MarketLive Performance Index results are in for the first quarter of 2015, and the data shows continued exponential growth for smartphone activity, with year-over-year traffic growing 269% and revenue growing 123%, to account for 12% of all online transactions.
Merchants need look no further than the Index to justify investment in mobile optimization — not just because of the growth, but because of the missed opportunities evidenced by higher abandonment rates and lower conversion rates, both driven by the larger proportion of activity on smartphones, where orders result in just 1% of visits and abandonment hovers near 85%.
But while it’s undeniable that performance on smartphones overall lags behind computers and tablets, it’s clear that improvement is needed across the board if merchants are to continue seeing gains. In fact, when it comes to key metrics, smartphones were actually the devices to show improvement compared with computers and tablets. While conversion on smartphones is still just 1%, that’s an improvement of nearly 136% over 2014, while on computers, the conversion rate fell by 12%.
Nowhere is this improvement discrepancy more obvious than when it comes to engagement metrics prior to the add-to-cart. The “bounce” or “1-and-out” rate, showing the percent of visits ending after a single page, grew by 19% to 42.6% of all visits — meaning that more than 4 in 10 visits are ending before shoppers have an opportunity to explore sites in depth, much less add items to a cart or make purchases. In tandem with this shift, time on site dropped by 20% and the number of pages viewed per visit dropped 11.4%.
One might assume that these changes were wrought by mobile users, whose on-the-go attention spans are limiting opportunities for deep brand engagement — but in fact, the opposite is true. The bounce rate for smartphones was 41.7%, an improvement of 4% compared with 2014. On computers, by contrast, the bounce rate was 42.6%, up by more than a third from 2014, when the bounce rate was 31.4%. The lowest bounce rate was on tablets, which scored 40.1% — but that figure represents a 19.2% increase from 2014. Similarly, the number of pages per visit grew on smartphones, but dropped on both tablets and computers; while time on site dropped across the board, the loss was steepest on computers, which saw a 21.5% decrease, compared with a 1.6% drop on smartphones.
On the one hand, the performance improvement on smartphones and decline on computers can partly be attributed to the overall shift toward mobile buying behavior; as more savvy, serious shoppers with intent to buy move their activities onto mobile devices, performance is bound to improve.
But the discrepancy might also be attributed to tunnel vision on the part of merchants, who are striving so hard to improve smartphone experiences that they’re neglecting the brand’s offerings on other touchpoints. That’s a mistake — firstly because the bulk of purchases are still coming from shoppers on computers. Additionally, a less device-specific outlook that focuses on touchpoint-agnostic strategies will best serve merchants in the long run; fixating on the latest device on the rise can inhibit merchants from thinking holistically to enable successful engagement with brands wherever consumers choose to shop.
To create brand experiences that are engaging across devices, merchants should:
Go responsive, and do it right. We’re advocates of responsive design as a technique for serving shoppers across devices; not only does it lay a sound foundation for future adaptation to devices as yet unknown, but it gives merchants a significant SEO advantage; Google explicitly recommends responsive design, although the recent ‘Mobilegeddon’ algorithm change doesn’t give higher priority to responsive sites.
At the same time, we’ve cautioned that responsive done poorly can be damaging and costly. To serve the most relevant experiences to shoppers across devices, a one-size-fits-all framework is unlikely to succeed; indeed, our research revealed that the majority of responsive sites employ so-called ‘hybrid’ techniques that serve variations in code depending on the screen size or device type. (Read our whitepaper “The ROI of Responsive Design” for more insights.) Merchants undertaking responsive projects should front-load their projects with ample research to guide decisions about breakpoints and coding methodologies so that they can support the level of complexity their shoppers desire — on computers as well as mobile devices.
Make landing pages work all the angles. Merchants should use their analytics tools to identify their top entry pages and optimize them so they provide shoppers with as comprehensive a glimpse as possible of the brand’s offerings — especially showcasing differentiating customer service features such as product guarantees or popular promotions such as free shipping with a threshold. And, of course, the landing pages merchants designate for advertising campaigns should not only mirror the ad copy text, but present shoppers with options beyond the main offer so that they can explore more deeply in the site.
MarketLive merchant BeachBody presents paid search ad visitors and those clicking on natural search results links alike with full-featured product pages that present rich content and highlight the brand’s money-back guarantee, along with ratings for its fitness programs and compelling customer testimonials. A product comparison tool helps shoppers discern among the product offerings.
Create custom categories and content to match popular terms. To ensure that navigation pathways through site offerings that match shoppers’ intentions, merchants should audit their internal site search logs, as well as inbound natural search terms, and glean potential new labels or classifications. Thematic and seasonal terms and searches for popular brand terms and SKUs give merchants input as to which product and services should be highlighted and which areas deserve further content enhancement.
As merchants respond to shoppers’ input, they should ensure that new content pages and amped-up product pages are given prominence in paid campaigns, social media posts and email promotions, so that they gain maximum visibility with shoppers. A “you asked, we delivered” type campaign can even highlight how the brand is responding to its customers’ priorities — boosting brand reputation while also inviting shoppers to engage. MarketLive merchant Perricone MD used email to highlight a shopper-driven promotion featuring an “original collection at unprecedented value” for its UK subscribers. The email highlights differentiating perks such as free samples and 30-day returns, further incentivizing viewers to click through to the site.