It’s 66 days from the official start of the holiday buying season… Black Friday. Ignore those irritatingly organized friends who smugly announce they’re already done with their holiday purchases. The majority of us are still basking in Indian-Summer barbecues and looking forward to carving our pumpkins. However, if you run a consumer-based business, especially one where you offer your products via an online shopping cart, you’re probably already gearing up for the holiday purchasing frenzy and projecting sales using your online conversion rate.
Conversion Rate refers to the percentage of visitors who land on your site, look around and take action. Depending upon your business, a successful conversion may mean requesting more information by submitting a contact form, downloading an article or white paper, or the holy grail… plunking down their credit card and making a purchase. Online purchasing behavior has undergone significant shifts, especially with regard to SEO and social networking. For our clients we believe a healthy and acceptable online conversion rate is about 2%.
Does your business rely on holiday shoppers? Well, according to the National Retail Federation, 37% of Americans will do some of their holiday shopping before Halloween. To help you prepare for this holiday season, we found some interesting statistics about conversion rates and what drives traffic to a retail site. The Online Report by Jupiter Research commissioned by Rich Relevance claims conversion rates are have remained relatively unchanged between 2010 (2.1) and 2011 (2.13). However they did see a drop in the overall dollar average of an online purchase from $128.27 to $116.58.
OK, that was kinda interesting… but so what?
It Pays To Be Social
Social networking is still relatively new to the holiday shopping scene, and the stats in the Jupiter Research report reflect that fact. Traffic driven by Facebook and Twitter visitors continues to grow, yet online shoppers from those sources comprise less than 1%. Facebook has the most growth as a retail shopping channel, increasing its contribution by 92% between August 2010 and 2011. But what about converting those visitors into buyers? Well, conversion rates are still below average: Facebook is 1.2% and Twitter is .5%. But there’s a bright side. When they do decide to make a purchase, the average dollar per order is higher. Compared to a shopper who landed onto a retail site via Google (they spend about $100), social butterflies from Facebook and Twitter spend more – $102.59 and $121.33 respectively.
Key takeaway: Nurture and entice your Facebook and Twitter followers with holiday specials as these channels continue to grow. Conversion rates may be lower than average, but their purchases are larger.
Are You A Googler?
Hands down, organic search engine traffic continues to be the primary driver – 18% of traffic — sending searchers to retailer sites. Google had the lion’s share at 80.62% (no surprise to us Googlers) with Yahoo and Bing trailing at 9.67% and 7.45%. All kidding aside, getting your business’ website search engine optimized is a best practice. It’s a strategy that will help sustain your online sales all year round. Gleaning useful data from your site’s Google Analytics is the place to start, especially if you need to drive up conversion rates. Landing pages and calls to actions should be based upon real data and what your customers naturally seek.
Key takeaway: Organic search is the biggest driver to onsite traffic, so don’t ignore your SEO strategy.
What’s the formula to making more money via your website? It’s simple:
More Site Visitors + Compelling Landing Pages & Call to Action = Higher Conversion Rates
Interested in testing out Google AdWords this holiday season? We’ve got a few $100 gift cards you can use towards your first Pay-Per-click Campaign. Just use these magic words in our contact form: $100 Google Gift Card. We’ll get you set up in a jiffy.
How can we help?
Is your website lonely, with too few visitors? Need help with conversion rates, enticing those ‘looky-lous’ to become interested prospects or paying clients?
We are the spectrum group, and we offer strategic and tactical consulting so you can monetize your online presence. We can help set up Google Analytics on your site, as well as decipher the incoming data, providing you the web intelligence you need to run your business.