Acquisition Journey Optimisation Paper Published in BE Guide
Our report, “Journey Optimisation: The Road Not Taken“, by Henry Stott, Benny Cheung, Jerry Luukkonen and Alice Pearce, has now been published in The Behavioral Economics Guide 2023 from BehavioralEconomics.com
The global economy has been digitising exponentially for over 20 years, albeit differentially across countries and categories. In 13 years, the majority of US retail sales will be online. In the UK, online is already 30% of sales. However, there is tremendous scope for journey optimisation. In our case study, real-world acquisition journey conversion rates vary from 21% to 64%. Based on this, one provider’s stock has outperformed its rival by x20 over 15 years. In a digitising economy, this report explores various strategies for optimising customers’ online journeys.
We used our immersive randomised controlled trial approach, BehaviourLab, to explain how relatively modest changes to a provider’s product offering and acquisition journey design can account for significant improvement in sales and shareholder returns. We created an online acquisition task where we immersed paid participants in a hotel room booking experiment. They were asked to select a hotel room, choosing between five types, review some Add-ons, such as paying for Late Check-Out, and then tell us how they feel about their choices and the sales process. As a randomised controlled trial, different participants experienced different journeys and propositions to see how these affect their behaviours and reactions. Exploring twenty-five conditions, we identified five adjustments that optimise the acquisition journey. The optimised journey simultaneously increases AOV by +23% and Customer Satisfaction by the equivalent of a -11% price cut.
You can read the BE Guide, with this report on page 133, via the link below: