Monday, January 26, 2015

Ryanair Lowers Bounce Rate, Increases Sales

Bounce rate is the percentage of sessions on a website with only one page view. Visitors came; they saw; they left without clicking on anything. This metric comes standard in most analytic tools. It’s not only a metric that’s easy to understand and explain, but it’s also very actionable. By looking at the bounce rate, a digital marketer can quickly identify pages within a website that need immediate attention (Kaushik, 2010).
For example, Ryanair, a low-cost airline company in Europe, used analytics to reduce its website’s bounce rate. Since 99% of Ryanair’s bookings are made through its website, it is the company’s most important marketing tool. As a result of using web analytics software, Ryanair was able to make strategic decisions and increase conversion which, in turn, increased the company’s revenue. One of the main metrics Ryanair focused on improving was bounce rate. Ryanair was able to decrease its bounce rate by 18%, delivering bottom-line growth (At Internet, 2011).
Websites like Ryanair.com need to convert visitors by buying something, filling out a form, etc. If a bounce rate is high, it suggests visitors aren’t finding what they were looking for or the page wasn't user-friendly (Kusinitz, 2014). A digital marketer can drive a lot of traffic to a site via tactics such as banner ads and keyword optimization. However, if these tactics are driving the wrong target audience to the site or the landing page isn’t engaging with these visitors, the time and money put forth to implement the tactics will be wasted. Additionally, bounce rates will be high, and consequently, conversion rates will also be lower as well as the sales that go with those conversions (Kaushik, 2010).  Bounce rate should be measured not only at the aggregate level for an entire site, but also for the site’s top landing pages. Furthermore, an analytics tool should also be leveraged to measure bounce rates and should also be measured for your website’s top referrers and search keywords – both paid and organic (Kaushik, 2010).
To attract the right visitors, digital marketers need to choose the right keywords to attract the desired target audience, not just any visitors. To accomplish this, digital marketers can create multiple landing pages with unique content and keywords for the different target audiences. Top rankings should also be maintained for branded terms. Additionally, attractive, useful meta-descriptions should also be written for search engine users (Kusinitz, 2014). 
To enhance usability, digital marketers should do several things. First of all, they should make text readable. This means there should be good color contrast, legible fonts, large headlines, bulleted lists, a good use of whitespace and sensible organization. Secondly, pages should also use good layout, including a quick navigation, easy to find search, and sectioned content. This content needs to be user-friendly on multiple platforms and browsers. Third, digital marketers can speed up pageload to increase usability. Fourth, a user-friendly web page provides good content that consists of an obvious main message with clear heads and subheads, messages tailored to the target audience, stylish copy and images, a clear call to action, and obvious links to next steps (Kusinitz, 2014).
  In order to test modifications to layout, content, etc. digital marketers can conduct an A/B test, which is “a technique for testing two or more versions of a page on your website” (Kaushik, 210, p. 197). Eye tracking software can also provide valuable insight when trying to lower bounce rate by identifying where people are looking. Therefore, modifications can be made to a page and heat maps can be used to see if elements on the page such as a call to action button to request a demo now draw the visitors’ attention. For example, heat maps enabled Ryanair to learn what visitors interacted with on its site and then used this information to improve its homepage design. Another way to gain valuable information to improve lower bounce rate on a page is through Voice of the Customer (VOC) qualitative data. Web analytics systems do a great job at gathering quantitative data, but in order to describe subtle human behavior, qualitative data is needed. If a visitor bounces, provide them with a quick survey to gather qualitative data about their brief visit to the site (Peterson, 2008).
(At Internet, 2011)

References
At Internet. (2011). Ryanair uses analytics to drive increased website revenue and performance. Retrieved from http://www.atinternet.com/en/documents/ryanair-etravel-4/
Kaushik, A. (2010). Web analytics 2.0: The art of online accountability & science of customer centricity. Indianapolis, IN: Wiley Publishing.
Kusinitz, S. (2014, July 17). How to decrease your website’s bounce rate [Blog]. Retrieved from http://blog.hubspot.com/marketing/decrease-website-bounce-rate-infographic
Peterson, E. (2008). The voice of the customer: Qualitative data as a critical input to Web site optimization. Retrieved from https://www.hashdoc.com/documents/9021/the-voice-of-customer-qualitative-data-as-a-critical-input-to-web-site-optimization

Adobe Uses Conversion Rate to Drive Success

When Adobe Systems launched a new digital marketing campaign for Adobe Marketing Cloud, a collection of integrated online marketing and Web analytics solutions, it used conversion rate as a key metric to measure success. Conversion rate is “the ratio of conversions over a relevant denominator” (WVU, 2015). A conversion happens when a visitor to a website takes an action the digital marketer wants them to take, whether it’s making a purchase or downloading a white paper (Qualaroo, n.d.).
The goal for Adobe’s Marketing Cloud campaign was to convert more visitors to its website into solid leads. Since the campaign launched, Adobe has seen a higher number of inquiries over pre-campaign averages (Adobe Systems Incorporated, n.d.). Perhaps Adobe’s conversion rate is based on the number of visitors that submitted a form to request more information. Company leadership may have decided that in order for this digital campaign to be successful, the conversion rate of this form needed to increase by 10% over pre-campaign averages.
The key performance indicator (KPI) set by the leadership is being reported at the aggregate conversion rate as a 10% increase on form submissions for the site’s entire universe. Adobe also needs to apply conversion rate to a segmented universe as well. A segmented universe is a subset of traffic defined by some period of time, campaign (i.e., banner ad), referrer, etc. Company leadership may measure success by this KPI; however, the digital marketer needs to dive deeper than just the aggregate conversion rate (WVU, 2015).
For example, part of Adobe’s new digital marketing campaign may have included a series of banner ads. Adobe’s digital marketing team would need to know which of the banner ads it is running, converted to the most and least visitors. Adobe may find a banner ad on PCWorld.com converts fewer visitors than a banner ad on CIO.com. Why? Perhaps CIO.com is the better target audience for Adobe Marketing Cloud. Whatever the underlying reason, with limited budgetary resources, a digital market has to be able to spend limited resources wisely. As a result, Adobe may decide to stop advertising with PCWorld.com based on data and not a gut reaction. This money could then be reallocated elsewhere.
To determine the conversion rate for these individual banner ads, a unique URL can be created for each one using tools such as Google’s URL builder (https://support.google.com/analytics/answer/1033867?hl=en). This tool adds custom campaign parameters to your URLs (Google, n.d.). Goal funnels can then be up in an analytics program to report the conversion rate on these URLs (banner ads). Adobe would then be able to see out of the referring banners, identified by their unique URLs, which one had the most and least users submitting the request more information form.
If Adobe is looking to increase or optimize its conversion rate, it can identify trouble spots by looking at and analyzing other key metrics such as bounce rate, exit rate, average time, and average page views. Understanding what’s going on behind these numbers is the first step in devising a plan to improve conversion rate. A high bounce rate means people aren’t finding what they’re looking for; so, they’re leaving immediately. Exit rate is the percentage of people who leave after viewing the page. Therefore, a page with high exit should be a red flag. If average time on site is low, visitors aren’t sticking around long enough to convert. When it comes to average page views, while more page views may mean more engagement, it can also mean a lack of clarity in your conversion funnel if there’s no conversion. By improving upon these metrics, conversion rates will increase (Qualaroo, n.d.).

References
Adobe Systems Incorporated. (n.d.). It’s the ultimate case study: Ourselves. Retrieved from http://success.adobe.com/en/na/programs/ultimatecasestudy.html
Google. (n.d.). URL builder. Retrieved from https://support.google.com/analytics/answer/1033867?hl=en
Qualaroo. (n.d.). What is conversion rate optimization? Retrieved from https://qualaroo.com/beginners-guide-to-cro/what-is-conversion-rate-optimization/
WVU. (2015). Lesson 2: Basic web analytics. Retrieved from https://ecampus.wvu.edu/webapps/blackboard/execute/displayLearningUnit?course_id=_29082_1&content_id=_1454153_1&framesetWrapped=true