ever on their site's all-important sales conversion rate. An extensive recent research study, "Merchant Secrets for Driving Conversion," detailed the many tactics that e-tailers are using to boost conversion rates.
Knowing that effective merchandising is essential to increasing conversion, a recent retail study asked 250 merchants to rate a list of 44 merchandising techniques. Responses were ranked on a descending scale, with the most popular techniques near the top.
The top ten winners were:
- Seasonal promotions: 94 percent
- E-mail as merchandising vehicle: 91 percent
- Keyword search: 91 percent
- Sales or specials: 90 percent
- Cross-sells: 84 percent
- Free Shipping: 79 percent
- What's New: 78 percent
- Up-sells: 75 percent
- Advanced Search: 70 percent
- Affiliate Program: 68 percent
Note that the top tactic, seasonal promotions, is as old as retailing itself. Cross-sells and up-sells are also timeless strategies. But many of these popular merchandising tactics are completely Web-centric - search shows up twice in the top ten (keyword search and advanced search). In short, successful e-tailing is a combination of very old and very new techniques.
E-mail marketing is, of course, a leader. Even though it ranks second, it could be seen as number one, since top technique "seasonal promotions" comes and goes, but e-mail is 52 weeks a year.
Other sales tactics that online merchants rate highly include: Gift Centre or Suggestions (68 percent), Coupons/Rebates (67 percent), Top Sellers (67 percent), Customized Content (63 percent), Search/Order by Catalogue (61 percent) and Gift Certificate (57 percent).
Using "time-based" tactics is also a merchant favourite. These include limited time discounts, free shipping for a certain period, or a special deal that coincides with a seasonal event — in other words, the age-old tactics that brick and mortar sellers have always used. One proven winner is the free trial period.
Merchants reported great success with presenting lists of "what's hot" and "what's new," updated frequently. Presenting the "best seller" list throughout the site harnesses the power of group psychology, and is a sure sales booster.
It's no surprise that free shipping is listed among the top ten conversion drivers, yet merchants reported struggling with the right balance. Driving conversion is one thing, but driving profitable conversion is another. Though free shipping isn't universally adopted, there are numerous stories about its effectiveness as a conversion increaser. One merchant noted that free shipping is even more of a sales driver than a 20-30 percent discount. Another noted that a free shipping pop up on the home page always bumps the site's conversion rate by a few percentage points.
E-tailers are developing an ever-more impressive array of tools. The depth and breadth of merchandising and marketing tools being offered on sites has grown exponentially with increased cross-channel integration, resulting in more compelling customer experiences.
Does Your Site Actually Work?
Sometimes, Merchants forget the most simplest of rules - the importance of basic functionality. A site must be error-free — no broken links anywhere, no improper labelling - or shoppers quickly flee. Research by Hostway indicating that 70 percent of shoppers were likely to not buy from (or even return to) a site at which they ran into a basic problem.
A critical part of this basic functionality is customer-based navigation, this includes quick access to key categories, including customer service, cross-channel capabilities, and search, as well as information about the company as a whole. One way of checking this is having a layperson surf the site to remove as much industry-specific lingo as possible. If you think your site is flawless, try getting an inexperienced web surfer to run through some scenarios on your site, it can be very surprising what is highlighted.
A navigation improvement tactic used by many merchants is to show subcategory links earlier. Instead of just showing, say, links to men's and women's shoes on a front page, show links to men's and women's athletic, dress, and casual shoes. Shoppers who arrive at their destination faster are more likely to buy, and hidden merchandise won't sell.
The foundation of shopper-centric navigation is effective on-site search. A recent study by Forrester Research indicates that 74 percent of shoppers with four years of online experience say relevant search is important to them.
But many sites do not yet have a good search tool. There's a serious divide between the haves and have-nots when it comes to on-site search. To be sure, adding a quality search tool represents an extra expense for a merchant — yet it's well worth the investment. It's amazing to see the comparison in conversion rates between a site with no search, and a site with strong searching facilities. For example, Shoe e-tailer FootSmart 
reported that a "shoe finder" advanced search box on its home page resulted in a remarkable 23 percent conversion rate.
The secret weapon: combining e-mail marketing and search. Several forward-thinking merchants are adding a search box to all their HTML customer e-mails. One merchant found that this set a record for e-mail sales.
If you want to find out more on how Tenshi can help your business, feel free to contact us - site reviews and quotes are free of charge!
