Conversions Over Transactions: Have you ever wondered what it is that makes brands like Starbucks and Nike so successful in the eCommerce world? Its not their inherently exceptional value proposition, or their mysterious ability to find radically wonderful employees, nor is it even their quality of products and services. In fact, in many instances, people prefer the taste of many other coffee roasters over Starbucks, and the fit and style of other clothing brands over Nike. So, what is the magic ingredient these brands tend to have in common that allow them to rise above the rest when it comes to the user experience, and more specifically, the eCommerce experience?There is one key, unifying idea that helps explain the fundamental differences that allow these power brands to rise to the top, while the others struggle to even catch on. I have codified this idea into one simple phrase: Conversions over Transactions. In this article, Im going to uncover the DNA behind this idea to help identify what makes this statement so remarkable. Conversions over TransactionsLets start from the basics. If we were to look up the term, conversion in the dictionary, there is a literal term that reads, The adaptation of building for a new purpose. Is this at all what describes how we view the idea of a conversion for online marketing? Whats interesting about this definition is that there is absolutely no implication of performance that can be measured. What it is implying, rather, is that a conversion occurs when someone buys in to a belief, a purpose, and a cause, which in turn leads them to develop an affinity for your cause and a desire to adopt your vision and join you in achieving it. The origin of the term actually derives from the early 1300s when people of the Catholic faith would share their beliefs with unbelievers in hopes to transform lives to find deliverance, joy, and restoration in God. In no way, shape, or form is this definition aiming to uncover a topical, measurable transaction, but a complete alteration of the heart, that ultimately leads to a behavior towards the common goal. What is fascinating is that the dictionary has a second definition for the term, conversion, in the context of online marketing. The definition in this context is, The proportion of people viewing an advertisement, and going on to buy the product, click a link, etc. That definition sounds an awful lot like the definition of a transaction, which is simply a tangible act that helps drive short-term growth and delivers nothing scalable towards a brands purpose. This is not simply my opinion, though. This idea is rooted in the values of the brands that truly understand how to create conversions over transactions. Consider Nike. The thing that makes Nike so successful is that nobody owns only one Nike product, because they are not a product brand; they are a belief brand. If you own one Nike product, you likely own 15 Nike products, from shoes to socks to shorts and wristbands. Nike understands that, in order to truly be successful, they must convert users to believe in their vision, and not simply aim for transactional behavior. They understand that the response of a conversion will lead to transactions (plural). Same thing goes for Starbucks. If you’ve ever bought a cup of coffee from Starbucks, you’ve bought 100+ cups of coffee from Starbucks. Not only does Starbucks understand the value of converting users to adopt their vision, but they also inspire users with their innovation in eCommerce. Have you ever noticed how eerily easy it is to give your hard-earned cash to Starbucks? If you buy a cup of coffee with the Starbucks app on your phone and notice your balance is low, it just takes one click to reload $20 onto your account. And most people want to reload that money into their account because of the reward system they have set up to enhance the Starbucks experience for their eCommerce users. Let’s also say you’ve got a friend who’s had a rough week at work. It takes two taps to send him a $5 Starbucks gift card. They’ve even created the Tweet-a-Coffee campaign where you can literally send a $5 Starbucks gift card to any Twitter user without even having time to go through any of the stages of buyer’s remorse. They have made their transaction process so simple, because they understand that once they have converted a user, that $4 cup of coffee is way more valuable than the expense they paid. What makes the above brands so wildly successful in online marketing and eCommerce is their intentional decision to choose the first definition of a conversion to be their standard measurement of practice to abide all online marketing by. These brands utilize their online marketing and eCommerce experience as a way to be a utility to their customers, not a glorified cash register.
Posted on: Mon, 20 Oct 2014 09:58:10 +0000
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