Dr. Ralph F. Wilson, Editor-in-Chief Web Marketing Today, Rocklin, CA
Nov 7, 2006, 22:10
As you seek to understand online sales, it's helpful to observe that there are essentially two common methods by which online sales take place. Neither is right or wrong; they just fit different kinds of sites. Study these methods to find ways to fine-tune your own online sales.
Linear sales flow is typical of direct marketing landing pages, where the sales pitch flows seamlessly from top to bottom. This model arises from a direct marketing approach -- the "sales letter" -- and works best with a small number of individual products or services. Objections are dealt with as part of the sales letter, which could continue on for thousands of words. No links are offered that could get the potential customer off the "garden path" down which she is being led. There are typically multiple offers and a strong attempt at persuasion. Several special offers are given to "sweeten" the deal. Direct marketing landing pages are carefully tested and optimized, and can achieve a fairly high conversion rate (which, of course, varies from product to product).
Menu-driven sales flow is typical of online stores, where visitors browse a store from the front page as well as through product pages which serve as landing pages from paid search ads. This model arises from a retail sales tradition. In this model, the shopper isn't restricted, but is provided with a navigation system, product search systems, and links to other product categories, site information, etc. This model is used by e-retailers who sell many products. Conversion testing and optimization occur across the entire site. rather than page by page as with the linear model. Conversion rates typically aren't as high as can be achieved with direct marketing landing pages. However, the more successful online retailers are commonly achieving a site conversion rate of 2.5% to 5%. Amazon is reported to have a 14% conversion rate!
I've provided the chart below to characterize different aspects of these sales approaches:
Linear
Menu-Driven
Sales track
Linear, no choices
Menu-driven, many choices
Traffic Source
Click through on paid search ad (PPC) or ad in e-zine
Click through from paid search ad (PPC), natural search, or price comparison site
Select store homepage from ad, favorites, brand recognition, typed in URL, etc.
Site entry
Arrive at landing page
Arrive at product page directly from organic search
Arrive at product page after making various choices in the menu
Type of page
Restricted links landing page
Unrestricted links, product pages serve as landing pages
Store homepage
Number of products for sale
Ideal for relatively few products
Ideal for online store with many products
Historic discipline
Direct marketing
Retail store sales
Navigation
None, no links except to open small windows
Browse categories and site search
Sales pitch
Sales letter
Description on product page
Objections
Deal with in sales letter, sometimes with pop-up windows that are closed after reading
Deal with on product page or shopping cart
Special offers
Offers described in the sales letter
Offers show across product pages
Conversion potential
Higher potential because of specific focus, perhaps lessened somewhat because of limited choice of products
Lower potential because of greater shopper freedom, perhaps raised some because of product choice
Conversion optimization
Focused optimization of text and placement on each specific landing page
General optimization testing of offers, shipping information, order button placement, etc. across all product pages
Promising areas to pursue
See above
Improve photos, write descriptions to make the shopper desire the product rather than just mention features, improve merchandising in site search feature by outsourcing, provide cross- and upsell options, provide clear paths from homepage "store window" into the store to popular and high profit items
And whether your site employs a linear or menu-driven sales flow, I wish you success as you seek increased knowledge of your sales approach and increased conversion rates on your site.
Dr. Ralph F. Wilson, editor-in-chief of Web Marketing Today, pioneered Internet marketing beginning in 1995. He is the author of more than a dozen books and reports in the field, including How to Develop a Landing Page.
