Article

Developing a New Model for Conversion Rate Optimization: A Case Study

Authors:
To read the full-text of this research, you can request a copy directly from the author.

Abstract

This paper will discuss conversion rate optimization in online retail environments. The paper reviews previous literature on the topic and then examines how one company has created its own model and used the model to successfully to enhance Internet businesses’ conversion rate optimization. The paper will then synthesize all of the factors seen in the literature and the case study model into a new model. A variety of academic papers on the factors affecting the decision-making process of online customers from 2004 through 2012 were examined and an in-depth face-to-face interview was conducted with the founder of Clixo at a 2012 United States “online marketing” forum, with a follow-up interviews conducted via email. The paper discusses the effectiveness of the new model. This paper identifies the variables that influence online customer behavior and discusses the importance each of the seven elements; catalyst, persuasion, usability, interactivity, trust, aesthetics, and marketing mix. The interrelationship of the elements at each stage of the customer decision-making process is reviewed. The paper illustrates how e-Retailers can apply the elements of the framework in delivering a website experience likely to maximize the number of purchases from online visitors, and to reinforce post-purchase confidence. The paper identifies two additional key elements in conversion rate optimization and develops a new model that incorporates the two new elements. This new hierarchical model presents the elements stage-by-stage to help online retailers to convert visitors into customers.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the author.

... CRO also means call to action marketing. It related to customer decision processes whether they will turn the status from visitors into purchasers or not (Soonsawad, 2013). Meanwhile LBO can boost local business in search engine towards targeted and near users/consumers. ...
... Due to Optimization in Search Engine skill is new in the academician, there is few literature and previous research. Research on SEO, CRO, and LBO are still few and most spoken in technical or practical ways, for example: Developing a New Model for Conversion Rate Optimization (Soonsawad, 2013), Search Engines and The Public Use of Reason (Elgesem, 2008), Guidelines for Optimizing the Web site through SEO (Rehman, 2013), Trends in Web-Based Search Engine (Shade, 2012). Although all of them are technologies that being accepted by people, there are lack of research in examining factors that affect those technologies acceptance. ...
Conference Paper
Full-text available
There is new and vivid phenomenon among entrepreneurs and practitioners in Indonesia called OPTIMIZer. OPTIMIZer is a person who learn Optimization skill. There are 22 branches of Optimization skill, such as Optimization in search engine, social media (facebook, twitter, etc.), mobile devices (Blackberry, Android, IOs), community web, web TV. All of them are technologies which born from Internet which is an innovation in entrepreneurship context. The aim of this paper is to investigate what factors that affect OPTIMIZer in accepting the technology (optimization skill in search engine). OPTIMIZers play an important role in today's Indonesian entrepreneurial, because they become a 'bridge' between the entrepreneurs, targeted consumers, and reality of Information Technology which always changing. To reveal the factors of acceptance and understand the constructs and relationship among them, data collection from interviewing six key informants (Founders of Optimization skill, Mentor, OPTIMIZers) being anayzed using multiple case studies. Previous research from related context such as Entrepreneurship, SEO (Search Engine Optimization), and Technology Acceptance will be reviewed. The expected contribution is to give fresh insight about new concept of nowdays entrepreneurship, and also to fill the knowledge gap for technology acceptance in entrepreneurship context related in Information Technology field.
... Dönüşüm oranına yönelik çalışmalar web site başarısı göstergesi olarak dönüşüm oranının (Whang, 2007;Soonsawad, 2013) ve web site dönüşüm oranı üzerindeki etkili olan faktörlerin incelenmesi (Moe ve Fader, 2004;Peng vd., 2008;Naveen, Bicen ve Eom, 2016; McDowell, Wilson ve Kile, 2016) şeklinde yoğunlaştığı görülmektedir. Etkileşim ve dönüşüm oranları arasındaki ilişkinin incelenmesine yönelik çalışma ise bulunmamaktadır. ...
Article
Full-text available
Bu çalışmada e-ticaret sitelerine ait Facebook hesaplarında paylaşılan çeşitli içerik türleri ile web sitesinde yapılan satın almalar arasındaki ilişkinin incelenmesi amaçlanmaktadır. Bu bağlamda, Katz (1959) tarafından geliştirilmiş olan kullanım ve memnuniyet teorisine dayanan ve medya araştırmacıları tarafından takipçilerin yapılan paylaşımlarla etkileşime girme nedenlerini araştırdıkları ‗Bilgilendirici‘, ‘Eğlendirici‘ ve ‗Ödüllendirici‘ içerik türleri kullanılmaktadır. Facebook sayfasında seçilen firmanın ilgili içeriklerinin belirlenmesine yönelik 342 adet paylaşımı için İçerik Analizinden yararlanılmıştır. Gerçekleştirilen kodlamalara ilişkin kodlayıcılar arası güvenilirlik katsayısı 0,93 olarak tespit edilmiş olup, belirlenen içeriklere yönelik etkileşim oranları hesaplanmıştır. Her bir içeriğe ait etkileşim oranları, Web sitesi dönüşüm oranlarıyla karşılaştırılarak, bu oranlar arasındaki ilişki incelenmiştir. Ayrıca bu ilişkiyi daha geniş açıdan değerlendirmek için yapılan paylaşımlarda web sitesine yönlendiren linklerin olup olmamasının etkileri de incelenmiştir. Elde edilen bulgular, içerik türlerine göre etkileşim oranlarının gösterdiği farklılıkları ve bunun neticesinde takipçi etkileşimlerinin web sitesinde satın almaya hangi oranlarda dönüştüğünü ortaya koymaktadır. Çalışma bu yönüyle literatüre özgün bir değer katarken Facebook sayfa yöneticileri için de bakış açısı kazandırabilecek sonuçlara sahip olmaktadır.
... For instance, if 100 people visit a website and 3 of them purchase the product, the conversion rate is 3.0% [25]. Prior research has shown that website factors, including website features [26,27] and functionalities [25], and customer factors, including customer reviews and sentiments [28], browsing, and purchasing experiences [29,30], have effects on the conversion rates of websites. ...
Article
Full-text available
Background: With the dramatic development of Web 2.0, increasing numbers of patients and physicians are actively involved in online health communities. Despite extensive research on online health communities, the conversion rate from visitor to customer and its driving factors have not been discussed. Objective: The aim of this study was to analyze the conversion rate of online health communities and to explore the effects of multisource online health community information, including physician-generated information, patient-generated information, and system-generated information. Methods: An empirical study was conducted to examine the effects of physician-generated, patient-generated, and system-generated information on the conversion rate of physicians' personal websites by analyzing short panel data from 2112 physicians over five time periods in a Chinese online health community. Results: Multisource online health community information (ie, physician-generated, patient-generated, and system-generated information) positively affected the conversion rate. Physician-generated and patient-generated information showed a substitute relationship rather than a complementary relationship. In addition, the usage time of a personal website positively moderated patient-generated information, but negatively moderated physician-generated information. Conclusions: This study contributes to the electronic health literature by investigating the conversion rate of online health communities and the effect of multisource online health community information. This study also contributes to understanding the drivers of conversion rate on service websites, which can help to successfully improve the efficiency of online health communities.
... Therefore, when prices to compare different products are provided, for example, it might be as important to aim for high aesthetical appeal as communicating product information. This finding is a valuable insight for the field of conversion rate optimization supporting conversion models, which stress the impact of aesthetics on the buying decisions in online stores (Soonsawad, 2013). ...
Article
Users access the Internet not only to pursue specific goals (e.g. searching for information), but also to browse through content in a more exploratory fashion. The current study experimentally manipulates participants’ tasks in order to investigate how goal-directed (searching) or exploratory (browsing) website activities moderate the impact of key website attributes on users’ overall judgements. A total of 481 participants fulfilled either browsing or searching tasks online and rated the subjective perception of content, aesthetics and usability, as a predictor and overall impression, recommendation and revisit intention as outcome variables. Using path-models, the results show strong and positive relationships between predictor and outcome variables that were moderated by the task. In the browsing condition, both the recommendation and revisit intention were only, but strongly, predicted by content perception. When searching, this relationship was weakened and also related to aesthetics. The impact of perceived usability on the outcomes was not significantly influenced by the task. Therefore, the present study provides evidence against the assumption that certain website facets become more or less important for the evaluation of a website, depending on the user’s goal-directedness. Instead, our findings contradict common assumptions on two accounts: Aesthetics as a hedonic website facet may not only be processed in a bottom-up fashion when browsing and usability as a utilitarian website facet may not mostly be processed top-down when searching.
... Aesthetics can cause powerful and positive motives for visitors to stop, explore and possibly give an action to the site. Aesthetics involves style/ atmosphere, design elements, and presentation quality (Soonsawad, 2013). ...
Article
Full-text available
Teachers often find students tasks with less than maximum results. One of the solutions for it is making tasks into products in creative industry. There are some ways to market those products. In this Industry 4.0 era, it allows people to communicate with each other and disseminate information through the Internet of Things (IoT), or the Internet of People (IoP). The creators of the work or what we call these creators will need a medium to expose their portfolio of works. One way is to create a website or online portfolio. In creating an online portfolio, it is important to consider how the page is publicly available. Once the portfolio page is on the first page of the search, and generates a lot of visitors, it's certainly not enough. With the use of Conversion Rate Optimization (CRO) techniques, it will attract visitors to subscribe the online portfolio and increase the conversion rate.
... The archetype approach can be used to segment online customers in order to customize and facilitate their decision-making processes according to their individual needs. An improvement in the online process has the potential to encourage completion and improve conversion rates of searchers to buyers (Soonsawad, 2013). It can also increase the level of satisfaction, which is likely to improve customer retention (Gustafsson, Johnson, & Roos, 2005). ...
Article
This study investigates differences in online purchase behaviour between consumer archetypes. It shows how consumers' decision-making styles and product knowledge define distinct archetypal behaviour that shapes online purchase processes and affects decision-related outcomes: satisfaction with choice; and satisfaction with process. The first study proposes a new modelling approach that creates an accurate representation of decision-making behaviour. Using this method, a clear structure that underlies seemingly chaotic purchase processes is identified. This structure offers an analytical tool capable of capturing behavioural differences between archetypes. The results show that decision-making style and product knowledge affect the structure and complexity of decision-making processes. The second study found that consumers with higher product knowledge are more satisfied with decision-making process and that this relationship is mediated by the duration of decision-making. Maximizers are more satisfied with their choice than satisficers, and this relationship is mediated by the number of alternatives that are evaluated.
... Previous research also suggested prescriptive models that e-tailers could use to enhance conversion rates. For instance, Soonsawad (2013) developed a prescriptive model of increasing online conversion rate and used three cases to analyze the effectiveness of this model. This model, Clixo's conversion framework, comprised five elements. ...
Article
Full-text available
Purpose – This study aims to theorize and empirically examine the relationship between “purchase intention and conversion rate”, “website satisfaction and conversion rate” and “purchase intention and conversion rate”. E-Commerce conversion rate represents the percentage of visits to an e-tailer’s website that includes a purchase transaction. Despite the importance of conversion rates for e-tailers, prior research predominantly used purchase intention and website satisfaction as main dependent variables and implicitly assumed that these variables will influence the actual purchase. Design/methodology/approach – Data on 85 US retail websites were used to test the hypotheses. The unit of the analysis is the online retail website. Regression analysis was used to perform the data analysis. Findings – The results indicate that both purchase intention and website satisfaction positively influence conversion rates. It was also found that website satisfaction positively influences purchase intention. Research limitations/implications – Only data from 85 US e-tailers from the top-100 US online retailers are used to test the hypotheses. Also, conversion rate is only one of the several important success metrics used by e-tailers. Originality/value – This study not only examines antecedents of e-commerce conversion rates, but also theorizes and tests if there is a statistically significant relationship between “purchase intention and conversion rate” and “website satisfaction and conversion rate”. This is because, although previous studies used purchase intention and website satisfaction as main dependent variables and proxies for actual purchase behavior, they did not validate this relationship. This study shows that: there is a statistically significant relationship between “purchase intention and conversion rate” and “website satisfaction and conversion rate”, there is also a statistically significant relationship between “website satisfaction and purchase intention” and this study used firm-level data to theorize, measure and analyze the data, whereas prior literature used only individual-level data.
... Consequently, all phases of the model require that owner-managers develop technical skills to support their ability to track and measure online customer engagement (Chaffey & Patron, 2012;Soonsawad, 2013). ...
Article
Full-text available
The adoption of technology for marketing is essential for the survival of small businesses and yet little is understood about owner-manager practice in this area. This paper aims to address that gap through a qualitative study of 24 owner-managed small businesses operating in the visitor economy. It found that there was a strong appetite for the adoption of technology for marketing and a clear recognition of its opportunities particularly related to how it could create a stronger market orientation and more agile marketing, adhering to the principles of effectual reasoning. However, the ability to take advantage of these opportunities was constrained by a lack of knowledge and in particular an inability to measure the return on investment. While the wider implications of the study are limited by the niche sample, a planning model for the adoption of technology for marketing is presented which can be tested through future research. e-print available at: http://www.tandfonline.com/eprint/BEr9rZchbiimVJK49Bku/full
ResearchGate has not been able to resolve any references for this publication.