the Conversion rate on a merchant site is one of the key metrics that govern the overall performance of a merchant site, and thus the performance of the affiliate program, to calculate the conversion rate you essentially divide the number of sales by the number of clicks to the site i.e. vol. sales/total click = conversion rate for a specific period. Affiliates use this to determin the profitability of a campaign to them, however as a merchant it’s important that conversion rates govern the way the sites sales and check out process are optimised. Changes to the sales process on a website ultimately affect the conversion rate and it’s important to ensure the conversion rate is as high as possible, typically this should be around 3-8%.
In a recent econsultancy report, here, we find that shopping cart and check out abandonment has been increasing for a variety of reasons, ultimately what this points to is that by addressing each of the items listed, consumers will be less likely to leave your check out area and more likely to convert into actual sales. So, in the spirt of this article, let’s tackle each challenge (obviously I’m going to address these in an affiliate campaign context which differs slightly from the standard way of tackling these challenges)
Lack of money – I once heard a quote in relation to sales, a report was accusing a retailer of over pricing their products and the retailer responded, i offered at a price that was good for me and the price was good for the customer and he accepted. It makes sense, customers will only buy products at a price they perceive to be acceptable, and it makes sense that retailers can offer products at a price that fits in with their margins. It makes sense then that merchant should be as competative as possible.
Wanted to look for a coupon - searching online has never been easier and discount codes and incentive sites have meant that the opportunity for saving by shopping online has become a clear advantage. The internet has fast become one of the most significant anti-inflationary tools since online retain took off and it makes logical sense that if consumers are looking for a discount online, and your competitors provide one, as a merchant, to remain compatative you should provide one as well. Of course this doesn’t take into consideration the brand factor.
Wanted to shop offline – for online only retailers, the only way to takle this is to offer USPs that give consumers a clear advantage for shopping online rather than redirecting to other highstreet stores, for larger multi-channel retailers, it makes sense that some sort of incentive is given in order to increase the ‘sticky-ness’ of the customer to the merchant, an example could be to issue a voucher that can be taken to the store offering a discount for example.
Couldn’t find preferred payment option - given the variety of payment options out there, its likely that customers will want to pay using specific payment options, by offering a wider range of the more popular options this can help to encourage users to complete their sale.
Item unavailable at checkout - there’s nothing worse than finding out you’ve wasted time, its the same for customers, if an item is out of stock, then thats should be made clear, during the customer’s browsing on the site, in some cases, removing the item from the listings altogether would also be an advantage, an alternative option is to allow customers to reserve the item and give a discount to the customer, loyalty in exchange for a discount.
Couldn’t find customer support – having contact information for customers is important, however at the same time affiliates want to minimise leakage, in this specific case, the best solution is to provide a freqeuntly asked questions section on the site that addresses any of the more generic queries and in here provide a support email address.
Security concerns - trust is a big issue online, its still a bit of a cowboy country on the internet and in order to allow the customer to trust a merchant site, you need to provide secruity certificates and accreditions as well as business contact details which a customer can use to find your business in case of any concerns.
By appying these changes to a merchant site, it can greatly prevent shopping cart abandonment and ultimately lead to better conversion rates, good for the merchant and good for the affiliate!