I was having lunch the other day with a web analytics friend of mine. He shared with me the fact that several of his clients who are in the online luxury space all have one thing in common – visitors who are subscribed to a newsletter have the highest conversion rate.
Hmm, ok. Well I suppose that’s interesting, but it’s not the sort of Avinash inspired metric that I’d want to tweet about.
The following day I asked our services team, “what is the main value that Sitebrand (personalization) brings to our online luxury customers today?”
It comes down to this: luxury companies typically have a multi-visit shopping cycle, and they look to us to help influence and shorten that cycle.
Depending on which stage of the cycle a visitor is at, we can target personalized messaging to persuade them to the next stage of the cycle. This shortens the process and reduces the chance that they fall out of the cycle.
Why do they have a multi-visit shopping cycle?
If I’m buying a ring, or any high-end product in any vertical, typically I want to research the product, I want to be an informed buyer – I’m not spending $50 here, we’re talking hundreds or thousands of $$$. In some cases it’s a once in a lifetime decision – like how many times in your life will you be buying a wedding ring (once hopefully)?
What can you measure?
So if you’re an online luxury e-tailor, and your visitor opts into your newsletter, it’s a measure of their commitment to you, you’re one of the contenders. So a newsletter is simply one more checkbox to fill along the multiple visit sales cycle. There are many other customer indicators that indicate commitment, willingness, and interest. Have a look, correlations between purchasers and other high-value tasks exist – your analytics will tell you these.
How does personalization help influence and shorten this cycle?
So now you know the business objective and you have the measurements in place.
“So what… so what do you do about it” (Sorry, another Avinash quote)
Some would argue that you can shorten the sales cycle by discounting the product or offering up deals earlier on in the process. I suppose, but isn’t this trying to fit a square peg in a round hole? For one thing, you’re leaving money on the table, and secondly, you’re trying to force something onto a customer that he or she is not ready for. This could result in lower margins on sales and potentially returned sales.
So I say – Focus on the customer!
Make them feel comfortable. Build confidence. Build a relationship. An opt-in newsletter is only one method to build that trust. Customer testimonials through text, imagery, voice and video; product reviews from both vendors and customers; customer support, email and live chat are but a few examples that do this.
If you’re ‘number of visits to purchase’ rate is 4.5, then spend the first 4 visits building that confidence and trust. This is the time to build brand, loyalty, trust, it is the time to focus on the customer and not on the sell. In visits 4, 5 and 6, offer them the incentive, persuade them towards the cart.
With Sitebrand, promoting that newsletter in a timely and effective manner is just one small example of how we can influence and shorten that sales cycle. Remember, not all of your visitors are at the same point in the purchasing cycle, so make sure you speak to each differently and gently help persuade each visitor segment to that next stage and subsequent purchase.
Rely on your analytics to determine your rates and correlations.
However, don’t rely on measurement alone. Rely on optimization and personalization to continuously improve the right message in front of the right person at the right time.