Further research into customer conversion rate initiative
Benefits of using Customer conversion strategy
The impact article from the Impact website stresses the importance of customer loyalty for this strategy if you want your company to achieve its goal and run a successful business. They state around 22 reasons that can make customers unhappy to help stress the importance into perspective.
The article also stresses the importance of finding out your company’s customer retention rate. They show you how you can work this out and find out how long customers return to your company website. The four main points they say to keep retaining customers and keeping them happy is:
- Average response time- when a customer reaches out to your company think of how long it takes you to respond as customers do not like to be kept waiting.
- Customer referrals- your best customers are will leave a review, refer to a friend when they are happy therefore they will be the best people to help you gain a good company image and increase in new customers.
- Repeat Purchase- This will only occur when your customers were happy with their previous service and will likely to use your company again. This is one of the KPIs that can be measured for online businesses.
- Post-conversion activity- By keeping your customers engaged in the content of your online website you can track their social media, email marketing, SEO in terms of the similar brand interest of products. These can be used to further promote your brand and retain your current customers to go back to your website. – from (Impact, 2017)
The e-commerce training academy gives online retailers a list of benefits of using the conversion rate optimisation (CRO) initiative. Optimising conversion rates should improve the increase of more people that would visit an online retailing website.
4/10 benefits involved in using CRO:
- Understanding your customers better- For online businesses understanding your customer is vitally important. If you want to use this initiative, then it is best to start with some conversion research. This will allow you to develop your customer persona to online businesses as they will understand what customers they are marketing to.
- Helps you gain more customers- Optimising continuously can help you improve the customer experience as this you will be able to understand your consumers better. Improving customers overall online experience will defiantly give you retaining customers.
- Your business will have increased profits- CRO can help you massively improve your profits as they provide you with immediate and tangible profits.
- Becomes a secret weapon- Competitor can easily analyse your website and figure out what you’re doing for SEO or social media marketing. CRO can mix all sorts of initiatives for them to have a role in the process. Your competitors may find it difficult to figure out how you’re optimising your product pages.
In a journal article, it shows a study about different forms of online advertising for purchase and its effectiveness conversion in multiple channel attribution framework. This article also compares long term effectiveness in nine different forms of advertising which include seven online. This also looks at how these forms of advertising generate traffic, how it affects conversion and how it will contribute to creating revenue.
Advertising content that is in an integrated form will outperform content that is separated in advertising. This is due to the fact that when the content is integrated purchasing will progress for businesses. Last click usually underestimates integrated content and prefers separated content and therefore leads to a sub-optimal budget allocation. Content integration advertising is a more effective form next to separated content advertising firm-initiated advertising.
This will be useful for business to understand different channel frameworks that can be important to understand why keep using this initiative of customer conversion is important.
Risks that may occur
However, the risks of this will be that customers may not tell you all the information that you may need to help improve their customer experience. This may cause a problem as a lack of information will make it difficult for a company to understand its customers and expand on their personas.
Some customers may not want to always be tracked using various marketing channels. E.g. In terms of email marketing, they may ignore emails from your company, or may not be customers that constantly post what they purchase on social media, etc.
References
Booth. D, (2015), ‘Why Customer Rate Isn’t The Whole Story: Using Customer Data To Predict Value And Optimize Media Spend’, Marketing Land, online, (2015), https://marketingland.com/conversion-rate-isnt-whole-story-using-customer-data-predict-value-optimize-media-spend-137994 [Accessed on 22nd March 2019]
Choo. W. C & J. R, (2004), ‘ Innovation in the knowing organisation: a case study of an e-commerce initiative’, ProQuest, online, vol. 8, Issue. 6, pg. 77-92, (2004), https://search-proquest-com.ezproxy.brighton.ac.uk/docview/230330193?https://ezproxy.brighton.ac.uk/login?url=accountid=9727&pq-origsite=summon [Accessed on 22nd March 2019]
Haan. De. E et al, (2016), ‘The effectiveness of different forms of online advertising for purchase conversion in a multiple channel attribution framework’, International Journal of Research in Marketing, online, (2016), vol.33, issue.3, pg491-507, https://www-sciencedirect-com.ezproxy.brighton.ac.uk/science/article/pii/S0167811615001421 [Accessed 22nd March 2019]
Hassan. A, (2015) ’10 Benefits for Conversion Rate Optimisation for Online Retailers’, online, ecommerce training academy, (2015), https://ecommercetrainingacademy.com/10-benefits-conversion-rate-optimization-online-retailers/ [Accessed 22nd March 2019]
Sukhraj. R, (2017), ‘4 Best Ways To Keep Your Customer Happy & Improve Customer Retention’, Impact, online, (2017), https://www.impactbnd.com/blog/the-importance-of-keeping-your-customers-happy [Accessed on 22nd March 2019]
