One of my newest clients is in a highly competitive business in which they sell similar products as other retailers. These days, many online retailers have a hunch that they are being “Amazon-ed,” which they define as visitors finding products on their website and then going to see if they can get it cheaper/faster on Amazon.com. This client was attempting to use time spent on page as a way to tell if/when visitors were leaving their site to go price shopping. Unfortunately, I am not a huge fan of time spent on page, since a page could have wide varieties of time spent on page due to many other reasons other than price shopping (i.e. working, going to the bathroom, yelling at kids-in my case, etc.). Because of this, I wanted to come up with an alternative way to see if price was a potential reason for lost business. However, before I share my idea, I want to add a disclaimer that there is no [legal] way to really know if people are leaving your site to buy something elsewhere due to price, but the technique I will show may shed some light on how pricing impacts your conversion rates.
As I stated early on, there is no way to make a direct connection between people looking at your site and then price shopping on another site, but my theory is that if you consistently under-perform when you are priced higher than your known competitor(s), this approach may give you some data to validate your theories. Obviously, there are other factors such as shipping, taxes, etc. that can have a major factor, but some of those can be included in this solution as well by simply adding additional parameters to the eVar shown above. Other ways to do similar competitive analysis include using Voice of Customer surveys to ask your visitors if they are price shopping, or moving all SiteCatalyst and competitive data into Adobe’s Data Workbench product. Either way, if you like the concept, you can give it a try or contact me if you want some assistance. If you have other ways to do this, feel free to leave a comment here. Thanks!
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