How To Maintain 2020 E-Commerce Revenue Growth
It is undeniable that the COVID-19 pandemic has completely transformed the retail landscape. While e-commerce was growing confidently prior to quarantine, no one could have predicted the monumental revenue growth it experienced over the course of 2020. This dramatic shift to online shopping came at the price of brick-and-mortar stores that now have to develop a digital presence to survive.
While it may not be something to brag about, many companies have actually done well as a result of the pandemic. Established e-commerce companies like Amazon actually benefited from socially distanced shopping. Their existing channels saw higher demand, and their exclusively digital retail platform was made more desirable. The one question on every retailer’s mind is: will this consumer behavior last?
If e-commerce’s record revenue growth begins to dip and return to pre-COVID levels, then many businesses may have switched platforms for nothing. So, what should you do? One avenue may be to optimize your website’s conversion rates using CRO.
The Transition to Completely Digital Shopping
The greatest change to the economy following the pandemic has been social distancing. Government restrictions against social interactions and indoor environments have resulted in a downturn for many brick-and-mortar businesses. These locations have become unusable in cities and communities where COVID infections are particularly high. The lack of physical interaction has also been a catalyst for significantly higher e-commerce traffic. Regardless of whether social restrictions are in effect, humans will still find a way to engage in commercialism.
The growth in online shopping during the COVID-19 pandemic has been unprecedented. This monumental increase could even be felt within the first month of quarantine. According to Forbes, the number of U.S. and Canadian e-commerce orders has seen year-over-year growth of about 129%. But since the pandemic, that growth has been exacerbated.
As of January 2020, it was predicted that U.S. retail e-commerce sales would hit a record high of $675 billion. But that number quickly changed to $795 billion by the time September forecasts rolled around. That jump is more than 15% what was predicted and 32% greater than the value the previous year.
By the end of 2020, e-commerce sales worldwide are expected to topple $4.2 trillion. COVID may not have started the shift to online shopping, but it certainly accelerated it. But is this trend going to curve?
Is This Boost in Online Retail Only Temporary?
Ohio-based Cognovi Labs has recently applied its Emotion AI to the coronavirus pandemic. This machine learning software is capable of measuring the feelings and emotions of users, businesses, and consumers. In light of the outbreak, Cognovi Labs has created a CrisisMonitor to measure the public’s emotions surrounding the preeminent crisis of COVID-19.
The findings from this data have shown that consumers are growing increasingly tired of online retail. The emotional readings from the CrisisMonitor show that only 43% of U.S. consumers attribute a feeling of joy towards online retail. The other two present emotions, anger and sadness, make up more than 50% of the demographic. A lack of joy supports the growing sentiment of COVID fatigue.
COVID fatigue refers to emotional exhaustion with regards to the obstacles presented by the COVID-19 pandemic. This type of fatigue can be applied to anything from social gatherings to retail experiences. If the Cognovi Labs data supports COVID fatigue, then retailers may be in danger of a wave of in-store retail sales once restrictions are finally lifted. Which means this massive revenue growth may be short-lived.
A transition like this could seriously limit the growth of newer e-commerce platforms and cause a crippling customer stagnation in online spaces. Fortunately, there might be a way to reduce that risk. The answer may be Conversion Rate Optimization (CRO).
How Can CRO Help Maintain Your E-Commerce
What many businesses will forget is that you can still increase your revenues even without increasing your traffic. Because sometimes, profitability is a matter of efficiency rather than volume. If traffic is ever stagnating, you can still increase revenue by converting more of your visitors into customers. This percentage increase in your customer to visitor ratio can be measured by your website’s conversion rate. A conversion rate records the proportion of visitor actions that are converted into purchases. Conversion rate improvement is the number one goal for many e-commerce platforms because conversions literally translate into sales. The best way to boost a business’s conversion rate is through conversion rate optimization or CRO.
How Do You Improve Your CRO?
This is a topic that every business owner is trying to tackle. Effective conversion rate optimization requires effective testing and analysis. It also requires trials and experimentation in order to evaluate which CRO tactics are positively influencing the conversion rate of the website. To be able to successfully leverage and implement consumer data analytics can be unrealistic for businesses without the necessary expertise. Fortunately, that is why data science consultants like Enabled Concept exist. Our industry experts utilize our Enabled CRO processes to effectively analyze, test, and implement conversion-improving solutions.
Using several tools from the Enabled Concept process, our team was able to help a women’s sports apparel e-commerce retailer navigate their stagnating customer traffic. Through the use of session recording and heat maps, our analysts were able to gather information that supported a central hypothesis. The hypothesis was that the website’s slide show, or carousel, was causing friction by distracting and confusing visitors. We carefully tested the carousel hypothesis and found it to be correct. After further research, we concluded that certain changes to the carousel format would result in a projected 25% increase in both conversion rate and revenue.
If you want your e-commerce business to avoid the pitfalls of stagnating traffic, then conversion rate optimization is the perfect tool for you. But in order to maximize your CRO, it is best to use a company like Enabled Concept that can utilize their industry experience, proven processes, and data software to develop successful conversion rate solutions.
For more information on how Enabled Concept can help maintain your 2020 e-commerce growth well into 2020, contact us at our website today.