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Mobile Conversion Rate Optimization

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Conversion rate is a key performance indicator. So, if it comes to eCommerce world, managers should focus on optimizing their mobile touchpoints. Mobile CRO is a report where we analyze reasons for the mobile gap and low conversion rates across mobile eCommerce. With this document, you can explore various optimization techniques, best practices, most usable tools, CRO challenges and more.

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Mobile Conversion Rate Optimization

  1. 1. The Ultimate Guide MOBILE CONVERSION RATE OPTIMIZATION
  2. 2. Mobile Conversion Rate Optimization In Mobile eCommerce As user behavior changes constantly, there is always a need for optimizing and improving website performance. 2
  3. 3. State of mobile conversions | 6 The mobile gap phenomenon | 8 Reasons for abandoning purchase path on mobile devices | 9 How does behavior on mobile and desktop differ? | 11 Conversion rate optimization | 14 Specifics of CRO for mobile eCommerce | 14 Other vital metrics of eCommerce optimization | 15 Best practices for mobile CRO | 19 Consistent user experience | 21 Responsive web design | 23 Time-to-interact and overall speed | 23 Reduce slow elements | 26 Prioritize content for thumb reach | 27 Simplify content on the homescreen | 29 Take full advantage of phone features | 30 Optimize product pages and listings | 31 Provide search tool | 32 Voice search | 33 Visual search | 33 Use product videos | 34 Be responsive to your user | 35 Engage bots and chats | 35 Be persuasive | 36 Control your mobile pop-ups | 36 Re-engage users with push notifications | 38 Simplify all the forms | 39 Ease the mobile checkout | 43 Add innovative payment methods | 45 Use Payment Request API | 47 Resign from CAPTCHA | 47 Which tools are used for CRO in online stores? | 49 Big deploys vs. constant small improvements: Which approach is better? | 52 The most common challenges in CRO | 55 Lack of structured processes | 55 Believing that small changes produce big results | 55 Investing too much in tools | 55 Not including developers on CRO teams | 56 Lack of long-term commitment | 56 Focusing exclusively on conversion rate | 56 Game changers for mobile eCommerce | 58 Progressive Web Apps for CRO | 60 Conversion rate optimization for revenue beyond mobile eCommerce | 62 About the authors | 65 Table of content 3
  4. 4. 4 Conversion rate is one of the most important key performance indicators (KPIs) in the eCommerce world. In the past, businesses that were focused on online sales developed excellent mechanisms for improving conversions across their desktop eCommerce platforms. The effects? Well, we all know success stories of giants like Amazon and eBay. The thing is that those conversion rate optimization strategies are no longer sufficient in today’s eCommerce world. With a global shift towards mobile devices, eCommerce managers should focus on optimizing their mobile touchpoints. Although we passed the tipping point in 2014, the majority of online stores still seem to do nothing or very little to actually meet mobile users’ expectations. According to the report State of Mobile-First ECommerce, the current state of the average user experience is alarming. Poor performance and unoptimized UX are only some of the reasons for which we observe the “mobile gap,” a phenomenon in which much more traffic and time is spent on mobile than on desktop devices, yet conversion rates on desktop are still higher. In this report, we analyze reasons for the mobile gap and low conversion rates across mobile eCommerce. We also explore various optimization techniques and ask UX designers, product owners, and frontend developers from leading companies like Google, Trivago, Tinder, Allegro, OLA, and Konga, for their best practices. In the end, we present you with quick-win and long-term solutions for optimizing conversion rates in mobile eCommerce. This report is brought to you thanks to cooperation with Growcode, Storefront Cloud and Divante. Enjoy! Mobile Conversion Rate Optimization
  5. 5. Mobile Conversion Rate Optimization In Mobile eCommerce State of mobile conversions 5
  6. 6. 6 The rise of mobile commerce is undeniable. Mobile now accounts for over 60% of global eCommerce sales, and that number is expected to increase significantly over the coming years. Despite these rosy figures, mobile conversion rates for online stores lag well behind those of desktop, as is clearly visible from the graph below. The conversion rate for mobile is nearly three times lower than desktop. eCommerce Conversion Rate by Device Mobile has the lowest conversion rate of any major shopping device and lags far behind desktop. 0.00% 1.00% 2.00% 3.00% 4.00% Source:Monetate,Statista Traditional 3.78% Tablet 3.30% Smartphone 1.29% Other 0.13% Mobile eCommerce is up and Poised for Further Growth Estimated mobile eCommerce sales worldwide In 2021, mobile eCommerce (or “mCommerce”) is expected to account for 72.9% of total eCommerce sales. 52.4% 58.9% 63.5% 67.2% 70.4% 72.9% Total mobile eCommerce sales (in trillion U.S. dollars) Mobile as share of total eCommerce Source:eMarketer 2016 0.97 2017 1.36 2018 1.80 2019 2.32 2020 2.91 2021 3.56 Mobile Conversion Rate Optimization
  7. 7. Mobile Conversion Rate Optimization In Mobile eCommerce The mobile gap phenomenon 7
  8. 8. 8 This difference between high mobile traffic and time on mobile versus low conversion rate is known as the “mobile gap.” According to all available data, mobile conversion is much lower than desktop conversion. The data shows mobile conversion rates as low as 25% compared to 50% on desktop. In the majority of markets, retail has the higher proportional audience reach among mobile users than desktop. Nonetheless, mobile sales numbers are much lower, and we see a huge mobile gap. Part of this phenomenon is a result of the different focus of mobile users. One thing is that on the buyers’ journey, users might not yet be in the decision stage; maybe they’re looking for inspiration or are learning about new products. Second, they might use mobile destinations to augment their offline shopping experience. Another concern is users who are ready to buy, but never finish their purchase path. Tools like Google’s Lighthouse audit or Storefront Cloud calculator can give the first answers for what might stop the user before making their purchase. This should be followed by in-depth audits of the purchase path to learn specific users needs. 49% Mobile Revenue Gap Time Spent Mobile Desktop Money Spent 69% 20% 31% 80% Mobile Gap The mobile gap phenomenon ECOMMERCE EXPERT TIP: Jump to the Storefront Cloud calculator to calculate how much you can gain by improving your mobile eCommerce. ECOMMERCE EXPERT TIP: Jump to the Storefront Cloud calculator to calculate how much you can gain by improving your mobile eCommerce. Mobile Conversion Rate Optimization
  9. 9. 9 • Poor product discovery on mobile: According to research by Qubit, mobile users find it difficult to browse and “discover” products on mobile, which causes them to leave online stores without making a purchase. • Use of mobile as a research tool and failure to add products to the basket: Research also indicates that, percentage-wise, the same portions of traffic are engaging with product pages on mobile and desktop. On mobile, however, visitors are not adding products to their basket. There are two reasons for this—use of mobile phones as a research tool (for making a later purchase on desktop) and poor browsing and discovery features, which prevent customers from finding what they want. Visitors are engaging with content, but they are not “selecting” (adding products to the cart). (Source) DESKTOP MOBILE Attract 100% Engage 66% Select 18% Transact 9% Attract 100% Engage 67% Select 13% Transact 5% • High cart-abandonment rates: A number of factors—including lengthy checkout forms, convoluted payment processes, registration requirements, and a lack of clear information—mean that mobile eCommerce has an unusually high cart-abandonment rate. This is shown clearly in the graph on the right: Reasons for abandoning purchase path on mobile devices Mobile phones have the highest cart-abandonment rates. (Source) 0 25 50 75 Global 77.24% Desktop 73.07% Tablet 80.74% Mobile 85.65% Mobile Conversion Rate Optimization
  10. 10. 10 • The size of mobile screens is a big hurdle: It’s very difficult to suggest additional products and enable product discovery on a small-screen device. Furthermore, additional information is often obscured. For example, the inclusion of visible notices on product pages about free shipping, discounts, limited stock, etc., is of immense importance in eCommerce optimization. Given the size of mobile screens, however, these details can be difficult to display. ECOMMERCE EXPERT TIP: Are you curious about other reasons for low mobile conversion rates? Check out the best practices for mobile conversion rate optimization on page 19. There is a positive point to be made here, however. Mobile behavior is increasingly shaping eCommerce conversion rate optimization and retailers are often responding with innovative solutions. A deeper understanding of mobile behavior has led to a divergence of approach in regards to user-experience design and conversion rate optimization for mobile and desktop. Online retailers take a mobile-first approach and, for example, have placed much more emphasis on simplifying the customer experience (knowing that time and screen-space are at a premium) and building lightning-fast sites to overcome patchy internet connections. • Slow site speed: As is shown in the graph below, the single biggest reason that shoppers cite for not making a purchase is slow site speed, with conversion dropping by 12% with each second the page takes to load. There is no greater killer of attention and engagement. Slow and clunky site experiences are killing mobile conversions. (Source) 0 20% 40% 60% The browsing experience was faster or easier It was easier to find exactly what I want Total Germany FranceUS UK It was easier to discover new products that I like It was easier to pay I did’t get distracted Mobile Conversion Rate Optimization
  11. 11. 11 North America Shoppers in the US are browsing and buying across all environments and more active on mobile than ever. 68%Advertisers with a shopping app generate 68% of transactions on mobile devices 30% of desktop sales are preceded by a click on a mobile device Shoppers matched on another device spend an avarge of 14% more per order Omnichannel retailers that can combine their offline and online data can apply over four times as much sales data to optimize their marketing efforts How, exactly, does customer behavior differ depending on the platform being used? Let’s take a look at some key insights: • Many mobile purchases are made on the go. Many mobile purchases are made on the go and while multitasking. This helps explain, in part, why mobile conversions are lower. Attention, along with commercial intent, tends not to be as strong or focused when a visitor is browsing products while also taking care of other tasks. Because of this, the importance of retargeting can’t be overstated. Retailers understand this and will often prompt a customer to complete a purchase on a desktop computer. • Shoppers prefer to use apps on mobile instead of websites. 71% of mobile sales in the US are made through smartphone apps. This is a phenomenon that is not mirrored on desktop, where the vast majority of sales are made through websites. How does behavior on mobile and desktop differ? Mobile Conversion Rate Optimization
  12. 12. 12 • Shoppers use multiple devices when making a purchase. One out of every three transactions involves two or more devices. The interesting point, however, is that the majority of touch-points in any multi-device transaction will be mobile. This is particularly noteworthy because it indicates that the disparity between mobile and desktop might not be as clear-cut as it appears, with mobile activity contributing significantly to desktop conversions. Research shows that eCommerce stores with a higher rate of mobile traffic often report higher desktop conversions. More Commerce Marketing Insights Q3 2017 - United States +9% 71% Increase since Q3 2016 32% Desktop 20% Mobile Web 48% App In-app share of mobile eCommerce transactions Share of transactions completed on smartphone Share of transactions by environment Most mobile sales happen in apps Mobile Conversion Rate Optimization
  13. 13. Mobile Conversion Rate Optimization In Mobile eCommerce Conversion rate optimization 13
  14. 14. 14 No matter the reason for low conversion rates, the way to improve performance is through conversion rate optimization. Conversion rate optimization (CRO) is the process of analyzing and improving an online store, or any other webpage, to increase the percentage of users who convert. Conversion rate = number of conversions / number of visitors * 100. The conversion rate is defined as the percentage of online store users that convert out of the total number of visitors. CRO should be a systematic process that improves the online store and helps users finish their purchase path (convert). At first, you have to figure out what your users’ needs are and if there are any obstacles that stand in the way of a purchase. The whole process should start with an in-depth analysis of your online store performance, user behaviors, and needs. Automated tests like Lighthouse will help you learn more about the webpages’ performance and accessibility, but to learn your users behaviors, you’ll have to set up a series of A/B tests or run dedicated research. Lack of users’ attention The typical mobile user splits their attention across multiple channels and devices at any given time. Most commonly, mobile devices are used while watching a favorite TV show or commuting to a different location. What’s interesting is that many users are addicted to a constant stream of information, but at the same time, they lose their focus. The more information, the poorer the attention span. Restrictions of mobile devices Mobile devices, like any other device, have some limitations starting from external factors like low quality of mobile connectivity or dependency on power sources. Internal factors include small screen size, limited storage, or limited functionalities that cause slow, inefficient performance of mobile web pages or apps that keep users from finishing the shopping process. Specifics of CRO for mobile eCommerce ECOMMERCE EXPERT TIP: Analyze your eCommerce with Google’s Lighthouse audit to check performance, accessibility, Progressive Web Apps, and other aspects of your online store. Conversion rate optimization Mobile Conversion Rate Optimization
  15. 15. Download Full Report The Ultimate Guide MOBILE CONVERSION RATE OPTIMIZATION

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