Site Performance Monitoring
High conversion rates are the gold that retailers seek when mining through the mass of data generated by e-commerce Web sites. Conversion is the number that indicates the number of people that actually complete a purchase after entering a site.
In order to achieve significant conversion, ecommerce retailers must ensure that Web sites are running efficiently and that products are being displayed, marketed and targeted effectively. Software that provides Web site performance monitoring --often referred to as Web analytics -- is the best tool that retailers have to achieve both goals.
WHAT IT MEANS
Just as a doctor needs to monitor the health of a patient, a retailer needs to monitor the health of its Web site. Performance monitoring is a vital component of this examination. The bottom line depends on a Web site that runs smoothly and markets merchandise effectively. Two kinds of performance monitoring software are available for retailers: monitors that check a site's technical performance and analytical programs that track customer behavior.
Just as a doctor needs to monitor the health of a patient, a retailer needs to monitor the health of its Web site. Performance monitoring is a vital component of this examination. The bottom line depends on a Web site that runs smoothly and markets merchandise effectively. Two kinds of performance monitoring software are available for retailers: monitors that check a site's technical performance and analytical programs that track customer behavior.
Web site performance systems answer critical questions: Is the Web page loading correctly and in a timely manner? How long does it take for a photograph to appear on the site? How often are customers getting error messages?
In addition to checking for disruptive events, Web site monitors alert the site managers, usually in real time, to allow them to quickly fix the problems. All events are tracked and counted, allowing site managers to create organizational charts that pinpoint areas that need upgrades or fixes.
Analytical programs track customer behavior on the Web site. Key issues these programs look for are: How are customers responding to product links or images on a page? When are they abandoning the search or purchase process? Which site practices drive sales? Which search engine terms lead customers to the site?
WHAT'S AT STAKE
Long load times, pictures that don't show up, searches that time out, unexpected error messages -- all these events lead to customer frustration, which can lead to site abandonment. To avoid losing customers, retailers need real-time access to performance issues.
Long load times, pictures that don't show up, searches that time out, unexpected error messages -- all these events lead to customer frustration, which can lead to site abandonment. To avoid losing customers, retailers need real-time access to performance issues.
Footsmart.com, a specialty shoe retailer, receives an average of 6.6 hits every second to its Web site and boasts 16,000 daily unique visitors. Most site visitors come to buy, not browse, so historically the Footsmart.com Web site experienced an abandonment rate of 40 percent (the national average is 60 percent). However, abandonment spiked following a site redesign, leading Gavin Galtere, application development and network operations director, Benchmark Brands (Footsmart.com's parent company) to implement software from Gomez to root out the problem. Three weeks after implementation, cart abandonment percentages were not only down, but improved from the previous benchmark. "We lowered our already better-than-average shopping cart abandonment rate by another 10 percent," says Galtere. "A substantial lift in revenue of 5 percent to 6 percent soon followed."
Once the retailer is satisfied that its Web site is technically functioning efficiently, it is time to shine the analytical spotlight on the site to rev up conversion rates. Tracking customer behavior as they performreal- life tasks provides insight into the factors that influence customer decisions. Running multiple versions of a Web site, each with a slightly different practice, can help determine which practices are most effective in driving customer sales.
HOW TO SUCCEED
Evaluating customer behavior can lead to bottomline revenue improvements. "Our primary objective in deploying a new analytics solution was to grow company revenue," says Dr. Tom Farin, founder and president of Pegasus Associates Lighting. The specialty lighting retailer increased conversion rates by 55 percent and recorded a rise of 82 percent in sales of its most popular products by implementing SiteCatalyst analytics software from Omniture.
Evaluating customer behavior can lead to bottomline revenue improvements. "Our primary objective in deploying a new analytics solution was to grow company revenue," says Dr. Tom Farin, founder and president of Pegasus Associates Lighting. The specialty lighting retailer increased conversion rates by 55 percent and recorded a rise of 82 percent in sales of its most popular products by implementing SiteCatalyst analytics software from Omniture.
Prior to the implementation, Pegasus had limited insight into how online customers were actually behaving. Using basic information, such as page views, "we were shooting in the dark, making thoughtful guesses about how to improve our site, but never able to measure the impact," Farin says. SiteCatalyst provides information on which products are the most popular. With this knowledge in hand, the retailer featured the most popular lighting items with photos on the home page where they gained higher visibility.
Williams-Sonoma, not satisfied with the conversion rates for bridal registry visitors, used software analytics to learn about customer behavior. "Wedding registry is a core part of our business," says Pat Connolly, chief marketing officer, Williams- Sonoma. "We needed a tool that could help us learn from our customers." Prior to a registry redesign project, Williams-Sonoma employed Keynote to gather information about factors influencing customers purchasing gifts. Evaluations examined how user experience impacted the likelihood a gift-giver will make a purchase. Results indicated that specific product and price sorting techniques made the purchase process significantly more effective.
Other retailers are using analytics to help recover perceived lost business. The J. Crew Web site recorded a rise of 8.7 percent in conversion rates after deploying software from ATG to combat high instances of cart abandonment. Using information about customer buying history, click behavior and search terms, J. Crew offered customers targeted promotions and coupons.
In addition to cart abandonment, retailers are losing business when site quality is not up to par. Timberland turned to Keynote after it ran into problems with site speed and multiple error messages. Through online surveys and customer feedback, the retailer determined that 82 percent of customers experienced frustration during their site visit and only 55 percent of respondents were satisfied with their overall site experience. After deploying Web site performance monitoring from Keynote, the company reports that customer satisfaction with its Web site rose to 86 percent and the likelihood of a purchase rose from 28 percent to 39 percent. CG