Why is the “user experience” important?

The quality of your ecommerce web site user experience will directly impact your bottom line

  • Dell applied usability principles to e-commerce web site
    • Sales increased from $1 million to $34 million per day within 6 months.
  • Skechers moved its products selection closer to them home page
    • Sales increased by more than 400%
  • IBM spent millions to redesign a web site
    • Within 1 week:
      • Use of help button decreased by 84%
      • Sales increased 400%


Well now, let’s imagine you are selling something like handmade jewelry online through web site

  • if your current :
    • Monthly visitors: 1,500
    • Conversion rate: 5%
    • Average sales per order: $30
    • Annual revenue = 0.05 * 1,500 * $30 * 12 = $27,000


But now suppose by improving the user experience in turn by improving your usability, your persuasiveness and your graphic design:

  • If increase conversion rate by 1%, to 6%
    • 1% conversion increase on 1,500 visitors is 15 more orders
    • 15 more orders at $30 is $450 in additional sales per month, or
    • $5,400 in additional sales per year


A better user experience can also draw more traffic by word of month Visitors have good experience on your site (assume you also have a good product or service to sell) tend to spread the word. Well again let’s assume:

  • if your current :
    • Monthly visitors: 1,500
    • Conversion rate: 5%
    • Average sales per order: $30
    • Annual revenue = 0.05 * 1,500 * $30 * 12 = $27,000


Now let’s consider the possibility that the improve user experience results due to positive word of mouth:

  • If increase visitors from 1,500 to 2,000 monthly
    • 500 more visitors per month
    • 5% conversions of 500 = 25 more orders per month
    • 25 * $30 = $750 in additional revenue per month
    • $750 * 12 + $9,000 in additional revenue per year


And of course you could conceivably get both these benefits from an improve user experience. That is, increase conversion rate and increase traffic and if you did, the benefits would be cumulative.

  • That is, if your conversion rate increase by 1% to 6% and your traffic increase by 500 visitors per month to 2000 visitors then your annual sales becomes: 2,000 * 6% * $30 * 12 = $43,200 that $16,200 more than your current sales of $27,000.

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