The Product Categories report offers Financial Services customers the ability to understand, analyze, and optimize product completions and affinities. Using Product Categories, you can measure the success of visitor interactions with specific products.
By identifying these interactions, you can attempt to offer popular products within varying site locations or on varying applications in an effort to increase revenue and customer satisfaction. Product Categories can be used to pinpoint which products do not have strong affinities and products that are often added to an application but rarely completed. The report shows product submission, abandonment, and viewing metrics aggregated by category.
The following examples show ways to use Product Categories data:
- A high product views/items transacted ratio indicates a creative problem
- This ratio is effectively a look-to-apply ratio. If this metric is high, then visitors are viewing a product frequently but often searching for more information and returning to the product page before converting. To correct the creative problem consider investing by improving content descriptions, images, and comparison tools.
- High abandonment likely indicates a process problem
- Visitors might have issues with the application process. Investigate application abandonment by using the TruePath report to address issues with key site processes. Also, consider a deeper evaluation of the forms within an application by using the Forms report to find high unloaded fields.
- Items with high in-session (application) overlap present cross-sell opportunities
- Capitalize on immediate cross-sell opportunities by presenting the items prominently on the relevant product and category pages.
Products versus applications
An application is a step-by-step flow to apply for a product.
Consider the following scenarios:
- The one-to-one ratio between applications and products, in which each product has a different application flow.
- One application flow that accommodates different products. For example, the same information may be requested for home loans versus car loans; or the process might have optional steps for different products.
- Additional products, such as cross-sell or up-sell items, in an application. For instance, when you apply for a checking account you are also offered a savings account (there is one application but multiple products).
In each of these scenarios, you can use the Product Categories Report to understand the impact of specific products regardless of the application.
Common options and views
Consider the following options and views when analyzing data using the Product Categories report:
- If your business is a financial services institution that has an authenticated space (such as online banking), consider setting up two key segments: one for authenticated sessions and one for unauthenticated sessions. Authenticated spaces might dominate traffic on your site, so being able to separate the two groups will allow for more meaningful analysis.
- If you are unsure of the category in which your product resides, try using the full list view, which will allow you to see the product and the category or categories in which the product resides.
- Consider creating a 'Top Browsed Products' report by sorting your report on the products selected, so you can rapidly identify the products. Further analysis and sorting can allow you to see which of the browsed products are high-value (low abandonment percentage). As a result, you can take action to effectively place the items prominently on your site.
- Consider creating a 'Top Abandoned Products' report by sorting your report on the abandonment rate. This will show the products that visitors most frequently add to applications but do not end up purchasing. Further analysis can be initiated to investigate the reasons for such high abandonment.
Example Product categories
The following examples are product categories that can be defined in the Category Definition File (CDF) for reporting in the Product Categories report:
- Navigation Categories
- On-Site Search
- Catalog Search
- Home page
- Such as Home page - feature 1
- Such as Home page - feature 2
- Category/Department pages
- Such as Electronics - feature 1
- Such as Women's - feature 1
- Wish List
- Landing Pages
- Persistent Cart
- Product-related site tools
- Virtual model
- Product Zoom
Product Categories report use case
Your task is to identify opportunities to increase conversion and online-driven revenue. To drive changes, you must support your recommendations with empirical data.
You begin by analyzing the key ratios for product categories to identify opportunities to improve conversion. You complete the following steps:
- Obtain a list of all of the products for the small business category to analyze, from the Product Categories report.
- Obtain data about exposure and effectiveness for each product.
- Exposure can be measured by the number of sessions with a product view for a specific product.
- Effectiveness can be measured by the number of transacting sessions divided by the number of viewing sessions for a specific product.
- Sort the products by exposure and classify each as having either high or low exposure. This will be an arbitrary classification depending on the specific metrics for your site. For this site, anything below 85% is low.
- Sort the products by effectiveness and classifies each as having either high or low effectiveness. This will be an arbitrary classification depending on the specific metrics for your site. For this site, anything below 80% is low.
- Label each of your products according to the quadrant into which they fall for analysis.
- Create a 2x2 matrix with exposure and effectiveness as the axes. Label each quadrant appropriately for your business, and place each product into the appropriate quadrant.
For each category, consider the following.
- Products with high exposure and effectiveness
- These products drive significant interest and applications. Focus on presenting appropriate up-sell opportunities with these items to increase customer lifetime value.
- Products with low exposure and high effectiveness
- These products convert customers but are underexposed. Consider promoting these items prominently on home and category pages, as well as using marketing links to drive interest.
- Products with high exposure and low effectiveness
- These products draw customer interest but do not drive applications. To capitalize on customer interest there might be an opportunity to improve the creative for the products,
- Products with low exposure and effectiveness
- These are niche products, drawing minimal interest and conversion. Ensure that site search tools allow you to reach these products easily but do not invest heavily in promotion or optimization.
Key performance indicators for the Product Categories report
Focus on the following key performance indicators when analyzing data in the Product Categories report.
The Product Categories report provides the following metrics in the default view.
- Product Views
The total number of times that a product detail page (or category that contains the page) is viewed. This metric is a count of the collected Product View tags.
- Online: Items Sold
The total online sales of items calculated by using the shop tags.
- Online: Item Sales
The total online sales of items calculated by using the shop tags.
- Abandonment Rate
The ratio of items that are abandoned to all items placed in a shopping cart: Abandoned Items divided by Carted Items.
Additionally, if you edit the Product Categories report, you can add these metrics.
- Abandoned Sales
The total value of all items that are placed in a shopping cart but not purchased: Value of Carted items minus Value of Purchased Items.
- Average Abandoned Item Price
The average price of all items placed in a shopping cart but not purchased.
- Item Abandonment Rate
The ratio of items abandoned to items placed in the shopping cart.
- Items Abandoned
The total number of items that are placed in a shopping cart but not purchased.
- Items Added
The number of items that are placed into a shopping cart during a specified time period. Adding items to a cart does not necessarily mean that the items were purchased.
- New Buyers
The number of unique visitors who made their first purchase during the specified time period. They can be new or repeat visitors.
- Online: Average Item Price
The average price of all items sold online: Online: Items Sales divided by Online: Items Sold
- Online: Buying Sessions
The number of sessions in which an order was placed via online channels.
- Product Views / Item Sold
The average number of product views per item sold: Product Views divided by Items Sold.
- Product Views / Viewing Session
The average number of product views per session in which the product was viewed: Product Views / Viewing Sessions.
- Session Conversion Rate
The ratio of sessions that contain at least one order to the total number of sessions that viewed a page in context: Purchasing Sessions divided by Viewing Sessions.
- Unique Buyers / Unique Viewers
The ratio of visitors who purchased a product to all visitors who viewed that product. Unique Buyers divided by Unique Viewers.
- Viewing Sessions
The total number of sessions viewing the page being analyzed. This metric requires the collection of Element attributes.