Forrester released some research findings recently (which I received through a Tealeaf webinar this week) that highlighted how improved customer experience delivers on the bottom line. 67% of large US corporations use customer experience to differentiate themselves from their competitors. Customers who have a better customer experience with a particular company are more willing to buy more products from them, less likely to switch and more likely to recommend the company to others. Forrester estimate that for a $10 billion company, improvements in customer experience could result in an additional $284 million in revenue. Work out what that means for your business.
Caelen King of RevaHealth (now WhatClinic.com) published an excellent case study on Tuesday outlining how they reduced the bounce rate on key landing pages by 6% by tweaking the layout of the content. RevaHealth is a business directory specialising in businesses in the medical sector. Customers come to their website in order to find information about medical services in their area; anything from dentists to plastic surgery in the UK. By understanding the different expectations of customers coming from Google versus other pages on their own website, RevaHealth learned that they needed to offer a different customer experience in each scenario. The pages are now tweaked dynamically based on where the customer has come from. As a result, not only did the bouce rate decrease by 6%, but the conversion rate increased by 14%. Nice work.
In what was a good week for discussion about improving conversions, Barry Hand brought to our attention how the official Vancouver Olympics store increased revenue by using “split” or “A/B” testing. This type of testing sees you offering two different versions of a page or website to different cohorts of customers. Analysis of any differences in behaviours then clearly shows what elements of the design of each page works better. One version of the site, the one they went with in the end, had 12% less bounces; a conversion rate that was 0.6% better; and an overall order value that was 5% better.
Critical in both of these examples is the understanding that improving page design to provide better customer experience can have a real and immediate impact on your bottom line, AND the need to have appropriate metrics and measurement tools in place.