Benchmarking Your eBusiness Success
Benchmarking Your eBusiness Success
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Do you wonder how well or not well you are doing compared to all of the other Internet retailers out there? Have you read about the Top Ten Internet retailers such as ProFlowers with it thirty one percent conversion rate, LL Bean at twenty six percent and Amazon with its twenty four percent conversion rates and wondered what you are doing wrong?
Well, Internet Retailer has just published benchmarking data ‘for the rest of us’. Internet Retailer surveyed 190 Internet marketing executives and garnered three years worth of conversion data for all of us to study.
Conversion Rate by Percent of Retailers
Conversion Rate 2007 2008 2009
0% – 1% 7% 11% 4%
1% – 2.9% 36% 37% 44%
3% – 4.9% 26% 23% 21%
5%-7.9% 12% 13% 17%
8% – 20% 10% 8% 9%
More than 20% 1% 1% 1%
Don’t Know 9% 7% 6%
Chart by SB Cass Associates; Data: Internet Retailer
This data suggests several trends taking place.
More retailers are looking at the data
In 2007, nine percent of retailers did not even know what their conversion rate was! You have to ask how they are doing business without this basic knowledge. The number has decreased to six percent in 2009 which is good but still leaves you to scratch your head and wonder about that remaining six percent.
Small improvements in the lower rates.
There seems to be some learning taking place at the lower end of the scale with those achieving zero percent to less than one percent conversion moving downward from a high of eleven percent to a low of four percent. You can see that this group seems to be moving up into the one percent to under three percent range. Not great but certainly better and generally representing the average conversion rate across all retailers.
Savvy retailers are making progress.
Those retailers that were managing to achieve higher than average rates in 2007 seem to be continuing to learn and improve as retailers in the three to almost five percent conversion slot seem to have moved up into the five to almost eight percent conversion rate region. This is wonderful news for everyone. This means that it is possible to get better at Internet marketing and that improvement translates into higher sales.
The best remain the best.
Those stratospheric performers whose sites are at 8% or better, even at 20% or better, know what they are doing and they just keep doing it well with little variation in their achievement.
How about you?
So how do you start moving up the benchmarking chart? It is not luck, it is study and analysis and testing. You need to keep reading about which techniques work best, and then test them in your environment. The majority of retailers said that they plan to focus more on targeted email, better internal search and more customer service which they credit with being the top reason that their customers keep coming back. They also note that testing and analyzing web data are their most important tools for succeeding.
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