What Revenue Might Be Hidden in your Digital Channel?
Making a sale online isn’t easy. In fact, approximately 96% of visitors that come to your website are not ready to buy. That’s why you can’t afford to lose even half a percent of your customers that show interest.
However, the reality is that there are hundreds of factors that go into transforming your interested visitors into paying customers. It’s a revenue funnel, and it doesn’t always function perfectly. In fact, sometimes it completely breaks down—leading some of those customers who are ready to buy to abandon your site altogether.
Why should you be concerned about this hidden and unrealized revenue?
- You’ve already earned it. You don’t need to offer incentives to close this business because customers are already motivated to buy.
- You don’t need to hypothesize or run experiments—you’ve already done them.
- This low-hanging opportunity is often financially significant.
You could be missing out on thousands of dollars in revenue on your digital channel because, for one reason or another, your customers are having trouble converting. Why does this happen?
Reasons for Hidden Revenue
There are many reasons that your customers could struggle to put money in your pocket. A few of the most common are:
- Technical Issues: Sometimes websites don’t function as expected and there’s no clear explanation. In some cases, the issue can’t be replicated in testing. For example, a major fast food retailer experienced an issue where customers going through the checkout process were automatically redirected to a postcode entry page. It didn’t happen every time, but it happened often enough that the company was missing out on $1.8 million in annual revenue.
- Timing: A one-second delay in your site speed can result in a 7% reduction in your conversions. A slow website on mobile or desktop can make your customers give up before they reach the end, even if they want to make a purchase.
- Third-Party Compatibility: Many times customers are lost not because of something that goes wrong with your software or website, but because of something that went wrong with a trusted third-party technology.
- Customer Service Disconnect: Trying to match your customer’s online experience to your customer service team can be frustrating. When things go wrong for your customer, or if they’re required to go through a lengthy process to get the issue resolved, most of the time they’ll give up instead and leave their purchase behind. Pizza Hut UK had exactly this problem. They had a difficult time tracking their customers online, so, when an issue occurred, their customer service team took too long to fix the issue. Overall, it cost them almost £7 million in lost annual revenue.
How to Obtain this Digital Channel Hidden Revenue
To make sure you don’t continue to miss out on your hidden revenue potential, you need a customer experience analytics (CX analytics) solution integrated into your website, that tells you precisely what’s going on. This CX analytics solution should have the ability to provide:
- Analytics: You don’t have time to sift through hundreds of customer journeys on your website. Instead, you need to be able to discover the most relevant events within your customers’ journeys so you can review only the data you need.
- Alerts: Instead of having to review your data and analytics on a daily or hourly basis, you should be able to set “alerts” on critical issues so that your team can react in seconds instead of hours or days.
- Reports: Having the right data and analytics are keys to discovering where things go wrong. Reporting that helps you quantify and monetize the customer struggle is crucial.
- Usability Testing: Customers want to make a purchase on a digital channel that is easy to use. You need an at-a-glance summary of the customer experiences on your site, so you know where customers are having potential issues before you lose significant revenue.
- High-Fidelity Replay: You need real-time, high-fidelity replay capabilities so you can watch your website as orders are being placed and review the entire customer transaction process to uncover the unrecognized revenue opportunities.
By using a solution like UserReplay’s customer experience analytics, you can uncover hidden revenue that you have already earned. Our solution lets you record, re-run, and analyze every visitor’s journey on your website. This invaluable information will help you improve your conversation rates, monetize the online customer struggles, fix technical issues, resolve customer disputes, and recover abandoned baskets.