Industry Eye: Case Study - ElectricShopping.com Boosts Conversions With Comparative Pricing
PROBLEM: ElectricShopping.com, a London-based online retailer of electronic appliances and accessories, wanted to increase the conversion rate on its website while reducing bounces.
SOLUTION: Implemented an onsite comparative pricing tool to prove to consumers that its prices were the lowest.
RESULTS: Sales increased in last year's fourth quarter after the tool's launch, with the website's conversion rate up 18.7 percent and bounce rate down 7.2 percent.
When it says its low prices can't be beat, ElectricShopping.com means it. In fact, the online electronics retailer proves it, taking the unconventional step of listing its competitors' prices — Amazon and eBay among them — alongside its price for the same product.
Frustrated by the amount of money it was costing just to bring consumers to its website, ElectricShopping.com knew it had to do everything it could to convert them once they were there. That's how the idea of comparative pricing took root. Working with WinBuyer, an onsite comparative pricing (OCP) solutions provider, ElectricShopping.com launched OCP on Oct. 7, 2009.
"We know that once we've gotten [consumers] on our site, if we can keep them there, they're more likely to check out," says Rob Levy, CEO of ElectricShopping.com. "An objective was to try and reduce our bounce rate — make sure that once customers come to our site, they know immediately that we're either the cheapest or one of the cheaper places to buy this product."
By taking the counterintuitive step of placing links to its competitors on its product pages, ElectricShopping.com has gained consumers' trust and respect. Similar to retailers that include negative customer reviews on their sites — which ElectricShopping.com does also — the company realized it had to be honest with consumers at all times. That includes the rare occurrences when it's not offering the lowest price for a product.