Poorly designed websites cost merchants hundreds of millions of pounds per year in missed sales, according to research published by Oxford Economics. The study suggests that they have lost a combined total of £500m over a three-year period as frustrated consumers log off.
This huge amount of money in lost sales is particularly concerning in light of statistics that show the opportunity for revenue through eCommerce. A recent report by IMRG on e-tail sales over the last decade found that growth was steady over the first 5-6 years, but shot through the roof in the last 3-4 years. Of all those they spoke to, the average conversion rate clearance grew steadily.
In some cases, it’s not bad website design which has caused some merchants to lose out, but rather the way large merchants and auction sites such as eBay and Amazon have soaked up the business, which has necessitated a rethink for businesses.
It is no longer about the cost of a product to a consumer, but more the purchasing experience on the website. Merchants need to assess why shoppers are proving more loyal to a competitor and work out how to provide them with a better experience to keep them coming back. Its essential for merchants to make sure that all visitors to their website are viewed as potential customers, and that the necessary services are in place to make sure they’re happy and repeat shoppers. Before new services are applied, merchants should test what works and doesn’t in a safe envrinoment. Tools are available now which can pinpoint what is working before the rules are applied to the live website, and its vital that businesses make use of these – applying rules that put customers off leads to this loss in revenue.
If merchants can ensure visitors enjoy using their site, it can lead to these visits converting into sales (and that these sales are completed). While it is tempting to make redesigns to the entire site, this could be needless and actually make the matter worse. Again, testing here is essential.
The technology exists now that means analytics is incredibly specific, and narrowed down to the most successful image clicked. By the same token, businesses can test chages to their websites in a safe environment before the changes are made permanently to the website.
Businesses can use multi-variant testing using tools such as Webtrends Optimize to achieve this. Rather than redesign the site, this allows the merchant to test different combinations and designs before they go live. Businesses should view their websites as a constantly evolving face, rather than something that needs to be completely re-skinned every couple of years. It is in fact these perceptibly ‘minor’ tweaks that can make the difference between a ‘good’ website and a ‘great’ one.
Personalisation is also very important. Merchants need to explore what products and services each customer has looked at during their various visits and identify how to engage on a personal level. It’s amazing how many merchants do not treat new customers differently to returning customers. For example, when a customer first visits a site they may be asked to register. Once they’ve done this, the best thing to do is hide the registration box/panel so they don’t see it when they visit again.. Amazon is a good example of this as, every time a customer visits, the top left hand corner says ‘Welcome Mr Hugh Kimber’.
There are also ways of using IP addresses to target special offers. For example, a travel company can use a visitor’s IP address to determine their location – within say 40/50 miles – and can target them with location-based flights from say Gatwick or Stansted.
It is also well worth knowing what competitors are doing online – taking a look at how their sites are designed and considering the other channels that they are using to push sales. Make a note of what you think works well and what doesn’t, and most importantly – why. I’m not suggesting that websites are replicated wholesale, but taking inspiration from certain elements of other sites can be critical.
The key learning here is that by understanding the needs of the customer, merchants can ensure they are not part of those with a bad website who are reported to have lost £500m in conversions. The opportunity to sell online is huge and growing year-on-year. Businesses need to ensure their websites are fully optimised to take advantage of this trend. It is not something that can just be looked at once. Businesses need to regularly look at what is and isn’t working for their websites, and think about how to improve and grow their websites.
