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cleverbridge key account managers, Mike Batko and Andy Peterson provide action-oriented best practices for optimizing the e-commerce experience for both B2B and B2C customers. • Common techniques for analyzing webstore performance data • How to use analysis to make confident business decision This presentation addresses five common business problems 1. Revenue from high traffic countries is low 2. Pick rates on cross-sells and up-sells are low 3. Customer contact rates and/or refund rates are too high 4. Sales revenue for a specific product or product line is low 5. Customers are leaving the order process when they are required to create an account before placing an order
Citation preview
“Data-Driven Decision Making”
Presenters
Mike Batko• Key Account Manager• 6+ years digital goods e-
commerce focus Customer Service Platform
Documentation Client Management Sales / Key Account
Management• Interests: Dave Matthews
Band, GTA V, Gary Johnson
Andy Peterson• Key Account Manager• 5+ years digital goods e-
commerce focus Customer Service Client Marketing
(SEO/PPC) Client Management Sales / Key Account
Management• Interests: NFL Football,
golf, Dance Moms, Magic the Gathering
This session will provide action-oriented best practices for optimizing the e-commerce experience for both B2B and B2C customers.
• Common techniques for analyzing webstore performance data
• How to use analysis to make confident business decision
“Data-Driven Decision Making”
Each topic includes two components:
• A data-enforced view into a specific Business Problem
• Suggested Actions, prompted by our analysis, to improve the order process
Presentation Format
Five Common Business Problems
1. Revenue from high traffic countries is low
2. Pick rates on cross-sells and up-sells are low
3. Customer contact rates and/or refund rates are too high
4. Sales revenue for a specific product or product line is low
5. Customers are leaving the order process when they are required to create an account before placing an order
Business Problem 1: Revenue from high traffic countries is low
Suggested Action: Test different price points in specific markets to identify the optimal balance of conversion rates and revenue collected per customer.
Market variables to consider:• Traffic volume• Conversion rates• Piracy rates in the country• Local purchasing power • Demographic / cultural preferences
Business Problem 1: Revenue from high traffic countries is low
Country Number of Sessions
Conversion Rate
USA 250,000 42%
Germany 140,000 47%
Japan 190,000 39%
UK 60,000 38%
France 75,000 40%
Italy 60,000 12%
Brazil 1,500 6%
Russia 50,000 11%
China 3,500 9%
India 35,000 9%
Sources: -Visitor Count and Conversion Rates are Sample Data-2011 Piracy Rates: Business Software Alliance “2011 Global Piracy Study”-2011 GDP Stats: IMF.org
Software Piracy Rates
Per Capita GDP (USD)
19% 48,665
26% 43,204
21% 45,659
26% 39,459
37% 43,490
48% 35,984
53% 12,422
63% 13,542
77% 4,833
63% 1,382
Business Problem 1: Revenue from high traffic countries is low
Business Problem 1: Revenue from high traffic countries is low
*Screenshot taken in India.
USD currency and USA price point are not ideal for the Indian market.
Again, USD currency and USA price point displayed to Indian customers.
Business Problem 1: Revenue from high traffic countries is low
*Screenshot taken in India.
US Cart Indian Cart
Business Problem 1: Revenue from high traffic countries is low
Getting closer . . . . The price point is a better fit for the market, but currency is still shown in USD.
*Screenshot taken in India.
US Homepage Indian Homepage
Business Problem 1: Revenue from high traffic countries is low
Symantec really has this figured out …The price point makes sense for the market and the display currency is Indian Rupee.
Exchange Rates on Sept, 20, 2012:$49.99 = Rs 2,667.91 | $69.99 = Rs 3,735.29 | $79.99 = Rs 4,275.13
*Screenshot taken in India.
Suggested Action: Offer strong discounts to users of pirated software.
Use human, friendly marketing text. Don’t point fingers.
“We’re happy to have you as a user, but we think you’ll be a lot happier with a fully functional version of our software . . .”
Arrrrrr! What a deal!
Business Problem 1: Revenue from high traffic countries is low
Business Problem 1: Revenue from high traffic countries is low
Retail price for Windows XP Professional was $249.00 at the time of this offer.
Business Problem 1: Revenue from high traffic countries is low
Is your company still doing this? Why?
Suggested Action: Select the country by detecting the customer’s Geo-IP location upon entering the cart
• Pricing should not be displayed until this detection is made
• Partner with Maxmind similar vendor for Geo-IP detection
• cleverbridge Shopping Cart and Catalog Pages will auto detect the Geo-IP
Business Problem 1: Revenue from high traffic countries is low
Original X-Sold Quantities Sold
Revenue (USD)
Pick Rate
Product A Backup CD 225 10,091 4.50%Product B Backup CD 75 1,806 3.75%Product C Backup CD 55 1,024 2.50%Product A Product B 150 30,050 2.00%Product A Product C 25 5,550 3.00%
Business Problem 2: Pick rates on cross-sells and up-sells are low
Business Problem 2: Pick rates on cross-sells and up-sells are low
Suggested Action: Test new positions for cross-sells and up-sells. • Too much information can cause abandonment, but too little
can cause oversight
• Don’t make assumptions without data to back up your hypothesis – your customers might surprise you
• Regional preferences can have a huge impact
Business Problem 2: Pick rates on cross-sells and up-sells are low
Business Problem 2: Pick rates on cross-sells and up-sells are low
Business Problem 2: Pick rates on cross-sells and up-sells are low
Business Problem 2: Pick rates on cross-sells and up-sells are low
Suggested Action: Offer additional products or services as a product selection.
• Use either in the cart or in the product catalog
• Radio button vs. drop-down list
• Test different marketing texts for product names and descriptions
Business Problem 2: Pick rates on cross-sells and up-sells are low.
Business Problem 2: Pick rates on cross-sells and up-sells are low
Business Problem 3: Customer contact rates and/or refund rates are too high
Top countries by Session Count
Contact rate
Business Problem 3: Customer contact rates and/or refund rates are too high
Platform-wide contact rate in 2012 =
7.10%
Business Problem 3: Customer contact rates and/or refund rates are too high.
Business Problem 3: Customer contact rates and/or refund rates are too high
Suggested Action:Localize delivery texts for your highest volume market
Outsource localizations to third parties
- OR -
Crowdsource your user community for free localizations
Business Problem 3: Customer contact rates and/or refund rates are too high
Business Problem 3: Customer contact rates and/or refund rates are too high
Suggested Action: Use In-App order process w/ automatic license key validation
Business Problem 3: Customer contact rates and/or refund rates are too high.
Austra
lia (A
U)
France
(FR)
German
y (DE)
Canad
a (CA)
United
King
dom (G
B)
Italy
(IT)
Netherl
ands
(NL)
Switzerl
and (
CH)
Brazil (
BR)
United
Stat
es (U
S)
Spain
(ES)
Russia
n Fed
eratio
n (RU)
1.31%
1.08% 1.06%
2.47%
2.13%
0.61%
0.94%
0.67%0.89%
2.01%
0.98%
0.66%
Refund Rates in Top 12 Countries
Suggested Actions:
• Offer a support phone number and email address wherever possible
• Fine-tune refund policies and procedures
• Research top customer contact reasons
• For subscription cancelations, offer “Save the Sale” discounts to salvage partial revenue from the customer
Business Problem 3: Customer contact rates and/or refund rates are too high
Business Problem 4: An individual product line or license type is selling poorly
Product Name
Price Point (USD)
Order Count
Annual Revenue
(USD)
Conversion Rate
BuzzTech – BASIC
99.00 / Yr. 1,500 148,500 42%
BuzzTech – PRO
299.00 / Yr. 600 179,400 36%
Buzztech – ELITE
999.00 / Yr. 20 19,980 3%
Suggested Action:Experiment with new sales models for the under-selling product• Freemium• Trial to Buy• Payment Plan• Subscription
Yearly / Monthly / Weekly Usage-based
Business Problem 4: An individual product line or license type is selling poorly
Business Problem 5: Customers are leaving the order process when they are required to create an account before placing an order
24% of online stores in 2012 still require an account registration
Suggested Action: Use the License Generation API to automatically create a customer account at the time of purchase
Business Problem 5: Customers are leaving the order process when they are required to create an account before placing an order
Login details can be displayed on the confirmation page
Suggested Action: Use Single Sign-On for customers that already have an account.
Business Problem 5: Customers are leaving the order process when they are required to create an account before placing an order
Login on client site
Click “Buy Now”
Cart fields are pre-
filled
Questions?
Mike Batkobatko@cleverbridge.comOffice: 312-922-8693 ext. 3286Twitter: @MichaelBatkohttp://www.linkedin.com/in/michaelbatko
http://www.buildingkeystones.com http://www.cleverbridge.com
Andy Petersonpeterson@cleverbridge.comOffice: 312-922-8693 ext. 3290http://www.linkedin.com/in/andypetersonchicago
Please submit your ideas for future cb University Session topics!
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