The document provides an overview of trends in online commerce and strategies for converting website visitors into customers. It discusses the rise of social commerce and importance of engaging customers through social media. Other topics covered include using customer reviews, cross-selling, up-selling, and building trust to improve online conversions. The presentation aims to help businesses better understand customers and apply new approaches to online shopping.
1. Converting website visitors
into customers
Latest Trends in eCommerce
IJL Seminar – Sunday 4th September 2011
Presented by Eddie Prentice, Adaptive Consultancy
2. Agenda
• Why are we here?
• Social commerce
• Customer acquisition
• F-Commerce
• User generated content
• eCommerce trends
• Conclusions
5. Why are we here?
• 20% shoppers spend more than half their
income online
• 40% of UK consumers shop online at least
once a week
• 51.9% research purchases solely online
• 40.1% start their search for all purchases
online
Source: PricewaterhouseCoopers / Reevo, June 2011
6. Online shoppers are less impulsive
• Today’s online shoppers have become smarter
and more informed
• They use online channels to
– evaluate options
– socialize about brands
– find the best deals
– give advice to others
They are becoming less impulsive when making
purchase decisions. *
*Source: Yahoo
7. Social commerce the key trend
The socialising of the online shopping
experience is the big development in the
last 12 months
Not just about social media
Its about customer engagement at every
level
9. What is Social Commerce?
• Social commerce provides social context to
the shopping experience; it’s not direct
marketing
• It’s about engaging with people, earning the
right to offer an opportunity to purchase
• Connect, listen, understand, engage –
improve the shopping experience.
10. Buyers no longer act independently
We live in a connected world
Product reviews
Price comparison sites
Social networking sites
11. Social Commerce
• Key trend in 2010: using social media
for promotions and offers.
• Key trend in 2011: socialising the
brand’s own retail website.
12. Social Commerce
Consumers are most attracted to a website that
provides good advice and reassurance about their
purchase.
Features consumers most like:
• recommendations (46%)
• outfit suggestions (43%)
• customer reviews (40%)
(Source: IMRG)
14. Why Facebook Users become Fans
• To receive discounts
• To show support for the company/brand
• To stay informed about the company’s activities
• To get updates on future products
• For fun or entertainment
• Develop a mix of content:
– special promotions
– life inside your company
– news that's likely to start discussions
15. Turn fans and followers in to Subscribers
• A Fan or a follower is not as valuable as an
email subscriber. Only with email opt-in do
you have permission to send promotions.
• Add email opt-in form on your Facebook
page. Offer incentives to sign up e.g. 20% off
welcome coupon.
• Convert Twitter followers in to subscribers.
Tweet occasional email opt-in offers.
16. Use Email to grow social followers
• Add “Follow us” buttons for your social
networking accounts to your email template.
• Include social media content in your email
messages to encourage email subscribers to
become fans and followers.
• Show the value of being socially connected
e.g. highlight an individual as “fan or follower
of the month”.
18. Why Tweeters follow your brand
• Special offers and deals. 43.5% said it’s the top reason they
follow brands on Twitter *
• Feed content that gives Tweeters something to talk about.
• Find out what companies really stand for.
• Receive insider information about new products and
services.
• Get to know the personalities behind a company.
• See how a company responds when its brand is publicly
criticized.
Responding to criticism voiced on Twitter can impress other
Twitter users and make them more disposed to follow your
brand
* Source: Satisfaction/Column Five study.
31. Engaging a shopper via email makes them
worth 140% - 150% more to a business than
someone not engaged in that way.
Source: Experian – Consumer Data Analysts
Tick to opt out
33. Growth in User Generated Content
• User reviews drive sales – builds trust an
provides reassurance
• If you don’t provide them, your customer will
look elsewhere for them and may not come
back.
34. Who you are makes a difference
54.2% of UK consumers say a reputable retailer
is important when shopping online.
Source: Reevoo, June 2011
35. Don’t fear negative reviews
Most people leave positive comments
Source: LightspeedResearch, March 2011
36. Shoppers check reviews before purchase
Peer to peer
recommendations are
now more trusted than
marketers’ own
messages.
37. Reviews – still need convincing?
• 87.3% of UK consumers sometimes or always
read reviews before purchasing.
• 86.9% will not purchase a new product before
reading the impartial opinions of owners.
• 78.2% of UK consumers are more likely to buy
products with good reviews
• Almost half of UK consumers have written a
review.
Source: Reevoo, June 2011
38. How to attract User Reviews
The more reviews you have, the more useful a
resource it becomes for consumers.
• Ask for reviews on product pages.
• Email customers after the purchase to
request a review.
39. How to display user reviews
• The best examples display a review summary
and then allow customers to drill further into
the detail if they want to.
• Remember that customers don’t necessarily
have the patience to read long reviews
• Simplify and present reviews in a way that is
easy to read
41. Overstock.com
Review summary and
detail on product page
42. “Review” conclusions
• Show both negative and positive user reviews.
The negative reviews make the positive ones
more credible.
• When asking customers to leave reviews don’t
deter users by asking too many questions.
• Buyers and merchandisers should keep a close eye
on the best and worst reviews to inform future
product selection.
• Consider purchase verification. By allowing only
customers who have bought the product from
your website to leave reviews, you can at least
ensure that the feedback is genuine.
43. Seller ratings are important for lesser
known brands
Ratings build buyer confidence.
If you are not a national brand ratings show
shoppers that others have had a positive
experience on your site.
Place seller ratings in a prominent position
on the product page.
45. Cross-selling and up-selling
• Cross-sell. Offer other items which
customers are likely to buy alongside the
product they are currently viewing.
• Up-sell. Offer more expensive
alternatives to increase order value.
46. Benefits of cross-selling and up-selling
• Provide more prominent exposure for higher-
ticket items.
• Increase average order values.
• Show matching items to help customers to
build up a complete look.
• Increase conversion rates by offering
alternative.
• Increase awareness of product range.
47. Cross and up-selling tips
• Keep items relevant. Showing unrelated
items is a waste of valuable merchandising
space.
• Keep the number of cross and up-sell options
to a reasonable number. Avoid cluttering the
page and spoiling the effect.
• Show accessories that are obvious cross-sells
e.g. jewellery box.
• Amazon do this well.
49. Blue Nile up-sell
All similar items
slightly more
expensive than
shopper selection. £232
£263
£254
50. Calls to Action
• Buttons need to jump out at the shopper - leave
them in no doubt about the next step they need
to take to make a purchase.
• Test different combinations to see what works
best:
– colour
– button size
– wording
No absolute right and wrong. If it doesn’t stand
out clearly on the page, then there is room for
improvement.
51. Buttons – contrast more important than colour
No need to agonise
over blue or green.
Only question is “does
it stand out?”
52. Delivery & Returns
• Competitive delivery charges or a no-hassle
returns policy can drive sales.
• Don’t wait until checkout before revealing
delivery costs. This leads to high cart
abandonment.
• Customers choose to either
– avoid the hassle of going into the checkout to
find out charges, or
– leave the checkout after seeing the charges.
59. What do shoppers get excited about?
• 80%: Finding a great price or deal on a
product I want
• 60%: Getting a better price than other
people
• 53%: Finding a rare or hard-to-find item
that I want
• 47%: Discovering a great new product
Source: Yahoo 2011
60. Building trust improves conversion
Internet shoppers are smart and cautious. Websites without
credentials, support, and security can put them at risk.
• 72% of shoppers who have abandoned a shopping cart would
have continued the transaction if a trust mark had been on the
site *
• 54% of online shoppers in the UK abandoned a shopping cart
because they didn’t get a sense of security and trust when it
came time to provide payment information *
Prominently display:
- Email address
- Phone number
- Returns policy
- Privacy policy *Comscore research
- Trust icons
61. Did you know?
4pm, Wednesday is peak-time for workplace
shopping.
• The largest shopping rush comes when
employees are celebrating the “hump” of the
week
• 75% increase in shopping at 4pm on Wednesday.
Source: Digital Strategy Consulting, Sept 2010
62. Top headlines
• Incorporate eCommerce and social best
practices both on your site and on
Facebook.com
• Product reviews are now a must have
Give your customers what they seek. Embrace
the social web or get left behind.
63. Thank you
View our eCommerce platform at IJL
Stand number: C119
Email Us: info@adaptiveconsultancy.com