INCREASE YOUR CONVERSIONS NOW
Perhaps, like many marketers, you feel frustration about your conversion rates, which are lower than you would like them to be. You’ve optimized everywhere, but turning visits and views into sales is still not as successful as you would have hoped.
Indeed, conversion as a metric is one of the most important KPIs for marketers. It’s the key metric you look at when assessing money spent on bringing traffic, and the profitability of your business. In order to optimize conversions, you need critical, actionable intelligence that gives you full visibility into every key metric of your business – as well as your competitors’.
WHAT AFFECTS CONVERSION?
Increasing conversion rates is a powerful multiplier for your business. What are some of the factors that influence this key ratio? Critical elements here are setting a competitive price point, ensuring that you have the product in stock, having top-notch content, being on top of SEO- keywords, and bringing the right traffic, in volume, to your store. What complicates things is the fact that you have millions of products in your store, and until now it was impossible to know in real-time which actions to take for each product in order to increase conversion.
STARTING WITH THE BASICS – COMPARING CONVERsION
Conversion reports are designed to help marketers benchmark real-time product conversion rates, and identify and compare top-scoring products. These can then be compared to the competition to ensure you’re always one step ahead.
More than this even, you can gain an understanding about what the competition’s KPIs are, where to set benchmarks, know where to set your targets, and where you have a competitive advantage over your competition and should therefore capitalize on that advantage, for example by bringing more traffic.
In a recent study of ours, we used our powerful platform to look at some real-world examples of effective conversion strategies. For example, we looked at the online Home & Garden Sheds sales-to-views correlation, and found that Keter is beating out all competition, with only 10% of consumers viewing their products and yet owning 25% of the market. Bear in mind that discrepancies between product views and product sales rates are signals for either overperforming or underperforming products in a category. Suncast and Rubbermaid have about an equal sales-to-views ratio, which while still impressive, shows that they can be doing more to increase conversions. In fact, when we looked deeper and compared Home & Garden Sheds conversion by brand, we found that Keter has more than double the conversion rate of the nearest competing brand.
Using comparison techniques, marketers can understand product conversion in the context of the entire market. Marketers that are aware of the competition’s conversion can take the right actions to increase market share and boost conversions.
As mentioned, your conversion rates are critical to the success of your business. There are some key drivers in optimizing conversion rates, which are demonstrated next.
LEVERAGE PRICING AND PROMO’S
Obviously, a key element to take into account is pricing and price sensitivity. The relationship between pricing, sales and margins is something that you need to constantly monitor. Being on top of pricing and promotions, particularly with regards to what your competitors are doing, is absolutely critical, as this next example points out.
At Market Beyond, we did a study of comparisons between two online giants; Amazon and eBay. The results were telling, and one particular insight demonstrates this dramatically.
When looking at the Laptop category for instance, we had a look at the ASUS ZenBook UX330UA, which is responsible alone for $6m of monthly GMV for Amazon. This product can be compared, to what eBay is offering for the exact same laptop. Amazon’s price? $699. eBay’s? $860, 22% more than Amazon’s. This will have a tremendous effect on both companies’ conversion rates.
Which competitors are beating you on price and promotions, and you don’t even know about it?
It’s often difficult to keep track of all pricing and promo’s across all products and categories. Overly aggressive pricing can damage both margins and brand value, so the key is to know where to set competitive pricing, and in making sure that it is always based on real demand and product-level competitiveness factors; both against other models, and other e-tailers.
MAKE TRENDING PRODUCTS WORK FOR YOU
Nothing hurts as badly as a missed opportunity. New products are entering the market all the time, and sometimes “stable” products suddenly become popular, resulting in a massive increase in demand in a short space of time. You need to ensure that you have the right products in stock, and you have to make doubly sure that you aren’t caught with low stock while your competitors are fully stocked and keeping customers satisfied.
is the Video Games Consoles category, we looked at the popular Nintendo Switch, which drove an estimate of $73M GMV for Amazon in January alone. During this month, Amazon launched a pre-order campaign for the popular console. At that point in time however, the product was not available on eBay, causing not only direct losses, but also building long-term value for Amazon’s brand, at the expense of eBay.
Winning at e-commerce is often taking advantage of many smaller opportunities. Brands and retailers need to act in real-time to both design, and stock up on the products that are selling right now. In this market of billions of dollars and millions of split-second decisions, winning requires a long-tail strategy. Don’t miss an opportunity.
When users search for a particular product, they are going to make their decision on where to shop based on the highest results on the search engine results page. The question is, is your product in the top 5 results, or sitting somewhere on page 3, where it might as well not exist?
Succeeding here means targeting the most relevant keywords; not just in general, but crucially, this is a must at product level. You need intelligence that can ensure your products rank highest in the most relevant channels and audiences – intelligence that can provide insights by gender, age, preferences, and more.
Our studies showed for example, that a search for the Acer Aspire E15 yielded a top 5 result for Amazon, yet only a 15th place (on the second page) for eBay’s offering.
Managing SEO – especially sponsored results for millions of products – is extremely expensive, and for most people, this is where most of their spend is. To manage this, you need to understand how your competitors are generating traffic at product level; which channels and which keywords to use, taking into consideration the current product level of demand and other competitive factors.
You need to ensure that you stay relevant, stay in front of your shoppers, and make it as easy as possible to drive conversions and sales.
NAILING THE RIGHT CONTENT
Price, promotions, and stocking the right products are important pieces of the puzzle. If your product’s content isn’t up to scratch however, getting the other areas right might be for naught. Consumers make decisions based on ratings, images, and other digital merchandising factors, which all play a massive role in conversions.
Just as in brick-and-mortar stores, merchandising is a key factor in online conversions into sales. If your product listing is less attractive than your competitors, visitors to your site are going to convert elsewhere. Shoppers today are keenly attuned to reviews and what people are saying about the product; to images and the way the product is presented; as well as other cues that are the difference between a view and a sale.
You need tools to assess the effectiveness of your content on a product and category level, across your entire inventory, as well as having comparisons to your competitors to ensure you are not being left behind. Making sure you know which steps you need to take, and on which products, in order to improve content. Additionally, you need to ensure that you are taking into consideration demand, competitiveness and potential revenues.
You might have the best offering, including the perfect price, lots of stock, and amazing content around your product. If you don’t bring enough traffic to this product offering though, you are losing sales, losing profits, and losing market share to your competition.
Understanding which products need more traffic is critical. It’s important that you ensure that your conversion rates and other leveraging factors make this traffic highly profitable for you and your business. This also has to be assessed vis-à-vis the competition, on product level, and taking demand and revenues into consideration.
Make sure that you have industry-leading conversion rates. Market Beyond will provide you with all the actionable, product-level and real-time insights that you need to ensure that your products are optimally priced, your promo’s are working, you’re fully stocked when it comes to trending products, your content around each product is better than your competitors’, that your SEO is optimized, and that you’re sending enough of the right traffic to the right products. You will see an increase in conversion rates and a significant increase in profits.