More payment options could improve eCommerce conversions

According to a recent survey by PayPal, the average consumer in the UK has abandoned a purchase twice in the last month because they couldn’t pay the way they wanted to.

When businesses introduced a new payment type, a quarter saw an increase in sales.

The Customer Journey should be circular

A lot of different approaches are used for mapping the Customer Journey (the ‘soup to nuts’ depiction of your customers’ progress from unaware & unknown person to satisfied patron). Many typically show the path along different states of customer engagement, with the AIDA (Awareness, Interest, Desire & Action) model being a tried & tested one that has stood the test of time – I've also referred to it a lot in this blog over the years.

But as we know, one person’s advocacy can be another’s awareness. And especially with online communications (and especially Social Media) now able to facilitate near-instant feedback about an experience or product, the ratings given by one customer can heavily influence a lot of other people to either find out more and alternatively it can put them off for good.  Or to put it another way, your customers are one of your greatest assets and in most cases they should not just be part of your retention activity, they should be used to fuel your acquisition activity too.

This advocacy therefore means that rather than the Customer Journey being a line from awareness through to the experience of the product or service, it becomes a circle looking something like this:

Awareness:
The phase of the customer journey where a person becomes initially aware of something and wants to find out more.

Interest & Desire:
I've merged the two AIDA model phases into one here, as things get incredibly blurred (and with some products such as consumer electronics, brand devotees jump straight from awareness to intense desire). This is also the phase described by Google as the Zero Moment of Truth and can be the period when a multitude of inputs from all channels are considered.

Action:
This is the goal, the purchase, the sign-up, the commit phase. You get the picture…. (The First Moment of Truth)

Experience:
This phase is when the customer actually experiences their purchase and realises the value of what they have procured. (The Second Moment of Truth)

Advocacy:
Here is where a customer reviews your service and rates the service you have provided. They can do it on your site or on any number of review and feedback sites, or can use social media platforms to voice their satisfaction or disdain. It is therefore these comments and sentiment that in my opinion keep the customer journey cycling around.

The marketing value chain

In a presentation I have recently, I cited the phrase from a McKinsey article a couple of years back

"if marketing has one goal, it is to reach consumers at the moments that most influence their decisions"

This is a fairly broad statement to make and on reflection it sounds like it comes from a psychologist and not a technology driven marketing perspective. However, if marketing is to be efficient in it's delivery, it needs to understand where it sits in the decision making process and ultimately what its goal is... to drive further revenue (and therefore business value).

Below is a diagram I have used fairly often to simply show the marketing value chain:

Although it is a pretty obvious process (and typically used in the context of digital marketing) it does tend to focus the role that marketing of any sort should have:

1. To create the relevant traffic (store visitors, website clicks, etc.) that creates the greatest number of prospects
   Note: Relevancy can mean anything from a greater propensity to buy through to more profitable ones.
2. So that these people then go on to convert (online, this is typically called a 'goal' and can be anything from an online purchase to a downloaded brochure)
3. So that this then creates business value for the organisation.

Multi-channel retail meets Shopper Marketing

For many of us who come from the digital world, the mere existence of a whole area of retail analysis called Shopper Marketing is a bit a surprise.
http://en.wikipedia.org/wiki/Shopper_marketing

And even those like me who are aware... but talk, write or generally think about multi-channel retailing, tend to focus on digital first and in-store second.

But if the statistic in that above Wikipedia article that '70% of brand selections are still made in stores' is to be believed... then online needs to get realistic about the influence it really has at the point of sale. Now I've no actual evidence to contradict this figure, but it does feel a rather high percentage... given that a lot of people will already have made their choice up about the brands they want before they get to the point of purchase.

Over the last few months I've built up my understanding of Shopper Marketing, having worked alongside an agency that specifically does that sort of thing. I actually have to admit I am actually quite impressed with some of the outputs of their work; producing empirical results from their in-store analysis which puts a lot of website testing to shame. For example, heat maps are carried out on different product aisles in various stores from a selection of viewer angles.

In short, digital user experience practitioners could learn a lot from the effort that goes into store planning (where to put products and how customers get to them).

So it does raise the important issue of how these two disciplines come together to:

• Understand the roles that in-store and online now have
• Map the Paths to Purchase (both Digital to Store and Store to Digital)
• Grow customer loyalty and retain existing customers

In short, multi-channel retail / eCommerce and shopper marketing now need to merge into a single area of specialisation... Multi-channel shopper marketing.

Multi-channel digital attribution – what's next?

If you had read the recent eConsultancy report called‘Making Sense of Marketing Attribution’, you would know that the majority of websites are either not carry out any form of attribution or are still apply a last click approach. In this report the client-side marketers responding said that only26% were doing marketing attribution beyond last click … where the last channel used gains all the credit for the acquisition.

The online sector has been gradually moving towards digital multi-channel attribution, although it is still early days. The aim of these efforts is to understand the different online channels or touch points used by customers in their online paths to conversion on eCommerce sites, but:

• There is still little maturity of the attribution market, meaning there are several bespoke offerings and no real common standards between suppliers

•  The current attribution methods used are basic in their mathematical modelling

•  They are online-only, with no consideration for other non-digital channels (e.g. TV or outdoor)

In my experience, there is very little being done to look at the bigger picture that appropriately considers not just the journey and interactions across the disparate online channels, but also the offline ones…and it is here I think there is an opportunity.

I really think that businesses and their agencies need to move away from single channels of data (e.g. website analytics. TV viewing figures, etc.) and also beyond the basic online only attribution models. They need to understand the entire user journey that leads not just to a transaction, but to a longer-term relationship. Only then can business truly understand the influence that different devices, channels, proportional activity and other factors (such a peer recommendations) have on purchasing and subsequent behaviour.