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Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs Kingston University London 2011, 2012

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Page 1: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Build and Conqueror

How to Build and Optimise ECommerce Sites

CI3103 Electronic Commerce Lectureby Dr Jarek Francikcontributed by Prof. Jonathan BriggsKingston University London 2011, 2012

Page 2: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Introduction: Thumb Rules

Page 3: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

80/20 Rule

80% of the effects are producedby 20% of the causes

20%

80%

Page 4: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

80/20 Rule

80% of the effects are producedby 20% of the causes

• 80% of income from 20% of population• 80% of time spent in 20% of your house• 80% of crashes caused by 20% of bugs• 80% of development on 20% of code

Page 5: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

80/20 Rule

80% of the effects are producedby 20% of the causes

• 80% of visitors only see 20% of the website• 80% of income is made by 20% of customers

• 80/20 rule doesn’t apply to conversion rates: they are usually much lower!

Page 6: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

80/20 Rule

80% of the effects are producedby 20% of the causes

80% of time spent on stuff that generates 20% of income?

how this would affect your business?

Page 7: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Theory of constrains

Page 8: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Theory of constrains

avoid creating barriers

your 20%

Page 9: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Marketing

Building Ecommerce Site

Design

Technology

Page 10: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

How to Build a Site

Page 11: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Typical Timescale

• Vendor Selection (1 month)• Project Planning (1 month)• Design (3 months)• Implementation (3 months)• Testing (1 month)• Content (1 month)

10 months

Page 12: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Vendor Selection

• Freelancer £20 - £40 per hourjust one developer working on the project

• Mid-range £40 - £65 per hoursmall businesses: more resources, more expertise

• Upper range £65 - £125 per hourchallenging solutions, online marketing skills,dedicated project manager

• Top price £125+ per hour

Page 13: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Project Planning

• Build the Model:– use reliable data – forecast for:• conversion rates• retention rates• average order value

– prepare for:• best case• realistic case• pessimistic case

HOW?• use reliable KPI (Key Performance Indicators)

for your market sector

• ask your colleagues in IT and business

• use analytics software

(to be presented in the 2nd part of this lecture

Page 14: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Project Planning

• Prepare and explore alternatives• Examine costs• Identify features that matter (80/20):– navigation & search– product content and imaging– marketing tools– integration– reporting, analytics, optimisation

Page 15: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Project Planning

• Competitor Analysis• Requirements Gathering (Personae!)

• Proposal including cost and schedule estimate

Page 16: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Design

User Analysis Persona Creation

Prototypingand

Wireframing

Evolveand

Launch

Page 17: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

DesignPersona Creation

– Karen is 21 and is engaged to be married

– She wants to show her boyfriend, Gary, the types of wedding rings she really loves

– She has not bought much from the web although she uses Facebook a lot

– She is a bit afraid of using her credit card online

– Karen wants Gary to spend a thousand pounds on a ring – he can afford it

– She wants to let him make the final choice so that it is a surprise

Page 18: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

without personae• What functionality should

we offer?• I don’t like how this is

written• How can we sell more of

these products?• We have to serve the needs

of all our users• We need to convey more of

our brand messages

with personae• What user goals should we

serve?• Karen won’t understand this

product description• How can we help Karen to

buy more of what she wants?• We have to serve Karen’s

goals first• We need to build our brand

by satisfying Karen’s needs

DesignPersona Creation

Page 19: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

DesignStructure

Home

news & articles

this week’s news archive

contact us

contact form

categories

white wines

product page

red wines

product page

sparkling wines

product page

services

parties wine tasting

Landing Pages

Page 20: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

DesignTemplates

Home categories

red wines

sparkling wines

services

parties

wine tasting

news & articles

this week’s news

archive

contact us contact form

product pages

white wines about us

privacy

Landing Pages

Page 21: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

DesignWireframes

The Wine ShopSign in/Register Your account Help

Basket

Red Wines White Wines Sparkling Wines Wine Cases Services

colours

wine styles

wine types

country of origin

price range

Search for Your Wine

Contact Us

Search

About Us

Selected ProductType: Chardonnay, white

Lorem ipsum Lorem ipsum dolor sit amet, consectetur adipiscing elit. Curabitur commodo lacinia nunc, a rutrum enim porttitor et. Phasellus vulputate, justo at facilisis consequat, erat felis varius lorem, ut gravida sem lacus vel turpis. Curabitur egestas viverra tortor, eget sodales nisi interdum a. Aliquam nec libero enim. Integer nec sodales est. Proin rutrum ipsum a orci imperdiet luctus. Vestibulum feugiat vestibulum lectus sit amet auctor. Vivamus metus tellus, venenatis interdum adipiscing eget, hendrerit ut lectus. Donec quis faucibus turpis.

origin style alc. content dry/sweetAdd to BasketPrice: £7.99

Quantity: Similar products:• product #1• product #2• product #3

Wine Caps Recycling

Page 22: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

DesignWireframes

The Wine ShopRed Wines White Wines Sparkling Wines Wine Cases Services

colours

wine styles

wine types

country of origin

price range

Search for Your Wine

Search

offer ad offer ad offer ad

Sign in/Register Your account HelpBasket

Contact Us

About Us

Wine Caps Recycling

Welcome Message

Page 23: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

DesignEvolve & Launch

The Wine ShopYour account | Register | Help

Red Wines White Wines Sparkling Wines Wine Cases Services

Search for Your Wine

Contact Us

About Us

3 items: $32.87

proceed to checkoutfree customer care line: 0 800 555 4353

colours

wine styles

wine types

origin

price

search

special offer

Beaujolais

2 for 1only £3.99

Wine Tasting Trips to Champagne

£199 weekend£129 Thu/Fri

book now!

learn moreabout corkrecycling scheme

Welcome MessageLorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean id mi pellentesque sem posuere pharetra. Aliquam vestibulum, odio ut convallis lacinia, nulla odio luctus neque, euismod ornare nisi dolor .

Page 24: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Implementation

Page 25: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Implementation

• Bespoke systems– PHP – a very bad idea– Java, ASP.NET, Ruby on Rails – slightly better...– PHP frameworks (Zend, CakePHP, Yii, Drupal, Joomla)

• Installed frameworks– Magento Ecommerce– osCommerce (>7,000 community add-ons)

• Hosted solutions– Shopify– Volusion

Page 26: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Testing

• Alpha• Browser compatibility• Beta

Page 27: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Content (copywriting)

• Get through alpha and beta tests first...• Completed system is like an empty box...• Content writing is important• Start writing when the site is commissioned• Use a “content hero”

Page 28: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Content (copywriting)

• Product descriptions• News• Resources• Reviews• FAQ’s• About Us• Policies• E-mails

• Product shots (from different angles)

• Hero images• Other pictures• Logos & Icons

Page 29: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Your site is now up & running

but – this is just a starting point of a long journey...AFTER THE BREAK – OPTIMISING ECOMMERCE

Page 30: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Optimising ECommerce

this part is based on a lecture by Prof. Jonathan Briggs

Page 31: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Some Key Ideas

• Traditional Computing:

analysis – design – implementation – testing – deployment – maintenance

• Essential for Electronic Commerce:– continuous analysis– optimisation

• The goal is to increase profit!

Page 32: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Some Key Ideas

• Consider your website in the context of your business

• Businesses evolve and so do the websites• Effectiveness of on-line marketing can be tracked

(very much unlike the traditional business)• Focus on what really generates the income• Improvements are subject to careful planning

ROI – Return on Investment• Evolution rather than revolution (small changes)

Page 33: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs
Page 34: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Key Indicators

• Numbers of visitors• Sources of traffic• Landing pages• Bounce rates• Returning visitors• Visitor demographics

• Time on site• Goal completion• Changes over time• Advertising ROI• Conversion rates

Page 35: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

A Bit of Economy• A small store:

– Daily visitors = 1,500– Conversion rate = 2%– Average order value = £23

• Q: What is the monthly revenue?• 1,500 * 30 = 45,000 visitors monthly• 45,000 x 2% = 900 orders• 900 x £23 = £20,700 monthly (this is revenue, not profit)

• Q: If conversion rate increases to 2.2%, what’s the revenue:• 45,000 x 2.2% = 990 orders• 990 x £23 = £22,770 (£2,070 more!)

• Q: if average order is now £28, what happens:• 990 x £28 = £27,720

These two changes made £7,020 extra revenue!

Page 36: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Improving Your Site

• Marketing• Search engine

optimisation• Customer journeys

improvement• Better landing pages• Recognise repeat

visitors• Remove barriers

• Improve information• Improve calls to action• Improve decision

support• Improve customer

service• Change the proposition:

free shipping, 2 for 1,click & collect

Page 37: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

A/B Testing

• Test out your changes by offering different experiences to your visitors• Different calls to action, design, information, offers• Don’t assume that there are general rules• Test the big changes first• Use a testing tool such as Google Website Optimizer

Add to basket Add to order Buy

60% 20% 20%

Page 38: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

A/B Testing for marketing

• Test creative including calls to action• Test “maintaining scent”• Test proposition

adword ad

email newsletter

try a free sample of X

the best X on the planet!40%

60%

Page 39: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Statistics

• Sites convert 1% - 8% of their visitors to customers

• Small changes can have dramatic effects on revenue: going from 1% - 2% doubles revenue

• Acquiring new customers can be more expensive than retaining customers

• Many sites are optimised rather than being redesigned

Page 40: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

What should you learn?

• How to read analytics and look at the key numbers

• Some basic business thinking• How to design small experiments• How to think like your client• That this applies to ALL web design and not

just eCommerce

Page 41: Build and Conquer or How to Build and Optimise ECommerce Sites CI3103 Electronic Commerce Lecture by Dr Jarek Francik contributed by Prof. Jonathan Briggs

Issues involved

• Tracking visitors versus tracking patterns• Privacy and data protection• Seeing the wood for the trees• Working with clients and designers• Lessons from one site won’t necessarily

transfer to another