With an automated search and merchandising system, you get access to site performance data that can be utilised to discover how your customers are behaving. By asking the right questions you get insights that can guide you to make critical changes in your online merchandising.
The heatmap in the example below represents the top 1000 most sold products over a certain period of time and shows how often a product is abandoned in relation to its price. On average, a product is abandoned about 70% of the times it has been added to cart.
By analysing the data, you can get valuable insights on how to improve site efficiency and lift sales.
Identifying sales opportunities
When strategizing on improving site performance, different approaches for the products below and above the line are needed.
In the upper-left corner, the products, despite being abandoned often, are still among the top 1000 selling products on the site.
To understand why this happens and what to do about it, you can consider questions like:
- Is something missing in the product model for these products?
- Is the product description unclear?
- Is there a competitor selling a similar product?
- What would it mean for the business if these products could perform as the site average?
In the upper-right corner we have relatively expensive products, and even if they are sold often, they are also often abandoned. Relevant questions to ask here could be:
- Is the price set too high?
- Can we do something about the shipping fee?
- Is the product often out of stock?
- Is it missing a product image?
In the lower part of the diagram, the products are seldom abandoned and are performing well. Here you could ask:
- Why are they performing so well? Have they been on sale this period?
- How do they perform when not on sale?
- What’s the price for similar products from our competitors?
- Do these products have information that the others lack?
To systematically handle these kinds of questions and to identify the opportunities, it’s possible to build models to help:
- Identify products that can be converted to sales (like for example the two outliers in the upper-left corner above)
- Identify where to add product information or missing images, address a shipping issue or alter a price which has been set too low or too high.