Wednesday, November 21, 2012
We’ve all heard the real estate mantra: Location, Location, Location. If your store is not located in a prime spot, you can expect to fare worse than your competitor who is located on the busiest intersection in town.
The same principle holds true in the digital realm. Like the location factor in physical real estate, it’s a must for marketers and merchandisers to consider how they are using their web real estate to market and promote their products, with an emphasis on maximizing ROI.
As a SaaS provider for third party recommendation solutions, we've had many opportunities to test and optimize the positioning aspects of different tools--and for retailers, the proof is in the pudding.
Recommendations Tool Placement:
Merchandising cross-sells/upsells have become an increasingly important element for eCommerce sites as businesses see their order vales increase and their shoppers engage in product discovery. Whether the recommendations are run internally or via a third party like iGoDigital, manually merchandised or automated, the foundation for success is the same.
If a customer never sees the additional product, even if the most relevant cross-sells are rendered useless. That's why a prominent location is ESSENTIAL. In fact, iGoDigital has reported nearly a 2x increase in conversion rates and engagement metrics by simply including these recommendations "above the fold.” This small change can translate into real dollars for retailers.
One notable apparel retailer tested the location of its recommendations for 30 days by swapping its “recently viewed” products with iGoDigital's personalized product recommendations. They saw a 3% increase in revenue when the recommendations were located above the page fold. This equates to a three million dollar addition to the site’s top line revenue.
Here is a visual representation of the A/B test the retailer ran:
"Location" based best practices for product recommendations:
- Place the recommendation as close to the hero / product image as possible to increase the meaningfulness of the related products and drive conversions
- Use two or more recommendation areas, capitalizing on both the horizontal and vertical space of the webpage and grabbing "eye-share"
Make sure to check out Part 2 of the "Location, Location, Location" blog post to learn more about how location plays into the success of your Guided Selling Tool.