"One of 15 Entrepreneur Blogs Worth Reading"
- Wendy Bounds, The Wall Street Journal

What Does Conversion Rate Mean?

Quick quiz: Which of the following is the correct definition of “conversion rate”?

A. sales / unique visitors
B. sales / total visits
C. actions / unique visitors (e.g. home page test, conversion goal is not a sale but a reduced bounce rate or a click on the main call to action)
D. sales / number of carts initiated
E. sales / relevant visitors (segmented by geography, campaign, etc)
F. (sales – refunds) / unique visitors

Answer: Any or all of the above may be considered a conversion rate. It truly depends on what you think is the best formula for measuring success. The important thing is that you have your calculation of conversion rate defined within your organization, and be careful when looking to external benchmarks (industry data, competitive data etc) to gauge what your target conversion rate should be. You may be comparing apples to hot dogs.

Cloud Computing and ROI

Most think cloud computing is about the ability to save operational costs. That may or may not be the case, depending upon your enterprise or ecommerce problem domain. Indeed, there are many dimensions to consider here, including:

  • Ongoing operational cost reduction.
  • The value of preserving capital.
  • The value of upsizing on-demand.
  • The value of downsizing on-demand.
  • The value of shifting the risk.
  • The value of agility.

Let’s explore each:

Operational Cost Reduction

We all know that cloud computing is cheap…okay, cheaper…okay, it can be cheap. Thus it’s a good idea to figure out the actual cost reductions that cloud computing can bring to your enterprise IT. The trick here is not only to figure out how much money can be saved, but how much it will cost to save that money.

Preserving Capital

It’s money in the bank which allows the business to run. The more money we have in the bank, the more we can purchase things for the core business such as inventory that can be sold, or new plant equipment that will save the company money during production. In any event, it’s good to keep as much capital as possible on hand to invest in the business, and not into infrastructure such as data centers, hardware, and software.

Upsizing On-Demand

Core to the ability to preserve capital is the ability to upsize your IT infrastructure on demand, or simply pay more operational dollars for additional computing capacity which would traditionally require a capital expenditure. Many cloud computing providers call this being elastic, or the ability to grow or contract to accommodate the business. For example, you can call upon the cloud computing provider to support an additional user and processing load through the holiday, when considering ecommerce solutions.

Downsizing On-Demand

Like upsizing on-demand, you need to consider what it will take to reduce computing capacity and dollars paid. What does it take to scale down in case you no longer need the computing resource and want to reduce costs as well? Such is the case within many ecommerce systems with capacity requirements that are seasonal.

Shifting the Risk

Another core value of cloud computing is the ability to shift the risk from your enterprise to the cloud computing provider. This concept refers to the fact that, since it’s up to the cloud provider to handle the computing processing load and you’ll pay by use, then it’s possible to reduce the risk that you’ll run out of capacity to support your customers and core business processes. The risk functionally shifts to the cloud provider who is better suited to accept that risk.

Agility

Agility means the ability to change the IT infrastructure faster to adapt to the changing needs of the business, such as market downturns, or the introduction of a key product to capture a changing market. This, of course, provides a strategic advantage and allows the business to have a better chance of long-term survival. These days many enterprises are plagued by IT infrastructures that are so poorly planned and fragile that they hurt the business by not providing the required degree of agility.

This post was contributed by guest columnist David Linthicum. David is a cloud computing and SOA expert and author of several books on Information Technology.

6 Tips for Site Search Reporting: Things to Look For in Site Search Data

SLI Systems has given me permission to publish 6 of nearly 80 tips on site search you’ll find in their latest e-book Big Book of Site Search Tips (free download).

Enjoy!

1. Regularly check the top search terms on your site.

They can be good indicators of new items your clients are looking for, or product lines that are performing well. For example, SLI customer Jelly Belly used to offer only a 10-pound bulk case of its Champagne Bubbles jelly beans. Using information gleaned from site search, the company discovered that Champagne Bubbles candy was the third most-requested search. They decided to offer a one-pound container, and it’s now one of the company’s biggest sellers with wedding planners.

2. Review site search terms for SEO and PPC campaigns.

This is a great source for keyword research because it shows the language your visitors are using.

3. Review the searches with poor or no results.

A poor result is one that has a low clickthrough rate. These terms either relate to content that people are searching for that you don’t have or, more often, are examples of your visitors using different language to describe your content than you do. Both of these pieces of information are extremely valuable. If visitors are searching for content that you don’t offer, then you know that there is demand for that content and may indicate products that you should be stocking on your ecommerce site. If visitors are searching for products that you are not able to or don’t intend to carry, then you can address this by showing keyword-specific banners suggesting similar products.

If your visitors are using a different language to describe your content or products, you can either start using this language on your site (which will help with your search engine optimization as well), or you can add synonyms to your search so your visitors will find the items they’re looking for.

4. Review your site search quality metrics to ensure your site search relevancy is improving over time.

A good site search solution “learns” by tracking visitors’ aggregate search queries and click-throughs to deliver results based on criteria such as popularity. This means that, over time, searchers on your site are presented with the most relevant search results and can find what they’re looking for more quickly and easily. Improved searches result in more satisfied customers and greater sales.

5. Integrate your analytics package with your site search.

It shouldn’t require too much effort to make sure your analytics software is tracking search activity on your site. Your site search provider might be able to help you with this. Being able to measure site search results – like any other marketing activity – demonstrates the value and ROI benefit you’re getting. For example, you can track the conversion rate for site search results pages as compared with other pages on your site, as well as the percentage of revenue generated by site search results pages. You can also determine the average order size for site search users as compared to those who don’t search; if your site search solution is performing well, those numbers should be higher.

6. Watch the keywords that are quickly gaining popularity so you’re able to continually meet increasing product demand.

Again, it’s important to understand the language of your customers – and like any trend, nothing lasts forever, including the search terms used most frequently on your site. Trends around popular terms may shift with the seasons, or with popular songs and movies, or with the latest look sported by the Jonas Brothers. The point is, as terms gain popularity, they signal to you that the products that go along with those terms will likely also gain popularity, so be prepared.

Download the whole collection of site search tips here.

JavaScript and Page Loading Performance

No one likes to wait for a Web site to load.

Least of all someone doing some last minute birthday shopping for an expectant niece or nephew or the pressured husband that just realized tomorrow is his anniversary.

Shoppers have very little tolerance for slow loading retail Web sites, therefore, developers should do more to speed up site performance when possible.

YSlow Survey Demonstrates the Problem

I recently took a survey of 25 leading retail Web sites using Yahoo’s YSlow Firefox add-on. The tool measures site performance against 35 performance best practices.  And of these best practices, I was most interested in HTTP Requests.

As the good folks at Yahoo say, something like 80% of a page’s load time is spent making HTTP requests for images, style sheets, JavaScript, and Adobe Flash or similar. Speed up this processes and a site will load faster, sometimes even if the browser is loading a greater number of kilobytes.

In my little survey, many leading online retail sites performed poorly. For example, when I ran the test, Borders received an overall YSlow grade of D and an overall performance grade of 66. But the site actually got an F for HTTP Requests. Improving this one area could have helped to pull up the site’s overall performance score, not to mention make it load faster when would-be shoppers surfed by to get a copy of Seth Grahame-Smith’s new tomb, Abraham Lincoln : Vampire Hunter or a DVD of Disney’s Up.

Online florist, 1-800 Flowers had an even worse YSlow grade and performance score, and again, an F for HTTP requests. In fact, the site sought to load 27 separate, external JavaScript files and six separate style sheets.

Some site’s scores actually varied. When I first tested Amazon, the site scored a D in YSlow, with an overall performance grade of 65. But later, I retested Amazon, and it earned a B, having less than half as many HTTP requests as it had when I first test it. While I cannot be certain why Amazon decided to load fewer JavaScripts and style sheets, I can say  that making fewer HTTP requests had a significant, positive impact on how the site performed.

In my less-than-scientific survey, sites that made fewer HTTP requests generally had better YSlow scores and faster load times. Conversely, sites that made a lot of HTTP requests had poor scores and poor load times.

JavaScript Files can be Road Blocks

JavaScript, which is actually one of my favorite languages, is a leading cause of performance-sapping HTTP requests and a page block. Since while the HTTP request for a JavaScript file is underway the browser is blocked from downloading other resources until after the script has been completely loaded and, in some cases, executed.

New browsers can, in fact, load two or more external JavaScript files simultaneously, but other page elements like images or even text that appear lower in the mark up will still have to wait.

There is an excellent demonstration of how blocking—the concept that a browser stops rendering a page while it loads a JavaScript—effects a page’s load time on Steve Souders’ High Performance Web Sites Blog. Souders’ demonstration cuts a page into two sections—literally above and below a line. The top portion of the page is quickly loaded, but then the browser encounters two external JavaScripts and miscellaneous additional elements. The HTTP requests to get the JavaScript files block any other page elements from loading.

In fact, it takes almost an additional 8 seconds for the balance of the demonstration page to load.

Of course, I should point out that blocking is actually very important. Often one JavaScript file will be dependent on another. We want a JavaScript Library like jQuery or MooTools to load before any files that call functions from the library. Blocking ensures this is the case, since most browsers will not load and execute the files in order.

Addressing HTTP Requests for JavaScript

There are several things that a site developer or designer can do, to minimize HTTP Requests and blocking, thus improving site performance.

The most basic fix is to organize JavaScript files. Older web browsers, like Microsoft’s Internet Explorer (IE) 7, can only download a single JavaScript file at a time, so many web developers began organizing all of their JavaScript into a single, often massive, file. By the way, massive is no understatement. When I conducted my aforementioned survey of leading retail sites, I found several extreme examples like Barnes & Noble’s site, which called 39 separate, external JavaScript files.

But creating a single, all inclusive JavaScript file is not always best either.

Some browsers, for example Google’s Chrome or even IE8, can load files in parallel so that two smaller JavaScript files might load more quickly than one massive file.

And as Kyle Simpson wrote in his article Tame Those Performance Monsters in the March 2010 issue of jsmag, a single combined would not make sense when you were calling libraries like jQuery, which are better downloaded from optimized content delivery networks and which can be cached.

Without a doubt you’ll want to organize files—39 is too many, one may not be enough—but some combining should probably take place.

Other potential solutions (improvements) include techniques like XMLHttpRequests (XHR), wrapping scripts in iFrames, and using the defer attribute in script tags. But each of these techniques has limitations.

For security reasons, XHR requires that all of the scripts being loaded and the host page have the same domain, so it won’t work if a site needs to load jQuery.

Wrapping scripts in an iFrame will allow the even older browsers to asynchronously load JavaScripts, but you will need to function to access the JavaScripts that were loaded with the iFrame, and you must add more mark up.

The defer attribute, which is part of the World Wide Web Consortium’s HTML 4.0 Specification, essentially tells the browser to wait until the page is loaded before executing the enclosed script.

<script language=”javascript” defer>

But defer is not supported in every or even most web browsers.

I don’t mean to dissuade you from using these solutions, but I want to introduce you to what I believe is a better one.

The LABjs Solution

Kyle Simpson, who I mentioned above, started the LABjs project and has since gotten help from performance guru, Steve Souders, who I also mentioned above. LABjs is a tool for dynamically loading JavaScripts in parallel while preserving the order of execution and dependency.

LABjs also enables the browser to load both JavaScripts and other page elements at the same time, so your images and text, don’t have to wait for your JavaScripts.

Implementing LABjs is also pretty easy. You end up replacing mark up like:

<script src=”http://jquery-ui.googlecode.com/svn/tags/latest/jquery-1.4.2.js”></script>

<script src=”some.js”></script>

<script src=”someother.js”></script>

With mark up like:

<script>

$LAB

.script(“http://jquery-ui.googlecode.com/svn/tags/latest/jquery-1.4.2.js “)

.script(“plugin.framework.js”)

.script(“myplugin.framework.js”).wait()

</script>

According to Simpson’s jsmag article, using a page calling three external JavaScript files went from loading in 16.84 sections to loading in just about 6.24 seconds when LABjs was used, demonstrating a significant improvement.

This post was contributed by our guest columnist Armando Roggio. Armando is a journalist, web designer, technologist and the site director for Ecommerce Developer.

1-800-Headsets Uses Its Head in Triggered Email

Spotted a clever way to entice repeat orders – offer a credit off a customer’s next purchase. If the credit is unused after a period of time, send a triggered email reminder, as 1-800-Headsets does below:

Subject line: You have a credit waiting for you at 1800Headsets.ca

Email body:

We thought you should know, you have a $10 credit with us
You earned it, so why not enjoy it?

$10 may not sound like a lot, but ten bucks could get you 25% off a cellular headset, an extra 17% off a new Bluetooth headset, or even better…

[Read the full story]