Abstract
This paper will discuss conversion rate optimization in online retail environments. The paper reviews previousliterature on the topic and then examines how one company has created its own model and used the model tosuccessfully to enhance Internet businesses’ conversion rate optimization. The paper will then synthesize all ofthe factors seen in the literature and the case study model into a new model.A variety of academic papers on the factors affecting the decision-making process of online customers from2004 through 2012 were examined and an in-depth face-to-face interview was conducted with the founder ofClixo at a 2012 United States “online marketing” forum, with a follow-up interviews conducted via email. Thepaper discusses the effectiveness of the new model.This paper identifies the variables that influence online customer behavior and discusses the importance each ofthe seven elements; catalyst, persuasion, usability, interactivity, trust, aesthetics, and marketing mix. Theinterrelationship of the elements at each stage of the customer decision-making process is reviewed.The paper illustrates how e-Retailers can apply the elements of the framework in delivering a website experiencelikely to maximize the number of purchases from online visitors, and to reinforce post-purchase confidence.The paper identifies two additional key elements in conversion rate optimization and develops a new model thatincorporates the two new elements. This new hierarchical model presents the elements stage-by-stage to helponline retailers to convert visitors into customers.
Highlights
1.1 The ProblemThe growth and increasing importance of eCommerce is well documented (Consantinides, Lorenzo-Romero & Gomez, 2010; Kim, Shaw & Schneider, 2003; Moe and Fader, 2004; Rose & Purinton, 2004)
The paper uses the case study to present a new model for conversion rate optimization
The framework is designed to benefit both businesses and consumers. It remains customer focused as was the Clixo model, and is designed to allow companies to provide customers with a better online shopping experience, which will create more online shopping and more profits for E-tailers
Summary
1.1 The ProblemThe growth and increasing importance of eCommerce is well documented (Consantinides, Lorenzo-Romero & Gomez, 2010; Kim, Shaw & Schneider, 2003; Moe and Fader, 2004; Rose & Purinton, 2004). Conversion rates remain very low (King, 2008; Kotha, Rajgopal & Venkatachalam, 2001; Moe & Fader, 2004). There are a number of factors that contribute to the low conversion rates. These include the very large and growing number of websites, which is making it increasingly difficult for organizations to convert visitors into customers; the low cost of visiting websites makes it easy for customers to shop around (Moe & Fader, 2004). Statistics indicate that there are a growing number of individuals using the Internet to perform product research and price comparison, actual purchases made online are still relatively small. E-retailers can win over online consumers in the highly competitive Internet marketplace by analyzing the factors affecting the online consumer’s behavior www.ccsenet.org/ijbm
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