Charles Nicholls The Path To Purchase

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1 Click to edit Master title style Click to edit Master text styles Charles Nicholls The Path To Purchase

2 About Charles Nicholls Chairman, Conversion Academy Founder, SeeWhy Chief Research & Strategy About SeeWhy The real time shopping cart & web form recovery service Live on 1,000+ ecommerce sites Recovers $400m annually for clients Plug-and-play Magento Enterprise extension & X.Commerce partner

3 Individual website visitor Visits / Adds item(s) to their cart......and abandons without purchasing On average 97% don t buy Track website visitors 24x7 1 st sent / ads served in real time Visitor clicks through Re-considers the purchase Service Provider & Ad exchange Real time API On average 26% Trigger an optimized 1-to-1 follow up campaign on abandonment Of identified cart abandoners will convert

4 Topics The path to purchase Multi-screening Remarketing techniques

5 Why 72% of shoppers say they abandon Males: #1 Price #2 Not ready to buy More likely to compare prices Less likely to abandon Takeout Females: More likely to save products for later Take longer to buy Source: Forrester Even more sensitive to shipping and handling costs Design remarketing campaigns to address Price and Timing objections

6 Shopping Cart Abandon Rate 72% 97% 72% of all transactions are abandoned 97% of mobile transactions are abandoned Excludes digital goods Source: SeeWhy

7 Understanding the customer journey Organic Search term Purchase Organic Search term Display Ad Organic Search term Purchase PPC ad Direct Mobile Organic Search term Purchase

8 5 touches across multiple channels Organic Search term Purchase Organic Search term Display Ad Organic Search term Returning ID d abandoner Purchase PPC ad Direct Mobile Organic Search term Direct Clicked remarketing link Purchase

9 Probability of conversion Multi-touch drives conversion O.25% 2.25% 18% 48% New visitor Returning visitor First time abandoner Serial abandoner Purchase 9x Remarketing Remarketing 60x Source: SeeWhy 192x

10 Topics The path to purchase Multi-screening Remarketing techniques

11 Multi-Screening

12 Different devices; different uses

13 Source: Forrester Consulting / Demandware Payments, security and usability

14 Mobile website or apps? Users want the full experience Which of the following best describe your company s mobile / tablet ecommerce presence? Mobile browser optimization iphone App Android App ipad App Other Mobile App If you have interacted with [the merchant you have just purchased from] on a mobile device, then which experience do you prefer? Accessing the standard website I dont have a preference Using an app Using the mobile version of the site Base: 43 retail CIO s Forrester/Shop.org State of Retailing 2012 Base: 1,428 recent mobile shoppers Forrester/Bizrate Insights Q3 2012

15 Tablets are most of the action Most of mobile is actually tablet Tablet/mobile sales as a percentage of web sales in % 3.2% Base: 43 retail CIO s Forrester/Shop.org State of Retailing 2012

16 is going mobile By end 2012, more s will be opened on mobile than any other platform Source: Litmus 2012

17 Topics The path to purchase Multi-screening Remarketing techniques

18 Guthy-Renker Proactiv: Three step campaign Immediate 23 hrs after 6 days, 23 hours after Takeout Addresses Price and Timing objections.

19 Number of abandoners returning The Impact of remarketing No Remarketing With Remarketing On average 8% will return to buy On average, an additional 26% will return to buy when remarketed 18% additional recovery Takeout 2x - 3x more abandoners will buy when remarketed Remarketing's biggest impact will be in the first 12 hours.

20 A/B test: Real time + Multi Stage Real time out tracking enables: Multiple campaign steps (total 3 in this test) Real time + multi stage gives: Source: SeeWhy +201% Revenue 412% ROI

21 Set it and forget it? Optimizing your campaign Start by getting a campaign up Plan to: Analyze you data deeply after 30 days Develop an alternate hypothesis Test and refine

22 A (1) Which subject line generated more revenue? Oops! Was there a problem with your checkout? B Glamour is just a click away

23 A (2) Which subject line generated more revenue? Charles, was there a problem with your shopping cart? B Oops! Was there a problem with your shopping cart?

24 (3) Timing test: Optimal timing for #2 Two stage campaign test Only the timing of the second is different A 1 st Real time - 2 nd after 1 hour Average Order Value $54.67 AOV Increase Difference in Conversion Rate B 1 st Real time - 2 nd after 23 hours $ % +42% Which got a 16% AOV and 42% lift in conversion?

25 Typical Starter Campaign Remind Reassure Promote Immediate 23 hours 6 days & 23 hours Subject line: Oops! Was there a problem with your cart? Subject line: Free exchanges on your order at LuckyVitamin Subject line: Save 25% on your order at LuckyVitamin

26 Columbia Sportswear Make the product the hero Focus on the product Large image Product name Review stars Free shipping call to action (with club membership)

27 Any observations?

28 Impact of skin tones and faces

29 CSR image is too strong Distracts from the primary call to action Call to action button not strong enough

30 Alternate Route No CSR

31 Highest ROI In ecommerce Voted highest ROI by ecommerce execs in etailing group 2012 Merchant Survey

32 Recovery rate Personalized 1-to-1 Campaign Single System Newsletter Do Nothing Only 5% brands remarket with personalized Only 5% of brands follow up on abandoned carts with a personalized yet this recovers on average 21% Single System 7% Personalized 1-to-1 Campaign 5% 25% 21% 20% Source: SeeWhy Newsletter 25% Do Nothing 63% 15% 10% 5% Source: SeeWhy; US IR 250 brands 0% 3% 1%

33 Personalization matters Test of a 3 step remarketing campaign, measuring lift in revenue recovered: Static Content Dynamic Personalized Content Source: SeeWhy 2.6% 33.2%

34 The formula you need: Compliant with the law: its marketing, therefore unsubscribe, opt out / opt in are important Real time: first send needs to be in real time; send a sequence to address timing objections Stay in step: ensure that you don t send s to customers that have purchased Deliver value: if customers value what you send, you can extend your brand values Be relevant: 1-to-1 personalization will have a dramatic impact Expertise: the way you remarket will impact success. Performance varies from 2% to 20%

35 Charles Nicholls Web: seewhy.com

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