First things first
Before focusing on conversion, a smart brand will set realistic conversion goals. Successful conversion targets should be tailored for different businesses, and will change depending on what you want to achieve. This might be pushing customers to make that first purchase, or aiming to improve customer loyalty where repeat purchase rates can be measured (especially with the help of technology). Once targets have been identified, strategy and tactics can be implemented to reach these goals, and effective measurement used to facilitate further growth.
Technology helps with the flow
Modern technology has had a huge effect on the way customers buy things compared to just 5 years ago, and it continues to streamline the buying process. To achieve a successful conversion the process should be easy, straightforward and seamless for the customer, as a small snag can prevent a successful transaction completion. Whilst the road to a conversion may take time, when it comes to the critical point of purchase the payment process is vital and the more efficient and convenient it is, the better. For example, Apple pay or Amazon’s 1-click ordering requires incredibly little effort from the customer, making the purchase process appealing. Online home-décor marketplace Chairish reported a threefold increase in their conversion rate after including Apple pay on their website.
Technology doesn’t just help in the first step on the road to conversion either – there are numerous tools to help in the analytic and reporting process. Taking steps to improve conversion rates is a good thing, but without effective measurement, future improvement will be difficult.
Timing is everything
Understanding consumer needs at specific times is key in showing your product or service in its best light; an ice cream van is going to sell much more at the beach on a sunny day. Modern technology gives us a new way to reach people, but timing remains crucial in conversion. It allows you to target someone when they’re most receptive to your messages, especially if those messages are tailored to the ‘right now’. Timing is also vital for cross-selling. Utilising data on products frequently bought together allows for targeted recommendations at point of purchase that can, at most, double profits or, at least, spark interest in consumers’ minds.
Who did it right?
Furniture retailer DFS effectively used technology to convert interested visitors into paying customers. The brand identified that 80% of visitors would leave the shop without purchasing and with no explanation, before heading straight into a competitor’s store.
DFS salespeople began to log consumer data and preferences on tablets during in-store conversations, including any products that customers had shown interest in. This data was then used to draft a personalised email sent to customers following their visit, linking the in-store experience with online communication. As a result, the open rates for DFS’ emails rose from 10% to 76%, as well as leading to a 33% uplift in successful sales compared to customers not included in the scheme.
One of the best ways to increase conversion rates is by building consumer trust. This can be done simply by adding a human touch to prove the quality and communicate facts in a way consumers understand. Guarantees, clear contact information and customer testimonials can all prove to potential buyers the quality of your product or service, giving them the reassurance they need to press the all-important ‘buy’ button.
With bigger purchases, encouraging consumers to invest time into a product is likely to create a higher conversion rate. Use the conversation to discover the customer’s wants and needs, and make sure they’re informed about the options they have rather than giving them a price and letting them figure it out for themselves. Conversion is the turning point in the consumer journey, so it’s incredibly important to focus on consumer needs at this stage.
We’ll be writing more about this in the coming weeks and for now you can find more information about retail excellence in our infographic here.
Contact your Amadeus account manager or email email@example.com if you would like to discuss the journey from travel agent to successful retailer and how Amadeus can help.