Conversion Rate Optimization Report 2012

Transcription

1 Market Data / Supplier Selection / Event Presentations / User Experience Benchmarking / Best Practice / Template Files/ Trends & Innovation Conversion Rate Optimization Report 2012 In association with RedEye

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3 Conversion Rate Optimization Report 2012 In association with RedEye Published October 2012 All rights reserved. No part of this publication 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 2012 Econsultancy London 4th Floor, Farringdon Point Farringdon Road London EC1M 3JF United Kingdom Telephone: +44 (0) Econsultancy New York 350 7th Avenue, Suite 307 New York, NY United States Telephone:

4 Contents 1. Executive Summary and Highlights Key findings Introduction by RedEye About RedEye About Econsultancy Conversion Maturity Model Methodology and Sample Methodology Respondent profiles Findings Types of conversion and measurement Conversions relevant to organization Methods used to measure conversion Satisfaction with online conversion rates Improvement in online conversion rates in the last year Change in online conversion rates in the last year Tools and strategies Methods currently used for improving conversion rates Implementation of methods used to improve conversion rates Value of methods used for improving conversion rates Difficulty implementing methods used for improving conversion rates Methods planned for improving conversion rates Best practice Best practices carried out by organizations Most effective technique for improving conversion rates Testing and performance Areas of testing Tools and services used to test websites Elements of websites tested Number of tests carried out on website per month Ideas for testing Most challenging testing stage Aspects important to a successful testing strategy Designing for mobile phones and tablets Design Conversion Rate Optimization Report 2012 In association with RedEye Page 3 storage and retrieval system, without prior permission in writing from the publisher. Copyright Econsultancy.com Ltd 2012

5 Usability testing Segmentation and personalization Ways of segmenting site visitors and customers Uses of segmentation Personalization of landing pages Personalization of other pages People and processes Number of staff responsible for improving conversion rates Personal involvement in improving conversion rates Perceived control over conversion rates Incentives based on conversion rates Approach to improving conversion rates Barriers to improving conversion rates What would make the biggest difference to conversion rates Appendix 1: Respondent Profiles Annual company turnover Business sector Geography Appendix 2: The Five Best Ways to Improve Website Conversion (Introduction) Conversion Rate Optimization Report 2012 In association with RedEye Page 4 storage and retrieval system, without prior permission in writing from the publisher. Copyright Econsultancy.com Ltd 2012

6 1. Executive Summary and Highlights This is Econsultancy s fourth Conversion Rate Optimization Report, in association with RedEye. The research is based on a survey of almost 900 client-side and agency digital marketers (a record number of respondents since our first survey in 2009) carried out in July and August The study looks at the types of conversion and measurement used, as well as tools, strategies and processes employed for improving conversion rates. The report also examines different areas of best practice and identifies which techniques and methods are most valuable for improving conversion rates. The aim is to provide data and a framework to help companies invest their time and resources as effectively as possible, by examining which methods and processes are most likely to yield results Key findings Our research revealed that there are five main areas organizations need to concentrate on if they want to improve website conversion and sales: Responsibility making one person responsible for website conversion, giving them the authority and accountability, plus ideally a financial incentive. Having a structured approach conversion rate optimization needs to be a systematic process, not a one off project. A/B and multivariate testing split (A/B) or MVT is the best way to keep improving website performance. Usability testing the best way to understand why your customers are doing the things they are doing on your website. Using segmentation for actionable insight and targeted communication. Companies whose conversion rates have improved over the previous 12 months are performing on average 24% more tests and using 26% more methods to improve conversion than those companies whose conversion rates have not improved. Organizations whose conversion had improved are using 90% more ways to segment their visitors and customers than companies whose conversion rates have not improved or have stayed the same. Companies with 10m+ revenues who integrated user testing and analytics well were more than twice as likely to have seen a large increase in sales as those that didn t do this. Around three in five companies say Conversion Rate Optimization Report 2012 In association with RedEye Page 6

7 2. Introduction by RedEye How do you improve conversion? Isn t that the question on the lips of every online marketer? Well, after four years of research into what online companies are doing to improve conversion, and some in-depth analysis into how companies are successfully improving conversion, we think we ve cracked it. Over the past four years, while we have been running this survey, there have been many changes in the types of methods used and the types of methods companies find valuable. However certain elements remain constant; and it seems it s not so much what you do, but how you do it that counts. After four years of research we are confident there are five main areas you need to concentrate on if you want to improve conversion. Doing these five things gives you the best chance of improving your website conversion and sales. 1. Responsibility: Put someone in control and ideally give them a financial incentive. 2. Having a structured approach: Conversion rate optimization is a systematic process, not a one off project. 3. A/B and multivariate testing: split (A/B) or MVT is the best way to keep improving your website performance. 4. Usability testing: The best way to understand why your customers are doing the things they are doing on your website. Why are some things working and others not? 5. Segmentation: Always use segmentation for actionable insight and targeted communication. The problem, it seems, is while the marketplace has grown, conversion rates have declined; and while online marketers continue to spend large amounts of money attracting new users, much less is spent on converting these users. This year the average number of respondents being satisfied with conversion is 22%. While this is relatively low, 65% of companies have seen an improvement in conversion rates. While neither of these figures have changed too much over the past four years, there are clear patterns between what those that have improved conversion are doing, compared to those that have not. Looking around the industry you could be forgiven for thinking improving conversion was simply a matter of buying the latest technology. This is simply not true. Improving conversion requires both technology and people; and as much of our research shows, it is people that make things happen. People are your strongest asset and your greatest tool. In fact, being in control of conversion, having someone directly responsible for conversion and incentivizing staff based on conversion were the three variables most highly correlated with improved conversion and sales. All people issues. The truth is, technology can only take you so far, the rest comes down to people. Lastly I d like to thank everyone who has taken part in the survey over the past four years. At RedEye we are delighted with the response we ve had and are very excited about the latest results. I hope the findings are useful and the report helps you improve your online conversion. Mark Patron CEO, RedEye Conversion Rate Optimization Report 2012 In association with RedEye Page 7

8 2.1. About RedEye RedEye specializes in and website optimization. For over 15 years we have been helping clients improve online conversion through highly targeted marketing, website usability and testing. Understanding online user behavior and using this to optimize online communication has always been at the heart of what we do. RedEye s process of conversion rate optimization helps clients improve their online marketing strategy by integrating web analytics, MVT and usability to fully understand the behavior of online customers. Our UX-driven approach to website testing ensures each online business we work with meets the needs of its users and in doing so improves conversion. With user experience being at the heart of our conversion rate optimization service, we fully analyze every client s online business and then produce a testing strategy to optimize every individual site. As the leader in behavioral , we integrate web analytics with marketing to produce highly targeted campaigns that improve conversion and help our clients generate a high return on investment. Three times winner for Best use of and winner for Most Effective Online Campaign Optimizer, RedEye s award winning services have helped hundreds of online companies improve conversion across the globe. As well as the UK, RedEye has offices in Germany and the US. RedEye clients include Radley+Co, Interflora, Avis, Monarch, ASOS, M&S, Hotel Chocolat, esure, PayPlan, Gala Coral and Estée Lauder. To find out more about RedEye visit Conversion Rate Optimization Report 2012 In association with RedEye Page 8

9 2.2. About Econsultancy Econsultancy is a global independent community-based publisher, focused on best practice digital marketing and e-commerce, and used by over 400,000 internet professionals every month. Our hub has 140,000+ members worldwide from clients, agencies and suppliers alike with over 90% member retention rate. We help our members build their internal capabilities via a combination of research reports and how-to guides, training and development, consultancy, faceto-face conferences, forums and professional networking. For the last ten years, our resources have helped members learn, make better decisions, build business cases, find the best suppliers, accelerate their careers and lead the way in best practice and innovation. Econsultancy has offices in London, New York and Dubai and we are a leading provider of digital marketing training and consultancy. We are providing consultancy and custom training in the Middle East, and extensively across Europe and Asia. We trained over 5,000 marketers and ran over 200 public training courses in Join Econsultancy today to learn what s happening in digital marketing and what works. Call us to find out more on +44 (0) (London) or (New York). You can also contact us online. Conversion Rate Optimization Report 2012 In association with RedEye Page 9

10 3. Conversion Maturity Model The conversion maturity model below seeks to understand three different levels of sophistication, and shows different types of activities and processes associated with each stage. We have used data from the survey to understand which types of practice most strongly correlate with each level of maturity. It is clear that the more advanced a company is at refining their conversion rates, the more methods they are using, the more tests they are carrying out and the more they are segmenting. The three levels which have been identified are starting out, intermediate and strategic. Over time, as investment in this crucial area increases, companies should strive to become more mature in their approach to conversion. Conversion Maturity Model Conversion Rate Optimization Report 2012 In association with RedEye Page 10

11 Table 1 below shows the different characteristics of the three groups in the Maturity Model. For example from left to right there is more testing and segmentation. Table 1: Conversion Maturity Model Starting Out Intermediate Strategic Large increase in sales 11% 16% 22% Average number of tests/month Average number of ways to segment used Average number of conversion methods used One or more persons responsible for website conversion? 52% 73% 85% Incentivize staff based on conversion? 14% 21% 38% Do you test landing pages? 40% 69% 71% Do you use A/B testing? 32% 53% 66% Do you use MVT? 10% 16% 33% Do you use customer journey analysis? 25% 46% 63% Do you use usability testing? 23% 40% 41% Use demographic segmentation 11% 11% 24% Use geographic segmentation 10% 16% 29% Use behavioral segmentation 8% 9% 27% Use transactional/rfm segmentation 8% 7% 24% Use channel segmentation 4% 7% 21% Design for mobile? 29% 37% 40% Design for tablets? 21% 21% 28% Conversion Rate Optimization Report 2012 In association with RedEye Page 11

12 4. Methodology and Sample 4.1. Methodology This is Econsultancy s fourth Conversion Rate Optimization Report carried out in association with RedEye. There were almost 900 respondents to our research request, which took the form of an online survey in July and August Respondents included both client-side (in-house) organizations who want to improve their conversion rates, and agencies, vendors or consultancies (supply-side) who are involved in trying to improve conversion rates for their clients. The findings are shown for client-side (i.e. company respondents ) and supply-side ( agency respondents ) separately. Information about the survey, including the link, was ed to Econsultancy s user base and promoted online via Twitter and other channels. RedEye, the research sponsor, also promoted the survey to its customers and prospects. The incentive for taking part was access to a free copy of this report just before its publication on the Econsultancy website. If you have any questions about the research, please Econsultancy s Research Director, Linus Gregoriadis (Linus@econsultancy.com) Respondent profiles More than half (59%) of survey respondents work for client-side organizations that are trying to improve conversion rates, whilst 41% work for agencies, vendors or specialist consultancies. For more detailed profiling of respondents, see Section 6. Figure 1: Which of the following most accurately describes your job role? Respondents: 889 Conversion Rate Optimization Report 2012 In association with RedEye Page 12

13 5. Findings 5.1. Types of conversion and measurement Conversions relevant to organization As Figure 2 shows, sales (83%) and sign-ups / registrations (67%) are the most widespread types of conversions. Page views and information / brochure requests are considered to be relevant by 38% and 26% of the companies surveyed respectively. As was the case last year, downloads (22%) and video views (20%) are the least widespread types of conversions. The proportion of organizations saying that video views are relevant to them has increased by 3% in the last 12 months. Companies Figure 2: What types of conversions or actions are relevant to your organization? Respondents 2012: 474 Respondents 2011: : : 331 Conversion Rate Optimization Report 2012 In association with RedEye Page 13

14 Methods used to measure conversion The table below summarizes the different methods used to measure conversion, while Figure 4 shows the extent to which they are used by responding companies. Table 2: Methods used to measure conversion Method used / Formula Number of unique sales / (divided by) key actions completed Revenue divided by visitors Number of unique sales / key actions divided by visitors Average order value or basket value Number of forms completed Number of forms divided by number of visitors Around two in five companies surveyed measure conversion rates in terms of unique sales as a proportion of key actions completed (43%) or... Conversion Rate Optimization Report 2012 In association with RedEye Page 14

15 5.2. Tools and strategies Methods currently used for improving conversion rates with almost half (46%) of companies surveyed saying they use it. The next most popular methods for improving conversion are copy optimization (42%), customer journey analysis (40%) and online surveys / customer feedback (40%). Further interrogation of the data has found that companies whose conversion had improved over the previous 12 months used on average Best practice Best practices carried out by organizations Figure 26 shows a number of practices relating to conversion and optimization, and whether responding organizations believe they are performing well in these areas. Across the full range of practices we have identified, more than half of companies surveyed believe they can improve their approach. For the fourth year running, the area where companies are most likely to be proficient is Most effective technique for improving conversion rates Survey respondents were asked to identify the single most effective action they had taken to improve online conversion rates. Analysis of verbatim answers revealed that the following techniques are considered to be most effective: A/B and multivariate testing Usability testing <Sample> What has been the single most effective thing you / your clients have done to improve your conversion rates? Conduct an expert review then back up findings with analytics and customer feedback. Builds a strong business case for change. A recent redesign of our website has resulted in an almost immediate improvement in page views, visitors and form submissions. Company and agency respondents Conversion Rate Optimization Report 2012 In association with RedEye Page 15

16 5.4. Testing and performance Areas of testing Figure 28 shows the most common areas that organizations test. Around three-quarters (74%) of organizations test websites, followed by (59%) and landing pages (57%). The proportion of companies saying they do not test anything has Tools and services used to test websites Compared to last year, the proportion of companies using external consultants to test their websites has declined by 5% Designing for mobile phones and tablets Design Encouragingly, the proportion of organizations that are designing their websites specifically for mobile phones (35%) and tablets (23%) has increased by 10% in both cases since The proportion of companies designing websites specifically for tablets has almost Figure 40: Have you/your clients designed your website specifically for either of the following? <Sample> Respondents 2012: 337 Respondents 2011: 307 Conversion Rate Optimization Report 2012 In association with RedEye Page 16

17 Usability testing Conducting usability testing for websites using mobile phones and/or tablets follows a similar pattern, with the proportion of companies using them increasing by 13% and 17% respectively since The proportion of companies saying they have conducted usability testing of their websites using mobile devices is... Figure 32: Have you conducted usability testing of your website using either of the following? <Sample> Respondents 2012: 334 Respondents 2011: Segmentation and personalization Ways of segmenting site visitors and customers As Figure 44 shows, behavioral segmentation is no longer the most used method of segmenting visitors and customers, with just over half (53%) of organizations using it (down from 60% in 2011). The proportion of companies using geographic and demographic segmentation has 5.7. People and processes Number of staff responsible for improving conversion rates Figure 50 shows that the number of people responsible for CRO has slightly decreased, with 69% of companies having at least one person responsible compared with 73% last year. Just under a third (31%) of companies now say they... Companies Figure 40: Do you have anyone in your organization who is directly responsible for improving conversion rates? <Sample> Respondents 2012: 334 Respondents 2011: : : 272 Conversion Rate Optimization Report 2012 In association with RedEye Page 17

18 Personal involvement in improving conversion rates The vast majority (92%) of client-side respondents are personally involved in their organizations efforts to improve conversion rates. Companies Figure 52: Are you personally involved in your organization s efforts to improve conversion rates? <Sample> Respondents 2012: 331 Respondents 2011: : : Perceived control over conversion rates Just over half (56%) of responding organizations feel they have quite a lot of control (45%) or a great deal of control (11%) over conversion rates. This is a slight decrease from last year when 59% felt they had quite a lot, or a great deal of control. The proportion of companies who believe that they have Conversion Rate Optimization Report 2012 In association with RedEye Page 18

19 6. Appendix 1: Respondent Profiles 6.1. Annual company turnover There is a good representation of organizations across the full spectrum of company size. Just under a quarter of companies (23%) have an annual turnover of less than 1m, whilst 26% have revenues of between 1m and 10m. Over half of companies surveyed (51%) have a turnover of more than 10m, and 18% of responding companies are earning more than 150m annually. Companies Figure 66: What is your annual company turnover? Respondents: 324 Conversion Rate Optimization Report 2012 In association with RedEye Page 19

20 6.2. Business sector Client-side respondents come from a wide range of sectors, with retail (27%), financial services (10%), publishing (8%) and travel (7%) being the best represented. Companies Figure 67: In which business sector is your organization? Respondents: 330 Conversion Rate Optimization Report 2012 In association with RedEye Page 20

21 6.3. Geography More than three-quarters of companies surveyed (77%) are UK-based, whilst most of the remaining ones are based in mainland Europe (12%) and North America (1%). Figure 68: In which country / region are you (personally) based? Client-side respondents: 330 Agency respondents: 239 Conversion Rate Optimization Report 2012 In association with RedEye Page 21

22 7. Appendix 2: A Structured Approach to Conversion Rate Optimization (Summary) The following information is taken from the RedEye white paper, The Five Best Ways to Improve Website Conversion. Download the full white paper here. After four years of research with Econsultancy into what online companies are doing to improve conversion we have now boiled a very complex issue down to the five most important things you must do to improve website conversion. There are literally hundreds of different ways to improve conversion. We know digital marketers battle to know where to start. Now that has all changed with this latest research. After researching thousands of digital marketers we are confident there are five main areas you need to concentrate on if you want to improve conversion. Doing these five things gives you the best chance of improving your website conversion and sales: 1. Responsibility make one person responsible for website conversion, give them the authority and accountability, plus ideally a financial incentive. 2. Having a structured approach conversion rate optimization needs to be a systematic process, not a one off project. 3. A/B and multivariate testing... The full white paper will be released at the beginning of November. If you would like to be sent a copy you can register your details at Conversion Rate Optimization Report 2012 In association with RedEye Page 22