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Conversion rate: Getting more (loyal) customers

Image source: Triad Retail Media

Organization/Platform: MasterCard on SamsClub.com

Objective: MasterCard-branded experiences encourage signups and customer retention across multiple mediums.

Scenario: Triad Retail Media reports assisting MasterCard meet this objective with the following tasks (n.d.):
  •        Content strategy and planning
  •         Design and imagery
  •         App integration
  •         In-store TV custom video
  •         Copywriting and copy-editing
  •         Advanced analytic reporting

Chosen metric: Conversion rate, which is the ratio of conversions (the number of times a desired outcome was accomplished) over a relevant denominator.

A conversion metric is valuable because it enables the business to evaluate many different call-to-actions as described in the above tasks – app integration and in-store TV custom video – while achieving the ultimate objective of signups and retention. It is found that there are great ROI and business benefits if a marketer continually engages the customer in a meaningful, relevant way.  Trust and loyalty to the brand are increased.   

Evaluating the ratio gives marketers an idea if they are targeting the right audience with the right message at the right time. For example, if the reach is really high, but the conversion ratio is low they know something is off. Is it the audience (demographics, sociographics)? Message (too weak, too strong, not relevant, language barrier)? Timing (wrong stage in the buyer’s cycle)? Could even be that something is wrong with the experience, such as the in-store TV is not working properly, e.g. bad placement, volume is too low, etc.  Or with app integration, are there functional problems? Is it intuitive? Is the call-to-action too cumbersome to be performed via mobile? Does the customer trust the third-party app with his personal info? Monitoring and analyzing the Conversion rate will help marketers identify any of these potential problems and others, but different metrics will be utilized to diagnose the specific issue.

Marketers want to improve conversion rates to get more sales or more of the desired action with the same amount of traffic. It’s a way to find waste and track efficiency of effort, budget and resources. A/B testing is a common and effective way to research and learn how to optimize a conversion rate and make a measure impact on the business. For example, the design and imagery, as well as the size, color, location of copy in the app could be tested one by one, or in Android users vs Apple users. For the store TV displays, graphics and/or messaging could be tested in different regions of the country since they are likely different demographically.

While testing to improve conversion rates, marketers need to make sure the results are statistical significant and not due to random chance. Or at least be aware of what the significance is of the study. It’s OK to slightly reduce confidence in the essence of time to ensure the results are still relevant.

Results: While specific outcomes of this case study are not published online, the importance of their work can be understood by reviewing the below market share and purchase spending volumes for the four major credit and debit card companies. MasterCard is the second largest based on circulation but third largest for customers’ spending habits (Comoreanu, 2017).

Data source: Wallet Hub

Reference
Comoreanu, A. (2017, March 7). Market share by credit card network. Wallet Hub. Retrieved on October 20, 2018 from https://wallethub.com/edu/market-share-by-credit-card-network/25531/

Triad Retail Media. (n.d.) Case Study: MasterCard on SamsClub.com. Retrieved on October 20, 2018 from http://www.triadretail.com/Case-Studies/MasterCard
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