A few years ago everyone was talking about the importance of measuring the success of our websites and marketing campaigns. Now the conversation has shifted towards the idea of measuring and optimizing not just individual campaigns - but the whole online customer experience.
Digital Customer Experience is the ability to track, measure and explain how customers feel and interact with your online channels. If you're able to explain why people stay or leave, what engages them and what frustrates them and what makes them purchase once or keep coming back for more - then you're optimization effort will be that much more effective. And you'll be in the right position to build a significant brand advantage over your competitors.
When discussing the ROI potential of Digital Customer Experience, nothing is more convincing than cold, hard data. So here are some research findings on the effectiveness of Digital Customer Experience and Website Optimization:
1: Optimization Spend Directly Influences Conversion Rate
- 39% of companies that allocate over a quarter of their marketing budget on optimization have conversion rates of above 5%.
- 58% of companies that allocate under a quarter of their marketing budget on optimization have conversion rates of less than 2%.
Presented a different way - the table above from David Moth at Econsultancy shows that the higher the % of marketing budget spent on optimization - the higher the conversion rate.
2: Session Replay Is More Effective than Statistics
- 57% of companies would consider digital customer experience (session replay) as the most effective way of identifying problems or issues with online customer experience, compared with only 31% of companies that would consider Web Analytics as the most effective.
3. Companies Don't Know Why People Leave their Website!
- 93% of companies cannot quantify, or have only a vague idea of how much online revenue is lost through site abandonment due to poor digital customer experience.
4. Companies Aren't Getting Actionable Insights From Web Analytics
- 96% of organizations have web analytics data. But 63% are not getting customer experience insights from it, or are getting them only occasionally.
From the above snippets of research we can create a clear argument in favor of placing Digital Customer Experience technology at the heart of the enterprise marketing effort:
- Too many companies don't know enough about the vast majority of visitors that are leaving their websites.
- Web analytics, while essential, is not giving the answers or the insights into why visitors leave or why they have a negative online experience.
- Most companies understand that Digital Customer Experience technology is the correct way to identify those negative experiences and alleviate them.
- And finally, that the investment made in optimizing that experience is amply repaid through a direct improvement to the conversion rate (otherwise known as) the bottom line!