Latest Promo Campaign Generates 18% Ecommerce Conversion Rate

One of the greatest joys of my ecommerce coaching engagements with store owners is being able to help them grow their online business.

While coaching, I’m constantly testing various methodologies which add incremental increases to their conversion rate.

During a recent promotion with one store owner we were able to achieve sustained conversion rates of a whopping 18.67% over a twelve day period. This conversion rate is well over the industry standard conversion rate of about 2.4%.

The graphic below is a screenshot of the analytics program showing the spike in conversion during that time period.

The average sustained conversion rate for this client over the past 15 months is a solid 10.48%. Again, well above the industry average. Yet, the recent promotion made even that conversion rate look small with the peak conversion rate being an unheard of 26.17%!

How Did it Happen?

By creating a promotion that work in conjunction with events already happening in the media, we were able to feed off of the hype and excitement that was generated through those channels. The best part is we never paid a dime for that exposure. We let the media do it for us and simply created a campaign that took the excitement and moved it to the client’s website in the form of a promotion.

What was the promotion’s foundation? March Madness and the NCAA basketball tournament.

With all the media exposure and hype surrounding that event it made sense to create a promotional campaign which captured the excitement. It’s often said by many that if you want to make money, “follow hollywood” or “follow the media”.

The general idea of the campaign was simple. Take the excitement surrounding the NCAA basketball tournament and turn it into a game which let the customers choose their own “tournament participants” (i.e. products) simply by purchasing their favorite products from the online store.
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NEW RELEASE: Simple Google Analytics Version 1.2.2

Version 1.2.2 of Simple Google Analytics (for Zen Cart) now gives you the option to use either the new “ga.js” tracking code (released by Google in December 2007) or the older “urchin.js” tracking code.

The selection is as easy as choosing a radio button in the admin.

This release addresses certain reports widely spread across the Internet by many adopters of the new “ga.js” tracking code Google issued. In those reports users say (and I have confirmed) that results which are provided in reporting (specifically with the ecommerce tracking) are incorrect. In some cases, the revenue figures show as “0″ (zero).

I also noticed that the conversion rate was dramatically off under the new ga.js tracking code.

It’s a confirmed Google problem (on their end)

Google has confirmed on numerous boards that the problem is on their end and they are working on correcting it. They hope to have it corrected by early April 2008, but until then, recommend users switch back to the older urchin.js tracking code for more accurate reporting.

This module addresses that recommendation.

It allows you to easily (from within the Zen Cart Admin) switch between the new ga.js tracking code (the default) and the older urchin.js tracking code (to be phased out by end of year 2008 according to Google.)

I installed this new version on my sites (for testing), and now see the proper reporting figures again (*sigh*).

Features of Version 1.2.2

• Adds standard Google Tracking to website
• Automatically Adds E-Commerce tracking to website
• Adds the ability for you to install Google Conversion Tracking
• Enables you to use either the new “ga.js” code released by Google in December 2007 or the older “urchin.js” tracking code
• Fully administered through the Zen Cart admin with a simple radio button selection.

How to Download Version 1.2.2
You can download this new version by clicking here. You will be taken to my downloads page where you can select the new 1.2.2 version.

Complete instructions are enclosed in the download to assist you in either upgrading (from previous versions) or “new installations”. Please make sure you read the instructions carefully for upgrading etc… It is easy and straight forward, but you should be aware of a few file changes.

A screenshot this contribution is below for reference:

Blog Strategy Generates 24% Sales Conversion for ECommerce Site

When implemented properly, blogs or weblogs as they are also known can achieve two positive things for an ecommerce company.

1) Drive qualified traffic (traffic with an intent to buy products) to their website.

2) Generate additional revenue by monetizing the traffic that does not flow through to the actual site.

So one might naturally ask, “what is the right way to implement a blog?”

Well, there is no right or wrong answer to this, however based on experience I’ve seen one specific method that when utilize has produced sales conversion rates in the area of 24% – 28% (visitors that come from the blog to the online store and then purchase a product.)

Here is the methodology that produced these results.

While reading, keep in mind that this blog has been setup as an “independent third party review” type site.

Step 1:
Get yourself a new domain name that relates to your ecommerce business or industry.

For example, if you sell widgets, and your company name is “Widgets Galore” then you may want to consider the domain name for the new blog being bestwidgetreviews.com (or something related to that concept.)

The key to choosing the right domain name is to make sure you approach it from the stand point of this being an independent third party “reviews” site for your industry or products.

Step 2:
Get new hosting for this domain and site. Although not mandatory, it is preferable to choose a host that is not the same as your current provider. Just make sure they are reliable.

Step 3:
Now that you have your new domain and hosting, it’s time to get the blogging system in place.

Choose a blog platform you are comfortable with and install it on the server. One tip you’ll want to think about is the more control you have over the blog system, the better off you’ll be in the end.

There are a variety of systems to choose from. A few of the more popular platforms are Wordpress, Blogger, Squarespace, TypePad, and b2evolution.

Step 4:
Ok, you’ve got everything in place, now it’s time to start blogging. The remaining part of this article will address how you should approach your blog entries, and how to maximize the revenue opportunity from the traffic generated.

Setting your blog up for success.

One of the first keys to success is to keep in mind that when posting, you must appear that you are an objective third party providing information on numerous businesses within your respective industry. Yes, that can even mean competitors or distributors in some cases.

It may even be beneficial to get a trusted outside third party to do the blogging for you.

Providing what appears to be biased information in your posts can cause readers to quickly feel you are self promoting your own products and company. That can have an adverse effect on the outcome.

No, you’re not trying to deceive them. You’re looking to provide them with an assortment of helpful information on your industry that is objective and unbiased. The information you provide will help them during their decisions making process.

If you show any bias toward your own product, the effect overall is diminished. This is do in large part to readers thinking “is this product really that good, or are they just trying to sell me on it because they own it?”

Sure, you can refer to your company or products more frequently than others during posts, but doing that too often could get you the opposite results you’re seeking.

Let me give you an example.

Would you be more inclined to purchase a car based on what Consumer Reports presents in their reviews, or would you be more inclined to purchase that same car from a dealer that is breathing down your neck trying to force feed it to you because they say “it’s the best?”

More than often the answer is pretty simple.

Consumers put more weight on independent third party reviews than they do on companies that promote themselves.

Now, let’s generate some revenue

You have got your blog in place, it’s time to generate revenue.

Keep in mind that it doesn’t always matter “where or how” you generate the revenue, the fact is that you are generating it.

Ideally, you want the readers of your blog to purchase your products. However, the reality is that you may generate traffic to the blog, but not all that traffic will funnel through to your site. Likewise, not all that traffic may be qualified to by what you offer.

Don’t fear. You can still build revenue from those “non-qualified” channels as well. Here’s how.

We already know that blogging from the proper third party perspective in this case did lead to a 24% – 28% sales conversion rate. That was visitors who moved from the blog to the ecommerce website and then made a purchase.

But what can we do about the other visitors who didn’t funnel through to the website and instead leave at the point of the blog?

We can still generate revenue from them as well before they leave by implementing traffic monetization strategies which seek to target those needs your products could not fulfill.

Traffic monetization is a powerful concept that can aid in producing additional revenue for your company without ever selling a single product.

It is a strategy that should be carefully planned and implemented. You don’t want to hurt your chances of gaining a new customer, but you want to make sure that if they were not qualified in the first place you attempt to present them with offers that may fit their needs and in the end add revenue to your bottom line.

Forms of traffic monetization are many and can be quite complex but the most often implemented strategies involve CPC, CPA, and affiliate deals that pay you for “referring the business.” I won’t go into the specific details in this article as it’s a topic that deserves its own space.

For now, this article merely presents options available to you which can assist you at increasing conversion from your store by maximizing both the qualified and non-qualified traffic a properly implemented blog can bring your way.

Things to Consider When Starting an Ecommerce Business

I get asked this question quite often; “I am starting an e-commerce business. What are the main points I should consider?”

Well, for starters, successful websites should address 4 distinct areas. If any of these areas is flawed, you risk losing sales.

Having said that, here is a list of what I’ve found from experience you need to consider.

Hosting

Shared vs. Dedicated? Each has their pros and cons (for a later post). Make sure you allow for scalability either way.

It doesn’t matter what items you have in place and how great the site is if the hosting platform is unreliable. You’ll lose current customers fast and have a hard time attracting new ones. Your server platform must be reliable, fast (provide enough bandwidth during peak times) and easily scalable to allow for company growth.

A Merchant Account

This is one component you’ll need in order to accept credit card transactions. You get this typically through your bank. You can find them on the Internet, but research carefully before you choose. Picking the wrong merchant account provider could make a big difference in how your cash from sales is handled.

Merchant accounts typically charge you a fee based on a predetermined percentage rate (varies among card companies; i.e. VISA, MC, AMEX, Discover, etc…)

Payment Gateway

This enables you to connect from your website to your merchant account in order to process credit cards in real time. There are several good providers out there. I recommend Authorize.net.

Payment gateway providers typically charge you a monthly rate based on the amount of transactions that run through the system with a minimum monthly transaction amount for anything under a certain level.

Secure Certificate

Shared or Private? I recommend a private SSL (buy your own don’t use one the host provides to everyone) as private SSL’s typically see higher conversion rates (visitors that convert to sales.)

Private SSL’s are very inexpensive and there are a number of companies that provide them such as GeoTrust, Thawte, Verisign, Comodo to name a few.

Shop around. Pricing can be high on some yet reasonable on others.

Shopping Cart platform and infrastructure (technology)

Do you want to go OpenSource or are you looking for a custom solution. A few keys here. No matter the route you choose, make sure your cart is rich in features and is stable under high load volumes.

You want a cart that is flexible enough to adapt to change (you’ll need this for testing what works to cause visitors to buy from you; this is a critical element in achieving higher conversion), solid enough to provide fast response times under peak times, and has the ability to scale as your business grows.

Like the hosting I mentioned above, without the right infrastructure in place, it will make no difference how “good” a cart looks, or what other elements are in place to “make it succeed”. In the end you’ll pay dearly for a shop that is “non-reachable” due to technical problems.

Market Strategy

This is a big one. Like the others, if you have no market strategy, it won’t matter how many other elements are in place; you’ll have a hard time seeing optimal and sustained growth results.

Website Analytics

Get yourself a good Website Analytics package. Some are free and some cost a bundle. For starters, Google Analytics offers a super tracking system that’s free and provides you with more than enough data (when properly setup) to get your company moving in the right direction.

In order to succeed you need to be able to measure how effective your implemented strategies are on your visitors / customers. Website analytics allows you to do just that. Without them you are a sitting duck. You will have no way of knowing where your problems are on your site, how to correct them, or if the direction you are heading is the right one.

For more on properly setting up Google Analytics, you may want to read my 6 part series called Google Analytics Demystified.

Advertising

What channels will you utilize to generate traffic to your site? Online / Offline? A combination of both? You need to decide this. Determine your target market and plan your advertising strategies accordingly.

Areas to consider for traffic generation are:

• Organic SEO
• Paid Search Advertising (PPC)
• Blogging
• Social Networking Sites
• Online Press Release Services
• Opt In Email Marketing (don’t spam)
• Print Ads in Trade Magazines and Journals
• Radio
• TV

Order Fulfillment / Inventory Management

Put systems in place that will support the demands of customers (they like fast delivery) and will not overtax your internal infrastructure.

You’ll make customers happy and gain more if you have processes in place that promote fast and efficient shipping.

Likewise, make sure your cart has a method of tracking inventory. Not only is that important for keeping track of your business, but it will ensure you don’t make customers angry by allowing them to buy a product that, after completing the transaction, you have to have to then tell them the item is out of stock. This is a sure way to lose customers.

Customer Retention

Put systems in place to keep in touch with past customers. Building an ecommerce business often means keeping a “base” of repeat customers coming back for more. As new customers enter the funnel, they build on top of the base that is already there. Combined, the two drive the business toward growth.

There are numerous ways to retain customers. Offline methods such as postcard follow-ups, coupon offers, brochures, and more. Online methods include much of the same although the delivery is usually via email. So make sure you have an email provider (preferably a company that’s sole purpose is to get your email delivered) with a good reputation for delivery. When looking at this, consider checking to make sure they are not “blacklisted” (which will decrease the chances of your emails actually arriving at their destination.)

Here are some helpful links that may assist you in checking the “listing” status of your ISP or mail service provider.
Distributed Sender Blackhole List
DMOZ Blacklist Directory Listings

There are practically an infinite number of items one could say should be considered when building an ecommerce site. The listing provided in this article is a good start.

To your success!