Segmenting your Visitors offers you insights

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If you operate an online retail store also known as an ecommerce website, you know the value of information about your customers.   The more you know about their motivations for actions on your site, the more likely you are to create a better user experience.  What’s so important about that you say?  Well the better the experience a visitor has on your site, the more likely they are to convert to a customer.

When taking into consideration that your 1.5% conversion rate actually equals 100% of your online revenue, increasing your conversion rate to 1.75% actually means a 25% increase in your bottom line.  Conversion rates are extremely important and being able to identify certain groups that are more likely to convert on your site is a great way to accomplish that incremental increase.

Below are just a couple of examples of different ways you can group visitors based on types of phrases people may have searched for.  There are several other ways including content they accessed, actions they took, or

For the first example, the website which is an online sports merchandise and apparel merchant was able to use website analytics to divide their visitors into groups based on what they may have searched for.   My goal was to see if I could identify phrases that may convert at a much higher rate so I could increase advertising for those phrases while reducing advertising for phrases that perform below a set standard.   Let’s take a look at some of the results of this exercise.

The following graph shows the site’s conversation rate for all organic keywords which is about 1.2%.

If we segment these phrases we can observe that some groups are much likelier to purchase.

If we segment these phrases we can observe that some groups are much likelier to purchase.

We can see that people that are shopping for gifts are about 134% more likely to purchase.  Ah Ha!  Now we have some good information that we can take action on.    You could start with keyword research/discovery, position testing, write more focused and optimized tags and content for these phrases, and the list goes on.  The amazing part is that this is just one example of how you can use ecommerce website analytics to increase your revenue.

Now if we dig a little deeper, we might find something else.   Let’s segment by visitors that were searching for “apparel”.

Now we can see that those visitors searching for apparel had a much lower conversion rate.  Why is this?  There are several possible reasons including the inventory selection might not be comprehensive enough, maybe the prices are too high, maybe the visitor is landing on a page that isn’t focused to “apparel”.   As an analyst we are now able identify what’s happening and now need to search for why it’s happening.    To do this, we can investigate the time on page, % of new visits, bounce rates, and other site usage data to help answer the golden question of “Why?”

The point here is that website analytics can make a large impact on your bottom. Knowing how to use these tools or hiring an expert to help you discover your site’s potential is even better.  Google Analytics provides a comprehensive analytics package that allows you to a lot of creative segmenting and this article really only begins to scratch the surface.  If you have additional questions or comments, I would love to hear from you.  Thanks!