Winning the competition for customers in ecommerce is getting more and more complicated. So, having a strategy based on data and current trends becomes very helpful. With this is mind, we studied 93 online stores with a total of 530 million Google Analytics sessions across 15 Central and Eastern European countries.
Some findings look like the old news while the others are somehow new and can influence your digital marketing strategy significantly, especially the choice of instruments. Since it is time to start planning for 2018, let’s learn what data says and how businesses can improve their online marketing.
Returning Customers Are Valuable
They generate 51% of traffic. A conversion rate of returned visitors is 25% higher than a conversion rate of a first-time buyer. And they tend to spend more.
Therefore, using digital marketing instruments such as remarketing, email marketing, social media promotions, etc., to engage and retain customers is usually well-paid off.
Website Page Load Speed Shouldn’t Exceed 8 Seconds
Search engines as well as website visitors like fast sites. It isn’t a secret that Google considers ‘Site Speed’ a ranking factor. Moreover, they intend to apply mobile-first indexing, which means that their ranking system will look at the mobile version of a webpage’s content first.
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We analyzed the page load speed in terms how it affects conversion rates. The study shows that the average value is 8 seconds. Meanwhile, mobile users turn into customers two times more often if the page load speed is less than 8 seconds. And mobile traffic brings 67% more conversions compared to 2016.
So, it makes sense to put an effort into minimizing the webpage load time, especially if the target audience prefers visiting a particular website using smartphones and tablets.
Conversion Rate Should Be Analyzed With Caution
Is my conversion rate is too low? This a one of the most frequently asked questions. And the answer is “Well, it depends”. First, we recommend website owners to analyze the trends. When the value is decreasing, apparently, something has gone wrong. Second, compare your situation with the competitors. The research shows that 52% of ecommerce websites have a conversion rate of less than 1%.
This slightly differs by niches and by channels.
One of the surprising findings for us is the fact that referral traffic demonstrates the second highest conversion rate on the market under the study. Meanwhile, many ecommerce websites focus on increasing organic and direct traffic and, thus, invest in SEO and activities designed to increase brand awareness.
It seems that partnering with established companies and influencers in the niche so that they promote your products using both online and offline tools is worthwhile.
Email Marketing Isn’t Dead
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This is still one of the most efficient digital marketing channels for reaching an audience of online store customers. We have found out that it has 2.25% conversion rate, which is higher than any other digital marketing channel. Another interesting thing is that email marketing demonstrates significantly higher revenue per user.
Another point is that 50% of ecommerce websites that we have examined do not use email marketing at all. So, this is where you or your competitors may lose the opportunity.
Successful Online Store Grows By 30%+ YoY
No surprise that ecommerce market in the countries of Central and Eastern Europe is growing. Over the past 12 months, the number of visits increased by more than 30% and the revenue increased by 38%.
Based on available data, our experts identified a successful ecommerce as a website that increased its profitability by 30%+ over the last year. The share of AdWords in total traffic of the successful projects is more than 50%. They also have used a wide range of referral programs constantly. Check out the following infographics showing data that compares successful to less successful websites:
Takeaways For 2018
The aforementioned data is useful when you assess the condition of your digital marketing strategy and start planning for the next period. To sum up our findings, we identified this short list of hints for ecommerce to succeed in the coming year:
Focus On Returned Visitors And Increase Brand Awareness
In other words, it is recommended to develop long-lasting relationships with your clients. Otherwise, you will hardly be able to enjoy 70% of profits resulted from repeated sales, as the research shows. Based on the knowledge of your target audience, select the tools to retain visitors.
Optimize For Mobile
We can hardly stop repeating again and again: ecommerce websites should provide the best mobile experience for their visitors. People are researching using their portable devices and many of them purchase using mobile. You may invest in re-designing a mobile version of your website, developing an application, or launching a promo campaign specifically for smartphone and tablet users.
Use The Most Effective Marketing Tools
Based on the data obtained, we have identified email marketing as a channel with the highest conversion rate and decent ROI. Not to mention that this is a powerful tool to encourage repeat sales. However, Google AdWords also shows promising results since customer trust Google when choosing an online store.
Develop An Affiliate Program
Referral traffic can amount to 10% of sales with a high conversion rate, so search for marketplaces and individual influencers that can help you sell products and increase brand awareness and loyalty. It is also a good idea to combine online and offline activities for higher engagement.
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* Adapted lead image: Public Domain, pixabay.com via getstencil.com