Ever
 wonder why most grocery stores are arranged pretty much the same way? 
By trial and error, they've learned how every detail of their business 
can maximize their sales as people visit. And anyone trying to make some
 money online can learn some important lessons from how they do it. In 
this post, I'll discuss some of their secrets and how they may help you.
What's a Conversion Rate?
Conversion rate is the number of people who, upon visiting your website, actually do something, whether that's buy a book, sign up for your mailing list, or even click on some link (or ad) on your page. 
 
Anyone
 trying to sell something online, which I obviously am (please glance to
 the right to see the array of products I offer), should put thought into how 
to boost  their conversion rate. 
One
 approach to earning money from your website is just to accept your 
current conversion rate and try to dramatically boost the traffic to the
 site. To keep the numbers simple, let's imagine you make on average a 
penny per visit (I wish!). If that were the case, and you increase your 
traffic by a hundred a day, then you've just earned an extra dollar for 
your efforts.
But
 another approach to maximizing your success focuses on boosting, not 
traffic, but conversion rate. In this case, if you can boost your 
earnings to 5 cents per visitor, then you only need to gain twenty more 
visitors to achieve the same amount.
Lessons from the Grocery Store 
Now,
 there is nothing inherently evil or dishonest about honing your site so
 as to maximize your success. In this post, I'm going to look at the 
ways grocery stores typically arrange themselves for success and suggest
 lessons anyone interesting in online sales might want to employ as a 
result. Some of these "tricks" of their trade are things that I, in good
 conscience, would never employ. Others include things I instinctively 
have done and which I believe have increased my conversion rate. Let me 
know if you achieve any success of your own by including any of these grocery store practices.
The Floor Plan
It
 is no coincidence that virtually every grocery store you enter has 
pretty much the same floor plan. The first major department you are 
funneled into is fruits and vegetables.
Now,
 the fact that people are more or less directed through the store should
 have profound implications for anyone wanting to sell online. This is 
essentially what is known as the "sales funnel." You should construct 
your site in such a way that a visitor who arrives for your content is 
then somehow enticed to explore something you offer, and by clicking 
along, they arrive at the checkout with something in their cart. 
But
 why are you sent into fruits and vegetables first? Personally, I am 
enough of a food hygiene freak that I don't like keeping anything that's
 supposed to be refrigerated out of the cold too long. 
There
 is a psychological purpose to sending you into produce first. You buy 
some fruits and vegetables. You know these things are good for you. And 
you're now congratulating yourself for how well you're going to eat this
 week. You're doing so good for yourself that you certainly deserve that
 treat that you're going to encounter as you continue in the store. 
Fruits
 and vegetables also (with the exception of organics) typically have a 
very low profit margin. The store is perfectly willing to sell you 
apples for a profit of pennies, knowing that you will later buy 
something they actually make money on.
Another
 feature of the typical floor plan of a grocery store is that the 
absolute staples, things like bread and milk and eggs, are situated at 
the complete far end of the store from where you enter.
This
 arrangement is also not accidental. You may be there in that store for 
many things. But you are eventually going to go where they have the 
bread and milk. And that means you will be forced to snake your way 
through the entire store to get there, and possibly pick up a number of 
items along the way that you spot and decide you might want. 
Implications for Conversion Rate
The Produce Section:
 Hopefully the products you're selling online are either the fruits and 
vegetables people know they need, or they're at least the guilty 
pleasure people treat themselves to. But either way, the main take-away 
here is that your overall content needs to be something that the 
consumer will feel good about. If they don't have a positive attitude to
 your content and your site in general, they will be less likely to 
seriously explore a product you are offering on the page. So if your 
page makes the customer feel good, they will be more inclined to either 
reward you with a sale out of appreciation, or treat themselves to your 
product as well.
The Far-Away Staples:
 Theoretically, you could mimic this "trick" on your website by putting 
your "content" (the article they came to read) below a pile of ads and 
offers which the visitor would then be forced to scroll past before 
getting to that "gallon of milk" they actually came for. You see 
websites doing exactly this all the time, when they have a huge ad at 
the top of the article that nowadays even swells in size for a minute 
before finally letting you go.
Personally,
 I just would never attempt this "trick" on my visitors exactly that 
way. I do place product ads after some of my more popular posts, and 
just hope for the goodwill of people that have finished reading the 
post. Maybe placing ads first would get me a bigger return. I don't 
care, it just feels wrong.
Shelving Strategies
Your
 typical grocery store knows that the average person is something less 
than five feet tall and is generally looking straight ahead. For that 
reason, they employ "Eye-Level Shelving." There are frequently better 
deals placed above and below what they're trying to push at the time. 
And we don't see them because we generally don't change our gaze past 
the level of our eyes.
A
 similar strategy is known as "Kid-Level Shelving." Stores put the items
 they know children will beg their parents for just a bit below the 
parents' gaze. 
Implications for Conversion Rate
We
 need to put our products on our web pages in the places our visitors 
are most likely to see them. That's sounds like a no-brainer, but where 
exactly is the web page equivalent of "Eye-Level Shelving"?
There
 are two places that seem to work best. One, is at the bottom of a post 
that you can reasonably hope a person will read in its entirety. As you 
probably know, most people spend about half a second on most webpages. 
They click on, and are immediately off in search of cat memes or 
something. But if they really do read your entire content offering, a 
product placement there at the bottom is very effective, because you 
have therefore placed your product right in the gaze of someone who is 
arguably well-disposed to you. 
For
 the more transitory visitors, it seems that the best place to position 
an ad or a product is on the right-hand side of the page (which is exactly where you can see my books advertised).
 And this is simply because we read left to right. (Reverse this if your
 page is in Hebrew or Arabic.) Every time your visitor reads a line, 
their eye is moving steadily toward your product. And you can therefore 
hope they will possibly notice it there.
Unambiguous Pricing
Many
 stores, in particular the bulk providers like Costco, have learned that
 people respond positively to straightforward and large price signs. If I
 can see the product and know exactly how much it will cost me, I can 
then make an informed decision on whether to part with my money at that 
advertised price. The sheer honesty of the transaction breeds a positive
 feeling toward the product. 
Implications for Conversion Rate
In
 response to this, I added to my websites pricing on all my books. I 
used to content myself with knowing that, were they to click through, 
they would be informed by Amazon as to what my novels cost in paperback 
or Kindle. But I decided to mimic this "Costco" strategy as a way to be 
fully transparent with my audience about the fact that I am selling 
books and they have specific prices. And I'm open to the world on those 
details. 
The Illusion of Opulence
Ever
 notice how stores display dozens of items of the same product right on 
top of each other?  I mean, theoretically they could keep just about as 
many of the item on the shelf as they sell in a week and then restock as
 necessary. Instead, they show you probably more than they sell in a 
month. You'd think that the fact this product looks like it will never 
run out would tell you subconsciously that there's no rush in purchasing
 it now. But the opposite ends up being true. The sheer abundance your 
eye beholds makes you feel as if you are in the presence of riches. And 
that makes you feel good and makes you want to participate in it through
 your purchase.
Implications for Conversion Rate 
I'll
 be honest, since I want to sell my products, I experimented for a while
 with imitating this on my own websites. It's easy to cut and paste 
multiple copies of the same link-embedded product image. And I found 
absolutely no response to this experiment. So I decided instead to just 
use a straightforward presentation of all my books as the best way to 
replicate the "Illusion of Opulence" on my pages. In other words, there 
are so many books and novels here that maybe you'll want to buy one to 
share in the opulence. (Hey, nothing wrong with trying!)
"Deals" That Aren't Really Deals
Grocery
 stores frequently present products as somehow being on sale that really
 aren't at all a deal for you the consumer. They advertise products as 
being at a discount when you buy two of them when, in fact, you can get 
the same savings when you buy just one.
Again,
 there are things in good conscience which I would never do just to sell
 more of my books. I suppose one could place false claims of deals on 
their products, perhaps claim that the book used to cost 12 bucks but 
now it costs just 10. Amazon Kindle does allow writers to put their 
books temporarily on sale. If the sale it truly legitimate, there's 
nothing wrong with publicizing it. But this is yet another case where I 
personally will not imitate every trick in the grocery store's inventory
 just to move more product.
Related Item Grouping
A
 few summers ago, I was in Romania at a supermarket. I needed coffee 
filters. Now, where would you go if you needed them? The coffee aisle, 
right?! Nope, they were just not there. I asked someone stocking shelves
 and was directed to a different aisle altogether. And when I arrived I 
thought, no, they seriously didn't do this. No. But, sadly, yes. The 
coffee filters were in the same aisle as notebooks and printer paper. 
You see, they're all made of ... paper.
I
 hope this sadly true anecdote entertained you, but the take-away is 
that, in a well-run grocery store, of course the coffee filters are with
 the coffee. And the peanut butter is with the jelly. And, even if you 
do keep most of the salsa in the Mexican food aisle, you also keep an 
assortment of it next to the chips. 
Implications for Conversion Rate 
And
 so, if you are selling products, you should certainly arrange them in 
places that align with both other products you offer and also sub-pages 
of potential interest.
Now,
 if you are selling anything on Amazon, they are actually already doing 
this for you. Take a look at what Amazon suggests, were you to click to 
buy one of my books:
 
They
 inform you of what other people bought at the same time, which might 
mean that you also would be interested in that additional item. And 
theoretically, my books show up as the "also bought" item on searches 
for other authors.
But
 another way I try to employ this best practice is by recommending items
 on my own pages based on people's potential interest. So, for instance,
 in my novel In Saecula Saeculorum
 a group of teenagers go back in time to ancient Rome. The novel even 
includes a smattering of Latin in the dialogue. This is the novel is 
listed first on my pages containing Latin resources. Similarly, on my page offering free resources for learning Romanian language, I highlight a novel I wrote which is set in Romania.
Color
Finally,
 grocery stores and the products they sell know that bright colors catch
 your eye and, potentially, your interest. I experimented once with 
making all the links to products on my pages green, based on the 
assumption that, subconsciously, people know that "green means go" and 
therefore they would be inclined to click.
Nope. Nada. Zilch. Yet another failed experiment!
Instead, there are two color-based strategies you may want to try.
First
 off, the massive success of Amazon has possibly predisposed people to 
click on yellowish buttons, which is their signature style. So, maybe 
see if moving to yellowish buttons improves your conversion rate.
 
Another
 thing to experiment with is a replication of Marissa Mayer's now famous
 experiment with shades of blue while she was still at Google. After 
studying tendency for click-throughs when presented with different 
colors, she concluded that people were much more likely to click on an 
ad when the color of the link was a bit more purple than if the blue 
were a bit more green. And so, willing to try new things, the product 
links on my pages do trend toward purple.
Conclusion 
If
 any of the things I've suggested here help you achieve greater success,
 I am glad. I share these thoughts out of the philosophy that "rising 
water raises all the boats." Your success does not diminish my own. Good
 luck to you and God bless! If you do experience any increase in your 
conversion rates after experimenting with any of these ideas, please let
 me know. And I'd sure like to hear of anything you discover that helps 
us all achieve greater success!
 









 
No comments:
Post a Comment