Khóa luận tốt nghiệp: A study on the effect of website''s factors on the conversion rate at Litcommerce JSC from January 1st, 2023 to March 31st, 2023.

Doan Thuy Quynh - 11194447 - Business English 61CLIST OF ABBREVIATIONSJSC: Joint-stock Company NEU: National Economics University VINASA: Vietnam Software & IT Services Association HR: H

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NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESDEPARTMENT OF BUSINESS ENGLISH

DOAN THUY QUYNH

A STUDY ON THE EFFECT OF WEBSITE'S FACTORS ON

CONVERSION RATE AT LITCOMMERCE JSC

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NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESDEPARTMENT OF BUSINESS ENGLISH

DOAN THUY QUYNH

A STUDY ON THE EFFECT OF WEBSITE'S FACTORS ON

CONVERSION RATE AT LITCOMMERCE JSC

Hanoi, April, 2022

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Doan Thuy Quynh - 11194447 - Business English 61C

as a content marketer and be a part of LitCommerce JSC

The next person who plays a massive role in my thesis that I would like to thank is

Ms Le Thi Ngoc Diep, my thesis advisor She has been the most supportive andwhole-hearted instructor throughout my work If without her help and guidance, Iwould probably be not able to reach the deadline for my graduation project or finishthe thesis properly

Finally, it is an honor to mention my appreciation to the Faculty of ForeignLanguages at NEU I want to send all lecturers in Business English Department forproviding me with fundamental background knowledge in business administrationand linguistic fields This foundation has been a vital role in not only my internship

at LitCommerce JSC but also my professional life in the later periods

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EXECUTIVE SUMMARYConversion rate is one of the most important elements for any business conductbecause it excessively contributes to the final revenue Explaining it more detailedly,the conversion rate partly decides if the sales performance reaches the company'sexpectations Also, it somehow indicates whether the current strategy applied isappropriate As a result, knowing exactly what factors are influencing the generalconversion rate will help one business implement more effective action plans Due

to the significance of the conversion rate, the author has carried out this research

The following report is an overall evaluation of factors that have impacted theconversion rate made through Google Search Engine at LitCommerce in a period of

3 months from January Ist, 2023 to March 31st, 2023 Additionally, severalrecommendations to improve the general conversion rate for future practices areincluded in the thesis

First and foremost, the thesis's objectives will be presented in the rationale behind

it The upcoming sections are going to provide a brief introduction to LitCommerceJSC, which consist of its history, company structure, vision, mission, and corevalues Apart from that, current situations relating to the conversion rate and factorsaffecting it will come in a detailed analysis

Finally, as aforementioned, there will be suggestions to enhance the generalconversion rate, which makes the thesis valuable and meaningful to LitCommerce,

as well as the author

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TABLE OF CONTENTACKNOWLEDGEMENTS

7 Structure of the research

CHAPTER 1 INTRODUCTION OF LITCOMMERCE JSC

1.1 Brief introduction about LitCommerce JSC

1.2 Established history

1.3 Company structure

1.4 LitCommerce JSC’s Vision, Mission and Core Value

1.5 Current situation about conversion rate at LitCommerce JSC

CHAPTER 2: THEORETICAL FRAMEWORK

2.1 Conversion Rate

2.1.1 Definition of Conversion Rate

2.1.2 Definition of conversion targets2.1.3 The Importance of Conversion Rate2.1.4 Definition of On-site Traffic

2.1.5 Definition of Sales Funnel and Volume

2.1.5.1 Definition of Sales Funnel2.1.5.2 Definition of Sales Volume2.1.6 The relation of Conversion Rate, Traffic, Sales Funnel, and Volume2.2 The Official Website

2.2.1 The Introduction of Websites2.2.2 Roles of Websites as A Marketing Tool2.2.3 The Analysis of Website's Factors in General

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2.3 The Website's Factors Affecting Conversion Rate

2.3.1 Ranking and Traffic2.3.2 Click-through Rate2.3.3 Bounce Rate and Time on Page2.3.4 Conversion Audience and Their Tendencies2.3.5 Content Direction and Conduct

2.3.6 Browsing Experience and Ease of Web Maneuvering2.3.7 Website Aesthetic and Length of Exposure

3.3.1 Quantitative method3.3.2 Qualitative method3.4 Data analysis procedure

CHAPTER 4: DATA ANALYSIS AND MAJOR FINDINGS

4.1 Current Website Conversion Rate General Evaluation

4.1.1 Current Conversion Rate Evaluation4.2 The Effects of Website's Factors on Conversion Rate at LitCommerce JSC

4.2.1 Ranking and Traffic

4.2.1.1 On-page SEO

4.2.1.2 Off-page SEO

4.2.2 Click-through Rate4.2.3 Bounce Rate and Time on Page4.2.4 Conversion Audience and Their Tendencies4.2.5 Content Direction and Conduct

4.2.6 Browsing Experience and Ease of Web Maneuvering4.2.7 Website Aesthetic and Length of Exposure

4.3 The Evaluation of The Effects of Each Factor on LitCommerce ConversionRate via Website

4.4 Recognizing The Root Issues of Low Conversion Rate

4.4.1 Approach to wrong audience

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4.4.2 Gaps in content direction and conduct4.4.3 Unsatisfying responsiveness

CHAPTER 5: RECOMMENDATIONS TO ENHANCE AND MAINTAINTHE CONVERSION RATE ACHIEVED VIA LITCOMMERCE'S

OFFICIAL WEBSITE

5.1 Identify and target the right audience to LitCommerce's site

5.2 Develop insightful content strategy

CONCLUSION

1 Summary of findings

2 Limitations of the study

3 Suggestions for further study

REFERENCE

APPENDIX

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LIST OF ABBREVIATIONSJSC: Joint-stock Company

NEU: National Economics University

VINASA: Vietnam Software & IT Services Association

HR: Human Resources

KPI: Key Performance Indicator

AIDA: Attention, Interest, Desire, and Action

SMEs: Small Medium Enterprises

SEO: Search Engine Optimization

PPC: Pay-per-click

SERP: Search Engine Results Page

CTR: Click-through Rate

EFA: Exploratory Factor Analysis

PiC: Person in Charge

CR: Conversion Rate

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LIST OF FIGURESFigure 1 LitCommerce JSC’s Organizational Structure

Figure 2 Current website situation at LitCommerce JSC

Figure 3 Keyword metrics, their impressions, and CTR of LitCommerce's website

Figure 4 Domain Rating, Referring domains, and Backlinks of LitCommerce's

website

Figure 5 Audience of LitCommerce's website

Figure 6 Audience's intent when visiting LitCommerce's website

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LIST OF TABLESTable 1 Basic information about LitCommerce JSC

Table 2 Current conversion rate at LitCommerce JSC

Table 3 Exploratory conducts on website factors that affect conversion rate

Table 4 Bounce Rate and Time on Page measured on LitCommerce's website

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A high conversion rate means that a greater percentage of visitors to a company'swebsite are becoming paying customers This, in turn, translates into increasedrevenue for the company When a company invests time and resources intomarketing and advertising campaigns, it expects to see a return on that investment

in the form of sales A high conversion rate is a clear indicator that these campaignsare generating the desired outcome

Based on the given context, LitCommerce JSC is no exception when it comes toconversion rate As a matter of fact, most of the company's sales volume comes fromwebsite conversion rate, and the website is one of their strongest marketing tools

Because the effects of website's factors vary from one another, and they are yet to

be clearly recognized This results in conversion rate fluctuation, thus, affecting notonly sales revenue but marketing strategy in general

Accordingly, understanding what factors are affecting the general conversion ratecan help LitCommerce JSC optimize their website and marketing campaigns todrive even more conversions By analyzing data from conversion rate optimizationtools and identifying which elements of a website or marketing campaign is causingvisitors to leave without taking the desired action, the director board can maketargeted changes to improve their conversion rates, which may be referred to asoptimization

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Beyond that, any optimization such as website design (mentioned by Hausman andSiekpe, 2009), messaging or calls-to-action (LitCommerce internal document andreports), or promotions may entice visitors to convert (mentioned by Aladwani andPalvia, 2002) These optimization efforts can lead to even higher conversion ratesand, in turn, increased revenue

Finally, the conversion rate is important because it helps make informed decisionsabout their general marketing and sales strategies By tracking conversion rates overtime, LitCommerce JSC can assess the effectiveness of different campaigns andadjust their strategies accordingly For instance, LitCommerce's director boardmight test different landing pages or ad copy to see which generates the highestconversion rate, and then allocate more resources to that strategy

In conclusion, by analyzing the factors that impact conversion rates and makingtargeted changes to improve them, LitCommerce JSC can stay ahead of theircompetitors and maximize their revenue potential

3 Research objectives

The research aims at identifying the factors that affect the conversion rate made viathe Google search engine at LitCommerce JSC and producing a full evaluation ofeach From the analysis achieved, the study is likely to indicate the root issues of thecurrent defective conversion rate

Last but not least, a number of recommendations relating to improving theconversion rate at LitCommerce JSC will come into the scene

4 Research questions

To reach the final goals of the study, the author has raised three research questions.Their answers are responsible for identifying the problems, regarding the mainsubject mentioned, assessing the factors, and giving out several suggestions forenhancing the overall situation

Question 1: What are the website's factors that impact the conversion rate atLitCommerce JSC?

Question 2: How does each factor impact the general conversion rate?

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Question 3: What actions can be taken to level up the conversion rate via the websiteand maintain it?

5 Scope of research

The purpose of the study is to identify and evaluate the effects of factors affectingthe conversion rate at LitCommerce JSC However, the study will only walk throughthe factors that have actual effects, which may indicate the missing of some elementsthat do not play a significant role in the whole website situation

More about the scope of the research, the author is likely to take deep investigationsinto website factors, including the ranking and traffic, click-through rate, bouncerate and time on page, conversion audience and their tendencies, content directionand conduct, browsing experience and ease of web maneuvering, website aestheticand length of exposure All the factors mentioned are retrieved from exploratorysurveys, carried out by the author and her observation during the internship at

LitCommerce JSC.

For the evaluation, the research is backed up by statistics from Google reports andanalytics Additionally, the assessment will be made subjectively as the study takesreferences from converted clients of LitCommerce JSC about their conversionjourney and experience

Besides, the period during which the study takes place is from January 1st, 2023, toMarch 31st, 2023 Any further information and finding is likely to be excluded due

to the limited time and resources

6 Research methodology

The research is conducted under the official information provided by the Marketing

& Sales department In addition to the data provided by LitCommerce JSC, theauthor has collected data from Google reports and another analysis resource withinher permission levels to generate the most accurate of the effects of factors affectingthe conversion rate at LitCommerce JSC

In order to carry out an objective and precise evaluation of the influences on theconversion rate at LitCommerce JSC, this study has applied different methods to

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approach the theories and real situations, as well as measurements to conclude herthesis

a) Theoretical approach:

Synthesizing the theoretical framework about conversion rate and factors that canaffect it is achieved via numerous sources, including in-house documents, articles,related research papers, other theses, and textbooks Also, preliminary research wasimplemented to narrow down the most relevant targets

b) Practical approach:

Practical approach is made through collecting data from analytics provided byGoogle and in-use applications at LitCommerce JSC as well as interviewing in-depth with 30 customers who have gone through the conversion process These arecalled quantitative and qualitative data

7 Structure of the research

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CHAPTER 1 INTRODUCTION OF LITCOMMERCE JSCThis chapter is devoted to giving audience an introduction about LitCommerce JSC,

including its basic information, established history, company's structure, and itsvision, mission, as well as core value

1.1 Brief introduction about LitCommerce JSC

In brief, general information about LitCommerce JSC is listed as following

Company English Name LitCommerce Joint-stock Company

Head office: Floor 10, Lilama Tower, Trung

Van Ward, Nam Tu Liem District, Hanoi,Vietnam

Type of company Joint-stock Company

Chief Officer Executive Mr Nguyen Duc Hai

Table 1 Basic information about LitCommerce JSC

LitCommerce is a SaaS system that allows e-sellers to list and sell products on thelargest selling platforms and allow data on these channels to be centrally managed

in one place That way, they can easily fulfill their orders from multiplemarketplaces and ensure the best customer experience

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LitCommerce perfectly fits online businesses longing to increase sales rates acrosschannels without operations expansion In recent years, the eCommerce industry hasexperienced tremendous growth International marketplaces like Amazon, eBay,Etsy, etc are processing billions of transactions per day The growth of theseheavyweights in this field has changed the mindset of both buyers and sellers toexpand from selling on a single website to multiple channels

LitCommerce was founded in 2011 by CEO Nguyen Duc Hai, under the first name

as OceanSoft The company used to place its aims at supporting other enterprises byproviding outsource services Then, in 2013, LitCommerce JSC redirected andlaunched its first product known as Shopping Cart Migration, supporting all retailersaround the world to sell more effectively and versatilely

1.2 Established history

In 2023, together with LitCommerce, the company has also owned two more brands,which are known as LitExtension and Litos (newly launched in 2023) These brandsall aim at one target - to help e-sellers thrive in their businesses and join the global

game.

LitCommerce released LitCommerce SaaS Version, which helps to sell everywhere

in one place The company also became an Official Member of Vietnam Software

& IT Services Association (VINASA)

2020 was the milestone when LitCommerce joined SEA App Shopify PartnerVirtual Roadshow It was this year that the company got it recognition of becoming

#1 Shopping Cart Migration Service over the world

LitCommerce then released the 3rd version of LitExtension with more outstandingfunctions against competitors Also, in the year of 2019, LitCommerce became theofficial partner with many eCommerce platform providers including Shopify,Magento, Ship4Shop, X-Cart etc

The company launched LitExtension Brand — A Shopping Cart Migration Service tosupport all multichannel selling retailers around the world The major targetaudience of LitExtension is European and North American clients from then till

now.

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OceanSoft Corporation was founded as a provider of outsourcing services This wasthe first version of LitCommerce JSC as it is today

Figure 1 LitCommerce JSC’s Organizational Structure (The author)

1.3.1 Technical & Product Department

For technical employees, their responsibilities include researching, developing newtechnology products and conduct new version of the existed ones with more superiorfunctions Furthermore, the Technical & Product department focuses on theirongoing support toward customers during their experience with LitCommerce

1.3.2 Marketing & Sales Department

Promoting the company's products and ensuring sales volume (conversion rates areincluded in the package) are what Marketing and Sales employees are after Thisdepartment are also responsible for branding and PR activities of LitCommerce JSC,

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in general This department work closely with Technical & Product staff to reachthe company's KPIs and annual expectations

1.3.3 HR Department

The HR department is responsible for the effectiveness of the company’s humanresources, both its current and prospective employees Their tasks include recruiting,managing, and other relating ones within the department Also, the HR team will be

in charge of internal activities to ensure every staff working at LitCommerce JSC is

in their best statements, both mentally and physically

1.4 LitCommerce JSC’s Vision, Mission and Core Value

Core value:

The company’s motto has always been “Together we grow stronger!”LitCommerce believe that only through unity that we can reach the ultimate goalsand be rewarded with our fruit of work Individualism may get you fast, but that willnot last in the long run

1.5 Current situation about conversion rate at LitCommerce JSC

LitCommerce's official website has approximately 30000 visitors monthly

Nonetheless, conversion rate normally varies from 0.5 to 1.3 percent, which doesnot reach the KPI of 2 to 4 percent Based on this rate, the sales volume is muchly

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affected in a negative way, and all performances, in general, cannot exceed the planexpectation

It is predictable that unfulfilling outcomes can lead to the employees' and leaders’dissatisfaction and impact their performances in a few cases Working in such anenvironment, the author comes to realize that identifying factors and their controlover converted targets, as long as offering recommendations to improve the overallcircumstance, are priorities Hopefully, the findings would be valuable and make auseful contributor to LitCommerce JSC's future development

For all the motives behind this, the study on the effects of website factors on theconversion rate at LitCommerce JSC is proposed It aims at recognizing the issueswithin the LitCommerce official websites, which are influencing the conversion rateand discovering solutions Enhancing conversion rate and sales volume has alwaysbeen LitCommerce JSC's target This would not only attain the desired businessresults but also consolidate all staff's motivation at work, considering their sense ofachievement

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CHAPTER 2: THEORETICAL FRAMEWORKThe second chapter is in charge of the theoretical framework of conversion rate

This review includes notions of conversion rate, traffic, sale funnel, and volume,

along with the close relationship among them Moreover, in the 2nd chapter, theintroduction of the website and its factor analysis will be revealed

2.1 Conversion Rate

2.1.1 Definition of Conversion Rate

Conversion rate is a crucial metric used in digital marketing to measure theeffectiveness of a website or online campaign in converting visitors into customers

It refers to the percentage of website visitors who take a desired action, such as

making a purchase, filling out a form, or signing up for a newsletter.

More about conversion rate, it can be calculated by dividing the number ofconversions by the total number of website visitors and multiplying by 100 A highconversion rate indicates that the website or campaign is effectively engaging andpersuading its target audience, while a low conversion rate suggests that there areissues with the user experience, messaging, or targeting Improving conversion rates

is a primary goal for many digital marketers, as it can lead to increased revenue,customer acquisition, and overall business growth

According to the University of Portland (2014), the conversion rate in the proportion

of orders to total website visitors For instance, if assuming there are 100 peopledirectly to a website and 3 people are willing to make a purchase, the conversionrate achieved is 3 percent Furthermore, the University of Portland suggests in theirresearch that the conversion possibilities of one customer may decrease over time,based on his or her journey, repurchase intention, site moderation, and other relevantfactors

Tactics for optimizing conversion rates include improving website design and userexperience, creating targeted messaging and offers, testing different variations oflanding pages, and analyzing and optimizing the customer journey

As aresult, understanding and tracking conversion rates is essential for any businessthat wants to succeed in the competitive digital landscape, as it provides valuable

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insights into the effectiveness of marketing efforts and helps guide future strategiesand investments

2.1.2 Definition of conversion targets

Conversion target refers to a specific goal that a website or digital marketingcampaign aims to achieve, such as generating leads, increasing sales, or boostingwebsite traffic It is a critical element in digital marketing and is defined by thedesired action that a user takes when they visit a website or engage with anadvertisement

Conversion targets are typically identified and measured through metrics such asclick-through rates, bounce rates, conversion rates, and return on investment Bysetting clear and measurable conversion targets, businesses can track their progress

and optimize their marketing strategies to achieve their desired outcomes.

For example, if the conversion target is to increase website traffic, a business mayfocus on improving their SEO, creating engaging content, and running targeted ads

to drive traffic to their site Alternatively, if the conversion target is to increase sales,

a business may optimize their product pages, offer promotions, and use retargetingads to encourage users to make a purchase

Overall, conversion targets are an essential aspect of any digital marketing campaignand play a crucial role in driving business success by ensuring that marketing effortsare aligned with business goals and objectives

In order to effectively set conversion targets, it is important to understand the targetaudience and their behavior By analyzing data on user behavior, businesses cangain insights into what motivates their customers to take action and tailor theirmarketing strategies accordingly To exemplify, if the target audience is more likely

to make a purchase after reading a product review, a business may focus ongenerating more positive reviews to drive sales Similarly, should the targetaudience is more likely to respond to a discount code, a business may offerpromotional codes to incentivize users to make a purchase

It is also important to track and analyze conversion metrics regularly to identifyareas for improvement and optimize marketing strategies By using tools such as

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Google Analytics, businesses can track metrics such as conversion rates, bouncerates, and click-through rates to measure the success of their campaigns and identifyareas for improvement For example, if a business notices a high bounce rate on aparticular landing page, they may need to adjust the content or design to make itmore engaging and effective

2.1.3 The Importance of Conversion Rate

The importance of conversion rate lies in its ability to help businesses understandhow well their website is performing and identify areas that need improvement Bytracking conversion rates over time, businesses can gain insights into theeffectiveness of their marketing campaigns, website design, user experience, andproduct offerings This information can be used to optimize these elements toincrease the likelihood of visitors taking the desired action

Given the context of conversion rate, if a business has a low converting level, it may

be an indication that their website is not user-friendly or that the messaging is not

resonating with their target audience Therefore, maneuvering changes to thewebsite design, messaging, or product offerings, the business can potentiallyimprove their conversion rate and ultimately generate more remarkable cashflow

Another important aspect of conversion rate is its impact on return on investment(ROD) for digital marketing campaigns Conversion rate optimization (CRO) is theprocess of improving a website's ability to convert visitors into customers or leads,which can result in a higher ROI for marketing campaigns This means increasingconversion rates can help enterprises to achieve more sales from the same amount

of traffic, which can result in a lower cost per acquisition and higher profits

In addition, conversion rate is a key metric for measuring the success of e-commercebusinesses For these business models, the ultimate goal is to convert websitevisitors into paying customers They may conduct their plans via trackingconversion rates and identify which products are selling well, which pages on thewebsite are giving the most conversion targets, and which marketing channels aredriving the best of its potential This information can be used to optimize websites,product development strategies, and marketing campaigns in further practices

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2.1.4 Definition of On-site Traffic

On-site traffic is interpreted as the visitors that land on a particular website or webpage This traffic originates from a variety of sources and can include both new andreturning visitors

On-site traffic is a vital metric for measuring the success of a website or onlinebusiness, as it indicates the level of interest and engagement that visitors have withthe site There are several sources of on-site traffic, including organic search, paidsearch, social media, email marketing, referral links, and direct traffic

Organic search traffic is the most common type of on-site traffic and refers tovisitors who find a website through a search engine, such as Google Paid searchtraffic, on the other hand, refers to visitors who arrive at a website by clicking on apaid search ad, such as a Google AdWords ad

In addition, social media traffic comes from social media platforms like Facebook,

Twitter, Instagram, and LinkedIn, from where businesses can promote their products

or services and drive traffic back to their website

More about traffic flow, email marketing traffic comes from emails that businessessend to their subscribers, containing links to their website In alignment with emailmarketing, referral traffic comes from external websites that link to a particularwebsite, while direct traffic refers to visitors who type in the website URL directlyinto their browser

The sources of on-site traffic can vary depending on the industry and the type ofwebsite For instance, a blog or news website may receive a significant portion ofits traffic from organic search, while an e-commerce site may receive more trafficfrom paid search and referral links

Based on what has been accumulated, understanding the sources of on-site traffic isessential for developing a successful digital marketing strategy, as it helpsbusinesses focus their efforts on the channels that generate the most traffic andrevenue Taking a deeper glance at the traffic factor, through analyzing on-sitetraffic, businesses can gain insights into the behavior of their visitors and identify

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areas for improvement, such as page load speed, user experience, and contentoptimization

2.1.5 Definition of Sales Funnel and Volume

In this section, the study will give further details about the sales funnel and

volume These two elements are in close relationship with the conversion rate for

all businesses, which include LitCommerce JSC

2.1.5.1 Definition of Sales Funnel

A sales funnel is a marketing strategy that guides potential customers through aseries of steps, ultimately leading them to purchase The funnel represents thecustomer's journey from initial awareness to the final stage of buying

At the top of the funnel, customers are aware of the product or service throughvarious marketing channels like social media, advertising, or word-of-mouth Thenext stage is interest, where customers are interested in learning more about theproduct or service This is where businesses typically provide more informationabout the product, its features, and benefits, building trust and credibility with thepotential customer In the decision stage, the customer has decided to purchase theproduct or service, but may still have questions or concerns Businesses need toaddress any objections and provide clear instructions for purchasing

Finally, the action stage is where the customer takes action and makes the purchase.Businesses need to ensure that the purchasing process is seamless and easy tocomplete The sales funnel is essential for businesses to convert potential customersinto loyal customers

To create an effective sale funnel, a company must understand the customer journey,

so that they can tailor their marketing messages, address customer concerns, andprovide a smooth purchasing experience The sales funnel also helps businessesidentify where potential customers are dropping out of the funnel and adjust theirmarketing strategies accordingly A well-designed sales funnel can lead to increasedconversions, higher customer satisfaction, and ultimately, more revenue for thebusiness

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Speaking more of the sale funnel, it has a strong bonding with the AIDA model TheAIDA model is a marketing communication model that stands for Attention,Interest, Desire, and Action It is a framework used to guide the creation of effectivemarketing messages that can move potential customers through the sales funneltoward making a purchase

The AIDA model describes the four stages of a customer's journey towards making

a purchase decision, starting with capturing their attention, generating interest,creating a desire for the product or service, and ending with a call to action to makethe purchase

Interest

The AIDA model by Elias St Elmo Lewis, 1898

Without a doubt, the AIDA model is closely related to the sales funnel, which is avisual representation of the customer journey from initial awareness to purchase.The sales funnel is typically broken down into four stages: awareness, interest,decision, and action The AIDA model aligns with the middle two stages of the salesfunnel, interest and decision, and can be used to create marketing messages thatmove potential customers from these stages toward the action of making a purchase

To successfully move customers through the sales funnel, businesses must createmarketing messages that capture their attention, generate interest, and create a desirefor the product or service being offered When using the AIDA model, businesses

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can create messages that are relevant to their target audience, increase engagement,and drive conversions

From what has been observed, the author may say the AIDA model is a useful toolfor businesses looking to create effective marketing messages that can movepotential customers through the sales funnel toward making a purchase

2.1.5.2 Definition of Sales Volume

Sales volume refers to the total quantity or number of goods or services sold by abusiness during a specific period It is an essential measure of a company'sperformance and revenue generation, as it directly reflects the amount of incomegenerated by the sale of products or services Sales volume can be calculated on adaily, weekly, monthly, or yearly basis, depending on the reporting needs of thebusiness

Monitoring sales volume is crucial for businesses, as it helps them to evaluate theirsuccess in the market, track customer demand, and make informed decisions aboutproduction and marketing strategies According, analyzing sales volume canidentify which products or services are most popular This will lead to properadjustments if a business wants to meet the needs of their customers Sales volumedata can also be used to forecast future revenue and set realistic sales goals for thebusiness

To summarize the highlights, sales volume is a crucial indicator of a business'sfinancial health and can be used to guide decision-making about productdevelopment, marketing, and sales strategies

2.1.6 The relation of Conversion Rate, Traffic, Sales Funnel, and Volume

Conversion rate is likely to have a significant bonding with traffic, sales funnel, andvolume, given the observation and figures accumulated during the author'sinternship at LitCommerce JSC

To begin with, conversion rate is strongly related to traffic As aforementioned, thehigher traffic a website can achieve, the greater chance it has got to enhance thecurrent conversion rate For instance, LitCommerce JSC's website now hasapproximately 5,800 visitors monthly, among which 0.5 to 1.3% of the total visits

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turns into successful conversion targets This figure when placed in comparison withother periods has show certain tendencies Particularly, in November, 2022,LitCommerce official website reached 9,100 visits This led to a raise in conversionrate of 1%

However, traffic did not contribute to a rise in conversion rate alone Back in thetime, the sales funnel was established in a different way, which might be consideredmore effective than it is now Combining with other factors from sociologicsituations, which include the festive season of the year, conversion rate was on itsupward trend More about the sales funnel in November, 2022, it was built andoptimized to gain the most out of traffic, which include conversion targets.Accordingly, the sales volume was going up Since there were more traffic, moreeffective sales funnels, and more practical customer's journeys, conversion targetssomehow peaked during the last months of the year

From the observation and relevant information, consisting of other relating researchpaper, business analytics, website reports, and other sources, the author realized thatconversion rate goes in one way with traffic, as well as the feasibility of sales funnel.From the increasing conversion rate, sales volume will much likely to witness a raisebecause more people are willing to pay for the promoted services

The vice versa case also applies with LitCommerce and other SMEs Should theirtraffic face a downward trend, conversion rate tends to slow down or reduce in aremarkable direction Nonetheless, there are numerous factors affecting theconversion rate and traffic in general, which will come into thorough analysis inchapter 4

2.2 The Official Website

2.2.1 The Introduction of Websites

A website is a collection of web pages that are hosted on a web server and accessiblethrough the internet In simpler terms, a website is a virtual space on the internetwhere individuals, businesses, organizations, and institutions can create and shareinformation about themselves, their products, services, or any other subject matter

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they want to present to the world A website can consist of a single page or multiplepages that are linked together to form a larger website

Websites can serve many different purposes, including personal blogs, onlineshopping, news portals, social media platforms, educational resources, and manymore They can be accessed by users around the world using a web browser on anyinternet-enabled device such as a desktop computer, laptop, tablet, or smartphone

Creating a website requires several steps, including designing the website layout,creating content, selecting a domain name and hosting service, and publishing thewebsite The design of a website can be customized to suit the preferences of thewebsite owner, and content can be created in various forms such as text, images,videos, and interactive media

In addition to providing information, websites can also facilitate communication andcollaboration between users through various features such as comment sections,forums, chat rooms, and messaging systems Websites can also be optimized forsearch engines to increase visibility and attract more visitors

Overall, websites are an essential component of the modern internet landscape,serving as a means for individuals and organizations to communicate, shareinformation, and engage with others on a global scale With the increasingimportance of the internet in our daily lives, websites will continue to play a crucialrole in shaping the way we interact with each other and the world around us

2.2.2 Roles of Websites as A Marketing Tool

In today's digital world, a website is a fundamental tool for any business to promotetheir products and services A website is a marketing tool that can help businessesreach a massive audience, increase a sense of brand awareness, and drive salespotential to its best

The fundamental purpose of a website is to serve as the digital face of the brand It

is often the first point of contact that potential customers have with a business, andtherefore, it should be designed to be visually appealing, user-friendly, and providerelevant information about the products or services The website must also be

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optimized for search engines, enabling it to be found easily by search engines andrank higher on search results pages

A website also provides a platform for content marketing It is a powerful tool toproduce and deliver valuable, relevant, and consistent content that attracts andretains a clearly defined audience This can be achieved by creating blog posts,videos, infographics, and other forms of content that provide value to visitors.Content marketing helps position a brand as a thought leader in the industry, whichcan increase brand loyalty, build trust, and attract more visitors to the website

The website is also an excellent tool to generate leads and sales By using variousdigital marketing techniques, such as search engine optimization (SEO), pay-per-click (PPC) advertising, email marketing, and social media marketing, businessescan drive traffic to their websites and convert visitors into customers With the rightcall-to-actions, landing pages, and lead magnets, businesses can capture leads andnurture them through the sales funnel

Another important role of a website is to provide valuable insights into theaudience's behavior By analyzing web analytics data such as website traffic, bouncerate, time on site, and more, businesses can understand their audience's preferencesand behavior, allowing them to make data-driven decisions about their marketingstrategy These insights can help businesses optimize their website's userexperience, improve their content strategy, and increase conversion rates Quoted

by Joseph L Podolsky (1997), websites are so powerful of a marketing tool that itshift the whole business scenario

Lastly, a website allows businesses to engage with their audience and build a

community around their brand By incorporating social media integration, live

chat, and interactive features, businesses can create a more personalized and

engaging experience for their visitors, mentioned by Ann-christine Schulz and

Alexander T Nicolai (2015) Also, building a community around their brand can

increase customer loyalty and advocacy, leading to more referrals and repeat

business

In conclusion, a website is an essential marketing tool for any business that wants

to share a success story in the digital era Via leveraging the power of a website,

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businesses can increase their online visibility, reach a wider audience, and drivemore sales

2.2.3 The Analysis of Website's Factors in General

When analyzing the elements of a website, there are several factors to consider Firstand foremost, the overall design and layout of the site are critical components thatcan impact user experience The visual appeal of the website, along with itsfunctionality and ease of use, can determine whether visitors will return to the site

or seek alternative options

The navigation of the site is another critical element to consider The menu and menu structure should be easy to navigate, allowing users to quickly find theinformation or products they are seeking Additionally, the site should have a clearcall-to-action, encouraging visitors to take specific actions

sub-Another important aspect of a website is its content High-quality content that is

informative, engaging, and relevant to the target audience can keep visitors on the site for longer periods and increase the likelihood of return visits Content can alsoimprove search engine rankings and drive traffic to the site

The use of multimedia such as images and videos can also enhance the overall userexperience However, it is important to ensure that these elements are optimized forweb use to avoid slowing down the site's load time Additionally, the use ofmultimedia should be balanced and not overwhelm the user or distract from theprimary message of the site

Mobile optimization is another essential element of a website With more and moreusers accessing the internet via mobile devices, it is critical to ensure that the site isresponsive and functional on various screen sizes Failure to optimize for mobiledevices can result in a significant loss of potential traffic and customers

Finally, the site's performance and speed are critical elements that can impact userexperience and search engine rankings Visitors expect a site to load quickly andwithout errors, and slow loading times can lead to frustration and increased bouncerates Ensuring that the site is optimized for speed and performance can improveuser satisfaction and search engine rankings

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Tiêu đề	A Study on the Effect of Website's Factors on Conversion Rate at LitCommerce JSC
Tác giả	Doan Thuy Quynh
Người hướng dẫn	Le Thi Ngoc Diep, Thesis Advisor
Trường học	National Economics University
Chuyên ngành	Business English
Thể loại	Graduation Project
Năm xuất bản	2022
Thành phố	Hanoi

Định dạng
Số trang	61
Dung lượng	11,68 MB