Category : Ecommerce
How to calculate customer lifetime value (CLV) for subscription ecommerce in Google Analytics
Many of Littledata's subscription customers come to us with a similar problem: how to calculate return on advertising spend, considering the varying customer lifetime value (CLV) of subscription signups. Calculating marketing ROI for subscription ecommerce is a big problem with a number of potential solutions, but even the initial problem is often misunderstood. In this post I break down what the problem is, and walk through two proven solutions for getting consistent, reliable CLV reporting in Google Analytics. What is customer lifetime value? I work with all kinds of subscription ecommerce businesses: beauty boxes, nutritional supplements, training courses and even sunglasses-by-the-month. All of them want to optimise customer acquisition costs. The common factor is they are all willing to pay way MORE than the value of the customers' first subscription payment... because they expect the customer to subscribe for many months. But for how many months exactly? That's the big question. Paying for a marketing campaign which bring trial customers who cancel after one payment - or worse, before the first payment - is very different from paying to attract sticky subscribers. A marketing director of a subscription business should be willing to pay WAY more to attract customers than stay 12 months than customers who only stay one month. 12 times more, to be precise. So how do we measure the different contribution of marketing campaigns to lifetime customer value? In Google Analytics you may be using ecommerce tracking to measure the first order value, but this misses the crucial detail of how long those shoppers will remain subscribers. With lifetime customer value segments we can make more efficient use of media, tailor adverts to different segments, find new customers with lookalike audiences and target loyalty campaigns. There are two ways for a marketing manager to see this data in Google Analytics: one is a more difficult, manual solution; the other is an easier, automated solution that ties recurring payments back to the original campaigns. A manual solution: segment orders and assign a lifetime value to each channel It's possible to see the required data in GA by manually segmenting orders and assigning a lifetime value to each channel. For this solution you'll need to join together: (a) the source of a sample of first orders from more than a year ago, by customer number or transaction ID and (b) the CLV of these customers The accuracy of the data set for A is limited by how your Google Analytics is set up: if your ecommerce marketing attribution is not accurate (e.g. using Shopify's out-the-box GA scripts) then any analysis is flawed. You can get B from your subscription billing solution, exporting a list of customer payments (and anonymising the name or email before you share the file internally). To link B to A, you'll need either to have the customer number or transaction ID of the first payment (if this is stored in Google Analytics). [subscribe] Then you can join the two data sets in Excel (using VLOOKUP or similar function), and average out the lifetime value by channel. Even though it's only a sample, if you have more than 100 customers in each major channel it should give you enough data to extrapolate from. Now you've got that CLV by channel, and assuming that is steady over time, you could import that back into Google Analytics by sending a custom event when a new customer subscribes with the 'event value' set as the lifetime value. The caveat is that CLV by channel will likely change over time, so you'll need to repeat the analysis every month. If you're looking to get away from manual solutions and excessive spreadsheets, read on... A better solution: tie recurring payments back to the original campaign(s) What if you could import the recurring payments into Google Analytics directly, as they are paid, so the CLV is constantly updated and can be segmented by campaign, country, device or any other standard GA dimension? This is what our Google Analytics connection for ReCharge does. Available for any store using Shopify as their ecommerce platform and ReCharge for recurring billing, the smart connection (integration) ties every recurring payment back to the campaigns in GA. Here's how the connector works The only drawback is that you'll need to wait a few months for enough customer purchase history (which feeds into CLV) to be gathered. We think it's worth the wait, as you then have accurate data going forward without needing to do any manual imports or exports. Then, if you also import your campaign costs automatically, you can do the Return on Investment (ROI) calculations directly in Google Analytics, using GA's new ROI Analysis report (under Conversions > Attribution), or in your favourite reporting tool. Do you have a unique way of tracking your marketing to maximise CLV? Are there other metrics you think are more important for subscription retailers? Littledata's connections are growing. We'll be launching integrations for other payment solutions later this year, so let us know if there's a particular one you'd like to see next.
The year in data: 2018 in ecommerce statistics
How did ecommerce change in 2018? Let's take a look at the data. Littledata benchmarks online retail performance in Google Analytics, and with over 12,000 sites categorised across 500 industry sectors we have a unique insight into ecommerce trends in 2018. The pattern we're seeing is that web sessions are becoming ever shorter as users split their attention across many ads, sites and devices. Marketers need get visibility across a range of platforms, and accept that a customer purchase journey will involve an ever greater number of online touch points. In the following analysis, we look at how performance changed across 149 ecommerce sites in 2018, and how these trends might continue in 2019. Ecommerce conversion rate is down Ecommerce conversion rate has dropped by an average of 6 basis points, not because of a drop of online sales - but rather because the number of sessions for considering and browsing (i.e. not converting) has risen. This is partly an increase in low-quality sessions (e.g. SnapChat ads preloading pages without ever showing them to users), and partly an increase in users from platforms like Facebook (see below) which bring less engagement with landing pages. See our mission to Increase Ecommerce Conversion Rate for more details. Revenue per customer is up Revenue per customer is the total sales divided by the total number of users which purchased online. The increase of $16 USD per customer per month shows that many stores are doing better with segmentation - ignoring all those sessions which don't convert, and retargeting and reselling to those that buy lots. The growth in subscription business models is also fuelling this trend. Getting a customer to commit to a regular payment plan is the most effective way of increasing revenue per user. See our mission to Increase Average Order Value for more details. Reliance on the homepage is down Content marketing became mainstream in 2018, and no self-respecting brand would now rely on the homepage alone to drive interest in the brand. The percentage of traffic coming 'through the front door' will continue to fall. In building out a range of keyword-specific landing pages, stores are harnessing a wider range of Google search queries, and providing more engaging landing pages from Google Ad and Facebook Ad clicks. Usage of internal site search is up Along with fewer visitors coming through the homepage, we are seeing fewer browsers use traditional category navigation over internal search. We think this is partly to do with younger consumers preference for search, but also probably reflects the increasing sophistication and relevance of internal search tools used by ecommerce. Referrals from Facebook are up Even after Facebook's data security and privacy embarrassments in 2018, it continues to grow as the 2nd major global marketing platform. Although few sites in our benchmark rely on Facebook for more than 10% of their traffic, it is a significant driver of revenue. As merchants continue to come to Littledata to find out the real ROI on their Facebook Ads, check back next year for a new round of analysis! How did your site perform? If you're interested in benchmarking your ecommerce site, Littledata offers a free trial to connect with Google Analytics and audit your tracking. You can see ecommerce benchmarks directly in the app, including 'ecommerce conversion rate', 'referrals from Facebook' and 'reliance on the homepage', to know exactly how your site's performing. Sign up today to benchmark your site and import Facebook Ads data directly into Google Analytics. [subscribe] For this article we looked at Littledata's private, anonymized benchmark data set, selecting ecommerce sites that had a majority of their traffic from the US and more than 20,000 sessions per month. We measured the change from 1st December 2017 to 31st December 2017 to the same month in 2018.
What is the average Add To Cart rate for ecommerce? (INFOGRAPHIC)
Add-to-cart (ATC) rate is a great indicator of your ability to turn visitors into buyers. When people click the Add To Cart (aka 'Add To Basket') button they are showing real intent to purchase. There are lots of different things that influence this metric, from user experience factors to product selection, pricing, and merchandising. So what is a good Add To Cart rate? As ever there tends to be quite a lot of variation from sector to sector. Some ecommerce stores might be more prone to window shopping, whereas others are geared up for impulse purchases. For example, home furnishings sites have an average add-to-cart rate of less than 3%, whereas beauty sites achieve almost 7%. The average for ecommerce in general hovers around the 4% mark, so if your site is wildly below that number then this is an area worth spending some time on. After all, increasing add-to-cart rate is almost certain to increase sales. I've analysed data from Littledata's ecommerce benchmarks, which tracks more than 12,000 ecommerce sites. The infographic below highlights Add To Cart performance data for a number of sectors. How does your site compare? Download our Add To Cart rate infographic Are you on track to beat the benchmark in 2019? If you don't see your sector listed above - or even if you do - then sign up to Littledata for full access to ecommerce benchmarking data for more than 150 sectors. Joining is simple. It's just a case of connecting Google Analytics and then diving into the good stuff. We have dashboards for monitoring your key metrics, as well as ecommerce benchmarks and hundreds of optimisation tips via Littledata Missions, to help you improve your performance.
How to increase Add To Cart rate on your ecommerce store
Add-to-cart rate is a pivotal indicator of your ability to efficiently monetise your website. But are you doing everything you can to optimise your add-to-cart (ATC) rate? When a visitor adds items to the cart (or ‘basket’), they are revealing a high level of buying intent. As such it is a critical step in the purchase process, and is something that you should try to optimise. So what affects add to cart rate? And how might you go about improving it? Let’s explore why this is a crucial ecommerce metrics and take a look at what affects it. How to calculate ATC rate The formula is straightforward: you just need to figure out the percentage of visitors who have added an item to the cart / basket. You can track this via Google Analytics, if you’re using the enhanced ecommerce plugin, or directly via your Littledata dashboard, if you want to cut through the noise. Why is ATC rate important? Add to cart rate is one of the main metrics to keep an eye on if you manage an ecommerce site. It tells you so much about your product selection, pricing strategy, traffic acquisition tactics, merchandising, and user experience. For example, a sudden decline in ATC rate following an increase in marketing spend may be the result of targeting the wrong type of visitors after launching a new ad campaign. Or, it may be that your pricing is out of sync with the market. Likewise, if you’re charging for delivery then shoppers may look elsewhere to save on shipping costs. These things can be quickly adjusted, but only if you’re keeping an eye on ATC rate, and can figure out what is affecting any decline in click rates. How do I know if my ATC rate is good or bad? The average ATC rate is around 4%, though beauty, travel and retail sites tend to perform better than that. You can compare your own performance vs your peers via Littledata Benchmarks, which tracks performance data from a sample of more than 12,000 ecommerce websites. If you connect Google Analytics you'll be able to see your own data alongside the market average. We use AI to determine your category, though you can manually override our selection should you wish to do so. The key things to get right Your inventory is probably the first thing you should analyse. If your visitors are looking to purchase something that you don’t sell, then it’s game over. You can’t expect these people to click the add to cart button. After that, look at the specifics of your product offering. Are you pricing products competitively? Some competitor research will help you to bring your pricing into line with the market average. You should also review perceptions of trust. If your site isn’t trustworthy then people won’t want to buy from it. Conduct some user testing to find out whether you’re sending out the right trust signals. Merchandising also plays a huge part in driving up ATC rates. You need to do a good job of selling, and not just the product in question but also related products and add-ons. Up-selling and cross-selling strategies can improve ATC rates, as well as a bunch of other ecommerce metrics. I’ve already mentioned visitor intent, and that’s something that is going to play a big part in whether people add items to the cart. Are you targeting people who are ready to buy, or people who are not so far along the purchase path? There are of course very good reasons for targeting both, and it’s important to think about ATC rate in the context of multiple sessions and an elongated buying journey. Finally, there are a whole host of user experience pitfalls to dodge, and some optimisation tactics to test... How does the user experience affect ATC rate? If we put the product / pricing / people challenges to one side, we can focus on some of the onsite areas to address. So how might a poor user experience cause problems for prospective shoppers? Well firstly, there’s the simple matter of findability. Being able to easily find products is absolutely essential. That means providing shoppers with intuitive navigation, strong scent trails, excellent onsite search tools, and the ability to sort and filter items. Then, when it comes to clicking buttons, there are all sorts of basic things to get right. Button optimisation is the science of enticing clicks through good practice and persuasion, but it’s also about making sure that buttons can actually be clicked (especially for mobile users). There’s also the gentle art of copywriting, which is a proven winner when it comes to the things you can easily test. Words are incredibly powerful and tiny changes can have a dramatic impact on click rates, and all sorts of other metrics. [subscribe] So what can I actually do to increase my ATC rate? You can work your way through the above areas when conducting an ATC rate audit. Let’s also narrow our focus towards the onsite experience, as I have some specific ideas to help you optimise your buttons. I will outline these below. These ideas are taken from our button optimisation basics mission, which is aimed at improving ATC rate. So then, here are some simple ways to quickly optimise your add to cart buttons. Be sure to check out Littledata Missions for more proven ideas to help you increase the key ecommerce metrics… and online sales. Test, test, test! 1. Add some 'bonus text' within or below the CTA Spicing up your CTA with an extra message around it can work really well. ShipStation uses this tactic with their landing page, as shown below: If you weren’t already tempted to start your trial, you might become more willing after taking the 'no credit card required' message into account. 2. Allow shoppers to add items to cart on product list pages On product listing pages the primary objective is to get the user to buy, not to read information. As such, you should allow shoppers to be able to buy directly from list pages. It will provide a fast-track to the checkout for anyone in a rush to buy. Make your list pages scannable and use contrasting colours for ATC buttons to improve visibility. 3. Create great micro-copy Optimise your micro-copy and CTAs to ensure they never fall on deaf ears. Use of power words in every CTA and super descriptive headlines. 4. Design a button big enough to touch Fitt’s Law states that the bigger a button is, the easier it is to click on. Simple, really. And it usually pays off: studies have shown that increasing a button size by 20% lead to a jump in conversions. Optimising for a mobile platform is a key part of this, as a comScore study found that consumers spend 69% of time shopping on mobile devices. Buttons need to fit inside the screen and be easy to read, before they can be touched. Buttons should be large enough to be clickable, without distracting from the value proposition. 5. Leave enough space between tappable links Mis-pressing is common on mobile devices, as evidenced by all of your embarrassing typos. You don’t want your customers getting frustrated that their finger keeps pressing an unwanted button or link, so ensure that they're a) big enough and b) there is enough space is left between them. 6. Keep conversion elements above the fold Peep Laja has stated that content placed above the fold grabs 80% of our attention. As such this is the obvious place to start when optimising the key conversion elements on your website. Meanwhile, an eyetracking study by Nielsen Norman group found that 102% more attention is paid to information above the fold, compared to that placed below the fold. Things to optimise at the top of the page include your primary call to action, buttons, navigation, basket, personalised content, and merchandising. 6. Lower the commitment (‘shop now’ vs. ‘buy now’) One A/B test compared conversions between three versions of a CTA, which were: “buy now”, “order now” and “add to cart”. The latter saw a significantly increased conversion rate (approximately 11%) in all three sites tested. “Add to cart” does not imply the act of kissing goodbye to your cash quite as much as the other variations do. A shopper may feel much more inclined to react positively to this lower level of commitment. 7. Place risk-reducing messaging next to buttons and CTAs The only way a customer is going to purchase your product is by making them feel comfortable enough to click on all the buttons that stand in their way. Copyblogger emphasises the importance of risk-reducing messages around buttons. It found that one small variation in text produced 34% more conversions than a version that didn't provide any reassurance. 8. Use "click triggers" adjacent to buttons and CTAs It would be great if every visitor to your site would follow your well-intentioned CTA and add things to their carts. Fortunately, it has been shown that this could happen more often if you provide a nudge or two. Nudges can be as simple as declaring potential savings should a customer buy your product during a sale. Other click triggers which can boost your site’s performance include ones which eliminate doubt, simplify the purchase process or provide some kind of guarantee. 9. Use a text call to action for your ‘add to cart’ button Many studies have shown that it’s better to use text within the button as a call-to-action, as opposed to an icon (though you can use both). One such test was undertaken by Fab, which replaced a small, icon-focused button with a larger, text-focused button. This simple test increased ‘add to cart’ clickthroughs by a seriously impressive 49%. 10. Use action words for button labels The language you choose for your CTA can have a real impact on its performance. Words like ‘get’, ‘try’, ‘go’ and ‘add’ are all well worth testing. Start your button optimisation mission today Littledata has a range of Missions to help optimise things like ATC rate. You can launch the button optimisation basics mission directly in the app! We’ll measure the results in your personalised dashboard, and will suggest a bunch of other optimisation ideas to help you improve overall ecommerce performance. In doing so you will also get access to all of the other lovely Littledata features and tools. What’s not to like?
Optimising your ecommerce store for the mobile-first index
In March 2018, after a long digital drumroll of anticipation, Google announced that it was rolling out mobile-first indexing. What does this mean for your SEO? In short, if your ecommerce site isn’t optimised for mobile, you’re losing out on a huge source of traffic. Source: Google After much research into the way people are now interacting with search engines, the conclusion is that there has been a marked shift towards mobile. In typical Google fashion, what searchers want, searchers get. So, it was decided that mobile would be a top priority. But how dramatic has this turn towards mobile been? The answer is definitely substantial enough to warrant this new shift in Google’s priorities. According to this Statista report, in 2018, 52.2% of all web traffic comes through mobile channels. While that is indeed significant, it is not the most telling fact about the current state of mobile traffic. What is even more noteworthy is the steady pace with which this form of traffic is increasing. The same Statista study shows a rise from 50.3% the year before, which built on 35.1% in 2015. This is not a trend which is fly-by-night. As you already know, when it comes to eCommerce, the success of your business depends on keeping up with search engine best practices and ranking criteria. These best practices can help you boost your ecommerce search traffic. With this in mind, you simply cannot afford to ignore mobile-first. Before I tell you how to adopt this for your eCommerce store, it’s necessary to explore what mobile-first indexing entails. Let’s dive in. What is mobile-first indexing? In a nutshell, mobile-first indexing refers to a method of search engine ranking that makes use of the mobile version of websites to organize SERP items. Google looks for relevant data to decide how best to answer the questions their searchers are asking. If the army of crawling bots find relevant information on your site, you may be moved up the ranks. In the past, Google rankings were based on desktop versions of websites. With mobile-first, the move is towards crawling and indexing mobile sites, rather than their desktop companions. This means that websites must be responsive and suitable for use on mobile, or mobile versions must have the same comprehensive content as the desktop. If you are breaking into a cold sweat as the realisation dawns that all your SEO efforts have been concentrated on your desktop site, take a deep breath. As Google has said, the move is gradual, and will not happen without notification in the Search Console. If they deem your site ready for the move over to mobile-first indexing, you will receive the following notification: Source: Google It’s important to note at this point that the Mobile-first index is not a separate index. Google continues to only have one index, as it always has. The shift means that the mobile version of websites will be prioritised, rather than being a move towards an additional type of indexing system. But how can you optimise for this change? 3 key steps to mobile optimisation 1. Switch to one responsive website As Littledata recently outlined on this blog, moving to responsive web design can be a very good move. What is this responsive design I speak of? Quite simply, it refers to web design that works well across a range of platforms. It prioritises user experience to ensure that the person interacting with your site is able to navigate it with ease, regardless of which device they use. A major perk of this is that whomever is in charge of the upkeep of your store does not have to monitor two (or more) different versions of your site. They have one site to take care of which will, if intelligently-constructed, work for an optimal user experience. If you do prefer to keep things separate, make sure that you pay attention to the mobile version of your site, rather than it merely acting as a subsidiary of your desktop site. As we will look at in step 3, it’s not a given that your SEO efforts will migrate over to the mobile version without some cognisant intervention on your part. 2. Get speedy Hopefully, page loading speed has already been a major priority when it comes to your SEO efforts. Sales in the eCommerce sphere are highly dependent on being able to keep your shoppers engaged and open for conversion to a sale. If your page does not load quickly enough, your customers will not stick around. Note: Check out these case studies on HubSpot for examples of how the speed of your site can affect your profit margins. When it comes to mobile-first however, page load speed is even more integral to your success. It is most certainly a top priority for Google in terms of how they allocated their ranking positions, and should be for you too. Luckily, there are numerous methods to both test and increase your page load speed: Start by looking at what Google’s very own Search Console has to offer. Through their Webmaster Lab Tools, you’ll quickly be able to see how well your site is performing and whether you need to step up your game. Third party tools such as Think With Google can be excellent accompaniments to other Google Analytics tools when it comes to deciphering how your site is faring. Ensure that your web design is not slowing down your whole operation. If you don’t have the technical knowhow yourself, get a developer to run an audit to see if your server speed, content configuration, or baseline coding is placing any obstacles between your users and an instantly-loading page. [subscribe] 3. Ensure your SEO tactics are still powerful If you have spent a lot of time and energy ensuring that your desktop site is fully ”SEOd”, make sure that your efforts carry over into the mobile iteration of your eCommerce store. Here’s a very brief checklist: Is all that beautiful content you created crawlable in the mobile version of your site? Those titles and descriptions that you put so much effort into? Make sure all your metadata carries over! Is the mobile version of your site verified with Google’s Search Console? Some final tips As an eCommerce shop owner, your concerns are not only getting customers to your site, but ultimately converting them. When it comes to mobile, there are specific trends that CROs are highlighting when it comes to transforming your customers into paying ones. In this comprehensive analysis by Shopify, they take an in-depth look at a study done by inflow on Mobile Conversion Optimization Features used in Best-In-Class Retailers. What is particularly useful in this report is what they refer to as a don’t and a do in terms of what is currently leading to optimal conversion rates for eCommerce business owners. As a parting gift, I’d like to share these two insights with you as ways to bolster your own efforts. In summary: Say no to hero slider images. In-depth research into mobile conversion rates has illustrated that customers are less than moved by them. Usher in the age of the top navigation menu. A relatively unused feature in the eCommerce world, all the data is pointing towards its efficacy in terms of mobile conversion rates. The takeway... Point 1: Don’t panic. Google will notify you if they’re switching you over, and will prioritise sites they deem more ready. Point 2: Start thinking with an on-the-go mindset. Make sure your store’s UX for mobile is as streamlined as possible. Make sure that your SEO efforts have carried over. Point 3: Don’t stop at optimising your mobile site for traffic - optimise for conversions too. Understand what will compel mobile customers to a sale. Good luck! This is a guest post by Charlie Carpenter. He is the co-founder and CEO of Kite. He is a mobile advocate with over ten years of industry experience. After working for large and small agencies for many years, he co-founded Kite; a software solution for print-on-demand, zero inventory merchandise, and personalised photo print goods. As well as an entrepreneur, Charlie is a seasoned product strategist with experience of various types of digital projects which include: Responsive and Adaptive Websites, Mobile & Tablet Apps, Hybrid Apps, Cross Platform App development. You can connect with Charlie on LinkedIn, and follow him on Twitter.
Average order value benchmarks 2018: how do you compare? (INFOGRAPHIC)
The holiday shopping period has us obsessed with one of our favourite ecommerce metrics: average order value (AOV). How does your site compare? A new infographic breaks down the stats. Increasing average order value usually has a dramatic impact on profits and ROI from marketing spend. It is also a gift that keeps on giving, as optimisation in this area is something that can deliver ongoing results over the long term. What does ‘average’ look like? Well, that’s going to depend on your sector, as well as the level of optimisation maturity reached by your peers. There’s not much point comparing the AOV of a small jewellery site with a large travel website. It doesn’t tell you anything meaningful. It’s more interesting to deep dive into your niche, and the good news is that we have some sector-specific ecommerce benchmarks to share with you, based on data from the 12,000+ ecommerce websites that have connected to the Littledata app. Below is a visualisation to show you some of our numbers (there's much more to explore within the app). Compare your own performance To see your own data alongside the industry averages, simply hook up your Google Analytics account with Littledata, and the app will show you how you’re performing relative to your peers (it’s free to connect). The app will also show you benchmarks for the other key ecommerce metrics, alongside AOV. No doubt you’re also interested in things like conversion rate, checkout completion rate, product list CTR, and so on. Are you benchmarking your ecommerce site in the best sector to help you increase revenue? We use the IBM Watson API and some smart logic to categorise websites automatically, though you’re able to manually override that should you need to do so. For example, you can compare against similar sized SEO-driven websites in your location, or look specifically at retailers in your vertical (eg. health and beauty products by subscription). [subscribe] Underperforming? We’ve got your back... There’s no need for panic if your numbers don’t look as good as your peers, as the Littledata app will recommend specific optimisation ideas via our new Missions feature. You can launch missions to improve your ecommerce performance and increase sales. I'd love to know what you've done to increase average order value. Do leave a comment below if you have tips to share. PS. Feel free to share this infographic, or include it in your own blog posts, as long as you include a link back to this post and our main website (www.littledata.io).
Are you looking at the wrong Black Friday metrics?
Paying attention to the right ecommerce metrics can help you establish the best customer base and shopping experience for long-term growth. But many retailers still focus only on the most popular metrics -- especially during the online shopping craze of Black Friday and Cyber Monday (#BFCM). Over the next few weeks ecommerce managers will be obsessing over data, but which stats are the most important? Two popular metrics -- ecommerce conversion rate and average time on site -- may be misleading, so I recommend looking instead at longer-term benchmarks. Here's how it all breaks down. Littledata's ecommerce benchmark data now contains indicators from over 12,000 sites, making it an ideal place to get a realistic view of Black Friday stats. Last year we found that the impact on Black Friday and Cyber Monday was larger in 2017 than in 2016. Using that same data set of 440 high-traffic sites, I dove into the numbers to see how this affected other metrics. Metrics to avoid I think that overall ecommerce conversion rate is a bad metric to track. From the leading ecommerce websites we surveyed, the median increase was 30% during the BFCM event last year...but nearly a third of the stores saw their conversion rate dip as the extra traffic didn’t purchase, with this group seeing a median 26% drop. Some stores do extremely well with deals: four sites from our survey had more than a 15-fold increase in ecommerce conversion rate during BFCM, and nearly a quarter saw more than double the conversion rate over the period. But the real question is: will tracking conversion rate hour-by-hour help you improve it? What could you possibly change within in day? Another misleading metric is average time on site. You may be looking for signs that the the extra traffic on the holiday weekend is engaging, but this is not the one to watch. The time on site for visitors who only see one page will be zero, which will mask any real increase from engaged visitors. Where to focus instead Now, do you know what good performance on funnel conversion metrics would look like for your sector? If not, have a look at Littledata’s industry benchmarks which now cover over 500 global sectors. Littledata’s benchmarks also include historic charts to show you how metrics such as add-to-cart rate vary for the average retailer in your sector month by month. Next try the ‘speed’ performance page to see how fast a user would expect a site in your sector to be. If you see site speed (as measured in Google Analytics) drop below average during Black Friday trading it’s time to pick up the phone to your web host or web operations team. Then, are you tracking return on adverting spend for extra Facebook Ads you're running during the quarter? Ad costs will spike during the peak trading period, and you make not be getting the same volume of traffic conversion into sales. Here are some quick pointers. Facebook Ads. Littledata’s Facebook Ads connection will ensure accurate data, with a dedicated Facebook report pack for automated insights. Shopify. If you're running your site on the Shopify platform, read up on which metrics are most important for Shopify stores and check out Shopify's BFCM Toolbox for seasonal online marketing. Missions. Use Missions in the Littledata app to make permanent improvements to your user experience. BFCM may be over before you can make the changes, but customers will keep buying the rest of the year. For example, can you increase add-to-cart rate with tips such as highlighting faster selling items or recommending an alternative to out-of-stock products? So focus on some clearer metrics and I hope Black Friday brings you every success! [subscribe]
15 Shopify apps to help you increase average order value (AOV)
We recently flagged up 15 proven techniques to help you increase average order value, which is one of the fastest ways of growing ecommerce revenue. Many of Littledata's customers use the Shopify platform, so I thought I'd take a look in the app store to see what's available to help implement some of these techniques. I found dozens of great apps that can be used to quickly test some of our ideas. In doing so you might just increase conversion rates and other key metrics too. Below are 15 of the best ones - click on the screenshots to check them out in more detail. Many of these apps are paid-for, though normally offer free trials, and in any case the monthly cost is low. You should make back your investment and then some. I've focused on the apps that have high review scores. By installing these apps and launching Littledata's optimisation missions you'll be able to quickly improve ecommerce performance. Do let us know how you get on! [subscribe] CartHook CartHook's app allows you to create a customisable one-page checkout, which helps to simplify the user experience and can improve conversion rates. It also allows you to upsell, by showing customers relevant products after they have completed their initial purchase. CartHook also provides you with the option of showing customers a final thank you page. You can also use the app to build custom funnels for each product. Neat. Littledata integrates seamlessly with CartHook's one page checkout so you can track every part of the ecommerce sales flow. Enquire This app allows you to show customers post-purchase surveys, to help gain valuable insight into what made them buy. You can ask customers all kinds of questions. The default is 'How did you hear about us?', but other questions can help you profile your customers, to gather feedback, testimonials, reviews, or to segment email lists. Use the survey data to refine your marketing efforts, in order to attract the right kind of buyers. Plus, I've heard through the grapevine that a Littledata - Enquire integration is coming soon. Stay tuned! Cross Sell As you might have already gathered, this is a comprehensive cross-selling app. Persuading customers to add more products to their cart is a proven way of increasing average order value. With Cross Sell, you simply hand-pick the products you want to attempt to cross-sell with each item. It comes with the “Smart Cart” feature which recommends cross-sells based on the last product that the user added to their cart. The app will also cover you when the ones you select are out of stock, by showing default products. Upsell Bundled Products Here's another app that does what it says on the tin. Use it to create product bundles. Bundling reduces cognitive load and can be incredibly persuasive, especially when discounts are on offer. This app allows you to package up related products so that customers can buy them with one click. You can create unlimited bundles with the same product, to test different ideas. Discounts can be applied as a set price or a percentage (we advise that you do both, but definitely the former). Countdown Cart This is a widely used countdown app, which has been very well rated. It lets you choose from a wide range of themes to suit your store. The app is free, lightweight and installs very quickly. Features include a classic countdown timer, which puts pressure on the shopper to purchase before the clock hits zero. It also makes use of real-time social proof by show shoppers how many people are viewing items, and how many times something has been sold. This can increase the motivation to buy. Enforcing principles of scarcity can lead to an uplift in conversion rates and AOV. Discounted Pricing You can generate more sales by offering discounted pricing at different thresholds. This app allows you to offer shoppers volume discounts, which is a proven technique to increase order values. Show shoppers how bulk buying becomes more cost efficient, and they might just add more items to their cart to qualify for the bigger discounts. The app allows these discount tables to be visible on all devices, and is quick to set up. AfterShip Returns Center Reduce friction between your shoppers and your store by allowing free returns. This helps to encourage higher spending by creating a ‘risk-free’ purchase experience. With the app, customers are able to submit return requests in a few clicks. The best thing is that you don't necessarily need to lose the spend, as you have the option of adding credits to a customer's account (as well as issuing a refund back to their bank account). Wishlist Plus Wishlist Plus allows users to add products to a wishlist without needing to be logged in. It also syncs wishlists across devices. These features help to remove purchase barriers, and when checking out a shopper may be tempted to add products that are sitting in their wishlist, which will increase order value. The app has gained a 4.9 rating on the Shopify App store, and the reviews reference the "excellent customer service" provided by the developers. Rewardify Rewardify allows you to add credit to your customer’s account when they complete certain tasks such as meeting a minimum spend, selecting a specific shipping option or buying certain items. All great ways to increase AOV. Gift Cards, Loyalty & Rewards You can use this app to offer deals such as a free $10 gift card with the purchase of a $100 gift card, or selling $100 cards for $85. Show these kinds of offers to the right people at the right time and you might just increase AOV. The app also allows you to send gift cards to other people, and to use store credit as an upsell tool. Product Reviews Product Reviews is a simple app that provides a platform for social proof - a key psychological phenomenon to keep in mind when trying to increase AOV. It sends review scores to Google to enhance your listings, and you can also determine which reviews to show and hide. Gift Wrap Plus Many shoppers are happy to pay a few extra pounds to have their products gift-wrapped before they arrive. Installing this app allows you to offer that option, and it is one which can definitely increase your AOV. The app allows for extras such as gift messages, and lets you see your best performing gift-wrap styles. Ultimate Sales Boost Here's another app that focused on urgency and scarcity to boost conversion rates and average order value. It has plenty of features to help you improve merchandising, calls to action, and highlight social proof, such as low stock warnings and 'recently sold' alerts. The app is easy to use and configure, which helps to explain its 4.9 star rating. Smart Shipping Bar Use this to promote shipping offers via a bar at the top of the page, which updates as items are added to the cart. It will show customers when they qualify for free shipping. This is excellent for any store that offers free shipping when a minimum order amount has been reached, such as $50. And that's a proven way to increase AOV. Littledata Before optimising your store you must make sure that you have accurate data, in order to measure the results. We've found that almost nine out of ten Shopify stores have a broken analytics setup, so the chances are that you'll need to make some tweaks. https://www.youtube.com/watch?v=hE4nzZycVLE#action=share The Littledata Shopify app fixes your tracking automatically. It also provides benchmarks against over 12,000 ecommerce sites, so you can compare your own performance vs your peers, and includes a suite of AI-based reporting. What should you do with all that data? Littledata's new Missions feature recommends specific ideas to help you improve the crucial ecommerce metrics such as AOV, add to cart rate, product list CTR, checkout completion, and conversion rates. Missions provide step-by-step instructions for proven ways to optimise sales and conversions. Work your way through the missions and get ahead of the pack!
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