Consumers continue to migrate to shopping online. According to a report from the U.S. Commerce Department and analysis from Internet Retailer, in 2017 online retail spend accounted for 13% of total retail sales. More staggering than the year over year increase in the share of retail sales is the percent of growth by e-commerce. According to Internet Retailer, e-commerce represented 49.4% of growth in retail, rising close to 8% from 2016.
As this growth trend shows no signs of slowing down retailers of all sizes will continue to focus on conversion rates. With more site visitors comes more opportunity to convert (purchase/close the sale). This is where the Indix product platform benefits our retail partners in their goal to increase conversion rates.
There are a number of solutions we offer that help improve conversion; product content in the form of a standardized attribute or derived content like Natural Language Generated product descriptions.
One capability offered to our partners is our metadata; more specifically our brand dictionary. Today Indix has amassed a brand dictionary for over 100k brands with capability to associate parent and child brand relationships. As an example, we are able to associate that brands like Bounce, Bounty, Dawn, and Gillette all roll up under Procter & Gamble.
Metadata can make a huge impact on improving conversion rates and is often underutilized. Using our brand dictionary a number of retailers, shopping apps and deal sites have improved their product classification. Through surfacing more relevant products to their visitors, they are taking steps to increase conversions.
A well-known deal site we partner with is a great example of how good metadata can help improve conversion rates through better product discovery. Their goal is to improve redemption rates of coupons by better surfacing relevant stores and products for a brand when a visitor runs a product search.
Through better ranking and relevance, our client believes their site visitors redemption of offers will greatly increase. After doing some simple back of the napkin math I agree it wouldn’t take much to move the needle. With a minimal .2 of a percent increase in conversion rate, the result could yield an additional $8 million in gross revenue annually. Not insignificant!
There are many factors that help influence an increase in your overall conversion rate and an effective strategy incorporates multiple elements. But ask yourself…how’s your metadata?