Sage Blog

We’ve just sent out the latest edition of Exchange Magazine – the magazine for members of our Accountants’ Club. It’s packed with useful information to help our Accountants run their business, and we thought we’d give you a preview of one of their articles here on our blog.

If 2011 was the year the world woke up to ‘cloud computing’ then 2012 is set to be the year that mobile shopping becomes the norm. It’s the quiet revolution that’s changing the way we shop – and transforming the way businesses make and receive payments. A powerful combination of new technology, better wi-fi coverage and increasingly powerful handheld devices is now making it easier than ever to access, view, buy and sell goods online – wherever you are. And with mobile broadband services improving and extending their coverage, experts are predicting that connecting to the internet via a smartphone – rather than by using a laptop or PC – will become the main way of accessing web resources for the first time in 2012.

Research commissioned by magazine Retail Week found that UK customers are already spending a staggering £1.3 billion a year via mobile services – with that figure expected to rise to a massive £19.3 billion by 2021. Worldwide mobile phone transactions now account for £148 billion of e-commerce and experts say that figure will treble in the next five years. Food, groceries and electrical items are currently the most popular purchases being made by this new breed of ‘connected customers’ and analysts at Barclays Bank say mobile – or ‘m-commerce’ spending – is growing at the fastest rate of any retail channel.

A separate Google survey found that 79 per cent of UK shoppers now use smartphones for shopping, while 70 per cent use them to check details – including comparing prices – while in store. In September the company launched their Google Wallet in America, enabling users in key cities to download a secure application allowing them to make easy payments. And there are plans to make it available here and in mainland Europe later this year too.

What’s in it for you?

So what more do you need to know about this way of working – and what are the potential benefits for you and your clients? Using handhelds as the primary channel for viewing and consuming goods has huge implications for the way all businesses, and accountants, make and collect payments. As Angus McCarey, UK Retail Director for eBay in the UK says: “Mobile shopping represents a massive opportunity not just for retailers, but for the economy as a whole.” Subscribing to an online payments service like Sage Pay can offer a low cost, efficient way to sell goods and services. Recommending the solution to clients can cut their running costs and allow them to reach out to a new breed of customers – who will soon expect mobile payment systems as standard. In addition to quicker and more streamlined processing, you can also help clients integrate payment solutions with Sage 50 Accounts.

M-marketing

As well as selling and processing, mobile retailing brings huge potential for ‘m-marketing’ – sending marketing materials to clients via their mobile devices. As well as extending the online reach and profile of both your clients and your own practice, this can be a great way to show you are ‘ahead of the game’. It’s worth remembering that people access and view information differently via mobiles than they do when using a laptop or PC. Context is everything. People are often connecting to the web with a smartphone when they’re on the move so your offering needs to be more immediate and quick to use and navigate.

Agencies like the Mobile Marketing Association can offer more advice and tips on how to get started and the type of solutions that will work best for you.

Sheryl Thompson, Exchange Magazine Team

This week we’ve launched the Sage Pay e-business benchmark report 2011.  Now in it’s second year, the report provides dynamic insight into the latest trends, techniques and behaviours that are delivering success for e-commerce businesses.

We’ve been busy compiling statistics from 1000 UK and Ireland based businesses, focusing on every part of their online process, from enticing customers to their website, to encouraging them into buyers.  We’ve also delved into some key growth areas such as mobile commerce and overseas expansion to provide a fully rounded insight into what makes an e-business tick.

The report is peppered with stories and advice from some of our customer who each offer their e-commerce ‘pearls of wisdom’ to bring the report to life.

So what’s the news?

Well what’s really interesting is that, as in our 2010 report, the average e-commerce success rate (completed sales compared to website visitors) is still 7%.  Yet despite this remaining the same, the overall ecommerce landscape has shifted and so have the tactics used by successful businesses.

Ecommerce is still growing

Across the board, online businesses are booming.  We’ve seen a steady rise in ecommerce transactions over the last five years and this is backed up by our respondents reporting an average growth of 49% in sales over the past year.

‘Like’ for likes

It’s no secret that more and more businesses are using social media as a way to engage with customers and build a loyal customer base but even we were surprised to note that 76% of top performing businesses are using Facebook and Twitter to create a dynamic, two-way relationship with customers.

Fraud

From a security point of view the right PSP will provide the latest fraud screening tools and measures to give business owners peace of mind and help keep customers safe online. We were really pleased to note that 69% of e-tailers haven’t lost any money to fraud in the last 12 months, so the majority of e-tailers are doing a good job at spotting and stopping would-be fraudsters.  But nearly a third (31%) still reported losing money to fraud in the past 12 months.

To App or not to App?

There’s been plenty of discussion over the last 12 months around Apps and mobile commerce.  We found that even though just 5% of our respondants currently have a mobile app, a massive 30% are planning to develop one.  So whats stopping everyone else?  Well 27% believe App’s aren’t relevant to their business and 45% claim ‘time’ and ‘cost’ as the main barriers.

If you’d like to download the full e-business benchmark report, you can do so here www.benchmarkyourebusiness.com

Amy Monro, Sage Pay

Well, it’s that time again where we’re asking for your help. If you are an online retailer – we need your help in gathering information so that we can provide you with a report focused on checkout conversions and the factors that contribute to visitors dropping out of the purchase process. We’ll then compile our report helping you to navigate through what successful businesses do to maximise their conversion rates.

By taking part this year, you could also be in with a chance of winning an Ecommerce health-check worth £1000 or £500 towards your business or one of 10 £50 Amazon vouchers! You will also receive a complimentary copy of the report once it has been published. We’re closing the survey on the 25th April, so why not take part in our E-business Benchmark Report survey now?

In case you missed it last year, our very first E-Business Benchmark Report was a study of views and opinions of over 2000 online businesses currently operating in the UK. This report uncovered what makes an e-commerce business successful – from attracting people to a site through to delivering the goods.

The secret to success

If you didn’t manage to download a copy of last year’s report, you can find a summary of our top tips below:

1. Providing on-site reassurances such as customer testimonials, next day delivery and a money back guarantee will improve checkout success. We found that if your e-business doesn’t offer any value added features, you are twice as likely not to complete the sale. However, be warned, loyalty points appear to not add any value in terms of promoting sales conversions.

2. E-businesses with fewer checkout pages convert more sales. Reducing this number of pages, can improve conversion and won’t cost the earth.

3. Successful e-businesses customise their payment pages. Suddenly being forwarded to a payment interface that has a different look and feel could cause shoppers to be concerned and drop out of the purchase.

4. Providing multiple payment methods, to give people more choice in the way they pay, improves transaction rates.

5. Social media can heavily influence purchasing behaviour by building trusted relationships and subsequently loyal customers.

Amy Monro, Sage Pay @amy_sagepay

Download our first E-Business Benchmark Report

Be part of this year’s report and take part in our survey.

I love a bargain.  No matter what it is, if it’s reduced, I want it.  Which is how I’ve ended up with a house vaguely resembling a jumble sale.

Sage Pay's Amy Monro

I’ve collected all sorts of odds and ends over the years from random bits of furniture to clothes that I’ve optimistically saved from a bargain bin to ‘customise’ and then never gotten around to it.  Bargain hunting can be a demoralising hobby but once every so often, you can find the holy grail – a one off, an expensive piece at a knock down price and it makes it all worth while

In the run up to Christmas, we’ll all be scouring the web for a bargain, whether it’s a fabulous party dress or the perfect present.  But how do you know that your details are being kept safe?   With online fraud still prevalent, if you’re not careful, that bargain could turn out to be not such a bargain after all.  With one dreaded phone call from the Fraud manager at your local bank, that amazing £5 bargain could end up costing you £5000 of long distance calls.  Not a good situation to be in, so here’s my top 10 tips to keep you safe online.

Top 10 tips to keep you safe online

1)      Hypertext Transfer Protocol – more commonly known as Http is used for most web pages. When you’ve found that bargain and you are entering your card details, watch out for the change from http to https ensuring the page is using a secure connection.  However be warned, if not properly implemented, https is not fail safe so read on for some more top tips…

2)      Always ensure when you are entering card details, you can see a locked padlock or unbroken key symbol next to the address bar or at the bottom of the page.  Double clicking on the padlock symbol will display further security information for the site.

Websites that have an EV (extended validation) certificate will also show the URL bar in green once you are on their secure pages.

3)      Have a look for the sites security policy.  This should detail what information the online retailer is going to collect and how they are going to use it.

4)      If you come across 3D Secure and haven’t registered, make sure you do.  3D Secure (verified by Visa and Securecode by Mastercard) provides an additional layer of protection by asking you to enter a password that has been registered with your bank.  This way if your card information is obtained illegally, it will help to prevent funds being spent in your name.

5)      Keep hold of any confirmation emails that you receive from the online retailer.  Always check goods against your card statements.  This way you can easily identify charges you don’t recognise.

6)      Make sure the retailer you are shopping with has some level of PCI compliance.  If you can’t find the information you’re looking for, don’t be afraid to contact retailer and ask.

7)      It may sound obvious but make sure there are contact details on the site including a physical address.

8)      Check online for reviews.  With social media more popular than ever, if a customer has received bad service, the chances are they will have put it online.

9)      Try using a credit card rather than debit- It will offer you more consumer protection.

10)   If you haven’t received your goods and are unable to contact the company in question, contact your bank for a chargeback.

Happy Shopping!

Amy Monro, Sage Pay

www.twitter.com/amy_sagepay

At the start of June we were finally able to launch our e-Business Benchmark report- a study of views and opinions of over 2000 online businesses currently operating in the UK.

Sage Pay's Amy Monro

For months, we’ve been compiling the views and opinions of online retailers to uncover what makes an e-commerce business successful – from attracting people to their sites through to delivering the goods.  And our report is now here!  It covers marketing, influencing a purchase, making it easy for people to pay and security and fraud, combining statistics and case studies from real businesses. Plus, valuable insights from e-commerce professionals including Graze.com, Hawes & Curtis, and Ethicalsuperstore.com.

So what did we find out?

Well, that the internet is awash with window shoppers.  We found that only 7% of those that visit a shop online actually commit to making a purchase.  Flitting from site to site, it takes a lot to entice today’s shoppers!  We all know that even when we have a full shopping basket, it doesn’t necessarily mean we will end up buying.  So why is this?  It seems to me that there are two sides to success in converting sales, the emotional and the technical. If you are running an online business you will need a mixture of the two to ensure you’re not losing customers at the crucial stages.

Getting the balance right

The modern shopper often looks for emotional reassurance from a positive review, an accessible security policy, a special offer to make it more affordable or inexpensive delivery options.  These factors support and encourage your shopper through the process. It’s what helps to differentiate you from your competitors and after all, an alternative is just a click away, so it’s important to get this bit right.

E-business Benchmarking Report

Once the shopper has filled their basket, the real checkout process begins and this is where the technical reassurances come in.  Factors such as customised payment pages and a seamless checkout go a long way to position a company as ‘reputable’ and continue to build the customers trust.

Equally, so do the types of payments you accept.  As well as the usual card types, if you’re selling high-value goods, for example, you might want to consider offering Amex.  But if you’re targeting the younger generation, PayPal e-wallet might be an option.  These are crucial elements as there are very few environments today where you hand over your money before receiving the goods.

So whether you’re an online trader or just simply an avid online shopper, we’d like to know about your emotional and technical reassurance factors…

Download the E-Business Benchmark Report today

Contact us at marketing@sagepay.com

Amy Monro, Sage Pay

Acquiring, engaging with and converting customers online is essential for any business these days. Here in Online Retail at Sage it’s no different.  We spend a huge amount of time measuring conversion through the Sage Store – how many people visit the site, what business software and services they look at, what they buy… and what they choose not buy!

It’s vital for us that our customers have the best possible experience when visiting the Sage Store, so looking into the reasons why people choose to leave the site without buying is key.  Measuring conversion allows you to fine-tune your website to maximise the number of visitors that convert – whether it’s downloading a file, accessing useful information, capturing data, an online sale or calling a number.

When looking at conversion, start with your web analytics.  Conversion rate is the % of visitors that complete the ‘goal’ of your website.

Here at Sage we use Google Analytics, but most web analytics tools will allow you to measure conversion.

Setting up conversion goals

Firstly, identify the objective of your website – what do you want your visitors to do, and what experience do you want them to have?  Is it to provide your customers with helpful information, generate leads, capture data, or sell your products?  This is your conversion goal, and your website might have more than one.

Secondly, identify the steps in your website that a person has to take to complete a goal.  It’s likely to be a series of web pages in your site, so make a note of the URL (web address) of each page. These URLs form your conversion path. For example, your conversion path could be:

Home page - Contact Us - Data Capture form - Form submitted

Once you have identified these steps set up your conversion goal by entering the URLs of each page of your conversion path into your web analytics tool.  The ‘goal’ itself will be the final page of your conversion path.

Once the URLs for each stage are assembled data will be start to be collected, and after a week or so you’ll be able to see your conversion rate.  This data will also form a conversion funnel, which allows you to visualise which pages people are ‘drop out’ of before converting.

Google Analytics Conversion Funnel

This is where the real work begins! The funnel lets you see areas of weakness in your conversion path, where potentially huge opportunities lie to convert more people.  If you address these weaknesses you can reduce drop-out from your website and convert more people.

What should I look out for?

The obvious sign is high exit rates from pages in your conversion path.  Exit rate is the % visitors that decided to leave your website from that page, and will be visible in your conversion funnel with [exit].  What’s causing them to leave the page?  Poor usability? Unclear calls to action? Confusing information? Distracting links to other pages? Closely examine the page in question and look for potential causes.

Another sign could be high time on page.  Why are people spending so long on a page?  Unclear next steps?  Confusing information? Asking them to fill in too much information?  Have a close look at the pages.

Visitors navigating to other pages on your website can also be a distraction and reduce conversion.  Are you presenting them with a whole host of links when there is only one or two you actually want them to follow?  Take a look.

How can I improve conversion?

Once you’ve identified potential problem areas in your site try make some changes and then measure the impact they have.  Try tweaking copy, images, navigation, page layout, calls to action – and closely monitor the results in your conversion funnel.

For example, we removed the navigation from the later stages of the Sage Store checkout to reduce the number of links away from the checkout.  The outcome? We reduced drop-out by about 5%.

An excellent tool to help test changes you make to your site is Google Website Optimiser. It’s completely free, and lets you measure the effect of changes you make to pages in your website.

First, create different versions of the pages in your conversion path (with some of the changes above made), then make them live, add some code, and enter their URLs into Website Optimiser.  It then randomly serves up the different versions to visitors, and over time analyses the results for each page version. You can then see which version of your page converts best.  It’s quite technical stuff but your web developers should be able to help! Find out more.

However, don’t stop at that – constantly tweak, test and optimise your website to get the best results.  Give it a try and see if you can improve conversion through your website.

Iain Ramsay, Marketing & Operations Manager, Sage UK Online Retail