E-commerce Performance Model
High-quality performance indicators
Turnover - Customer value - Customer satisfaction
Why the E-commerce Performance Model
Every web shop aims to generate sales and make a profit based on the people who visit and eventually order from the web shop. But online visitors do not immediately become customers. There are a number of intermediate steps before a purchase is made. The E-commerce Performance Model makes every intermediate step measurable and offers the possibility of achieving greater returns from your webshop.
For every client who wishes to do so, we use the E-commerce Performance model as a guideline. Together we will map out critical performance indicators so that it becomes clear how a better return, higher customer satisfaction, higher turnover or lower costs can be achieved. A structured approach will lead to higher customer satisfaction and a higher return.
Also work in a structured way and achieve more success? Then let us advise you on the E-commerce Performance Model.
Contact moments E-commerce Performance Model
A buying process online looks different than when it takes place offline. Online buyers are more critical, do more thorough research and shop around more. Before visitors buy something in your webshop, they have most likely already had a number of contact moments with your products and services. For example, they check how reliable your web shop is, whether the product meets their expectations and whether your product price is fair or even favorable.
It is important to identify these contact moments and then classify them within the different phases of the E-commerce Performance model. Going through all these contact moments until the final purchase decision is made is called the customer journey. We group the contact moments into the five phases of the E-commerce Performance model.
Phases of E-commerce Performance Model
The 5 phases within the E-commerce Performance model consist of: Coming, Looking, Choosing, Buying and Returning. Within each phase we want to be able to identify drivers that ensure that the step to the next phase can be made and thus a partial conversion takes place. We explain the different phases below and which drivers can be important in each phase.
You don't sell anything until you have visitors. So you have to do a lot of work on that. If you are a well-known brand then people will look you up. But almost all online providers have to do something to attract visitors to their site. Of course you can use all kinds of (internet) marketing and (email) marketing automation, but also social media and certainly conventional channels can help you get more visitors to your site.
Important drivers within this phase are findability, familiarity and an attractive proposition.
Once a visitor has found you, you still have to offer the right product at the right conditions. And then your visitor has to find your offer too. This is a combination of content (products), menu structure, search functions and graphic design.
Important drivers within this phase are content, navigation, information and speed.
When the visitor is ready to make a choice(s), a crucial moment arises in his need for timely information. Visitors make the switch here from someone who is merely interested, to someone who wants to make a specific choice. Offering advice and production information on an easily navigable website will facilitate the choice.
Important drivers within this phase are advice, offer, product information, assortment and navigation.
When the visitor has come to a choice, it is important to give maximum confidence in the financial settlement of his choice. This starts with offering a trusted payment method. But fulfilment can also increase conversion by offering options such as free delivery and fast 24-hour delivery. Possibly offering products on approval is conversion-enhancing in this phase.
Important drivers within this phase are trust, content and payment options.
Customers who come back don't need to incur recruitment costs. Customer satisfaction and service are important reasons why customers make repeat purchases. Keeping track of customer history helps you to make a tailored follow-up offer. But also the timing of this follow-up offer can be determined on the basis of any knowledge of customer history.
Key drivers within this phase are satisfaction, personalization and service.
Partial Conversions E-commerce Performance Model
A transition to the next stage within the E-commerce Performance Model is called a partial conversion. A partial conversion can be anything: a subscription to the newsletter for a discount code or downloading product information from the website. Each phase transition creates a barrier and represents a potential abandonment moment. These phase transitions also vary by organization. Multiple successful partial conversions lead to a hard conversion, which is usually the final purchase decision.
Online buyers are more deliberate and have high demands for information in the phase transitions of the online buying process. Before a purchase decision is made, the visitor has gone through at least three phase transitions. With the right information, visitors and existing customers can cross the threshold to the next phase of the online buying process and realize a partial conversion. By using performance indicators within the E-commerce Performance Model we can further optimize these partial conversions.
Performance Indicators E-commerce Performance Model
To know if your organization is achieving the desired goals you will need to measure and monitor performance. Within the E-commerce Performance model we use performance indicators for each phase of the online buying process. When you display the desired performance indicators in a structured way a performance management dashboard is created.
Typical examples of performance indicators within a performance management dashboard are:
- Turnover
- Average Order Value
- Customer Value
- Bounce rate per channel
- Channel conversion
- Recruitment costs per visitor
With these performance indicators, you gather steering information with which you can make important decisions.
Want to learn more about Vicus' E-commerce Performance model?
We can use the E-commerce Performance model as a stand-alone tool for your online buying process, but we can also use it in conjunction with Vicus' JourneyFunnel model. This framework enables you to compare the customer journey of visitors, prospects and customers with the sales funnel of the organization.
In addition, we have established a relationship with the phases from our e-commerce success model. In combination with our e-commerce reference architecture, you will have your automation optimally aligned with the E-commerce Performance model.
Want to know more about how to make e-commerce more measurable in order to achieve higher returns? Then contact us using the form below.
