Article

11min read

Understanding the Digital Customer Journey

In a highly competitive digital marketplace, optimizing your website for a unique and seamless digital customer journey is no longer just a competitive advantage — it’s a necessity.

It’s important to remember that the digital customer journey does not begin and end with a purchase – it’s a web of all customer interactions and touchpoints with your brand.

AB Tasty has mapped out seven customer phases that we consider crucial in the journey. To craft unique experiences, you’ll need to differentiate these seven phases customers pass through and understand how to animate their digital journey.

Once you have a better understanding of these phases, you will be better equipped to set your business goals and properly optimize your website for growth and impact.

Click to view the full-sized infographic in a new tab

How exactly can you optimize each phase of the digital customer journey? Let’s dive right in and take a look at some examples.

Phase 1: Awareness

When visitors land on your website for the first time, a great first impression is crucial. Your page needs to be both visually appealing and intuitive. A dynamic above the fold design is a great place to start.

In this first phase, it’s important to let your best ideas shine to capture and keep your visitors’ attention. You can accomplish this by creating personalized welcome messages for first-time visitors, displaying your value proposition and organizing high-impact elements for better visibility.

Let’s take a look at Just Over The Top’s experiment to modify the layout of their homepage. They used AB Tasty’s experience optimization platform to test if their users responded better seeing a layout with product categories rather than individual products.

Original:

Variation:

After creating a test variation to run against the original layout, they saw a 17.5% click increase on the three blocks below the hero image. This brought many more users into the second phase of their customer journey.

Phase 2: Discovery

When consumers reach the second phase, they’ve already discovered your brand and they’re getting curious.

To accommodate visitors during this phase, your website should be optimized for an excellent browsing experience. Whether this means making your search bar more visible, creating dynamic filters while searching, or using a virtual assistant to get to know your visitors’ interests with a series of questions, an easy browsing experience with intelligent search is key.

In this example, Claudie Pierlot focused on optimizing the customer browsing experience by testing the search bar visibility. In their variation, the small search icon was made more visible by adding the word “recherche” (or search in English) in the top right-hand corner.

Original:

Variation:

This clear above the fold design made it easier for visitors to identify the search bar to begin their browsing experience. With this simple A/B test, they saw a 47% increase in search bar clicks and a 7% increase in conversion rates coming directly from the search bar.

In another example, Villeroy & Boch, a ceramic manufacturing company, wanted to leverage intelligent search on their website. With the help of AB Tasty, they implemented an AI search algorithm to navigate online shoppers.

With our solution, they designed a new and intuitive navigation complete with filters and a comprehensive autosuggestion feature.

By changing their search functions, Villeroy & Boch saw a 33% increase in search results clicks and a 20% increase in sales through the search function.

Phase 3: Consideration

Now is the time when your visitors are considering your brand and which products they are interested in. Showcasing your product pages in their best light during the consideration phase might be exactly what your visitor needs to continue moving down the funnel.

Let’s look at how Hanna Anderson optimized their product pages during this phase.

The clothing retail company wanted to experiment with the images on their product listing pages. Previously, their toddler line had only images of clothing sizes for an older child. They were convinced there was room for improvement and decided to run a test by changing their images to include toddler sizes.

Original:

Variation:

After implementing age-appropriate clothing images, the results were clear. During this test, the clicks on PLPs increased by almost 8% and the purchase rate on those items skyrocketed by 22%.

Phase 4: Intent

During the intent phase, your visitors are on the verge of becoming customers but need to be convinced to make a purchase.

Social proof, urgency messaging, and bundling algorithms are a few ideas to lightly nudge visitors to add to cart or add more to cart.

Let’s take a look at the impact that urgency messaging can have: IZIPIZI, an eyewear retailer, decided to add a special message flag next to their product description to show viewers how many people have purchased this product. The idea of this message is to show viewers that this product is popular and to encourage them to take action.

With this simple sentence of social proof to validate a product’s desirability, they saw a 36% increase in add-to-basket rate.

In another scenario, you can see that adding a progress bar is a simple way to upsell. With a progress par, you are showing your customer how close they are to earning free shipping, which entices them to add more to their cart.

Vanessa Bruno experimented with this additive with the help of AB Tasty and saw a 3.15% increase in transactions and a €6 AOV uplift.

Phase 5: Purchase

Purchase frustration is real. If customers experience friction during checkout, you risk losing money.

Friction refers to any issues the visitors may encounter such as unclear messaging during the payment (did the payment actually go through?), confusing or expensive shipping options, discounts not working, double authentication check-in delays, difficult sign-in, and more.

Optimizing your checkout sequence for your audience with rollouts and KPI-triggered rollbacks can help you find a seamless fit for your website.

Let’s look at an example for this phase: Galeries Lafayette, the French luxury department store, saw an opportunity to optimize their checkout by displaying default payment methods that do not require double authentication.

During this test, they saw a €113,661 increase in profit, a €5 uplift in average order value, and a 38% increase in the conversion rate by adding the CB (bank card) option for a quicker checkout.

Phase 6: Experience

Optimizing the buyer experience doesn’t end after the purchase. Now is the time to grow your customer base and stop churn in its tracks. So, how do you keep your customers interested? By maintaining the same level of quality in your messages and personalization.

Let’s look at how Envie de Fraise, a French boutique, leveraged their user information to transform a normal post-purchase encounter into a personalized experience.

One of their customers had just purchased a maternity dress and had been browsing multiple maternity dresses prior to their purchase. By knowing this information, they experimented with using the “you will love these products” algorithm to gently nudge their customer to continue shopping.

With a customized recommendation like this, Envie de Fraise saw a €127K increase in their potential profit. As your customer spends more time with your brand, you will learn more about their habits and interests. The more time they spend with you, the more personalized you can make their experience.

Phase 7: Loyalty

In the final step of your customer’s journey, they move into the loyalty phase. To turn customers into champions of your brand, it’s important to remind them that you value their loyalty.

This can be done by sending emails with individual offers, social proof, product suggestions, or incentives for joining a loyalty program to earn rewards or complete product reviews.

Another example of this is sending a personalized email displaying items that are frequently bought together that align with their purchase. This will remind the customer about your brand and give them recommendations for future purchases.

Why Optimizing the Digital Customer Journey is Essential to Boost Conversions

The fierce competition in the e-commerce marketplace is undeniable. In order to attract and retain customers, you have to focus on crafting personalized user experiences to turn passive visitors into active buyers.

Understanding their needs in each phase and optimizing your digital space is your best solution to nudge visitors down the purchasing funnel.

By personalizing the experience of your customers during each phase of the digital customer journey, you can ensure an optimal shopping experience, boost purchases, increase customer satisfaction, and see more repeat customers.

AB Tasty is the best-in-class experience optimization platform that empowers you to create a richer digital experience – fast. From experimentation to personalization, this solution can help you activate and engage your audience to boost your conversions.

Using personalization to enhance your customer journey

With the vast array of products and brands to choose from, customer loyalty has become more important than ever. By focusing on personalizing the digital customer journey, you can reduce the chances of your customer abandoning their purchase or opting for another brand.

An individualized customer journey is beneficial for the following reasons:

  • Option overload: As online brands fight for the attention of consumers, it’s important to set your brand apart from the rest, with a customer journey that is tailored to their needs.
  • Analysis paralysis: With a plethora of information now readily available to customers who are researching and comparing potential purchases, your digital customer journey can help to deliver the information they need with ease and offer them the best shopping experience, thereby tipping the scale in your favor.
  • Lack of loyalty: The ease with which a customer can change service providers has increased the pressure and importance of meeting their needs during the entirety of the digital customer journey. Every interaction matters.

Offering a personalized experience elevates the customer journey and helps to ensure customer satisfaction. By leveraging the power of personalization, you can adapt the individual phases of the customer journey to each customer’s needs for an optimal e-commerce experience.

Personalization is the key to customer satisfaction

There is no way to deny the intense competition in the e-commerce space. Attracting and retaining customers is more difficult now than it has ever been. To advance ahead of the competition, you must understand customer needs and personalize each user journey with the help of a customer journey model.

By personalizing each experience your customers have with your brand, you can be sure to give your customers an optimal shopping experience, guarantee customer satisfaction, and encourage customer loyalty.

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Article

8min read

How to Better Handle Collateral Effects of Experimentation: Dynamic Allocation vs Sequential Testing

When talking about web experimentation, the topics that often come up are learning and earning. However, it’s important to remember that a big part of experimentation is encountering risks and losses. Although losses can be a touchy topic, it’s important to talk about and destigmatize failed tests in experimentation because it encourages problem-solving, thinking outside of your comfort zone and finding ways to mitigate risk. 

Therefore, we will take a look at the shortcomings of classic hypothesis testing and look into other options. Basic hypothesis testing follows a rigid protocol: 

  • Creating the variation according to the hypothesis
  • Waiting a given amount of time 
  • Analyzing the result
  • Decision-making (implementing the variant, keeping the original, or proposing a new variant)

This rigid protocol and simple approach to testing doesn’t say anything about how to handle losses. This raises the question of what happens if something goes wrong? Additionally, the classic statistical tools used for analysis are not meant to be used before the end of the experiment.

If we consider a very general rule of thumb, let’s say that out of every 10 experiments, 8 will be neutral (show no real difference), one will be positive, and one will be negative. Practicing classic hypothesis testing suggests that you just accept that as a collateral effect of the optimization process hoping to even it out in the long term. It may feel like crossing a street blindfolded.

For many, that may not cut it. Let’s take a look at two approaches that try to better handle this problem: 

  • Dynamic allocation – also known as “Multi Armed Bandit” (MAB). This is where traffic allocation changes for each variation according to their performance, implicitly lowering the losses.
  • Sequential testing – a method that allows you to stop a test as soon as possible, given a risk aversion threshold.

These approaches are statistically sound but they come with their assumptions. We will go through their pros and cons within the context of web optimization.

First, we’ll look into the classic version of these two techniques and their properties and give tips on how to mitigate some of their problems and risks. Then, we’ll finish this article with some general advice on which techniques to use depending on the context of the experiment.

Dynamic allocation (DA)

Dynamic allocation’s main idea is to use statistical formulas that modify the amount of visitors exposed to a variation depending on the variation’s performance. 

This means a poor-performing variation will end up having little traffic which can be seen as a way to save conversions while still searching for the best-performing variation. Formulas ensure the best compromise between avoiding loss and finding the real best-performing variation. However, this implies a lot of assumptions that are not always met and that make DA a risky option. 

There are two main concerns, both of which are linked to the time aspect of the experimentation process: 

  • The DA formula does not take time into account 

If there is a noticeable delay between the variation exposure and the conversion, the algorithm may go wrong resulting in a visitor being considered a ‘failure’ until they convert. This means that the time between a visit and a conversion will be falsely counted as a failure.

As a result, the DA will use the wrong conversion information in its formula so that any variation gaining traffic will automatically see a (false) performance drop because it will detect a growing number of non-converting visitors. As a result, traffic to that variation will be reduced.  

The reverse may also be true: a variation with decreasing traffic will no longer have any new visitors while existing visitors of this variation could eventually convert. In that sense, results would indicate a (false) rise in conversions even when there are no new visitors, which would be highly misleading.

DA gained popularity within the advertising industry where the delay between an ad exposure and its potential conversion (a click) is short. That’s why it works perfectly well in this context. The use of Dynamic Allocation in CRO must be done in a low conversion delay context only.

In other words, DA should only be used in scenarios where visitors convert quickly. It’s not recommended for e-commerce except for short-term campaigns such as flash sales or when there’s not enough traffic for a classic AB test. It can also be used if the conversion goal is clicking on an ad on a media website.

  • DA and the different days of the week 

It’s very common to see different visitor behavior depending on the day of the week. Typically, customers may behave differently on weekends than during weekdays.  

With DA, you may be sampling days unevenly, implicitly giving more weight on some days for some variations. However, you should weigh each day the same because, in reality, you have the same amount of weekdays. You should only use Dynamic Allocation if you know that the optimized KPI is not sensitive to fluctuations during the week.

The conclusion is that DA should be considered only when you expect too few total visitors for classic A/B testing. Another requirement is that the KPI under experimentation needs a very short conversion time and no dependence on the day of the week. Taking all this into account: Dynamic Allocation should not be used as a way to secure conversions.

Sequential Testing (ST)

Sequential Testing is when a specific statistical formula is used enabling you to stop an experiment. This will depend on the performance of variations with given guarantees on the risk of false positives. 

The Sequential Testing approach is designed to secure conversions by stopping a variation as soon as its underperformance is statistically proven. 

However, it still has some limitations. When it comes to effect size estimation, the effect size may be wrong in two senses: 

  • Bad variations will be seen as worse than they really are. It’s not a problem in CRO because the false positive risk is still guaranteed. This means that in the worst-case scenario, you will discard not a strictly losing variation but maybe just an even one, which still makes sense in CRO.
  • Good variations will be seen as better than they really are. It may be a problem in CRO since not all winning variations are useful for business. The effect size estimation is key to business decision-making. This can easily be mitigated by using sequential testing to stop losing variations only. Winning variations, for their part, should be continued until the planned end of the experiment, ensuring both correct effect size estimation and an even sampling for each day of the week.
    It’s important to note that not all CRO software use this hybrid approach. Most of them use ST to stop both winning and losing variations, which is wrong as we’ve just seen.

As we’ve seen, by stopping a losing variation in the middle of the week, there’s a risk you may be discarding a possible winning variation. 

However, to actually have a winning variation after ST has shown that it’s underperforming, this variation will need to perform so well that it becomes even with the reference. Then, it would also have to perform so well that it outperforms the reference and all that would need to happen in a few days. This scenario is highly unlikely.

Therefore, it’s safe to stop a losing variation with Sequential Testing, even if all weekdays haven’t been evenly sampled.

The best of both worlds in CRO 

Dynamic Allocation is the best approach to experimentation instead of static allocation when you expect a small volume of traffic. It should be used only in the context of ‘short delay KPI’ and with no known weekday effect (for example: flash sales). However, it’s not a way to mitigate risk in a CRO strategy.

To be able to run experiments with all the needed guarantees, you need a hybrid system using Sequential Testing to stop losing variations and a classic method to stop a winning variation. This method will allow you to have the best of both worlds.