What Do High-Performance E-Commerce Websites Do Differently? Results from the 2020 KPI Study
Posted by Alan_Coleman
Hello Moz readers,
We’re proud to bring some insights from the Wolfgang E-Commerce KPI Study 2020.
The annual study provides KPI benchmark data which allow digital marketers analyze their 2019 performance and plan their 2020. The most popular section in the report amongst Moz readers has always been the conversion correlation, where we crunch the numbers to see what sets the high-performing websites apart.
We’re privileged to count a number of particularly high-performance websites among our dataset participants. There have been over twenty international digital marketing awards won by a spread of participant websites in the last three years. In these findings, you’re getting insights from the global top tier of campaigns.
If we take a five-year look-back, we can see the conversion correlation section acts as an accurate predictor of upcoming trends in digital marketing.
In our 2016 study, the two stand-out correlations with conversion rate were:
- High-performing websites got more significantly paid search traffic than the chasing pack.
- High-performing websites got significantly more mobile traffic than the chasing pack.
The two strongest overall trends in our 2020 report are:
- It’s the first year in which paid search has eclipsed organic for website revenue.
- It’s the first year the majority of revenue has come from mobile devices.
This tells us that the majority of websites have now caught up with what the top-performing websites were doing five years ago.
So, what are the top performing websites doing differently now?
These points of differentiation are likely to become the major shifts in the online marketing mix over the next 5 years.
Let’s count down to the strongest correlation in the study:
4. Race back up to the top! Online PR and display deliver conversions
For the majority of the 2010s, marketers were racing to the bottom of the purchase funnel. More and more budget flowed to search to win exposure to the cherished searcher — that person pounding on their keyboard with their credit card between their teeth, drunk on the newfound novelty of online shopping. The only advertising that performed better than search was remarketing, which inched the advertising closer and closer to that precious purchase moment.
Now in 2020, these essential elements of the marketing mix are operating at maximum capacity for any advertiser worth their salt. Top performing websites are now focusing extra budget back up towards the top of the funnel. The best way to kill the competition on Search is to have the audience’s first search, be your brand. Outmarket your competition by generating more of your cheapest and best converting traffic, luvly brand traffic. We saw correlations with Average Order Value from websites that got higher than average referral traffic (0.34) and I can’t believe I’m going to write this, but display correlated with a conversion success metric, Average Order Value (0.37). I guess there’s a first time for everything!
3. Efficiencies of scale
Every budding business student knows that when volume increases, cost per unit decreases. It’s called economies of scale. But what do you call it when it’s revenue per unit that’s …read more
Source:: Moz Blog