Since e-commerce conversion rates have been tracked by the industry, the average has hovered between two and three percent. Yet according to the Fireclick Index, 10 percent of visitors come to e-commerce sites intending to make a purchase. There’s something woefully wrong with this picture.
Rather than spend more money on SEO as a workaround to the problem or procure new technologies within the ever expanding e-commerce stack, online brands ought to focus on the personalization of their existing websites and channels such as social and mobile to create a more engaging shopping experience. By doing this, we believe it’s possible for them to see a multiplier effect on their current investments and beat the conversion curse once and for all.
We recently said we would be announcing a series of partnerships to help our customers realize this vision by extending Baynote’s intent-driven personalization capabilities across all retail touchpoints. As part of that promise, I’m really excited to share the news about Baynote’s partnership with Crowd Factory, a standout leader in the world of social commerce and marketing whose customers include among some of the largest online brands in the world. In a nutshell, our joint solution enables online merchandisers to instantly increase conversions on their social offers and flash deals by automatically tailoring them to buyer intent.
Flash deals and referral offers are an exciting area of innovation in e-commerce, but they’re not reaching their full potential to convert because they often ignore what a customer is actually interested in buying when they see an offer. For example, consider a visitor who’s interested in buying a fleece jacket but is offered a daily deal on a swimsuit. That deal will almost never convert.
There was a great panel on this topic at the Innovate 2011 conference in San Francisco earlier this year where VC panelists from Kleiner Perkins Caufield & Byers, Benchmark Capital and Norwest Venture Partners provided multiple examples of flash deal sites being too random, causing a fatigue of flash deals rather than appreciation and increased consumer adoption. A key takeaway from the discussion was that better personalization is key to the success of flash deals. While flash deal leaders like Groupon have definitely improved their personalization tactics with the ability to target content based on the consumer’s location, gender and age, they would be even more effective if they could optimize the deals based on their current frame of mind and interests.
It’s this level of personalization that Baynote and Crowd Factory are bringing to our joint customers. Now, rather than displaying offers and incentives in an arbitrary schedule to all online shoppers, Baynote enables retailers to present the optimum Crowd Factory offer to individual visitors based on their current intent. We think that’s really powerful.
You can read our press release for more details on the news here.