Cross-border conversion is in the details, here’s how to find that detail in your data
Cross-border brands should rely on big data to make smart moves into the global market. In a world full of data, it can be hard to decide where to look for insights. We’ve three simple steps that will help you identify the data points which will help boost your international conversion.
Step 1: Considering the Data
Assessing international traffic requires a deep approach that looks beneath the data, but includes steps such as:
- Monitor traffic from other countries on the site.
- Factor in bounce rate (perhaps there’s a lot of impressions from India because the brand name happens to be the same as a local restaurant’s name).
- Get stats on brand recognition outside of website views. How often is the brand searched for in each market?
- Track traffic for 6 months, and if it is sustained – then consider building a solution to convert that traffic into sales.
Step 2: Apply the Pareto Principle to your Data
Simply saying – we want to go everywhere, is not the best approach. Each market will have its own idiosyncrasies, and will need to be segmented accordingly. Even if the entire world is looking for your product, it’s wise to approach cross-border conversion on a country-by-country basis, and avoid implementing a one-size fits all solution.
Which leaves the conundrum – which market do we enter first? Best practice is to apply the Pareto Principle or 80:20 rule to data. Applying the 80:20 rule to web traffic analytics, retailers can project that 80% of cross-border sales will come from 20% of their international markets, so it makes sense to prioritize the top 20% of potential markets.
Step 3: Deciding Which Market to Target and Why – Short Tail Versus Long Tail
Once the Pareto Principle has been applied, it will be easy to divide markets into ‘Short Tail’ and ‘Long Tail’ opportunities. This will allow Retailers to create a road map for global expansion.
Short Tail markets are the most obvious set of new markets that are of interest to the retailer. Typically, this segment will consist of a set of 3-5 international markets that will drive the majority of cross-border sales. This segment represents the 20% of markets that should be prioritized.
Long Tail refers to the collection of smaller markets that can combine to make a valuable contribution to sales. Taken on a country-by-country basis, these markets may seem small, and should form part of a long-term strategy.