Is conversion rate the ultimate number for your E-commerce? Is it revenue per user?
Companies approaching e-commerce find themselves squeezed by two forces: money making and branding.
When your website sells AND tells the STORY of your brand, then big fights start.
What goes on the home page? Our brand video or the last promo campaign?
How to balance commerce and branding?
Some solve the problem creating different websites. Hi! This is us! Want to buy? Then go there.
What is missing in such a debate?
Yesterday I had a casual conversation on the topic with my old friend Claudio Tonti. He put things from an unusual angle.
When you focus all your efforts on your conversion rate, say 3% (very high for a brand selling directly to consumers through multiple channels), and you keep pushing and pushing to improve it…
What about the remaining 97% of visitors?
Are you serving them?
97% of the time your website is serving people that are not buying yet.
They may be buying in 3 years time.
You want to make the right impression to your 97% of not buyers. You want to welcome them, make them understand who you are, why you exist.
You want to let them understand how their life will be better when choosing YOU, your brand.
Finding the right balance between Brand and Commerce for companies that are not pure e-commerce players is biased.
We are focusing on today’s measures (Revenue, AOV, RPU, CR, etc.).
We have no similar focus on what we are building (or not) when dealing with the 97% left.
I argue that your website can serve both goals well at the same time.
Just let’s do not forget that we are delivering a branded experience.
You can enter a boutique of a renowned brand at the “Avenue des Champs-Élysées” and still buy, right there. That does not imply your shopping experience should feel like buying in a supermarket.
What is the ultimate number of your E-commerce store?