Tangible results conversion optimization will bring your e-commerce business

Neil McKay

E-commerce businesses have two main options when it comes to boosting customer conversion rates and getting more revenue from their customers’ current spend: Partner with an optimization agency or do it themselves inhouse.

Regardless of which option you favour, your optimization program should deliver you these tangible results:

1: Faster insights and results through pioneering machine learning technology.

Machine learning should help you understand your customers’ pain points quicker and more accurately. With the recent advancements in machine learning, it plays a crucial role in optimization and experimentation.

Machine learning can continuously diagnose, predict, and prioritise customer experience problems on e-commerce websites for brands that need to accelerate growth through speedy, actionable insights, saving time and resources.

Its sentiment analysis capabilities eliminate the human bias that is inherent when customer surveys are analysed manually. This gives you a true reflection of how customers feel about their experience on your website, and it’s done in a fraction of the time it would take to do manually.

2: Better decision-making with evidence.

E-commerce teams are often time and resource poor. Using the actionable insights gained by machine learning, your business can spend less time analysing data and more time acting on what your customers tell you about their online experience. This helps you make better informed decisions and improvements to your customers’ buying experience.

3: Improved customer conversion.

Better decision-making leads directly to improved results, a better customer experience, a higher win rate, greater revenue uplift and improved customer conversions.

Trained and tested on historic experimentation data, machine learning can predict the outcomes of future experiments before they have even run. So, you can know with a high degree of accuracy whether a test is likely to win, lose or be inconclusive. Based on this, you can decide whether it makes sense to run an experiment or redirect these resources into other areas that will generate a higher return.

Eighteen months ago, our clients’ average win rate was on par with the industry average of 24%. But by bringing machine learning to the centre of our business, we are making better decisions for our clients and have increased their average win rate to 44%, nearly double the industry average.

4: Lower customer acquisition costs.

In these challenging economic times where costs are ever increasing and competition is continuing to grow while downward pressures are being exerted onto profit margins, qualified optimization teams understand the importance of driving growth while lowering acquisition costs at the same time.

Proactively planning, testing, analysing, and optimizing your customers’ experience on your website will help your paid media channels become more efficient, delivering you more sales from less investment.

An annual uplift of circ. 5% from these channels can go a long way in helping your business achieve its growth goals more cost effectively.

5: Healthy return on investment.

The average return on paid search investment for e-commerce businesses is usually around 6:1. Optimization should deliver a minimum return of at least 10:1 or an approx. 66% improvement on paid search.

Optimization should help paid search and all other channels bringing traffic to your website perform better, thereby delivering you a healthy ROI.

6: Increased share of your customers’ ever-tightening purse

This comes down to recency and frequency. The cheapest customer to acquire is the one you already have, so the goal should be to get them back on your site and spending more. For many e-commerce businesses, however, this represents a lost opportunity because there’s no personalisation to tailor the online experience to each customer.

Devise a strategy for customising your customer’s overall digital journey with your business — from first purchase to repeat purchase, across your site and within your CRM.

Build that relationship with them.

Present your customers with the right message in the right place and at the right time. Your goal is to make their purchase behaviour with your business habitual.

Getting existing customers to buy more from you is much cheaper than acquiring new customers. This builds loyalty that leads to fans and an increased share of your customers’ ever-tightening budget in a time when they seek assurance and value.

Is Your Optimization Program Delivering You Tangible Results?

Is your optimization program delivering these results to your business? If not, then it’s worth implementing a strategy to get it to do so. Its tangible benefits help improve your customers’ online experience, boost your company’s sales and revenue, and contribute positively to your bottom line.

Download this PDF here