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Best Practices to Improve Customer Experience and Conversions for Magento stores

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Advanced Logic presentation at Meet Magento Poland 2014

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Best Practices to Improve Customer Experience and Conversions for Magento stores

  1. 1. Best Practices to Improve Customer Experience and Meet Magento Poland 2014 Conversions
  2. 2. Who We Are • Leading eCommerce industry provider of high-quality, multi-channel ecommerce solutions and specialized consultancy services with Magento CE and EE • Magento Associate and PayPal Partner Meet Magento Poland 2014 • 24+ Partners
  3. 3. How We Serve Merchants Meet Magento Poland 2014 • Top full stack eCommerce provider • Strategic and tactical digital marketing services • Website development • Digital application creation • CMS solutions provider & implementation consultants • Our ultimate goal is to reduce friction involved with ecommerce processes in order to unlock merchants’ greatest sales potential
  4. 4. What We’ll Speak About Today Meet Magento Poland 2014 • Best practices for: – Online Promotions – Customer Loyalty Programs – Inventory – Shopping Cart – Shipping – Delivery & Tracking – Returns – Checkout & Security – Payment Options
  5. 5. Best Practices: Online Promotions Meet Magento Poland 2014 • Coupon codes, free gifts with purchases, and remarketing techniques are all effective tactics to increase conversions and revenues for eCommerce stores.
  6. 6. Best Practices: Online Promotions • Nearly 2/3 of shoppers utilize discount codes for online purchases. • Coupons allow also merchants to track data for particular campaigns or Meet Magento Poland 2014 segments of buyers. • To get started, try offering a coupon at user registration to be applied to the user’s first purchase. This action will decrease the number of users who are “just browsing” by creating the psychological need to take advantage of a deal. • For repeat users, merchants should assess what a customer has purchased in the past and offer coupons that appeal to that particular customer’s preferences and budget.
  7. 7. Best Practices: Online Promotions • Free gifts both encourage your customers to make purchases while also making them feel special – two important ingredients in creating a unique and positive customer experience. • Customers will often spend more in order to qualify for a “free gift.” The item offered should fit in with the customer’s segment in order to be perceived as valuable. Meet Magento Poland 2014
  8. 8. Best Practices: Online Promotions • Free gifts should be determined by: – Brand or manufacturer of items already in the customer’s cart – Catalogue category of items already in the customer’s cart • Merchants could also allow free gifts according to cart sub-totals and /or any other rule (or their combinations) offered by powerful Magento shopping cart price rules Meet Magento Poland 2014
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  10. 10. Best Practices: Online Promotions • Remarketing campaigns are emails or advertisements designed to recapture users who browsed your website without making a purchase. • A recent study from PPC Hero showed that remarketing efforts made up more than 16% of their test subjects’ total sales revenue. Meet Magento Poland 2014
  11. 11. Best Practices: Online Promotions • Retargeting should occur via email, display advertisements, or social media ads within 24 hours of unconverted users’ browsing sessions and can include a reminder of the items waiting to be purchased and/or discount codes. Meet Magento Poland 2014 • Events that spur retargeting campaigns: – Cart abandonment – Registration to site with no purchases after a set amount of days – Wishlist creation and no purchases after a set amount of days – User’s birthday
  12. 12. Trend Alert: Customer Loyalty Programs • Customer loyalty programs encourage shoppers to develop relationships with brands that may have few differentiating factors, resulting in a higher customer lifetime value. Meet Magento Poland 2014 • Loyalty programs also: – Improve customer retention through rewards and/or vouchers – Encourage increased spending to reach point thresholds along with other valuable actions (newsletter signups, email subscriptions, product reviews, brand advocacy) – Improve brand image
  13. 13. Best Practices: Customer Loyalty Programs • Customer loyalty programs can be often very rewarding for both merchants and customers. To get started, follow these steps: – Determine the earn rate: the ratio between money spent Meet Magento Poland 2014 and points earned – Determine the spend rate: the ratio between points acquired and saved money – Redemption values: how many points, if any, customers must collect before redeeming – Excluded products: which products, if any, will be excluded from the loyalty program – Validity periods: how long points will be usable
  14. 14. Best Practices: Customer Loyalty Programs • Before putting your loyalty program in action, you must also determine which events earn points. These include, but are not limited to: – Purchases – User registration – Newsletter and email signups – Birthdays, anniversaries, or other special events – Social sharing – Product reviews – Customer feedback survey completions – Referrals Meet Magento Poland 2014
  15. 15. Best Practices: Customer Loyalty Programs • It’s of the utmost importance that customers understand their participation and standing in loyalty programs. Be sure to: – Create a dedicated loyalty points page with a full summary of benefits, rules, and exclusions (if any) – Common exclusions: Categories, Brands Meet Magento Poland 2014
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  18. 18. Best Practices: Customer Loyalty Programs • Merchants can encourage purchasing behavior by creating reminders about points throughout the customer journey. • Place point values on product details pages to let customers know how their purchase will contribute to rewards & savings. Meet Magento Poland 2014
  19. 19. Best Practices: Customer Loyalty Programs • In addition to placing points on product details pages, insert reminders on cart summary pages also to reduce abandoned carts. Meet Magento Poland 2014
  20. 20. Best Practices: Meet Magento Poland 2014 Inventory • Merchants may run low on (or completely out of) certain items from time to time. To set proper expectations for customers, it’s best to show availability of products that may be running low. • If an item is out of stock, merchants should allow customers the option of being waitlisted.
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  23. 23. Best Practices: Meet Magento Poland 2014 Inventory • Some merchants may want to continue selling items though they are out of stock. To do this, merchants can take advantage of options such as the Magento Backorder Facility. • In these cases, merchants should let their customers know if an item will ship immediately or at a later date.
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  25. 25. Best Practices: Ajax Shopping Cart • All parts of the user experience must be simple, intuitive, and aesthetically-pleasing – even shopping carts. • Ajax shopping cart provides a beautiful user experience without losing functionality. Meet Magento Poland 2014
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  27. 27. Meet Magento Poland 2014 Shipping • Shipping expenses play a major role in ecommerce conversions – Up to 96% of consumers are more likely to make a purchase when free shipping is offered
  28. 28. Common Shipping Policies Meet Magento Poland 2014 • Free shipping – no minimum purchase – Most effective as a limited time promotion • Free shipping – with minimum purchase – Widely used without time limits
  29. 29. Best Practices Spotlight: Free Shipping • Tests have shown up to a 90% lift in conversions when offering free shipping • Several best in class ecommerce merchants highlight additional amount needed to qualify for free shipping Meet Magento Poland 2014 – Spurs purchasing behavior
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  31. 31. Best Practices Spotlight: Shipping Promotions • You can attract even most customers and/or clear old inventory with item-specific shipping promotions Meet Magento Poland 2014
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  33. 33. Delivery Options • Allow your customers to self select the shipping options to cater to a wider range of buyers – 46% of online buyers have abandoned carts due to undesirable delivery options Meet Magento Poland 2014
  34. 34. Best Practices Spotlight: Delivery Options Meet Magento Poland 2014 • Many merchants realize a high ROI when offering an array of delivery options • Amazon appeals to consumers across the board with shipping ranging from standard, low-cost delivery to expedited, premium delivery
  35. 35. Trend Alert: Click and Collect • Paying online and picking purchases up in-store has become a quickly growing trend among merchants with both ecommerce and brick-and-mortar operations. • Retailers have seen a significant lift in conversions and customer satisfaction using this method. Meet Magento Poland 2014
  36. 36. Why Offer Mixed Commerce? • By coming into a store to pick up goods, customers experience personal, human interactions with store personnel. • Customers also save on shipping costs by picking up their own item(s). • Customers will leave the store with branded packages that other consumers will see (as opposed to an unbranded package delivered directly to customers’ doors). Meet Magento Poland 2014
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  38. 38. Alternative: Pick Up Points • Some customers prefer to choose a parcel pick up location that may be closer than a branded store. Merchants can use services like IndaBox to help customers choose a pick up location that is near to them and that can be accessed at the customers’ preferred time. • Customers can choose the nearest pick up point or enter an address to find others. IndaBox even generates a map to make picking up purchases easy! Meet Magento Poland 2014
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  40. 40. Best Practices: Parcel Tracking Meet Magento Poland 2014 • Improve your customer experience by always: – Send a tracking number for each purchase in the context of the shipping confirmation email – Provide a dedicated parcel tracking section in the context of the user area
  41. 41. Best Practices: Product Returns • As a rule of thumb, always make return policies accessible from all pages of your online store Meet Magento Poland 2014
  42. 42. Above and Beyond: RMAs • Best in class merchants offer RMA functionality to streamline returns and provide greater customer convenience. Meet Magento Poland 2014
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  44. 44. Best Practices: Meet Magento Poland 2014 Checkout • One step checkout promotes: – Low-friction purchases = higher conversion rates, lower cart abandonment – Creation of customer accounts (data collection for better segmentation & targeting!)
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  46. 46. Best Practices: Meet Magento Poland 2014 Checkout • Merchants should be sure to include the following elements even in one step checkouts: – Comments field: to collect data, feedback, and special instructions from customers – Discount field: customers tend to purchase more when using discount codes; allow them to enter this information easily during the checkout process
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  48. 48. Best Practices: Meet Magento Poland 2014 Checkout • The point of purchase is one of the best times to collect customer email addresses for newsletter subscriptions – particularly if the newsletter subscription comes with the guarantee of discount codes, promotions, or new inventory alerts.
  49. 49. Best Practices: Meet Magento Poland 2014 Security • Merchants who maintain PCI compliance and SSL certification reassure online buyers and boost conversion rates. • In some studies, as many as 61% of online shoppers have decided not to make a purchase from a website because it was missing a trust seal.
  50. 50. Best Practices: Meet Magento Poland 2014 Payments • Consumers prefer to pay in electronic payment methods they know and trust more: – If your store sells globally, consider offering country-targeted credit card gateways • Best-in-class ecommerce companies allow customers to self-select from several payment options, including: – Bank Transfer – Credit Cards – PayPal (Pro, WPS, Express Checkout) – Cash on Delivery – Electronic Bank Transfer (SOFORT and similar ones) – Payment at time of delivery/collection • PayPal Pro provides for a better and more seamless experience
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  52. 52. Meet Magento Poland 2014
  53. 53. Meet Magento Poland 2014 Thank you! • For more information, please contact info@advancedlogic.eu or visit www.advancedlogic.eu

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