This week we’re going to be sharing with you some resources on eCommerce metrics, mobile checkout and trends you should be aware of. As you know every now and then we give you a new instalment of the latest marketing news, trends and tips. We curate the best resources so you don’t have to. If you’re just joining us for 2016 then you can check out our previous round ups that focus on reports and design, retail winners, and mobile commerce. If you’re joining us from last year, then you’ll know what you’re in for.
eCommerce Metrics: Daily, Weekly and Monthly
We’ve taken one for the team and simplified the overwhelming yet essential eCommerce metrics you should be monitoring when using Google Analytics.
Transactions – Driving sales is your primary goal so it’s a given that this should be monitored daily. Look over day-over-day transactions with Google Analytics by going to Ecommerce > Overview.
Revenue – As you’ll know that provides the monetary value in relation to the no. of transactions. You can trace this in the same way.
Conversion Rate – It’s important to keep an eye on your conversion rate daily, not even to figure out if you need optimisation on campaigns or features but so you can keep an eye on if your website generally runs smoothly with no UX issues. Get this at Conversions > Ecommerce > Overview
Cost Per Acquisition – Measures from two perspectives: target CPA and actual CPA. Actual CPA can be found at Conversions > Attribution > ROI analysis
Of course the above should also be monitored weekly. Monitoring the metrics listed above allows for the making of informed optimisation decisions. There are some extras to view weekly though:
Product Revenue – Conversions > Ecommerce > Product Performance
Product Quantity – Assessed at the same location as product revenue, this is key to monitoring stock and the success of promotions and sales.
Cart-to-detail Rate – If you enable the Google Analytics Enhanced Ecommerce, you can monitor product related metrics far more closely. Go to Conversions > Ecommerce > Product Performance and you can check out which items customers are most likely to be added to their cart after looking at the product details.
Buy-to-detail Rate – located in the same place as above, this metric answers the question ‘What item are they most likely to buy after looking at the details?’
Per Session Value – Acquisition > All Traffic > Source/Medium. Especially useful when comparing performance by source or channel.
Conversion Rate by Landing Page – Behaviour > Site Content > Landing Pages
Turning Your Monitoring into a Competitive Advantage
We’ve listed some metrics for you to monitor, now let’s talk about how you can really use them. Large companies have been profiting from the exploitation of all the data that is available to us as marketers for years. Smaller businesses can benefit from this as well, but must be nimble about it – especially if they’re limited to smaller human and financial resources. That being said here are some of our favourite tips for you from Prestashop to make the most out of the data you can collect:
Identify Patterns – They key to making the most of data is identifying patterns, particularly ones such as “What are your customers buying?”, “How are they finding it?” and “Are they coming back?”. To see real results you have to consolidate the data you’ve been gathering and analyse them over time, testing variations along the way. Once you’ve spotted patterns you can start testing.
Setting Goals – Goals, goals, goals. It’s all you’ll have heard about this week from just about everyone you know but it still applies to you. Setting goals with clear KPIs keeps you on the right track. For example, increasing site traffic by 25%. Your KPIs are site traffic, traffic sources, click through rates, bounce rates and social shares. Make sure you can monitor how you’re achieving goals to a T.
Testing – Testing your ideas, it’s all trial and error in the end. To get the most out of your eCommerce website consider testing the following:
- – Product Images
- – Product Descriptions
- – Call to action buttons
- – Call to action button positioning, and so on.
Google Trends is a good place to start to see what’s worth testing on your site from a supply and demand perspective and can give you ideas for new content or amendments you could be making.
Small Retailers Outperforming
Smaller retailers are starting to overtake larger businesses CNBC has reported. Consumers are increasingly seeking more unique merchandise and have had a renewed interest in purchasing from smaller or local businesses. Mastercard Advisors have stated that small business retailers have accounted for 72% of the retail sales growth over the last 20 months and almost 40% of the total retail sales. This rekindled romance with small and local businesses hasn’t just come from being bored of “samey” products – we’re on better financial footing in recent times so customers are willing to dish out extra dough to the smaller companies.
The holiday spending survey by Deloitte found that “uniqueness” is one of the main reasons for people heading back to smaller retailers instead of the big players. 54% of the respondents who said they’d be visiting a smaller business claimed they’d be doing so to find one-of-a-kind gifts.
As the economy improves and discounts are being offered left right and centre, smaller retailers can’t play the price war with big brands like they were before. They’re differentiating instead of discounting and they are now able to charge a premium because of their unique merchandise. Millenials (most likely to purchase from them) understand that ultimately their money is going back into the community. It’s also the time starved shoppers who are attracted to the smaller retailers – they can’t be bothered navigating larger websites. So now the larger companies are trying to emulate the “small box” feel. If you’re a small retailer, you could be at an advantage this year.
10 Things You Didn’t Know About Cart Abandonment
SaleCycle has created a great infographic with 10 things you didn’t know about cart abandonment. To save you the trouble, we’ve got them right here:
- 1. Cart abandonment has risen by 15% in the last 5 years.
- 2. Travel has the highest abandonment rate at 80% with retail following close behind at 70% and fashion at 67%.
- 3. Abandonment is lowest at Christmas and other sales times such as Black Friday.
- 4. Most abandonments happen on a Tuesday and the fewest on a Saturday.
- 5. The time people are most likely to bail is between 8 and 9pm.
- 6. 28% bail because of unexpected shipping costs, 23% because they had to create an account and 16% just because they were conducting research.
- 7. On-site re-marketing reduces abandonment and creates a 3.1% sales uplift.
- 8. Email re-marketing recovers abandonments and generates a 4.1% uplift in sales
- 9. The largest cart abandonment ever was a customer who left 11 chandeliers all worth over $100k and they returned to make the purchase which was about $1.5million. No abandonment is too big!
- 10. The longest time anyone has ever taken to complete a purchase was 18 months – that’s 534 days it took for them to click the recovery email and finish the transaction, so remember: a sale is never lost.
If you want to see the above in pretty picture form, then head on over to The Drum
The State of Mobile Checkout and Form Usability
So we’ve filled you in on 10 things you didn’t know about cart abandonment, now let’s go a bit deeper. Baymard have written a great piece on the current state of mobile checkout and form usability which we have consolidated into easy to digest chunks. They set up a benchmark that’s based on 50 major e-commerce company’s mobile sites.
Mobile Checkout Problem Areas
The things that most need to be improved with mobile checkout and form usability are the presentation of and interaction with:
Total Order Cost
33% of mobile sites don’t show a total order cost at any point during the checkout before asking for your payment details. That’s sure to put anyone off. This is a direct cause of cart abandonment because – surprise surprise – users don’t want to fill in a full page of information and be charged an unknown amount at the same time.
24% of mobile sites don’t show the cost or speed of the options they offer for shipping, meaning users have to memorise them while they go through the checkout process. Out of the omni-channel sites tested, most don’t display in-store pick up beside other shipping options which means users can sometimes entirely overlook that and end up picking a less desirable shipping option.
The worst performing of all the checkout features, 80% of mobile sites have the option for people to checkout as a guest but 88% of those are using web layouts which make it difficult for users to notice this option. 60% of the users tested overlooked the option entirely as a result of the page layout. Making sure users can actually see the ‘checkout as a guest’ option is one of the most important quick fixes you can make at the checkout.
Form Field Usability Problem Areas
Only a handful of sites perform well when it comes to form field usability. Filling in forms is never any fun for anyone, but making sure yours is designed well and is as easy-to-use as possible is the difference between a sale and an abandoned cart. The following stats prove that reducing the complexity of inputting data is essential to improving UX:
- 16% of sites show twice as many fields as they need to by default. This happens when they show two sets of address boxes for shipping and billing, which most of the time is the same address.
- 28% of sites ask for the same information twice instead of automatically filling in the information.
- 30% of them have a field to select the type of credit card you’re using instead of detecting it based on the number you put in.
The major weakness in form usability on mobile however is field descriptions. Multiple site abandonments happened as a direct result of field descriptions not being displayed close to or anywhere near the field. The lack of field overview on mobile especially when the keyboard is open, makes placement of field descriptions an Achilles heel in form usability.
It’s not all doom and gloom though. One piece of good news we can give you is that touch keyboard usability has significantly increased since 2013 and the actual abilities we have as users to fill in and edit information is to be commended. Shame we don’t have more good news to share.
Trend: Shoppers ‘Showrooming’ on Mobile
It has been found that half of shoppers are ‘showrooming’ on mobile while in store and are often buying from competitors while doing so. Their decision isn’t just based on price: they’re considering customer reviews, customer service and overall experience. Cognizant’s study of 1000 shoppers showed that purchasing decisions didn’t just end at price. It included the after sales support, returns and service as huge contributing factors to their purchasing decisions. 25% of respondents claim they’d pick a retailer for it’s returns policy rather than the price.
58% of users claim they read product reviews online and 48% use their mobile to select colour and size. Consumers are now researching what they’re purchasing in great detail before making their decision and this has only increased with the rise of social media. Social media has led to more than half (57%) of customers writing reviews about their purchases online. This increase in user created information benefits retailers as well as consumers. Digital technologies are allowing retailers to monitor their consumer’s behaviour in great detail and this will overall improve brand loyalty as well as increasing sales.
Three-Fiths of Marketers Overlook Instagram’s Influence on Shoppers’ Behaviour
It turns out that 3 out of 5 marketers are overlooking the influence that Instagram has over shoppers’ behaviour. Marketing agency Greenlight’s data shows that 30% of users have bought an item after seeing it on Instagram. A separate survey conducted by the company with 100 senior marketers revealed that 60% of them aren’t using Instagram in their marketing and only 14% currently run a branded account. Over half of marketers claim they intend to use Instagram as part of their campaigns in 2016 and 50% of them plan to use it for brand story telling. 30% thereafter intend to use it to drive sales and loyalty.
It’s nothing new that Instagram influencers have a considerable amount of power over their follower’s purchasing decisions and in light of this 18% of marketers intend to run influencer engagement programmes. While Instagram has recently introduced targeted advertising, 29% of marketers intend to use this service. Another 23% just simply plan to upload content from a branded account which shows us marketers are still coming to terms with Instagram’s new target advertising. Instagram is an outlet with undeniable potential for e-commerce, so we definitely recommend you look into how you can utilise it for your brand.