Crossing the E-Commerce Pond: Understanding U.S. Customers
As our world continues to become a much smaller place, the ability to buy goods online from other countries is on the rise. One valuable target group for U.K. online retailers are U.S. customers. We've used our own data to explore the shopping behavior of this particular customer group to help U.K. e-commerce companies maximize the revenue opportunity these shoppers bring.
So what are the specific buying habits of U.S. shoppers and how can U.K. online retailers use this knowledge to their advantage?
Our data reveals that despite U.S. consumers comprising only 4 percent of total visits to U.K. e-commerce sites, those that are shopping are extremely valuable, spending up to 3.88 times more than the average U.K. customer. To put that into revenue terms, that equates to a market size of around £11 billion annually based on current stats. However, the challenge with this group is that while they make up 4.12% of total traffic, they account for only 0.68 percent of conversions. Reasons for this could include no on-site functionality to display the price in dollars or perhaps restrictions on international shipping.
Given the time zone difference, U.S. online shopping peaks at 3:00 a.m. on U.K. websites, compared to 6.00 p.m. for U.K. customers. Also, while U.K. shoppers are most likely to buy on Sunday, Friday seems to be the big spending day for U.S. consumers. Geographically, they're a homogenous group too, with the top 10 visitor locations dominated by New York and San Francisco, in particular.
In order to take advantage of this lucrative customer base, U.K. online retailers need to ensure that their websites are set up accordingly. Here are six tips for maximizing conversion rates for this particular consumer group:
1. Be engaging. Did you know that 80 percent of visitors to your website will never come back? Therefore, it's important to engage potential customers as soon as they land on the page or you'll risk losing them forever. U.S. consumers will need a completely different experience from U.K. shoppers, so it's important that relevant information about the brand and products suitable for that market are highlighted up front.
2. Be fast. Fulfilment can be one of the main reasons for consumers not converting. To combat this, make sure delivery times are clearly visible in order to manage customer expectations. Make sure potential customers are aware if you have a compelling delivery option such as free delivery if you spend over a certain amount or you offer free returns.
3. Be best of British. U.S. customers love the idea of quintessential Britain, so play on its heritage by encouraging people to engage with content that talks about how and where your products were made. It's also important to capitalize on Britain's national events when customers will be keen to pick up some once-in-a-lifetime memorabilia. For example, the Royal family or the Olympics.
4. Be local. Combine online and offline content to create a succinct multichannel experience. If you have physical stores in certain U.S. cities, encourage your online U.S. customers to come and visit you in-store by using city-level targeting. For example, Topshop has developed localized region- and city-level landing pages to help support its offline strategy.
5. Be helpful. Consumers are creatures of habit and may struggle to navigate a new site if the layout and functionality isn't familiar. If customer feedback indicates that users are struggling, deploy navigational signposts to help them find the products and services they're looking for. For example, Farfetch ensures that its filters are market specific and offer its U.S. and U.K. customers a chance to search for the right size according to the metrics they're used to.
6. Be persuasive. Lastly, don't give people an excuse to leave. No matter how personalized and engaging you make your site, between 60 percent to 80 percent of visitors still drop off at checkout, so you need to find innovative ways to re-engage them before they leave. Offers should always be the last resort to protect the bottom line. Other tactics include delivering targeted messages such as free shipping for the next 30 minutes.
As our data demonstrates, the metrics are there for U.K. retailers to get great return on investment from U.S. consumers. By following our top tips, U.K. retailers will be able to boost conversion rates with this lucrative customer group.
Ian McCaig is the chief marketing officer of Qubit, a company that gives online retailers the power to optimize their sites and drive sales in real time.
