Boosting Conversion Rates: How Interactive Lessons Revolutionize Customer Education in eCommerce
Updated: Jul 24
I. Your Conversion Rate and Alia
$106B.
That is how much retailers online spend annually on just digital advertising worldwide to attract customers to their website (Source: Statista).
$103B.
That is how much of that spending is wasted and does not lead to a purchase, as the average conversion rate for eCommerce retailers is ~2.5% (Source: Adobe). In other words, if you attract 100 visitors to your store, you would be outperforming the majority of your peers if 3 make a purchase.
One of the major reasons for this low conversion rate is customer education. Businesses need to be able to effectively educate new visitors to their site. This education must be engaging, timely, personalized, and have incentives in order to lead to a first purchase. Why does education matter? Because after reading a brand’s educational content, customers are 131% more likely to purchase from that brand (Source: Conductor). Learning about a brand, its story, and their products builds trust with skeptical first time visitors, demonstrates clear value, and creates an emotional relationship that is hard to build online otherwise.
Alia is a Shopify application that helps you better educate your site's visitors through interactive, personalized lessons and reward them for learning through discounts and other incentives.
Alia is able to boost conversion by as much as 256%. Translation: if you aren’t using Alia, your business is leaving money on the table.
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II. Your Conversion Rate and Alia
In today's ever-evolving e-commerce landscape, where countless options are just a few clicks away, retailers face the challenge of standing out and capturing the attention of potential customers. As the digital marketplace becomes increasingly competitive, simply offering products or services is no longer enough. As noted by Cate Trotter, founder and Head of Trends at Insider Trends, the future of retail will revolve around engagement, discovery, education, and inspiration (Source: Quadmark) . This is where the power of education comes into play.
Customer education plays a pivotal role in e-commerce success. By providing valuable information and educating customers, retailers can build trust, foster brand loyalty, and ultimately increase conversion rates. In a world where consumers are more discerning and empowered than ever, an educated customer is a confident customer.
Why is customer education so crucial? Well, consider this: customers are more likely to make informed purchasing decisions when they have a solid understanding of a product or service. Education empowers customers to assess the benefits, features, and value of what they are considering, allowing them to feel confident in their choices.
Moreover, customer education goes beyond the transactional aspect of e-commerce. It cultivates a relationship between retailers and customers that extends beyond a single purchase. When customers feel that a retailer genuinely cares about their needs and offers educational resources, it builds a sense of loyalty. Repeat purchases and brand advocacy become more likely outcomes.
The impact of education on conversion rates cannot be overstated. By providing educational content and resources, retailers can effectively address common pain points and objections that potential customers may have. For instance, a retailer selling skincare products can educate customers about the ingredients used, their benefits, and how to incorporate them into a skincare routine. By doing so, they not only build trust but also alleviate any concerns customers may have, increasing the likelihood of conversion.
These notions are backed up by considerable research in the industry, for instance:
Companies that prioritize customer education experience a 56% higher customer retention rate and a 50% higher average order value compared to those that do not.
Customers who engage in educational marketing are 29x more likely to purchase the product than those who are informed through media ads alone
They are 94% more satisfied with their purchase
And are 93% more likely to tell friends about the experience (Source: Learning Factor).
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III. Modern Challenges Faced by Retailers
More than ever retailers are enduring the brunt of several notable trends that have made success in the eCommerce space increasingly difficult.
1. Rising cost of digital ads:
Here is a breakdown of the rise in CPM (cost per thousand impressions) across major digital advertising mediums over the last year (Source: LinkedIn):
Meta (Facebook): 61% increase, averaging $17.60/CPM
TikTok: 185% increase, averaging $9.40/CPM
Google programmatic display: 75% increase
Google search ads: 14% increase
No doubt this rise in digital ads prices warrants finding potentially other, more cost-effective ways to attract visitors to your website, but it should also garner more focus on your conversion rate. Why? Because it will cost more to get people to your site, so if you’re acquiring visitors and converting at the same rate, your return on spend is now significantly worse.
If you used to spend $1,000 before on digital ads to acquire 100 visitors and 5 of them made a purchase. Your CAC (customer acquisition cost) was $200 and your conversion rate was 5%. Now, if it costs $2,000 to acquire that same 100 visitors and, again, 5 make a purchase, your CAC has evidently doubled to $400.
2. Low conversion rates
One of the most universal and challenging issues eCommerce retailers face is low conversion rates. As mentioned previously, the average conversion rate across the industry is about 2.5%. In specific verticals, these numbers tell a similarly low story (Source: Adobe):
Fashion and apparel: 2.7%
Health and beauty: 3.3%
Entertainment: 2.5%
Household goods: 2.1%
Electronics: 1.9%
Food and beverage: 4.6%
What are the causes for such low rates? One of the most common reasons is making a bad first impression with your store. This might mean information is hard to access, the site is slow and unresponsive, there are no clear CTAs, and it's difficult for customers to make an informed purchase they have trust in.
All of these factors are difficult to optimize for and manage, especially considering how different user bases might come to the website and interact with your brand.
3. Increased competition
The eCommerce landscape is rapidly evolving, and the competition is fiercer than ever. The numbers speak for themselves, revealing the intense battleground retailers face in the digital realm:
Soaring Number of Online Stores:
The number of eCommerce websites has witnessed an unprecedented surge. As of September 2021, there were over 24 million eCommerce websites worldwide, as reported by BuiltWith. This immense proliferation of online stores underlines the increasing competition and the need for retailers to stand out.
Shifting Consumer Behavior:
Consumer habits have been reshaped by digital transformation. A study conducted by Shopify revealed that 84% of global consumers shopped online during the COVID-19 pandemic, and 42% plan to continue doing so even after the pandemic subsides.
Marketplace Dominance:
Online marketplaces are dominant players in the eCommerce arena. Amazon, for instance, boasts over 300 million active customers worldwide, offering unparalleled convenience and a vast product selection. Competing with these established marketplaces requires retailers to strategically differentiate themselves and provide exceptional value to capture a share of the market.
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IV. Luckily, There is Alia
Alia is built to better educate your customers and drive more sales for your brand.
How do we do this?
Our Shopify app is directly embedded into your online store where you can encourage visitors to learn about your brand through short, customizable interactive lessons. This means that visitors can engage more with the content you want to share with them and motivate them to make that first (or future) purchase with a reward at the end.
Have you ever thought that if a customer came to your website and spent 2 minutes learning about what makes your story or products special they would make a purchase? Well, now you can make that happen with Alia.
Alia allows you to maximize your return on ad spend by increasing conversion, demonstrating value to customers more clearly helping to fend off competition, and creating more evangelists for your brand.
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V. The Benefits of Alia
Your brand has thousands of visitors coming to your website every month, each with different preferences and needs. But here's the problem – your website and education experience are currently tailored to a single type of individual.
Alia is the game-changer that optimizes your conversion rate and drives sales directly from your most powerful asset: your brand.
With Alia, you have the opportunity to engage, educate, and personalize the experience for each visitor, ensuring that they are presented with the aspects of your brand that matter the most. Whether it's highlighting the sustainability of your materials or showcasing the advanced features of your products, Alia enables you to convey your brand's unique selling points through a variety of content mediums, including text, images, and videos.
But that's not all – Alia takes personalization to the next level. By leveraging its customizable features, you can offer different rewards for returning customers compared to first-time visitors. You can strategically place call-to-action (CTA) buttons that only appear on certain pages, nudging visitors toward conversion.
The content of the lessons can be tailored based on individual behaviors and intents, providing a personalized educational journey. Alia even allows you to decide when the CTA appears, ensuring customers have the opportunity to purchase without a discount before trying to convert them unnecessarily. Plus, you have complete control over the branding and coloring of the widget, seamlessly integrating it into your website's appearance.
So, what could this look like on your website?
Picture this: a visitor arrives at your skincare brand's website. Alia greets them with an interactive lesson, tailored to their specific needs and preferences. This could mean showing them different acne treatment products because we have an understanding of the products they might be most interested in. They delve into a captivating educational experience, discovering the remarkable qualities of these products and the brand values that resonate with them. At the end of this lesson, they are now informed and were given 15% off to go ahead and make that first purchase.
And the best part? Alia operates on a "pay for performance" model, meaning you only pay when we help drive new sales. Until then, it's completely free, allowing you to reap the benefits without any upfront costs.
With Alia, you can unlock the full potential of your skincare brand, captivate visitors, and boost your conversion rates like never before. It's time to make every interaction count and turn curious visitors into loyal customers.
Take the leap with Alia, and watch your brand soar to new heights.
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VI. Success Stories with Alia
Alia has helped a number of brands better educate site visitors, returning customers, improve conversion, and, ultimately, drive more sales than ever before.
Case 1: MASC
MASC, an incredible men's skincare brand, achieved an outstanding Alia conversion rate of +40%, meaning after completing an Alia lesson, more than 40% of customers purchased that same visit. A whopping 176 lessons were completed, demonstrating the engaging and educational experience Alia provides. But that's not all – the retention rate of 34% proves that Alia played a pivotal role in keeping customers coming back for more. Perhaps the most astonishing fact is that 10% of new orders were directly driven by Alia, showcasing its remarkable ability to convert visitors into loyal customers. And finally, even more impressive, a staggering 81% of these orders came from first-time visitors, a testament to Alia's power in capturing and converting new audiences.
Case 2: Survivor Filter
Survivor Filter, an industry-leading water filtration company, experienced a remarkable transformation with Alia. The results speak for themselves: a conversion rate of 32% that demonstrates the impact of Alia's interactive lessons on their customers' purchasing decisions. With 115 lessons completed, it's evident that Alia's engaging educational content left a lasting impression. But the true triumph lies in the fact that 21% of new orders were driven by Alia, proving its immense contribution to Survivor Filter's sales growth. And, a staggering 92% of these orders were generated by new visitors.
These success stories demonstrate the immense potential of Alia. From the captivating lessons that educate and engage customers to the staggering conversion rates and new orders driven, Alia has proven to be a game-changer for MASC and Survivor Filter. Experience the power of Alia for yourself and witness your brand's conversion rates soar, all while captivating, educating, and converting your visitors into loyal customers.
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VI. Book a Demo Today
If you’re looking to maximize your conversion rate and build relationships with your customers of tomorrow, Alia is here to help:
Book a live demo with us to see what Alia can do on your website!
Or, try it out for free today on the Shopify App Store.
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