DATA ANALYSIS: ORDER FLOW PRO (OFP)
In 2020, local market undertook a strategic initiative by launching an online grocery store with the closure of so many local businesses due to the pandemic. They aim to provide customers access to the locally produced goods and help local farmers and businesses to stay profitable.
This analysis focuses on a specific project, where the objective was to optimize the sales funnel. The goal was to identify customer drop-off points during the ordering process and distinguish different customer types. The anticipated result of implementing the analysis recommendations is a potential 8.1% increase in turnover. (Figures are adjusted for confidentiality.)
GOAL
Effective decision-making relies on asking the right questions and analyzing data to extract relevant insights. The goal is to empower the organization with actionable information for optimizing the sales funnel.
RESULT
The report encapsulates results with actionable recommendations, guiding the organization toward clear, well-founded decisions, cost savings, and operational optimizations.
HOW MANY VISITORS DOES THE ONLINE STORE HAVE AND THE NUMBER OF ORDERS?
In 2022, a significant increase in online store visitors was noted due to local campaigns and recognitions in community centres. While unique visitor percentages remained stable over three years, the number of orders correlated with the rise in visitors. However, the items per order did not reach the targeted level.
WHAT DOES THE SALES FUNNEL LOOK LIKE AND WHERE DO VISITORS DROP OUT?
Using Google Analytics, Python Scripting and the company own systems, we were able to check which visitors visit the website and which process they go through.
Sales funnel performance
(%=number of visitors in process)
More than 40% of website visitors discover the platform through organic search, originating from search engine queries. Additionally, 26% navigate directly by entering the website URL, followed by e-mail (14%), social media (5%), referral links (7%), and other sources (3%).
Despite the varied sources of traffic, there are notable instances in the order process where visitors tend to abandon their carts. Addressing these points is crucial for maximizing conversion rates.
Visitors add products to their shopping cart but fail to view the contents of the total basket. (Loss: 4.3% of Visitors) Solution: Enhance visibility of the shopping basket icon, implementing a pop-up notification when at least two items are added, guiding users to the total shopping basket.
Some visitors leave during the process of logging in or creating an account after viewing their shopping basket. (Loss: 2.8% of Visitors) Solution: Allow users to complete purchases as guests without mandatory account creation, streamlining the checkout process.
Approximately 1% of visitors abandon the order process after viewing the total order amount, often due to unexpected costs (e.g., delivery fees) or unaccepted voucher codes. Solution: Clearly communicate delivery costs on the website and provide contact information or a helpline for assistance with unaccepted voucher codes.
By implementing the aforementioned adjustments, a potential increase of up to 8.1% in the number of orders can be achieved, optimizing the overall conversion funnel.
LEAD SOURCES VS SALES
Upon closer examination of the ordering process, it became evident that visitors arriving via e-mail exhibit a higher likelihood of placing an order—1.5% more than the average. The automatic login feature, triggered when clicking on an e-mail link, contributes to a notable decrease in the percentage of individuals abandoning the ordering process between viewing the shopping basket and checking delivery details.
Notably, e-mails wield heightened effectiveness during specific seasons. Illustrated by the accompanying graph, a surge in orders is evident during the first week of spring and mid-summer, directly attributed to e-mails dispatched on these occasions.
Currently lacking a coherent e-mail strategy, the organization is undergoing a strategic transformation based on this research. The new approach encompasses considerations for e-mail frequency, optimal dispatch timing, clear Calls-to-Action (CTAs), and judicious discount application. Simultaneously, the development of a weekly landscaping newsletter, featuring tips and blogs, is underway for release starting January 2024.
We would like to increase the number of orders, but it is also interesting to increase the number of items per order. That’s why I looked at the number of items ordered per lead source.
The average order size is 1.98 items per order for 2022. Social is a channel where people do not often place an order, but the average order size is high, followed by referrals and e-mail.
At the moment, the company is working on posting more in a strategic way on instagram and TikTok for before and after videos when using their products on actual sites to target a bigger audience. New referrals coupons are being used to encourage current customers to bring in new clients.
WHICH LEAD SOURCES ARE MOST EFFECTIVE?
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