Conversion 2015 - Charles Nicholls - SeeWhy, a SAP company

Conversion Academy

THE PATH TO PURCHASEOptimizing mobile conversions with real time context

Conversion Academy

Conversion Academy

ABOUT CHARLES NICHOLLS

Charles Nicholls Chairman, Conversion AcademySVP Strategy, Marketing Products, SAPFounder, SeeWhy

@webconversion

About SeeWhy• The real time remarketing company• Acquired by SAP in June 2014• Live on 4,000+ sites• Generates >$500m annually for clients

@webconversion [email protected]

Conversion Academy

• Why mobile first• How devices are used• Perception = Reality• Phones as conversion devices• Key takeouts

TOPICS

3

Conversion Academy

SMARTPHONES GET MORE ATTENTION

We spend almost 5 hours per day on

screens

But the most time is spent on

smartphonesSource: Milward Brown AdReaction, 2014.

151 147

103 43

Minutes per day

Conversion Academy

MULTI-SCREENING IS NORMAL

84% use devices while watching TV

Source: Nielsen Connected Devices Report, Q3:13.

Conversion Academy

THE PHONE CONVERSION OPPORTUNITY

PC’s may dominate, but phone

conversions represent a massive

opportunity

Source: SeeWhy 2015

66%Desktop

13%Tablet

22%Phone

83%Desktop

9%Tablet

8%Phone

Intents Revenue

Intent and revenues generated by device Q1 2015

Conversion Academy


TOPICS

7

Conversion Academy

HOW DEVICES ARE USED

On average, consumers use 2.6

devices on their journey to

converting online

n=2.6

Source: SeeWhy 2014

Conversion Academy

Share of conversions / hour

We use devices differently during

the day, often using multiple devices

before converting

HOW DEVICES ARE USED DURING THE DAY

Conversion Academy

DEVICES ARE USED FOR DIFFERENT THINGS

Convert

Select

Desktop

11(76%)

(24%)

2.6

100Land

Tablet

11(81%)

(19%)

2.1

100

SmartPhone

8

0.5

(94%)

(6%)

100

Data: SeeWhy, 2014

A visitor that adds to cart on a SmartPhone is:

4x less likely to purchase than on a Desktop

3x less likely to purchase than on a Tablet

Takeout

Conversion Academy

DON’T THINK “FUNNEL” OR “SESSION” - THINK JOURNEY

A customer journey spans

multiple sessions, devices, and

channels over time

Conversion Academy

MULTI VISIT + MULTI DEVICE

Source: SeeWhy

New visitor

Purchase

Returning visitor

9x

First time abandoner

72x

Marketing

Serial abandoner

192x

Probability of conversion

O.25% 2.25% 18% 48%

MarketingMarketing Marketing

Consumers require5 touches

on average before converting

ID ID

Conversion Academy


TOPICS

13

Conversion Academy

Fat fingers and small screens make

searching tough

Conversion Academy

2. Converting

Is like an assault course……Converting on

mobile is a series of obstacles

Conversion Academy

Few make it this far: 99.5% give up

Data source: SeeWhy, 2013

Conversion Academy

REASONS FOR NOT BUYING ON A SMARTPHONE

Data: SeeWhy 2014 n=1013too slow

13%

plan to convert elsewhere41%

not ready46%Timing is key, but

phones are often not considered a converting device

Conversion Academy

80% feel nervous making

purchases on mobile devices

80% 81%

9%

40%

PEOPLE ARE NERVOUS ABOUT CONVERTING ON MOBILE

Data: SeeWhy 2014 n=492

Conversion Academy

COMPARE AND CONTRAST

Conversion Academy

HOW UBER REDUCES FRICTION

2 clicks to purchaseNo paperNo hassle

Conversion Academy

Perception of effortlessness

Conversion Academy

PERCEPTION OF AN EASER CONVERSION

Source: Kyle Rush

Ask for less

Test breaking forms into

multiple, simple steps

http://kylerush.net/blog/optimization-at-the-obama-campaign-ab-testing/

Conversion Academy


TOPICS

23

Conversion Academy

PHONES AS CONVERSION DEVICES: APPLE V ANDROID

77% of mobile commerce revenues

46% on iPad alone

V

23% of mobile commerce revenues

Data: SeeWhy based on 150m web transactions in December 2013

Apple users represent a different

demographic

Younger, more affluent, better

educated, buy more

Conversion Academy

DOES IOS REALLY CONVERT BETTER?

c.$30, 3.2” c.$250, 5”

9.2%

2.9Xmore likely to

convertthan cheap Droid

phones

6.5%

c.$650, 4”

12.4%

19.4%

c.$500+, 9.5”c.$230, 7”

3.2%

Wealth and screen size are good predictors of conversion

Add to cart conversion rateData: SeeWhy 2014

Conversion Academy

THE PHONE AS A CONVERSION DEVICE

Phone conversions are growing

faster than tablets

faster than desktops

4x14x

Source: SeeWhy 2014

Q1 2015 Y-o-Y Growth in conversions

Conversion Academy

97% 98%

Source: SeeWhy, 2013

99%

65% of email is opened first on a

smartphone

WHY?

Conversion Academy

Data: SeeWhy, 2014

EMAIL TRAFFIC DOMINATES SMARTPHONE CONVERSIONS

email62%

search5%

direct12%

link21%

83% of conversions come

from a direct link

62% from email alone

Conversion Academy

AMAZON.COM: 5 CLICKS TO A MOBILE PURCHASE

Email showing previously browsed

item

Product Detail Page Login Page Cart Summary Order Page

1Click through

from email

2Add to Cart

3Login – enter

password

4Click

‘Proceed’

5Buy

Conversion Academy

REMARKETING: GLUE FOR CROSS CHANNEL SHOPPING

Email carries identity and

context across channels

Conversion Academy


TOPICS

31

Conversion Academy

MOBILE CONVERSION VARIES DRAMATICALLY BY BRAND

Best in class brands are achieving 40%+ of conversions on smartphones and

tablets

Source: SeeWhy, 2014.1%

>50%

Best in class

Conversion Academy

THE MOBILE CONVERSION MATRIX

Searching Devices

PaymentsConverting

Consistency across channels, devices

Simplicity

A few clicks to convert

Conversion Academy

PAYMENT CHOICES ARE CRITICAL

N.B. Alternative Payments are only 14% of total conversions

2x convert with

alternative payments, compared with credit

cards

Conversion Academy

• Mobile is the fastest growing channel– Its where we spend most time– It will eventually be the primary conversion device– Mobile is often part of the purchase path, if not the buying device (yet)

• Mobile conversions require 3 key elements:– Simplified browsing & search– Email remarketing carries context across channels– Stored account details + payments

MOBILE CONVERSION SUMMARY

Conversion Academy

Q&[email protected]

Conversion Academy