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Showing posts with label eCommerce Website Usability. Show all posts
Showing posts with label eCommerce Website Usability. Show all posts

A New Era in Online Shopping

Forrester Research Inc., a research and advisory firm, says that retailers’ priority this year is enhancing their websites’ usability.


According to a study conducted by Megan Burns and Forrester analysts titled “Customer Experience Spending Intensifies in 2008,” more than 80% of respondents believe that usefulness, usability, and enjoyableness of the online experience are more important this year than they were in the past. Moreover, 83% said that adding online functionality has become more significant, while 66% place greater importance on using rich Internet applications. In the coming year, 66% of respondents said they would spend more money on web analytics, 55% plan to spend their dollars on customer satisfaction surveys, and 53% claim their money will be going towards usability labs.


Experts opine that making websites more useful and interactive with rich Internet applications increases the demand for testing the efficacy of different technologies. For instance, Ajax (Asynchronous Java Script) and XML enliven online content by including some software processing in the visitor’s web browser. However, Vice-President Geoff Galat of Tealeaf Technology Inc. believes that if processing partly takes place in the visitor’s browser, unearthing problems which forced the customer to abandon transacting at a site becomes difficult.


Tealeaf has invented a technology in their CX software suite that lets retailers view previous shopping sessions for sites with rich Internet applications. On entering the customer’s account number and the date of a previous shopping session, the retailer can review every page visited by the shopper. Geoff Galat explained that with this technology, retailers can better address individual grievances. If a particular problem persists among many customers, the retailer could potentially take action to prevent it from occurring again.


“Poor navigation” grabbed 1st position in consumer complaints regarding online merchants

A recent survey conducted by “Harris Interactive” has highlighted “Poor navigation” as biggest problem for online retailers. Nearly 2,420 U.S. adults with access to internet were surveyed online.

Around 40% of respondents (consumers) undergone poor navigation followed by error messages (36%), incorrect or confusing information (31%), difficulty logging in 29%, falling into an endless loop (24%), poor search functionality (22%) and being kicked off a page automatically (21%). Results show that 9 out of 10 have faced problems while visiting shopping, travel, insurance or banking sites. These figures have remained the same for the last 3 years.

Out of the customers who faced problems, 42% of them have actually abandoned the transaction or went to a competitor, 53% said they contacted customer service out of which 49% said the customer support could not provide solutions for their problems and 52% who had a unhappy experience with a contact center said they stopped doing business with that company.

Website analytics - What metrics to measure?

The website analytics association defines website analytics as “the objective, tracking, collection, measurement, reporting, and analysis of quantitative data of internet to optimize websites”.

“The e-tailing group 2007” report says online merchants convert only 2-3% of their website traffic to buyers. It also emphasis that website analytics is the better way to resolve the issue. (For more details on this see “Few Convert at E-tail sites”).

You might have some sort of website analytics software to measure the effectiveness of your website. But…

How often do you use it?

Have you ever taken any decisions after completing the analysis?

Have you ever measured to check the impact on the bottom-line?

What are the metrics that you measure?

Most of the ecommerce websites fail to use even the basics of analytics. Here is the process you need to follow for website analytics measurement. Before jumping into the process see what are the most important factors to measure?

Any ecommerce website would have the following parameters

Increase in online sales and decrease in marketing expenditure, Cost per visitor, Sales per visitor, Conversion rate, RFM analysis (Recency, Frequency, Monetary), Trend reporting, predictive analytics etc.

The following are the Metrics to measure...

  • Measure reach
  • Retention
  • Conversion

Measuring reach:

Overall site traffic, no. of visits, no. of new visitors, top entry pages, top exit pages, top contents, percentage of new visitor over returning visitors, impression served, top slip pages, visitor geographic data etc.

Measuring retention:

Measure number of recurring visitors, Frequency of visit, Recency of visit, Overall retention rate,

Measuring conversion:

Overall conversion rate, New visitor’s conversion rate, Recurring visitor’ conversion rate, cost per sale, cost per visitor, cost per new visitor, specific campaign conversion rate, etc.

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