Navigating The Generational Shift in Online Shopping

Technology, social media, and shifting cultural standards have influenced the shopping patterns of millennials and members of Generation Z. Their purchasing habits differ significantly from those of preceding generations. In this blog, we will discuss the buying habits of Millennials and Gen Z, as well as the variables affecting their purchasing choices.

Buying Power

We are about to reach a time when Generation Z will significantly outspend millennials in terms of purchasing power. Generation Z spending is approximately $100 billion, compared to little over $65 billion for millennials. Although it is well known that Millennials are a mobile-centric generation, Gen Z lives entirely online. Venmo, PayPal, and Apple Pay are just a few examples of the widely used online banking and payment platforms that Gen Z users have access to. Digital Gen Z buyers were most likely to use Buy Now Pay Later, according to Investopedia (BNPL). About 60% choose this method of payment over credit cards.

Online Shopping

It’s not surprising that Millennials and Gen Z prefer online shopping to traditional brick-and-mortar stores because they have both grown up with the internet. Internet shopping offers convenience, easy price comparison, and access to a larger selection of goods. 67% of Millennials and 68% of Gen Z prefer online purchasing to in-store buying, according to a BigCommerce study.

girl shopping online

Social Media Influence

Social media significantly influences the purchase habits of Millennials and Generation Z. The platforms like Instagram, YouTube, and TikTok are more likely used by these generations to look for products and get more information. Influencers and celebrities routinely promote things, and their followers are more likely to purchase the items they promote.

Brand Loyalty

Compared to earlier generations, millennials and Gen Z are less brand loyal. They are more open to experiment with new brands and are more inclined to change brands based on their demands and tastes. According to a study by Accenture, 72% of Gen Zers are willing to trying different brands, while 62% of Millennials are more likely than their parents to switch brands. This is probably because they were offered an array of options as children and have grown to be more discerning shoppers, claims a study published in the Journal of Consumer Research. Also, it is harder for them to trust any one source due to the deluge of information and opinions online.

Ethical and Sustainable Products

Generation Z and Millennials are more aware of how their purchasing choices affect society and the environment. They are more likely to purchase ethical and environmentally friendly goods, and they are prepared to pay extra for goods that share their beliefs. According to a Nielsen poll, 81% of Gen Z and 73% of Millennials, respectively, agree that businesses should work to improve the environment. These generations care more about concerns like animal welfare, worker rights, and product safety as well as being more environmentally sensitive. And they’re not afraid to speak up about it; they’ll march for causes or promote ethical items in their social media feeds.

product life cycle

Personalization

Millennials and Generation Z like personalized purchasing experiences. Using cutting-edge technologies like artificial intelligence, data analytics, and machine learning, personalization entails gathering and analyzing information on consumer behavior, preferences, and purchase history. The individualized shopping experiences that Gen Z enjoys allows them to show their personality and self-expression through the things they choose to buy. They can find fresh and distinctive goods that fit their own style by receiving customized recommendations and offers. Companies that offer tailored experiences through personalization and recommendation algorithms are more likely to succeed with these generations.

Conclusion

In conclusion, Millennials and Gen Z have different buying styles than previous generations. They prefer online shopping, influenced by social media, less brand loyal, prefer ethical and sustainable products, and seek personalized experiences. Companies that understand these preferences and adapt to them are more likely to succeed in attracting and retaining these generations as customers.

Call to Actions 101 – eCommerce Conversion Rate Optimization

What is an eCommerce Call to Action?

eCommerce call to action is a button to generate an action. In simple terms, it is a button on a webpage, banner, or content that allows users to complete specific actions, whether initiating a checkout process to complete a purchase, filling out a lead form, etc.

There are many calls to action we see every day! 

Where are CTAs used?

CTAs, or Calls to Action, are used in various contexts across different mediums to prompt users to take a specific action. Some common places where CTAs are used include websites, email marketing, and social media.

If the target is to get more subscribers to a newsletter, using Subscribe Now on a blog page or content wall would act as a great CTA. On the other hand, if the goal is to make the user add a product to the cart, your CTA would be Add to Cart or Add to Bag.

In some cases where a newsletter has been sent, and the goal is for the users to click on it and visit the blog page on your website, the ideal CTA would be Learn More!

Use a CTA with an action associated. Whether clicking and reading more about a blog, adding a product to the card, clicking the submit button on your lead form, and much more.

How to optimize your eCommerce CTAs?

Use action words. Use words that move the focus from a desire to action, such as Order Now, Subscribe Today, Get the Offer, and more.

Create a sense of urgency. Have time reminders around your CTAs to convert users faster. It entirely depends on your business industry and category, but it is always good practice to create a fear of missing out.

Also, it is essential to remember that time-based offers should go off when the time is up. It should not be just for generating sales! Below is an example of FashionNova, one of the top eCommerce websites in the world.

Keep your USP near the CTA. It’s a good practice to remind your users by highlighting your unique selling proposition near your CTA. This helps make decision-making more accessible for users who want to complete the purchase.

Make your CTA unique. Although mainstream CTAs do the job in many cases, creating unique ones that highlight your product or an ongoing offer is a good practice.

GFuel newsletter signup CTA – I LOVE SAVING MONEY! It is one of the most creative ways to highlight an offer.

Add social proof: Highlighting reviews about your product is the best idea since it comes from users who have actually experienced it. The end-user can relate and proceed to complete the purchase accordingly.

The example below is taken from AppSumo, where a product is being promoted, and it has the proper use of an action word, a sense of emergency, and social proof.

Does the Call to Action color matter?

Colors make all the difference when differentiating the content on your webpage from the actual CTA. CTAs should be eye-grabbing and pause-worthy to make the end user take a look at them and proceed to make a purchase.

Studies have shown that blue can improve creativity, but red increases memory and attention to detail. The psychology of color allows marketers to create logos and branding materials that will be more persuasive. Hence colors matter!

What are the best colors for CTA buttons?

As per a study by JoeHallock, Men, and Women favor different colors:

 

Blue seems to be the color that people prefer the most. On the other hand, Purple is the second top pick for women, while Green is the second for men.

You can change your colors depending on your audience targeting for ideal results. Although this should not be a benchmark for your CTA colors, it can be a great data point for testing colors on your eCommerce store.

How to make your CTA stand out on your product landing page?

Ensure the CTA color and content have some pause value, i.e., entice users to look at it at least once before they scroll further and know more about the product.

Top Call to Action phrases used on eCommerce websites!

Creating your unique CTAs is always good, but there are certain places where generic CTAs achieve all the required goals. Here are the top CTAs used by online businesses:

  1. Buy Now: The classic CTA for a user to make a purchase.
  2. Subscribe: Mainly used for newsletter subscriptions but can also be used for recurring product purchases.
  3. Join us: This, combined with a great offer, yields, creates sign-ups to pre-offers and early launch and is overall great for pre-product launch campaigns.
  4. Get started: When your product is not a one-time purchase but maybe an educational course, class, or something related to ed-tech, this CTA also works excellently for SaaS products.
  5. Add to Cart/Add to Bag: Before the user completes the checkout, this is an ideal CTA to have directly on the grid page where more than one product is highlighted.

Consistency, Colors, and CTAs

CTA colors on your landing pages to resonate with the brand! Just because specific colors work for particular audiences doesn’t mean they should be implemented immediately. Every brand has its own story and branding. CTA colors should be consistent and go hand in hand with the branding.

Although there are many ways to use different CTA colors, consistency with your branding colors helps maintain re-call value when the users revisit or do research similar to your product category.

Be clear about which parts of your page should get user attention. Don’t confuse your users using different call-to-action colors on the same page.

The best call-to-action examples!

Fashion Nova – Offer CTA on the landing page followed by category-based CTAs
Calm App – The subtle use of CTAs and highlighting an offer.
 Bulletproof – Even after using one of the top disliked eCommerce CTA colors, they have managed to be one of the most successful eCommerce stores in the world. The ideal example of your brand colors must be consistent even if your audience might not like it.
 Decathlon – Although their landing page might have a lot of elements, the CTAs differentiate the content and help users navigate through the site.

Conclusion on eCommerce CTAs

CTA helps visitors take action by guiding them to the right content and place on your site. This article has given you a clear picture of what a Call to Action means and what a good CTA is. Now it is time to write an effective one for your landing page.

If you use the same example in all your call-to-action examples, there would be a higher chance of better conversion rates. So go ahead and implement today!

eCommerce SEO 101 Conversion Rate Optimization

Why is eCommerce SEO vital for an online store?

Before we start, here are a few statistics that make eCommerce SEO a vital part of conversion optimization. Let’s have a look…

  • 7.5% of all traffic to eCommerce sites comes from search. (SEMrush)
  • Of the billions of searches on a given day, 15% of daily searches are new to Google. (Search Engine Land).)
  • According to Think With Google, at least 51% of people using the internet have found out about a new product or company online.
  • Google Images, Google Maps, and Google search account for at least 92.96% of the global organic traffic (Sparktoro)

On page – eCommerce SEO 101

Most people are aware of on-page eCommerce SEO changes required to optimize your website, but there are a few key factors that shouldn’t be ignored.

  • Don’t avoid On-page for generic pages: Homepage, About page, Contact page, Work page, Clients, etc. Don’t neglect these vanity pages when it comes to On-page SEO for eCommerce websites. Coming up with interesting titles and a good call to action can improve your bounce rates significantly.
  • Focus on content and being to the point: Adding content to your website to squeeze a few more keywords on-page is not a great practice in 2022. Make your content pop by using good action phrases. Highlighting USPs is a good practice; providing value to the user is another method (Free downloads, Answers for FAQs, etc.)
  • Slow page loads due to large images: Although website speed optimization is a whole different process making it standard practice to check for image file size helps improve on-page by a great margin. No user would want to wait before getting to read, download or fill out a form.
  • Image SEO: Image search is one of the top sources of traffic generation via Google, and having the right SEO strategy in place for product images can place them in front of the right audience (Audience searching for it – High intent audience.

There are a lot of on-page eCommerce SEO guides. Here are the top points we feel are the most important when it comes to ranking and keeping the user engaged at the same time.

The most important On-page factors for eCommerce SEO.

  • Title: The section that can grab the most attention and make users click on it. Titles are by far the ROI generating when done right. Highlight a value proposition in your title. Keep it focused and simple.
  • Product Description: Using Power and Action words in your description to talk about your product benefits and ongoing offers works wonders. Adding timelines for offers that are not going to last is great for creating a constant reminder for the user.
  • Examples: Before power/action words – 5% Off on all our products. Valid till “xx:xx:date” After power/action words – Superb Offers: Get 5% Off Storewide. Valid for 36 hours!
  • Right Product Images: This is the most ignored in the eCommerce space. We believe that just having generic 2D images is not enough anymore. VR/AR images for your product are the way to go now, it entirely depends on your industry, but if it looks like a possibility for the products, do it!
  • The Keyword Magic: Adding keywords with content that goes hand in hand is the best way to optimize your product pages. Long-tail keywords in eCommerce have comparatively less competition and more intent. Ranking for such keywords will help boost your overall store performance.

Keyword Research – eCommerce SEO 101

  • eCommerce keyword research: One of the most critical steps when executing your eCommerce SEO strategy is having the right keywords in your arsenal. Keyword research requires good tools to analyze the monthly volumes for each keyword and understand the difficulty of ranking each keyword.
  • Pick your suited bunch of keywords: Selecting the right keywords for your products is the main goal to achieve this. Leave the top and bottom keywords alone i.e., keywords with highest difficulty and highest volumes and lowest difficulty with lowest volumes should be kept aside at first.
  • Best tools for eCommerce keyword research: Ahrefs, SEMRush, Ubbersuggest and Google Keyword Planner are by far the best tools when it comes to doing your eCommerce keyword research.

The 1H-1M-3E eCommerce SEO Keyword Strategy: This strategy includes picking 5 keywords starting with 1 Hard, 1 Medium, and 3 Easy. To break it down, an eCommerce store can go with the hard keyword being something that is not extremely competitive (60+ difficulty) but has good amounts of competitors and difficulty. One of your easy keywords will be a long tail form of this hard keyword.

Next is to pick the medium keyword that is not hard to rank and has good monthly volumes; your second easy keyword will be a long tail form of the medium keyword. The last one is an easy keyword, and this one should have low but acceptable volume and low competition.

Link Building – eCommerce SEO 101

  • Email Outreach to the right people: Although this method has very low ROI, the links you get to build out of this strategy are high quality and rank-worthy.
  • Resource pages and value creation: Most eCommerce websites do not implement this strategy; let’s say it has been a secret for a while now. Creating lists/ top 10s/  Resource sheets are amazing ways to improve your brand reach and promote your products.

eCommerce SEO is not always about your product pages. It involves creating value for visitors. The more visitors your business has, the better the probability of an increase in users that ultimately leads to more conversions, thereby more revenue.

  • Broken Linkbuilding: Many blogs on the internet provide links to resources and references but most of these are not maintained over time, and a few go out of existence.

Consider you have found a blog that links to a webpage that doesn’t exist anymore, but one of your blogs has a similar context and can be a great reference point for the blog. Draft an email explaining the same and send it to the blog owner. Depending on how they feel about your idea, they will implement it.

  • Collabs and guest posting: In 2022, a better version of collabs and guest posting exists. We call it influencer marketing. Depending on how your brand wants to position itself, your brand can opt-in for influencer marketing.

Website Architecture – eCommerce SEO 101

A website’s structure is crucial for eCommerce SEO; it not only defines how the search engine looks at it but also creates the user’s navigation process. A good website architecture will hold users for longer periods and be more sure to provide them with something before their attention fades.

  • The page layouts: This step isn’t directly related to SEO, but it affects one of the most important ranking factors, i.e. your website’s bounce rate. Optimizing your website User Interface and Experience can yield multifold results, so avoid ignoring it. Running A/B tests on your pages is a great strategy to find what resonates better with customers.
  • Main landing pages: Make sure all your landing pages have proper and unique meta tags (title, description and URL). Duplicate metatags can cause indexing problems and even copy data penalties if not monitored properly.
  • Category pages: The most ignored pages can create tons of value when optimized well. Category pages should never be auto-generated pages for eCommerce websites. A great eCommerce SEO strategy will always include creating and optimizing category pages to allow users to navigate better throughout the website.
  • Post/Blog pages: Not all eCommerce websites have blogs and miss out on improving reach and grabbing more market share for their product keywords. As mentioned previously, it is always a great idea to display your products and make lists depending on ongoing events (Example: Winter Special, Summer Sales, Top 10 things etc.)
  • Product Pages: Highlight product USP and pricing well. SEO-optimized product titles and descriptions that explain the product in detail are other important factors too.
  • Product Images: Many eCommerce businesses ignore product imaging, the only way consumers can understand the product. Implementing AR/VR, if possible, is a great way to offer the end user a real-life feel of how the product would look like.

Conclusion

In 2022 and onwards, eCommerce SEO is not only about making search engines happy but also focusing on your user experience. An ideal eCommerce website is one where users can easily navigate, understand the product, and make a purchase.

How do online reviews affect online businesses?

Before we get started about reviews here are a few fantastic facts:

Online reviews are the best way for potential clients or customers to know what you are about. If people are happy with the goods or services that you offer, then they will be sure to leave you a positive review. However, if they have a bad experience, then it is likely that they will leave you a bad review. This blog will look at how the online reviews that you receive can affect your online business.

  • 95% of all consumers check online reviews of businesses (2018 consumer review, BrightLocal)
  • 63% of customers read online reviews before visiting a local business (2018 internet survey, ReviewTrackers)
  • 66% of all consumers buy a product from a local business after they read the online reviews (2018 internet survey, ReviewTrackers)
  • 88.8% of consumers say that their trust in a brand decreases if it has negative reviews. (eMarketer, 2019)
online-review-statistics

Do online reviews affect a business? Why reviews are important for your eCommerce business.

Yes, online reviews can have a significant impact on a business. Reviews provide an impression to your potential customer of how your current customers feel about your product. Their likes and dislikes. When customers first get introduced to a product, most of them would like to understand what other customers have to say about your product before making a purchase.

Positive online reviews and testimonials confirm that the product your business is selling is actually good and meets the needs of an end-user.

Reviews position a product separate from those that are not genuine and or have less visibility. In simple terms, it is a filter for a customer to find whether what they are looking at is actually a good purchase or not.

Reviews are not only applicable to products. They also apply to services; the channel where the customer shares a review might change, but feedback is still of great value for every business looking to grow.

This factor has become so important that some companies have even started incentive programs for current customers to leave reviews as a way to get a conversion out of potential customers.

How to get online reviews for your eCommerce business.

Ask your customer to review your product (good or bad) at the end of a purchase.

About a week after a sale, follow up with an email thanking the customer for the purchase and asking if they would leave a review. Provide a link to make the review.

Look at your sales reports and reach out to the customers who have spent the most with you and request a testimonial.

Create an incentive program where customers get something for leaving a review.

Follow up with customers who leave great reviews thanking them.

What questions to ask in a review/testimonial request?

  1. Would you recommend this product/service? If so, why?
  2. What are the benefits of this product/service?
  3. How does this product help you fix your problem?
  4. Would you buy this product/service as a gift? If so, why?
  5. How do you feel about the quality of the product/service?

Building a community with reviews

Having a community vouch for your product(s) or services is the 24×7 sales strategy that keeps benefiting your business. The more people believe in your product, the more it will sell, thereby improving your total business revenue.

You can build customer loyalty by allowing people to use their own clicked photos of the products. You can then highlight their pictures on your website and social media. This will show your customers how the products look and be a great way to get people to buy your products.

You can also create a gallery of the best photos that are created by customers or by yourself as a customer. This is a great way to have people feel appreciated when they buy your product and share it with their friends.

Use reviews to increase conversions

Here are a few more interesting stats about Social Proof:

  • 79.9% of customers admit that their trust in a brand increases when the brand responds to negative reviews or comments. (eMarketer, 2019)
  • The trust of 93.7% of digital shoppers in a brand increases because of positive reviews. (eMarketer, 2019)
  • 93.4% of online shoppers rely on customer reviews when researching online retailers they are not familiar with. (Sabanoglu, 2020)
  • If a product has a higher star rating and a $2 price difference than the other product, most people will buy the expensive option with better ratings. (Kats, 2019)

Since the customer cannot touch or feel the product in real life, the conviction to buy the product decreases. When faced with such challenges, customers resort to image and text reviews of a product to understand the experiences of others who actually made a purchase.

Highlighting reviews on emails, websites, social media, and ads can assist in moving a user from consideration to the conversion step of a funnel.

Add reviews and social media feeds to your home page and/or emails. If the reviewer is a company, make sure to include the logo along with the face, name and title.

customer testimonial example

If you are an eCommerce business looking for a Digital Agency. Our team of experts would love to assist you with your requirements. Feel free to contact us.

Heatmaps 101 – eCommerce Conversion Rate Optimization

Website heatmaps are a great tool to optimize conversion on your eCommerce store. These tools record and enable store owners to visualize user activity on the store. It creates a heatmap of where the user hovered, clicked, and stayed the most to help improve the User Interface and Experience (UI/UX).

Heatmaps give deep insights into people’s behaviour on the site, helping eCommerce store owners discover why users aren’t adopting/purchasing their product, using call-to-action (CTA) buttons, or converting.

Benefits of using heatmaps on your eCommerce website:

Heatmaps are valuable tools for eCommerce websites as they offer actionable insights into user behavior, help optimize website layout and design, and ultimately contribute to improving user experience and increasing conversions.

What an eCommerce website owner can learn from heatmaps?

Heatmaps help understand how to improve design, user experience, and much more. Here are a few things that heatmaps can help you optimize on your eCommerce store:

  1. eCommerce Heatmaps help identify user pain points and friction during checkout and simplify steps to checkout or on opt-in forms.
  2. Detect user conversion issues due to the addition of fees like shipping/handling.
  3. Understand what images are clicked and what matters for users when they view a specific product page.
  4. Assist you to understand whether a specific CTA is getting clicked or if it’s not grabbing attention as expected.
  5. Find out what elements give the impression that they are clickable elements leading to rage clicks by users. Markedly, this process helps improve the user experience.
  6. Understand how website elements are portrayed on different devices and optimize them accordingly to improve website conversion rate.
  7. Find and fix links that have broken links and wrong re-directs. This strategy is very beneficial when you have lots of products and tons of interlinking for SEO purposes.
  8. Understanding important content and web page sections that otherwise are ignored.
  9. And finally, experiencing and understanding issues across devices (Improving User Experience)

How to use heatmaps for optimal performance?

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1. The click tracking heatmap:

  • Click tracking gives a visual representation of the average number of times a user clicks on each link/button on your site. If a button/link is not clicked as expected, it might be too far from the middle of the page which will reduce likelihood of user click.
  • If users are not clicking, stores can also experiment with different colors to better attract their attention.

2. The move tracking heatmap:

  • Mouse hover tracking heatmap helps in understanding mouse movements and identifying what catches users’ attention when they land on a website. This is also known as eye tracking as most users tend to keep the mouse where they are looking.
  • Comparatively, tracking eyeballs and mouse can help sites identify if important elements on the page like the “Add to Cart” or “Buy Now” button is in the right location on the page.

3. The scroll tracking heatmap

  • Use scroll tracking heatmap to understand the percentage of users that have viewed a portion of a webpage. The most important data to analyze with scroll tracking is what catches attention most of the time, where the users are waiting longer and make sure to improve that section or keep it as is depending on the performance.

Heatmap Tracking Examples

The heatmap tracking below shows where users clicked the most on one of our landing pages.

click heatmap example
This is a heatmap example from one of our landing pages (Above the fold) - Click Heatmap.

As seen in the screenshot above our form gets lots of clicks and the top 2 boxes are getting very less reasons helping us understand that our form fills are being done using autofill.

Next is the button at the bottom that scrolls to the next section of the website, this helps us understand that our UI is being conveyed well and end-users are finding it easy to use.

Furthermore, we have a few clicks on the left side content section. This helps us understand that users might be considering that text as clickable so we could potentially make changes to that section.

The below images shown is just Above the Fold (ATF) data from one of our landing pages. It conveys so much data that we can use and improve our website performance. 

scroll heatmap example
Heatmap Example: Screenshot of one of our landing pages (Above the fold) - Scroll Heatmap.

As per the scroll heatmap above it shows that 48.9% of our users on that specific landing page view 50% of our content. Are there any takeaways here? Of course!

For instance, we can make our page a little more compact so users could view more content on our landing page. Additionally, we should also analyze what content our users have missed and take a vote on whether we want to highlight that content by moving it higher on the page or not.

click heatmap example on contact form
The move Heatmap - Sample screenshot from one of our landing pages.

As shown in the image above the mouse movements are highlighted and areas where the mouse stopped (cursor stopped or a click happened) are highlighted areas.

On the bottom left of the image is the color scale of the heatmap from Blue to Red, Red being an extremely heated section of the page for this type of heatmap.

Best Heatmap analysis tools for your eCommerce website

1. Microsoft Clarity – Microsoft Clarity provides website usage statistics, session recordings, and heatmaps. Microsoft Clarity helps you understand how users interact with your website. Clarity Is Free Forever. Free Session Replay. Free Heatmaps.

2. Hotjar – Hotjar is an intuitive, visual way to discover, consolidate, and communicate user needs. Hotjar has three pricing plans: Basic, Plus, and Business. In addition, they also offer other plans for enterprises with requirements for scale in terms of session tracking.

3. Plerdy – Multifunctional tool that offers heatmaps, session recording, click tracking, and more to analyze user behaviour and improve site design.

4. Inspectlet – Let’s record videos of visitors as they use, click, move and scroll through the website. See every mouse movement, scroll, click, and keypress on your site. You don’t need to use traditional analytics anymore. You can know how your users are using your site in an instant.

5. CrazyEgg – Use CrazyEgg to see what’s hot and what’s not and know what your web visitors are doing with tools such as heatmaps, recordings, A/B testing & more.

Summary of eCommerce Heatmaps

A graphical representation of your user data will help in understanding how every element is being taken by the end-user and assist the web development team in making required changes to improve that experience.

For an eCommerce website, heatmaps are a vital component. The level of data they bring to the table in terms of understanding what products are being liked and clicked, what users find hard to click on and much more is important.

We believe that every website should implement this and analyze it at regular intervals to understand and improve its user experience.

If you are a business looking for a Website Speed Optimization partner, feel free to contact us

eCommerce Tracking for PPC ROI

Ecommerce tracking for Pay-Per-Click (PPC) Return on Investment (ROI) is crucial for assessing the effectiveness of your advertising campaigns and optimizing your marketing spending.

To start, keep these three strategic goals in mind to measure your eCommerce KPIs + campaign success:

  • Select your eCommerce KPIs, then track their corresponding metrics.
  • Ensure you have an analytics system to measure metrics as accurately as possible.
  • Set benchmarks for your eCommerce KPIs list to track success.

Keep your digital marketing ads measurable and accountable to show precise results for your campaign budget and effort. That way, you can know exactly how much return you get on your marketing investment and ad spend.

Analytics tracking

Google Analytics is the trusted tool for tracking website performance and eCommerce conversion success. When you implement advanced eCommerce tracking, your store and code collect specific eCommerce KPIs important to ongoing budget optimization. Thanks to a line of code, you can track visitors coming to your website from multi-channel PPC ads. You need to set up benchmarks for your eCommerce KPIs since they provide insight into what is working, what needs improvement, and your growth rates. Understanding how ads and sales perform helps you accurately calculate your Return on Ad Spend (ROAS) and make the necessary marketing adjustments.

Top Ecommerce KPIs

Ecommerce Conversion Rate

Ecommerce Conversion Rate is the percentage of visits that resulted in an eCommerce transaction.

Return on Investment (ROI)

This is your revenue from marketing divided by expenses, including your cost of goods sold (COGS).

Return on Ad Spend (ROAS)

The revenue generated from your marketing efforts is divided by your marketing costs.

Improving ROAS

How to Drive Maximum Return on Ad Spend  (ROAS)

While similar to standard eCommerce ROI metrics, it provides specific measurements for each marketing channel, such as:

    • Google AdWords
    • Google Shopping Ads
    • Facebook Ads
    • Instagram Ads
    • LinkedIn Ads
    • and more…

ROAS measures how much money you make for every dollar you spend on advertising. ROAS greater than 1, you break even. If ROAS is negative, you’re upside down in your advertising efforts. Therefore, if it’s greater than one, you have a successful campaign, which you can further optimize with CROUX. Example: You allocate $2,000 of your marketing budget to a PPC campaign. By tracking the clicks that the campaign generated and following them on through to check-out, you determine those clicks generated $10,000 in sales. $10,000 / $2,000 = $5. Every dollar of ad spending resulted in $5.00 worth of sales.

How to Get Better Results (More ROAS) from Your Advertising Budget

Remember that ROAS is determined by dividing the total revenue from ads by the cost of those ads. If revenue increases but ad spending remains the same, your ROAS will grow. On the ad side, the goal is to spend less per click. On the Conversion Rate Optimization (CRO) side, the goal is to sell more. How can you accomplish both?

We have some tips to help. Top 4 Ways CRO Can Boost ROAS:

  1. Remove friction through psychological design.
  2. Up-sell and cross-sell to increase average order value.
  3. Diminish cart abandonment so more prospects make it through to make the purchase.
  4. Convert ad clicks into paying customers with a seamless user experience (UX).



We’re trusted by local businesses, SMBs, and enterprise brands to build PPC campaigns that generate ongoing value.

We found the best way to maximize your marketing budget and advertising spend is to combine eCommerce KPI tracking through Google Analytics with a CRO optimization tool. For example, our proprietary web tracking software generates UX insights through heat, click, eye-tracking maps, and record user sessions.

Our system is transparent and accountable by combining our enhanced eCommerce tracking analysis with expert strategy, ad creativity, and ongoing post-launch optimization. Through ongoing tracking, measurement, and human insights research, we make your eCommerce campaigns rock solid.

To see how much we can multiply your investment, we offer a free consultation to find marketing wins based on your margins, best sellers, seasonality, target audience, and more.

Learn more about how to build a transparent ROI system for your eCommerce marketing, and get a complimentary eCommerce Marketing Audit with one of our experts.

5 Strategies to Increase Average Order Value (AOV) and CLV

Before discussing ways to improve Average Order Value (AOV) and Customer Lifetime Value (CLV), let’s quickly look at these and why they are important to your e-commerce business.

Average Order Value (AOV)

As the name suggests, the average order value is the amount customers pay in a single checkout. It can be calculated for a given period by dividing the total revenue by the total number of orders.

Customer Lifetime Value (LTV)

Customer Lifetime value is the total sales on average that you expect a customer to purchase from the store during their lifetime. It can be calculated by dividing the total revenue by the total number of customers in a given period.

Given that definition, it’s quite obvious that increasing these values will mean more revenue, but there are some other considerations where these become important. One such consideration, for example, is how much a store should spend on customer acquisition costs (CAC). Let’s take the case of a store that’s considering a Google Pay-Per-Click Campaign per the following parameters.

1. Subscriptions

As long as the store is not selling something that the customer usually needs only a few times in a lifetime, this is a highly impactful way to increase Customer Lifetime Value. And it’s quite common as indicated by a McKinsey survey that found that almost half of all e-commerce customers held at least one subscription. However, merely offering a subscription might not do the trick. The same survey also found that most customers don’t subscribe because they love subscriptions but do it for other reasons, like a recommendation from a friend or a financial incentive, as seen in the diagram below.

Definitions:

Replenishment Subscription: Replenish the same or similar items

Curation Subscription: Receive a curated selection of different items with differing levels of customer decision-making required. Access Subscription: Membership provides access and can convey additional VIP perks. As is evident from the numbers, offering a discount and providing a great customer experience, leading to recommendations, are the top two strategies to increase Customer Lifetime Value through subscriptions.

2. Rewards

Rewards are another great way to encourage repeat business and improve Customer Lifetime Value. Here are three statistics from a survey by Bond Brand Loyalty that prove this assertion.

Rewards can be offered not only for purchases but for other actions such as referrals and even social media sharing. However, engagement in rewards programs varies depending on how much value the customers perceive them to be. Here are the two biggest differentiators to make your rewards program stand out.

Recognition & Support

The above survey found that recognition is the top reason customers stay on and engage with a rewards program. Customers expect to be treated better than non-program members. Other surveys have shown that levels of program membership with increasing rewards or experiences are one great way to make a customer feel recognized.

Personalization

The other big reason for customers to engage with a program is personalization. The survey found that rewards programs that can personalize offers can achieve a much higher lift in outcomes as against the ones that don’t.

Having a great rewards program not only lifts lifetime value by making the customer more likely to buy again but also increases Average Order Value (AOV), as found by another survey.

3. Cross Sell And Up Sell

Upsells and Cross-sells have been known to increase AOV long before eCommerce, but for the skeptics, here are a couple of statistics that should convince anyone to adopt this strategy

  • Amazon reported that 35% of its revenue comes from cross-selling and up-sell
  • Forrester Research estimates that 10-30% of eCommerce revenues come from product recommendations.

There are a few different forms of upselling and cross-selling related to e-commerce. Let’s look at a few in more detail.

Frequently Bought Together

“Frequently Bought Together” or “People Also Bought” sections show customers what other customers have added to the cart and what they are looking at. The former strategy is useful when a customer needs an accessory to utilize an item they are looking at fully. The latter is more generic but usually also less effective. Stores can use tests both together or the latter when the former doesn’t apply.

Upgrades And Quantity Upsells

Upsells can be achieved through newer or upgraded versions of products or increased quantities. Customers landing on an older product can be guided to a newer, more expensive version, along with an indication of what the new product provides that the older one does not offer. Customers buying a product with different quantities (coffee, anyone?) can also be offered a discount for increased quantities.

Product Bundles

Upselling and cross-selling can also be achieved using product bundles. Carefully planned product bundles have shown an extraordinary increase in Average Order Values (AOV). A study by Harvard Business Review on Nintendo showed that the company sold about 100,000 more video game consoles when bundled with a game, and sales of games also increased when bundled. However, providing customers flexibility was essential since pure bundling (making the products available only as a bundle) reduced sales by 20%. Many other success stories of product bundling increase average order values by more than 100%. It’s worth trying different combinations to increase the Average Order Value (AOV) where possible.

4. Wish List

The wish list is a feature that allows customers to save items they like but are not ready to buy. Providing a wish list is convenient, but there are other ways to optimize a wish list further. For example, making a wish list shareable can increase sales if a customer shares their wish list with like-minded friends. Wish lists can also be a reason for increased email marketing engagement when for example, the price of an item in a wish list drops due to a new discount. It can also allow companies to personalize emails better and have more information about customers individually and as a whole to optimize inventory.

5. Email Marketing

This one is obvious. To increase Customer Lifetime Value, customers have to return to the store. What better way to remind them than a nice little email with products they might like, a special promotion, or an email about any of the other strategies above? Here are some tips that will help you ace email marketing.

Welcome Email

Welcome emails are a great way to promote other products after the first purchase. These emails have a fantastic open rate of 82% per research from GetResponse. So, regardless of whether the customer signed up for an account, send them an email welcoming them to your store.

Personalization

Per Yes Lifecycle Marketing research, a personalized email subject led to a 50% more open rate than the generic ones. Even personalization as simple as including the first name in the subject increases open rates significantly. However, open rates are only part of the story. Actual conversion rates will depend on the personalization of the content itself. Similar or frequently bought together products or products of the same category can increase conversion rate and, ultimately, customer lifetime value.

Google Shopping Vs Google Ads

Google Shopping, formerly Google Product Listing Ads (PLA), and Google Ads (previously Google AdWords) search and display ads are both excellent ways to draw more traffic and conversions to your site. Clients often ask us about the similarities and differences between the Google Shopping vs Google Ads, as well as which one we would recommend as an optimal solution for their site.

See below to learn more about Google Shopping vs Google Ads and which is best for you:

What is Google Shopping?

  • Google Shopping (formerly Google Product Listing Ads or PLAs) allows website owners to set their desired cost per click in order to display their product listing ads at the top of Google’s search results. This moderates your bids for individual products, product groups, categories, and your daily budget.
  • Google Shopping Ads feature product pictures. Ads ads do not.
  • No need to setup text ads or bid on any keywords.
  • Mainly tailored towards eCommerce sites that have a product feed and carry a large volume of products.

What are Google Ads?

  • Google Ads (formerly AdWords) allow website owners to bid on specific keywords in order to display their ads at the top of Google’s search results.
  • More commonly used for both eCommerce sites and brick and mortar businesses.
  • Geared towards sites without a very large volume of products.
  • Allows for more control over advertisement messaging, sale information, branding, etc.

Google Shopping Vs Google Ads

google-shopping-vs-google-ads

Which one should you use?

It depends on your situation. Here are a few things to keep in mind when deciding:

  • Google Shopping is better for sites with a large volume of products. For example, if your site sells 1,000 products, you would ideally have one ad for each product, with the landing page for each product being the product details page. Then you would want Google Shopping vs Google Ads. Setting up the same scenario in Google Ads is complicated and more time-consuming to manage.
  • Google Shopping pay per click (PPC) ads usually lead to much higher click-through rates. While traffic and revenue increase, more clicks means spending more ad budget. They are also generally less expensive per click, but there is more competition. Prior to 2012, Google Shopping ads were completely free.
  • Google Ads pay per click (PPC) ads are better for branding, messaging, and promotions.

Google Shopping Tips:

If you’ve made the decision to use Google Shopping Ads for your eCommerce PPC, then these tips should help you:

Top 3 Best Practices for Google Shopping Campaigns.

  • Maintain feeds and product data quality.
  • Optimize for unique product categories.
  • Prepare and optimize for big events.

 

Quality of your product feed is important, so ensure that its free of errors. If your data feed doesn’t match your website, then Google will not show your product ads.

Become a “Google Trusted Store” to rank higher and increase click-through rates.

Use a unique product image (avoid stock photos on eBay, Amazon, etc.), make sure your images are high-quality, and free of watermarks.

Google Merchant Center and Google Ads accounts are required. However, a standard Google Ads text ad campaign is not required to use Google Shopping.

google-partner-RGB-search-mobile-shop

Our team of search specialists is certified and experienced in Google Shopping, Google Ads, and Google Analytics. Contact Us today to get started with a Pay Per Click campaign that works for you.