Tuesday, November 10, 2015

First E-tail Visit Predicts Future Buying Behavior

Online retailers can judge shoppers by their very first e-tail transactions, according to recent research from Optimove. As reported by Direct Marketing News magazine, Optimove found that one of the best indicators of future transactions is the number of items purchased on the first website visit. Shoppers who buy two or three items are 30% more likely to place a second order than those who bought only one item, per Optimove's two-year study of over a million transactions in varied product categories. In fact, shoppers who purchase more items in their first order are also more likely to join a retailer's top 10% of customers in terms of overall purchases. Wooing more first-time purchases to cultivate repeat customers is especially vital in an online environment where 62% of first-time buyers never place another order, per Optimove data. So how can e-tailers convince new shoppers to buy more? Optimove's research found the follow strategies were the most effective: data-based personalized recommendations before checkout; offers of impulse items during checkout; offers of discounts and promotions for purchase of additional items; encouragement of social sharing about purchases; and gaming mechanics, such as punch cards to earn discounts or freebies on the next order. For more data from the study, go to http://www.dmnews.com/e-commerce/first-transactions-can-predict-future-buying-behaviors/article/447997/

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