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Maximize CVR in e-Commerce App

Designing vouchers to maximize conversion rate in the product page.

Pomelo is Southeast Asia’s leading omnichannel platform with a global mindset: on-trend, online, on-the-go. Shop 1,000s of styles & brands all in one place, online & in stores.

MY ROLE

UX/UI Design, Research,
Interaction Design, Prototyping

ENGAGEMENT

1 Sprints

Background

In 2021, Pomelo expanded from being an in-house fashion brand to include third-party local Thai and international brands like Nike, Converse, and Calvin Klein. However, while this attracted many new users, they remain inactive and haven’t made purchases. Pomelo is now investigating ways to improve new user conversion rates.

Overview

The highlight of this project is to share how e-commerce platform increase their revenue in one area

Challenge

The product page is a crucial page in an e-commerce platform which is can be challenging when we want to introduce any new feature into it

Problem Statement

As a business owner running an e-commerce platform, the ultimate goal is always to try to scale up the business and meet customer needs.

As a UX designer is to make sure to nail every element in turn to.

This project will be focusing on adding a new element to the product page which is one of the most crucial pages in an online store, how might we include the voucher in the most effective way so that supports users to make a decision to purchase the product?

*Disclaimer for a data geek
The product Page is the most visited page on the Pomelo app, the data shows ~70% of sessions, but Order Conversion overall is only 0.523%, it’s the lowest amongst other flows where the user lands on the App feed at 2.03% or Product List page (0.754%) first.

Preliminary Research

Before we jump into different ways that can effectively use offers to increase customer loyalty and acquisition, let’s first look at some of the pros and cons:

The pros and cons of online store offers

Pros:

  • Increased customer loyalty
  • Increased customer acquisition
  • Increased conversions
  • Quickly move stock
  • Meet sales goals

Cons:

  • Decreased margins and profitability
  • Possible brand damage
  • Decreased conversions outside of sale periods if you train visitors to wait for offers
  • Tendency to drive non-loyal (price-driven) shoppers
  • Tendency to reduce average order size
  • Attract customers outside your target market

 

Reference

19 Ways to Use Offers, Coupons, Discounts, and Deals to Generate More Sales

Competitors Analysis

I went through the benchmarking to see more of what competitors do, and how they show the voucher on any pages, one thing to keep in mind for a UX designer every time we do the benchmarking, as I mentioned in a company overview, Pomelo used to be a fashion platform it’s transforming to the Fashion marketplace, so the perception of the users with Pomelo is still a Fashion brand, especially with a million of existing users, we don’t want to confuse the user so the researches are going to divide to 2 categories and the insight in each category as follows:

Fashion brands (International and Asian):

  • Most internationals don’t show the voucher on the product page, but some are shown on the Homepage/Feed, Banners, and in checkout flows.
  • Fashion Asian brands are showing more sales and promotions than Inter-brands in general.

Marketplace (International and Asian)

  • Every page included a voucher code and more than one placement.
  • Focusing on the new users

Key Finding

From the research, it might help users make a decision to buy the product quicker, but on the business side offering voucher can affect other aspects e.g decreased margins and profitability, decreased conversions outside of sale periods if you train visitors to wait for offers.

Information Architecture – Product Page Analysis

Ideate and Sketch

To make sure we are aware of the risk, the proposed solution is to roll out this feature only for the new user and measure the success then we will see if that can move forward to all users in the next milestone.

User Flow

Design Explorations

Design Exploration 1-2: New user voucher code eligibility
Design Exploration 3-4: New user voucher code eligibility

The Result

Gained 441% order conversion uplift upon launch and 260%
YoY voucher usage per session uplift, as well as lowered discount costs by 45%.

Summarize

The feature has been available to both new and existing users as of October 2024. However, the risk of adding new elements to the product page remains, so A/B testing is occasionally conducted when adding new features to assess whether developing is worthwhile.