What is conversion marketing
Conversion Marketing is a marketing discipline whose goal is to convert users into loyal customers. In terms of e-commerce, conversion marketing is the set of actions aimed at increasing conversions that is the percentage of visitors who make a purchase.
The conversion rate improvement process is called Conversion Rate Optimization.
Certain sites, however, consider a conversion to be a result different from sales. Let’s say a customer is about to abandon online shopping cart: the company may come with a special offer, such as free shipping, to convert the visitor into a paying customer. A company could also try to convert the visitor into a client through online engagement methods such as proactive chat. Getting people open an email is a conversion. Adding a click to email links is another conversion. Making a site visitor complete a registration form is a conversion. And of course, the purchase of a product is the final conversion point.
The end goal of an ecommerce is to improve sales and conversion performance. It is important to have a holistic approach to benefits, not only in terms of profit, but also in terms of brand popularity and user confidence.
In Italy the conversion rate, that is the percentage of visitors that completes a purchase order, is only 1.6% (Source: eCommerce B2c Observatory Netcomm 2018 of the International Business School of the Politecnico di Milano). But very few companies aspire to increase this percentage, all the others focus on getting more website users at a lower price.
The conversion process in e-commerce sales involves numerous steps:
- tracking various types of website visitors behaviour and the flow of behaviour;
- quantitative analysis of keywords, usability, necessity and navigation flow of the conversion funnel;
- qualitative analysis for an accurate picture on visual and mouse movements, product fidelity and adherence and principles of persuasive interfaces;
- implementation plan with test sets and a summary of the related issues to define and achieve objectives;
- results and implementations analysis.
It is crucial to monitor the results obtained, constantly optimizing such aspects as design or messages send to reach and obtain only qualified traffic, finally transforming it into leads and later on in customers.
There are various digital tools that allow you to find the most effective channels to reach the right people for your product, through a conversion that transforms leads into real customers.
The key is to be focused on customer-centric strategies.
Converting leads into customers with a customer-centric vision
The substantial difference between the purchase in a physical store and in the online one is the continuous interaction with a customer. In a physical store the staff interacts with customers, guiding them in a purchase decision. Online store experience instead is often impersonal, penalizing the purchase. And brands that are able to connect with customers before, during and after the purchase, mentoring them and creating a unique experience are those that have higher conversion performance. Offering live chats, relevant information directly on the product page, providing immediate support in case of issues encountered by customers, is the key to leading this trend.
The brands offering the most effective and real-time customer experience are those that have an excellent conversion rate.
Through analysis and research, these companies master three interconnected skills:
• Unified customer database: allows you to unify a company’s customer data from online and offline channels to enable modelling and drive customer experience.
• Proactive analysis (with machine learning and AI): this data collection tool with analysis capabilities incorporate insights into customers, marketing operations, functions related to the customer’s impact such as service and support.
• Contextual interactions: implies the use of insights on the customer digital journey (browse product reviews) or a physical one (adding sales points), pulling him into follow-up actions aspired by the brand.
According to a 2018 study published by Harvard Business Review, the percentage of respondents indicating that it is possible to use real-time customer analysis to improve the customer experience on devices is quite important today and will be even more important in two years.
According to the same study, 58% of the interviewees state their companies have recorded a significant increase in customer loyalty and retention after using customer data analytics. 60% of respondents say, the ability to use real-time customer analytics to improve customer touch points is extremely important nowadays.