Around the world, consumers are increasingly choosing to make their purchases online. According to eMarketer, in 2015 e-commerce will account for $1.592 trillion, a nearly 21% increase from 2014. Almost 128 million consumers worldwide are predicted to become digital buyers by the end of 2015, bringing the global total to 1.36 billion consumers, a 10.3% increase. With the growing adoption of e-commerce, e-retailers are profiting from the windfalls while brick and mortar stores are getting in on the action. In the face of rising customer expectations, retailers are increasingly looking for first party data from CRM and web analytics systems to improve the e-commerce experience. Below I outline three ways that customer feedback can help you increase conversion and retention.
1-Get more out of your web analytics
The internet has been called the most measurable medium and web analytics is a driving force behind it. This has created an abundance of metrics to measure what has happened, yet it does not answer the elusive question of WHY it happened. In the words of Avinash Kaushik, Digital marketing Evangelist, “It [web analytics] cannot, no matter how much you torture the data, tell you WHY something happened.”
Without understanding the why, you only have access to half the story. How do you know what is causing cart abandonment? For example, a visit to the cart, which intuitively appears to be a strong indicator of purchase intent – actually is misleading! When iperceptions engaged with visitors in the cart to ask their intent, 54% said they did not have the intent to purchase in that session. This demonstrates that you cannot get into the heads of your visitors’ with web analytics alone.
2-Purpose based Personalization
The era of personalization is here. According to a study from Infosys, 86% of consumers said personalization has an impact on their purchasing decision. As marketers embark on personalization, it is important to recognize that effective personalization is not about the person, it’s about their purpose. Jeff Fuhrim, Senior Manager of Conversion Optimization at Adobe, noted that, "Both the who and the why are undoubtedly valuable insights for the digital marketer, but knowing user intent can bring powerful precision to your personalization efforts.” The most effective source of user intent is first party customer feedback. Until recently first party customer feedback sat siloed in satisfaction reports. Today, through innovative approaches such as Active Recognition Technology, customer feedback can scale to inform personalization engines in real-time. By recognizing your visitors’ intent in real-time, your personalization efforts focus on helping your customer achieve their goals, ultimately nurturing them to conversion.
3-Advertising that drives conversion
To stay top of mind and increase conversion, digital marketers are now spending more of their budget on retargeting. But in order to optimize campaign performance, brands need to better anticipate their visitors intent and experiences. By leveraging first party customer feedback, you can drive retargeting efforts by recognizing purchase intenders and aligning the message with their needs in order to increase the likelihood of conversion. This means your budget and bidding strategy is better spent because advertising can be appropriately targeted to the intent of a group. Also you can dig deeper and recognize purchase signals like purchase horizon or whether a visitor plans to make a purchase online or in-store. By recognizing the likelihood to purchase online or in-store you can efficiently target visitors with ads to influence them to buy online or visit the nearest store.
As you strive to create more tailored, seamless and relevant experiences, remember that your strategies need to incorporate an understanding of user experiences. Only by leveraging first party customer feedback can you create experiences that will drive conversion and allow you to take a bigger share of the growing e-commerce market.