Is there a better way to boost D2C conversion than losing margin?5 min read
Is there a shortcut to increasing sales, without the promotional incentives that dig into profit margins? Shopbrain’s Conversion Optimizer is precisely designed to do that. A smart price transparency tool, it helps consumers make online purchases with confidence.
The popularity of price checking
With the majority of customers looking to the internet for the best deals – and a decline in high street retail – price is an important factor for the online consumer.
According to statistics, the majority of online shoppers will compare prices before making a purchase, with eight in ten American adults price-checking before buying an item1. A feeling of satisfaction in finding a good deal is also essential for 87% of all shoppers2.
Amongst age groups, the majority of all US shoppers under 55-years-old shop around for the best prices, while price-checking is most popular among tech-savvy millennials and Gen Z – three-quarters of 18-34 year-olds3.
The surge in popularity of online shopping, meanwhile, is expected to last. E-commerce will represent 22% of all retail sales worldwide by 2023 – steady growth from last year when online sales were at 14.1%4. And by 2040, it is estimated, as much as 95% of shopping will happen online5.
Why price transparency works
While most shoppers are cost-sensitive, impulse shopping remains popular, with consumers typically making quick purchase decisions. Industry research and Shopbrain’s extensive consumer behavior analysis show that controlled price transparency, with a narrowed-down choice of retail options, can help increase sales.
Most shoppers – almost seven in ten -admit to casual browsing, often on smartphones. And almost 80% of these consumers make casual purchases, making buying decisions rapidly – if not instantly, then within the first hour of noticing the item6. According to Google, micro-moments driven mobile comparison shopping searches have doubled year-on-year7.
In summary, consumers want a more efficient shopping experience with necessary pricing information presented to them at the instant (micro-moment) when they first noticed the item; this approach can drastically reduce the number of options presented to consumers, reduce the frustration associated with price comparison, and increase conversion rate.
Widespread under-investment in conversion optimization
Most online retailers and D2C operators consistently reported that conversion rate – turning clicks into sales – is one of their top KPI central to the success of their businesses. Yet, only 22% of businesses are happy with their current conversion rates. Traditionally advertising and marketing take up the lion’s share of the budget from most businesses; for every $92 spent on acquiring a customer, just $1 is allocated to trying to convert them10. We have seen encouraging development in the right direction in recent years. Unfortunately, most existing conversion optimization solutions still heavily rely on margin-killing schemes such as discounts, coupons, and cash backs, which sacrifice your profitability to increase conversion; this, in our opinion, is only a race to the bottom.
How can Shopbrain boost conversion?
The Smart Conversion Optimizer by Shopbrain allows value-oriented consumers to compare prices quickly and conveniently. Competitive pricing is clearly indicated to the shopper – speeding up the buying process to increase sales.
The tool gathers prices from across the internet and uses a widget to display the advantageous price of your product. The customer knows that they can save time – and money, as your product is demonstrably a good deal compared to options from other retailers.
The layout and product price alternatives are optimized for each individual customer. This will depend on the comprehensive data collected by our intelligent software – from retail data to customer behavior and transactions. The algorithm is specifically targeted to boost conversion rates, and the longer it operates, the better the auto-learning system will perform.
Typically, our clients report a boost in sales of 20%. Plus, the Shopbrain Smart Conversion Optimizer will only ever increase your margin – it will not have a negative effect.
How the Conversion Optimizer finds data
Shopbrain’s Conversion Optimizer works autonomously. It will continuously compare your direct-to- consumer (D2C) product listings with the prices of your online competitors, finding a range of cost options for your items. The smart solution scans the internet, in the same manner as a real human would, without the necessity of API or a data feed.
You will almost immediately gain an understanding of how the tool helps boost sales, with a convenient analytics display. You will be able to assess the impact on your conversion rate and your return on investment (ROI) in real-time backed by concrete data.
It’s also easy to use, with no manual data input or complex configuration. You are invited to see the benefits for yourself in a 3-month free trial. Why not put our solution to the test? Contact sales today! email firstname.lastname@example.org to schedule a free demo.
- PEW Research Center Online Shopping & Ecommerce Survey – http://www.pewinternet.org/2016/12/19/ online-shopping-and-e-commerce/
- Google/Ipsos, Global, Global Retail Study – https://www.thinkwithgoogle.com/data/retail-deal-preference- statistics/
- FAIR Health/Various Sources – https://www.statista.com/statistics/306617/us-generations-comparing- prices-online-for-big-purchases/
- Emarketer – https://www.emarketer.com/content/global-ecommerce-2019
- Nasdaq – https://www.nasdaq.com/articles/uk-online-shopping-and-e-commerce- statistics-2017-2017-03-14
- The PayPal mCommerce Index: Trends Report 2018 – https://www.paypalobjects.com/digitalassets/c/ website/marketing/apac/au/mcommerce-index/paypal-trendreport-2018.pdf
- Google/Ipsos Connect, Rising Consumer Expectations in the Micro-Moment – https://www. thinkwithgoogle.com/data/smartphone-user-expectation-data/
- Zoovu – https://resources.digitaldoughnut.com/partner/zoovu/What-COVID-19-Means-for-Ecommerce-511
- Accenture – https://newsroom.accenture.com/news/consumers-welcome-personalized-offerings-but- businesses-are-struggling-to-deliver-finds-accenture-interactive-personalization-research.htm
- Econsultancy – https://econsultancy.com/why-are-conversion-rates-so-low-infographic/