On the conversion rate of orders

To do e-commerce, there are usually three kinds of ideas: Internet, retail and supply chain.

The conversion rate can be equated with the site experience, is generally the Internet-born designer or product manager, they will pay special attention to the visual effects of the site, the friendly nature of interaction;

E-commerce can be understood as a retail channel, is generally to do the traditional retail origin, they like to open shops in various places, such as the cat, Pat, when, and so on, and often do some discount promotions;

E-commerce can be understood as a supply chain, such as Amazon, its interface design is not aesthetically pleasing, there is no promotional atmosphere, just as a person in the mall to choose things alone, but its supply chain did very well in place, in the site everywhere highlighting the inventory of goods, delivery time.

What kind of thinking should we choose? There is a principle, that is, the user conversion rate, that is, the user into the store after how many people pay.

Whether the user ultimately orders, is a whole experience, if the user does not know the site, and the first time to enter the discovery interface is very simple, naturally insecure, so we should pay attention to the visual style of the site.

If it is an old user, it is not really concerned about the visual effects of the interface, pay more attention to purchase, the convenience of the order as well as category and logistics; So I think that Amazon is focused on the old users, I first time I know it after two years, I used to think it is my favorite E-commerce site. I did not buy the refrigerator on it, because I do not believe that such a cold site will provide me with fast door-to-door installation services, so I chose Jingdong.

Which aspect of the site should we strengthen? Decide on the user's point of appeal and the company's competitive advantage. Like Amazon, because there are already a huge amount of sticky users, and a powerful intelligent operating system (automated product referrals and stock replenishment mechanisms) can minimize operating costs, providing daily low-cost services (without a strong promotional atmosphere), and supply chains are the focus of such loyal users.

Otherwise, I will not start. The following figure is the core factor of the conversion rate.

Conversion rate is a comprehensive influence factor, which needs the cooperation of all departments of the company to solve. I believe that many product managers have a deep sense of frustration: why I am so confident of the site revision, conversion rate of 0.5%. If the site's product prices generally improve 5%, or competitors at a price reduction of 8%, you see, your site conversion rate will drop how much, if this happened in the new version of the line, you as a product manager waiting for injustice, if your boss does not understand the above figure.

After the website on-line, as the product manager at that time design intuition, must pass the operational data to verify. At the same time, the operations manager will have to consider how to improve the conversion rate.

I think that Operation Manager = Improve operational efficiency + improve conversion rate.

The first step in raising the conversion rate is to monitor the conversion rate. The first step in monitoring the conversion rate is the flow subdivision, which is divided mainly from two dimensions: flow source and flow attenuation rate (purchase funnel).

Flow source determines the quality of traffic, that is, the flow of users in the needs and the relevance of the site merchandise. If you are in a Donkey friends forum to promote maternal and child users, conversion rate is certainly miserable. If you are on a well-known blog, such as Reading on the left bank to promote as a book, it is estimated that the conversion rate is good.

Flow source is the first core factor of conversion rate.

When the user traffic is subdivided, we have the traffic in the subdivision station, for example, the book, go Search users and go to the User Channel home page, the user behavior is completely different, one is a clear intention to purchase the active user, one is the desire to buy a book but did not explicitly purchase the intention of the passive users, such as he has 20 Yuan coupons are almost expired , but I don't know what to buy. For example, if you give him a book list or a book topic, he might have done it.

After the traffic is subdivided through inbound and outbound traffic, it should begin to pay attention to its purchase attenuation rate, that is, the waiver rate of each step, to find out its core factors. For example, the discount rate of the shopping cart reached 45%, because of the registration resistance or because only the shopping cart as a comparison tool? For a user who buys 10 books at a time, it is really meaningful to compare the price of the shopping cart of each purchase book, not a single book. This depends on the user who gave up the shopping cart, how many clicked "go to the cashier", because after clicking "go to the cashier" there is a huge resistance: need to register. This requires monitoring the click of the "go to the cashier" traffic.

In fact, product managers and operations managers are responsible for the same thing: website conversion rate. Before the line, is the product manager according to the intuition and qualitative analysis to design the website, the website on-line, more is from the Operation Manager's operational data, to quantitatively guide the website the further optimization.

According to the above monitoring statistics to the data, it is necessary to start from traffic sources, site landing page, new and old users and other dimensions to weigh the design of the site. For example, like Amazon, if the old users accounted for 70%, the site layout and visual style can not be a big move (or keep the old site entrance), because it will affect the old user's browsing habits.