In the world of online commerce, reaching your desired audience is a must. While it’s great to speak to a large number of potential consumers, what’s even better is speaking to a select few who are actively looking to engage with your company or service. The old adage “quality over quantity” comes to mind here. By optimizing your internet outreach, you can insure you’re correctly reaching your target demographic. Take for example, this story in which a tiny change generated very large results.
The BestMatch Application was added to a commercial television supplier’s website in order to help their customers navigate their extensive inventory and find the TV that best met the customer’s needs. The link to the application was added to the homepage and labeled “T.V. Finder.” After monitoring the progress for a given time, the application received 4% of total traffic from the site —some of which seemed to be users clicking it unintentionally, potentially looking for an application that would search only for a specific TV. Looking into the issue, we decided to change the text of the link and see if we reached a demographic more specifically looking for a guided search engine.
The link was renamed “Personal TV Advisor.” Immediately it seemed that the customers clicking the link were finding the service for which they were looking. Monitoring the change for a comparable duration to the previous link, less people clicked the link (down to 1.8% of total traffic), but those that did made much better use of it. While traffic to the new link went down, total sales per customer actually increased dramatically. Notice the chart below:
In the left column, we see that engaging with 4% of total users amounted to an increase of 11% in sales, a ratio of 2.75, sales lift to total exposure. On the right, after modifying the name of the link, we see that engaging with just 1.8% of total users generated 13% of sales, amounting to a staggering ratio of 7.22, sales lift to total exposure. Thus, by optimizing exposure to a target demographic, BestMatch was able to reduce the overhead of the online retailer (by limiting the number of users utilizing our online application from 4% to 1.8%), while increasing their return on investment by over 260%.
Optimizing your business means working smarter, not harder. Developing and implementing the right tools to communicate with your customers will help them navigate your online sales floor and lead them to the places where they’ll be the most engaged. By targeting only those customers most likely to make purchases you can lower expenses while increasing sales. The key to working smart is reaching your target demographic through optimization.