I can’t believe it’s the end of another year. In 2009, I was sure checkout optimization would explode. In 2010 I was sure again, and really started to see a lot of momentum build. As we enter 2011, I’m seeing a lot of really smart and exciting things happen in the space. I just wanted to take the opportunity to say thank you to everyone that has kept me involved and let me be a part of it!

Now to the good stuff. Link time! (Note – you can get more timely links to new content by following me on Twitter. I’ve been doing a pretty good job at tweeting cool stuff for like, three or four days in a row now.)

New Checkout Optimization Content

131% Increase in CR!

Do you ever doubt the power of the one page checkout? Check out these test results from The Corkscrew, an online wine retailer. Going from 6 steps/pages to 1 increased conversion rate by 131.2%.

Test your intuition by seeing which ecommerce store template got 34% more add to carts at “Which Test Won?”

Cart abandonment and recovery is really getting a lot of specific focus over the last week or so. Here are some tips, along with the resource they have been pulled from:

If your site has the “continue shopping” and “proceed to checkout” buttons next to each other, make it easier for prospective buyers to distinguish one from the other by creating physical space between the two buttons. [FutureNow]

Some online merchants have tested exit pop-up surveys for anyone who abandons a cart. Because these are frequently blocked by security software, you may have better luck sending a follow-up email. [OPEN Forum]

We recommended to feature their reassurances more effectively, as well as a satisfaction guarantee.  We also recommended featuring the free shipping information here.  Finally, we recommended that they improve the look and feel of their buttons to “proceed to checkout” and “continue shopping.” [FutureNow]

Reduce steps. If you don’t have a one page checkout, see what you can do to get one. If you can’t, then at least try to reduce the number of clicks visitors need to perform to complete an order and be sure they always know where they are in the process (step 1 of 2, etc). [FutureNow]

[On cart recovery e-mails...] Consider the emotional impact of images (like the woman smacking her forehead). A quick and cheap way to gauge customer sentiment is to submit your images to 5 Second Test, which will expose them to users who will provide feedback on the impression they give. [GetElastic]

Still not satisfied? More:

• Cart conversion tips from Dr. Mike Baxter
• Banking big bucks with Future Now
• Showing % discount on buttons from GetElastic
• 2 ideas for reducing abandonment from GetElastic
• 5 tips for a good digital goods checkout from GetElastic

That’s what I have for now. See what I’m saying? Lots of awesome stuff. GetElastic and FutureNow are really churning out some winning content here… I guess I’m going to have to start posting again

Thanks again for a great year, for all the comments and e-mails, for the opportunities, and for being a part of this community!

Before getting to things, I am not claiming the following:

• That coupon codes decrease revenue
• That retailers should remove coupon code support from checkout
• That retailers should stop using coupon codes

In fact, the retailer that I reference below recently had their best week ever through offsite marketing channels thanks to a promotional effort that relied on coupon codes. Further, they actually saw their margin increase while discounting products.

Now with that out of the way…

One Problem with Coupon Codes

I don’t have millions of dollars of research to support this, but I hypothesize that one problem with coupon codes is simply that they can and do distract users from completing their transactions in a linear fashion. A coupon code entry field exposed during e-commerce checkout is analogous to a sign at the register in a brick and mortar store that directs a customer that if they leave and look around a bit, they may be able to save money. At that point, the store is basically guiding the customer off course and then hoping that they finish what they started. Not ideal.

Online, this problem can be compounded for many reasons. My top 3:

1. It’s very easy for buyers to get distracted.
2. Smart competitors are good at stealing customers during checkout.
3. Smart affiliates are incredible at stealing customers during checkout.

So? All three of these scenarios results in lost revenue. The second scenario results in lost revenue and gained revenue for a competitor, which is an even worse result.

(I have been dinged a few times for treating affiliates unfairly. I once was a very successful affiliate. The majority of very successful affiliates are crafty folks that find gaps in a company’s online marketing campaigns and fill those gaps. That is an incredibly valuable service, but if  as a retailer you aren’t policing your affiliates and learning from them, then you are unnecessarily allowing your cost of sale to increase. It’s that easy. E-mail me for more thoughts on that.)

Coupon Codes Are More Prolific than Ever

This all matters because shoppers are not only using coupon codes more, they are searching for coupon codes more. This provides competitors and affiliates the opportunity to reroute them and either drive revenue loss or increased cost of sale.

Coupon/Promo/Discount Code Search Volume

For  a real life example – the retailer I eluded to earlier. This retailer is one of the largest online and has multiple stores that are all experiencing the same thing. Searches like “[brand] + coupon code” are on the rise in a big way. These searches are already up 40% year-over-year and that number is expected to take off in November.

We know how coupon codes can drive revenue loss, and why we care more now than ever. What are we going to do about it?

Stop Losing Revenue to Coupon Codes

The main challenge is that the coupon code field can drive users away from your site. To solve that challenge, you have to break it down to the why’s. This list isn’t exhaustive… please share ideas in the comments section and I will add to the section below.

1. Everyone wants to pay the lowest price.
2. You (the retailer) aren’t providing coupon codes when relevant.
3. You aren’t actively routing limbo customers back to your site effectively.

And here is where it gets fun. Ideas for reducing the revenue lost from coupon codes. (Note that if you try these ideas, you need to be responsible and test them!)

1. Hide the coupon code field if you don’t have active coupons or if a cart does not qualify for a promotion.
2. Automatically provide relevant coupon codes to customers.
3. Promote your promo codes. (GetElastic via MarketingExperiments)
4. Optimize a page on your site (SEO) for “[your brand] + coupon code” and variants.
5. Increase coverage on “[your brand] + coupon code” keywords and variants via PPC. Make sure that you give users a great landing experience!
6. Restrict affiliates/partners from bidding on “[your brand] + coupon code” keywords and variants.
7. Provide an explanation of coupon codes via a tool tip or help box.

If you have any more ideas or experiences here, please do share! There were a few thoughtful posts/articles that inspired me to share my thoughts here. Thanks to:

• Gaby Diaz at Marketing Experiments
• Linda Bustros at Get Elastic
• Why Users Abandon their Carts at eMarketer
• Search Results like This
• How Much is Your Coupon Code Box Costing You?