Ecom Revolution
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Can free shipping help truly compel your customers to buy more often? Here is how the psychology of free shipping can encourage customer retention and boost sales.

Read More at Jeff Bullas: https://www.jeffbullas.com/the-psychology-of-free-shipping/

Martin (Marty) Smith:

Free Shipping in 2019

I have a few thoughts about free shipping for next year. 

 

  • More Work
  • Less Work
  • Much Less Work

 

More Work
My team and I have done a lot of Free Shipping tests. We found the best offer in the 4th quarter is $10 above our sweet spot. Our average order values were $55 in all but the 4th quarter and $64 in the 4th. We set our free shipping triggers at $60 and $70 making customers work to earn the best deal. 

 

Less Work

Free Shipping on any and everything lowered AOV but increased dollars to the bank, number of orders and new customers. Loyal customers weren't nearly as turned on by free shipping without a trigger as newbies. 

We used the less work option strategically. Dog Days of summer with a new customer outreach to build the file before Christmas and we used no trigger free shipping. We used it in spots during 4Q too. Black Friday, Cyber Monday and day after Christmas were examples of days we used one-day-only no trigger free shipping. 

 

Much Less Work - free out and back

The trend is free out and back. We never tested this option since my C level managers were paranoid about COGS and the chance we would raise return rates. I think the additional profit and bigger file from free out and back more than pays for any COGs increase but never made that sale. If anyone has done free out and back testing I'd love to hear about it. 

 

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Marty Note
Solid tips here with a few caveats:


* #3 printing is a nice to have now not a must have. Printing just isn't as important, but, for some, a printed piece is easier to share.

* Reviews are now more important in their absence. Having hundreds of reviews is great as it shows the size and value of the tribe formed around a given product. A Customer's voice is always a tad different sounding too, so be sure to curate content FROM reviews.

* High res images is a good idea, but don't slow the delivery of your page down. Use a Content Delivery Network (CDN) to help server your images and videos fast no matter who is looking at your content or from where.

* Product comparisons are great especially if they are social.

* Shipping = we would amend shipping to make sure your FREE Shipping triggers are easy to find / be aware of and set to maximize conversions.

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Top 5 Black Friday Websites Curagami's annual list sees Big Boys move in. Amazon tops the list. There are surprises & we share our Black Friday scorecard.
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This holiday selling season (2014) will happen as close to real time as any thanks to the social / mobile web. Listening and curating are going to be important, but so is tapping the nostalgia and spirit of the season in creative and collaborative ways.

Martin (Marty) Smith:

add your insight...

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Ecom's New  Best Practices
Better have all of these if you expect to make money online these days:
* Easy To Get Free Shipping.
* Easy To Find Sale Section.
* Deal of the Day (once Woot.com only now becoming ubiquitous).
* What's New.
* Best Sellers.
* For Him, Her, Kids navigation (if applies).
* An ASK for User Generated Content.
* Clear "WE VALUE UGC" signals.
* Exciting "Magazine-like" content.

Via Tomorrow's Ecommerce: How To Design Tomorrow's Ecommerce Today on Haiku Deck http://shar.es/1nkirc


Martin (Marty) Smith:

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Is Your Ecommerce Site Designed For MacGuffins?

Martin (Marty) Smith

Ecommerce Website Design For MacGuffins
In film a "MacGuffin" is a plot device that helps move the story. Online McGuffins are expected "cost of poker" design and marketing elements whose absence hurts more than their presence helps. A web MacGuffin's job is to help move visitors on their journey to become buyers and advocates.

Common Ecommerce MacGuffins Include:

* Free Shipping.
* Free FedEx Shipping for premium brands.
* Email subscription boxes with VIP treatment for joiners.
* Social share buttons.
* Satisfaction Guarantee.

While it is difficult to know what any individual site's MacGuffins should be since that is determined by their business vertical EVERY website, without exception, has at least one expected MacGuffin.

Some website categories may have 5 to 10 expected MacGuffins. There are 5 rules for designing websites to create the trust and assurance MacGuffins provide:

* Place MacGuffins where they can do the most good.
* MucGuffins should be LARGE and IN CHARGE in easy to find.
You flaunt MacGuffin convention and "best practices" at your peril.

* Social Share buttons should be ubiquitous and use branded colors.
Create friendly easy to understand policies about things like "satisfaction guarantees" and then NEVER enforce them. 

Writing a more complete post about designing for website MacGuffins now and will share a link on Scoop.it when finished. 
 

Read more
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3 Optimization Tips for Increasing Your Average Order Value
Business 2 Community
One case study highlight by KISSMetrics suggests that upselling may be 20x more effective for eCommerce that cross-selling.

Marty Note
I've used all three of these ideas when I was a Director of Ecommerce. My favorite was trigger point free shipping. We did extensive testing and never say less than a 40% increase over our Free Shipping target. If we set a $60 target our AOV (Average Order Value) was right at 100.

We did see order growth slow the higher up the target. Our AOV ws $63 so raising our target to $75 pushed AOV up but decreased order volume. Without Free Shipping our AOV dropped into the fifties so we more than covered the cost of the offer with the additional $40 we gained.

Unique merchandising can cut out price comparison so liked that tactic for that reason.

Cross-Selling is a great idea to move AOV up and increase your profit mix. If you have a private label where your margins are higher and you can move conversions to it do so. If you have products whose close rate is great use those.

When you up-sale be careful of doing so in the cart. The cart can be great for up-sale if you do so gingerly and efficiently i.e.without any additional worry or work. When your customers want to give you money first rule of ecommerce is take it.

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Ecommies - Identifying ecommerce trends, rate and review ecom tools and hold annual awards.

Holiday 2013 Awards
First Ecommies Holiday ratings are in. William-Sonoma & REI.com top the list in November and December.  L. L. Bean gets "most improved" award from November to December and several trends emerge:

* Free Shipping out and back is trending especially in December. 
* Free shipping all orders is trending. 

* Hiding free shipping behind either codes or triggers is declining.

* Deal of the Day is trending with majors like REI.com adding DOD.

* Standard credit card based loyalty programs prevalent. 

* Still many catalog and retail merchandising tactics such as "door busters". 


Ratings report card on Google docs: http://bit.ly/1bPhwz3 


Holiday ecommerce merchandising wasn't very inspired this year. December ratings went DOWN from November. Based on this year's performance ecommerce is clearly in a rut. 

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Martin (Marty) Smith

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