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BizReport : Ecommerce archives : April 27, 2010

McAfee: Etailers need 'cautious' shoppers

When it comes to ecommerce, most brands are looking for more and more traffic. Traffic alone, however, isn't what etailers need according to a recent McAfee report. According to their Digital Window Shopping: The Long Journey to Buy report online brands need consumers who are slow to convert because those consumers are actually more likely to convert.

by Kristina Knight

mcafee.gifConfused? Basically the study indicates that brands and etailers need window shoppers. You know, those consumers who click onto a website, look around and click away. Why? Because these browsers are most likely to return in a day or two to make a purchase.

The study found that on average consumers delay almost 34 hours before making a purchase. Just over half (54%) of online shoppers wait 12 hours to two days before finalizing a purchase, but only about 12% return to make that first purchase within 12 hours. About one-third (33%) return to an ecommerce site more than two days after their initial landing.

Nearly two-thirds (64%) of consumers are what McAfee phrases 'cautious shoppers', meaning they wait at least one day before converting to sale.

The big news from this report, however, is that the longer a consumer waits to convert the higher the conversion rate becomes. The consumer average is 11% for overall purchase conversions, but for consumers who convert less than 12 hours after landing on a page the percentage falls to 9%. For those waiting between 12 and 48 hours, the conversion rate creeps back up to 11% and for those waiting more than five days to make a purchase the conversion rate increases to 13%.

So, even though etailers need traffic, the key is to engage the consumer with brand, ease their sense of security by providing top-of-the-line checkouts and remembering the all important price point. For most browsing consumers, finding the best price is the key to finalizing that purchase. So, while they are away from one merchant they are looking for better offers. Keeping your price competitive and retargeting ads to that consumer can bring them back as buyers.

Tags: conversion funnel, ecommerce, McAfee, online shopping, window shoppers

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