A few days ago, I talked with friends in the industry about the topic "How to improve conversion rate". I feel that "conversion rate is like a practice, always in the process of understanding and continuous optimization." For any Internet platform, conversion rate CR should be one of the core goals.

The gaming business considers the conversion from active players to paying players; the advertising business considers the conversion from exposure to visits; and the e-commerce business considers the conversion from consumer visits to successful orders. The essence of conversion lies in commercial traffic. How to efficiently transform user operations into commercial behaviors and continuously shorten user decision-making time to generate more purchasing behaviors is the topic we will focus on in this article.

As a new retail business platform, user loyalty, retention rate, and length of stay on the platform are all factors that determine order conversion. Looking at these indicators from the perspective of event attribution, we can’t do without these three prerequisite factors: user mentality + operational strategy + product experience!

1. Look at conversion rate from the perspective of user mentality

When users enter the platform to shop, they are always influenced by platform advertisements, promotional information, product screening, quality considerations, price comparisons, delivery time and other factors. After a series of behavioral operations and ups and downs in mentality, they finally decide to press the payment password. We might as well break this process down into three steps: the demand generation layer, the target recognition layer and the final decision-making layer. We will use a mind map to sort out the 3 steps for you.

1. The motivation layer is also the demand generation layer. This layer is generated by the subconscious mind after being stimulated by internal/external stimuli. After being generated, a mapping relationship is established with a certain category, thereby solving rigid or non-rigid needs. Therefore, there are several points we can start with as entry points: internal and external stimuli, the mapping relationship between categories, and rigid and non-rigid needs.

(1) Internal and external stimulation. This link can be associated with the “perception layer” in our diagram. Internal stimulation comes from human food, clothing, housing and transportation, and the living conditions are stimulated from the inside out. External stimuli come from external stimulation input from outside through advertisements, things, and environment. The core points of conversion rate are user attribute analysis, user shopping frequency and refined user reach (for example: pregnant mothers have to buy milk powder once a month at a fixed time, we will push a milk powder coupon and reminder 2 days before the purchase to achieve precise reach).

(2) The category mapping relationship is associated with the “cognitive layer” in the table. After having the impression of the product, the next step is to preliminarily clarify what this “thing” is! Why can you handle my needs! The key point is precision marketing, where a text message or a push notification may make a difference (for example: grab a mosquito coil with no odor and no toxicity for 9.9 yuan and have a good night’s sleep).

(3) Rudimentary needs and non-rudimentary needs. Human beings are always greedy. They have needs for survival, enjoyment, development, aesthetics, social symbolism, etc. At this time, we need to quickly grasp the corresponding needs of certain types of people, so we need to continuously refine the user model and break it down using the AARRR model + user stratification/incentive methodology.

2. The thinking layer is also the target cognition layer we just talked about. This layer is the process of users generating needs and initially clarifying the target objects, and then passively or actively receiving countless target objects. In this process, we can fully identify the objects and generate shopping intentions.

(1) Information sources can be divided into active and passive, active information search and passive information input. The conversion rate of actively seeking information must be higher than that of passive input, and the products actively sought are easy to satisfy. For example, orders placed through the search box on a certain JD.com shopping app account for more than 40% of the entire site. Search quality is particularly critical here. Keyword mapping, category association, promotion mapping, and keyword fuzzy search are all factors that improve search conversions. (We will focus on product experience in the next article).

(2) Passive input information is more inclined towards product marketing. When we start to capture these potential customers and find that they have browsed before, big data capture and user reach are very critical at this time. We monitor the user's purchasing performance based on the bounce rate of the product details page, compare the bounce rate trend horizontally, and at the same time, we need to reversely infer the rationality of the product information and perform secondary optimization based on the user's focus points corresponding to the product. Repeat the test for one week to see the effect.

3. The action layer is the last layer, and it is also the most difficult selection layer for users. The amount of information at this time must be the largest, and it is also a process that users need to filter and integrate. Therefore, it is most important to tailor information communication to each individual.

Scenario A: A hot mom buys retail food for her children. During the selection process, she repeatedly observes and understands the production date, freshness, safety and price of the food.

Scenario B: A group of students are shopping for retail products. They focus more on the appearance, whether it is an online celebrity model, brand awareness, and of course the price (after all, their purchasing power is limited).

The purchasing groups in the two scenarios are different, and the focus of the information communication we present to users will also be different. Let me share a detailed case. When we are operating a private domain traffic community, after we classify and manage the users, the messages, activity content, and promotional content we promote will vary depending on the group of people.

The importance of emotional cognition lies more in touching the user's mentality, and the conversion between rigid needs and non-rigid needs will also be more obvious. Idol promotion, packaging of popular products by internet celebrities, content marketing, viral videos/print marketing can all be good entry points.

2. Look at conversion rate from the perspective of operational strategy

When talking about the relationship between operations and conversion rate, it must be multi-dimensional, and the conversion forms will also be different in different application scenarios. How a valid UV achieves a valid CR. We break it down into six major dimensions: resource management, promotion system management, product management, precision marketing, content management and path diagnosis.

1. Resource management, every inch of land is valuable to ensure CR

Resources are always a battleground for e-commerce platforms, so standardized management and standardized indicator considerations are very important. Here are a few principles:

(1) Resource position design: The layout is simple and clear, the products are clearly arranged, there is one sentence of main benefit copy + one sentence of subtitle, and the main button guides the jump.

(2) CR of a resource location: Take the two CR values ​​of the location during off-peak and peak periods, and take the average as the standard.

(3) Compare with the overall CR: The CR of the first screen resource position on the home page must be greater than the overall CR, and the average of the rest can be used.

(4) Resource position rewards and penalties: After one month of sedimentation analysis, rewards and penalties are given according to the resource cycle, with high-value resources being selected.

2. Promotion system, bundling sales increase CR

The principle of product bundling sales is to guide individual UVs to place multiple products or multiple orders out of interest. At the same time, this user is encouraged to attract additional users to place orders, thereby improving the overall CR.

(1) Brand/category discounts: When a brand or category reaches a fixed price, you can enjoy discounts and instant savings.

(2) Discount/free shipping: If the total amount of the shopping cart reaches a fixed price, you can enjoy a discount, instant discount or free shipping.

(3) Free shipping/discount for N orders on the same day: free shipping for the second order on the same day, or 9.5% discount for the third order, etc.

(4) Invite a valid user to place an order and get cash back: Share and invite friends to place an order, and you will get 10%-15% cash back.

(5) Group CR: community group buying/group buying/etc.

(6) Virtual currency system: full-site/category/brand coupons, sign-in points exchange for coupons in multiple scenarios.

3. Product management, exposing the right products to the right people

(1) Core category impression: Establish the core platform of the platform to penetrate and penetrate, focusing on the user's mind.

(2) Products are divided by the dimension of activity effect: The product library is divided into three levels according to the activity rate, namely, high activity rate product library/medium activity rate product library/low activity rate product library; and the three levels are displayed on the homepage according to the cycle frequency.

(3) Products are split by price: Products are split by price, and products with high dynamic effects and no more than 20 yuan are selected as popular products to attract traffic and establish a seed product library.

(4) Exposure of hot-selling products in each category: 20 SKUs are selected from each category and displayed on the homepage to increase shopping guide efficiency.

(5) Product recommendations tailored to each user: Intended purchase categories based on user category preferences/category frequency exposure.

4. Precision marketing, user segmentation, starting from users to improve conversion rate

(1) Differentiation between new and old users: New users can receive a benefits package (50% off coupon for first order, special prices for 10 flagship products, free shipping coupon) in a fixed module on the homepage.

(2) Category user differentiation: Through private domain traffic, users are divided into categories (social groups/public account fans/SMS packages/user packages), and different category combination packages (coupons + products + flash sale benefits) are pushed to different users.

(3) User attribute segmentation: By segmenting users based on basic information such as order frequency, order size, and user age, targeted marketing can also significantly improve conversion rates.

5. Content management, from product content to marketing content to improve user conversion

(1) Product title: brand name + product name + key benefit points (preferably within 15 words). The subtitle can add some promotional benefit points and the core benefit points of the product.

(2) Product header image: two product images from different angles + three product application scenario images + one product image with packaging (6-7 images are best).

(3) Product details page: The overall style must be consistent with the product's tone, such as green/orange for food and gray/plain colors for dairy products; secondly, the layout should be simple and capable, with 30% product display + 50% product application scenarios + 20% product after-sales service and relevant qualification certification information, etc.

(4) Content marketing is also a part of the platform to improve conversion rate. We try to build a "Lifestyle Museum" on the platform. We will embed a large amount of UGC and PGC content in the channel, and push some popular science information, seasonal food recommendations and other information through pictures and texts/short videos. The conversion effect of this part is not particularly obvious and the viscosity is relatively high.

6. Path diagnosis, starting from UV to diagnose the effect of each step

From UV—Length of stay on the platform: When one valid UV enters the platform, the first step we need to consider is the length of stay on the platform. From the data of the early stage of our business, on average, each valid UV stays on the platform for 50 seconds. Therefore, users who stay on the platform for less than 50 seconds and do not make any purchases are the ones we need to pay attention to, as well as the proportion/number of users, etc.

Home page resource position - activity landing page: After the user browses around the platform, he jumps to the landing page by clicking on the resource position on the home page. This jump rate is what we need to pay attention to in the second step. Usually, the jump rate on the first screen of the home page will not be lower than 20%, and the peak values ​​of the full-bar or startup images can reach 40%. Therefore, if the data is lower than this, we need to reflect on whether the resource position material is not well prepared or the entry interest point does not attract users to click.

Event landing page - product details page: After the user enters the event landing page, the next step is to click on the product details. This part is the time to test the product content. The jump rate through the landing page header can reach 15%-20%.

Business details page - add car: The efficiency of adding car is the indicator we consider in this step. It should be noted that the lower the add car rate is, the lower the conversion rate is. The higher the rate is, the better the conversion rate is. Because most potential users will make the purchase directly without adding a car after they develop a desire to buy, we use the car addition rate as a reference indicator and do not make it a core assessment content.

Product details page - order placement: This part is also an indicator of terminal behavior and is particularly important. The conversion from business details to orders also requires screening 1-2 months of valid data to make a judgment and define the middle value. In the early stages of our business, this threshold can reach 10%, and the overall platform can reach 13%-15%, and the peak can reach 20%. This data is already above average for mini program e-commerce.

Conversion rate is an ultimate indicator as well as a process indicator, and a typical event representative of the decreasing attribution methodology. In fact, there are many business details involved, which will be gradually refined and shared later.

Author:leon

Source: leon