New E-Commerce Research Shows 2X Conversion Rates for Online Retailers That Invest in Site Search and Discovery
SAN FRANCISCO, July 23, 2020 (GLOBE NEWSWIRE) -- Algolia, the leading Search and Discovery solution, released the findings of a new survey, titled “Site Search: A High-Converting Investment When Done Right.” The data shows retailers with advanced site search report their desktop conversion rate is 5.9% on average—more than twice as high as the 2.8% conversion rate cited by merchants with only basic search capabilities. Overall, 50% of those surveyed experienced a revenue boost by improving site search.
Conducted by Digital Commerce 360, the goal of the research was to understand what retailers see as priority areas of investment in site search, the key performance indicators (KPIs) they focus on, and site search strategies they are employing to turn more website visitors into buyers—conversion rates included. This report analyzed data based on responses from over 100 e-commerce businesses.
According to Salesforce, 87% of product searches in 2019 started online—an increase from 71% only one year earlier. Resulting from the COVID-19 pandemic, this number will likely increase, as consumers are spending nearly 50% more online.
“Current circumstances provide a massive opportunity for online businesses to win new customers, particularly in the retail space, as shoppers adjust their buying habits to focus on e-commerce as opposed to in-person experiences,” said Lauren Freedman, Senior Consumer Insights Analyst, Digital Commerce 360. “Many e-commerce companies are investing in their website’s search function in order to improve the consumer experience, and those that don’t risk falling behind.”
Summary of key survey findings:
Only 14% of respondents identified their site search capabilities as advanced.
Desktop conversion rates are two times higher with advanced site search than basic.
However, even small investments in search can yield results, as 50% of retailers saw a boost in revenue as a result of investing in site search.
80% of companies either have defined or are working on site search KPIs that will deliver meaningful business impact.
“These research findings make it obvious that investing in site search is a key component to boosting online conversion rates. Furthermore, the discrepancy in conversion rates realized by retailers with advanced versus basic search is eye-opening.” said Ashley Stirrup, Chief Marketing Officer, Algolia. “With advanced site search converting at double the rate of basic search based on these findings, every online business should measure and improve their KPIs and ensure they have highly relevant, personalized search to drive more conversions and revenue—especially given that it’s a relatively simple and low-investment improvement compared to replacing an entire e-commerce platform or increasing online ad spend.”
Survey Methodology and Participant Demographics
To learn more, download a full copy of the “Site Search: A High-Converting Investment When Done Right” survey findings, read the accompanying blog post, and register for the upcoming webinar with Nuts.com, scheduled for Wednesday, July 29 at 11 a.m. PDT / 2 p.m. EDT.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e758739d-8b5a-4008-b1c6-ec98323705e5.
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