Conversion rate & the power of knowing your customers
The biggest challenge facing eCommerce sales managers
I often get asked the question “why is my online conversion rate so low?” With global eCommerce sales value having grown by 200% since 2014 it’s a good question, and the burning issue facing eCommerce as an industry.
There is one simple answer to this, although the problem is caused by a number of contributing factors. My response is this “how well do you know your customers?”
In answer to that there’s usually a lot of talk about numbers, ROI, sales cycles and so forth. But in the changing shopper landscape what kind of consumer insights are we getting, if any at all? In the brick and mortar store your sales person formed a connection with your consumer and unconsciously created and followed a consumer journey right to the closing of the sale. The sales person became an advisor, a guide in the choice process.
The influence of the sales person goes a lot further than just influencing. It goes into environments, communities. People are 4 x more likely to make a purchase on the recommendation of a friend than they would via an advert. And 1 out of 3 recommendations converts to a sale. So, what about all the big spend being put into online advertising? Understanding the power of environments means that having a massive range on your store and massive advertising is not always your marketing friend. The power of creating a community environment and assisted sales online is immeasurable. We still need to understand what insights are driving purchasing behaviour throughout the online consumer buying journey. We need to be there for our consumer as they shop on our website to guide the sales process. There are a combination of factors that enable that.
Read more on how to do this here: “Working with Frekkls enables us to get closer to our customer and give our online store a human touch making our customers feel at home" Victoria Schlüter Pierre Cardin, Marketing Specialist
Used cleverly, a 12% increase in advocacy generates a 2% increase in revenue. What would that mean to your bottom line?