NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH DOAN THUY QUYNH A STUDY ON THE EFFECT OF WEBSITE'S FACTORS ON CONVERSION RATE AT LITCOMMERCE JSC NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH DOAN THUY QUYNH A STUDY ON THE EFFECT OF WEBSITE'S FACTORS ON CONVERSION RATE AT LITCOMMERCE JSC Hanoi, April, 2022 Doan Thuy Quynh - 11194447 - Business English 61C ACKNOWLEDGEMENTS To begin with, I would like to express my most sincere gratitude towards my leaders, mentors, and colleagues at LitCommerce JSC for having supported and offered me a professional work environment during my internship. During my time at LitCommerce JSC. I have gained valuable experience and learned insightful marketing practices, regarding my work scope. Thanks for the opportunity to work 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 and whole-hearted instructor throughout my work. If without her help and guidance, I would probably be not able to reach the deadline for my graduation project or finish the thesis properly.
Finally, it is an honor to mention my appreciation to the Faculty of Foreign Languages at NEU. I want to send all lecturers in Business English Department for providing me with fundamental background knowledge in business administration and 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. Doan Thuy Quynh - 11194447 - Business English 61C EXECUTIVE SUMMARY Conversion rate is one of the most important elements for any business conduct because it excessively contributes to the final revenue.
Explaining it more detailedly, the conversion rate partly decides if the sales performance reaches the company's expectations. Also, it somehow indicates whether the current strategy applied is appropriate. As a result, knowing exactly what factors are influencing the general conversion 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 the conversion rate made through Google Search Engine at LitCommerce in a period of 3 months from January Ist, 2023 to March 31st, 2023. Additionally, several recommendations to improve the general conversion rate for future practices are included 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 LitCommerce JSC, which consist of its history, company structure, vision, mission, and core values.
Apart from that, current situations relating to the conversion rate and factors affecting it will come in a detailed analysis. Finally, as aforementioned, there will be suggestions to enhance the general conversion rate, which makes the thesis valuable and meaningful to LitCommerce, as well as the author. Doan Thuy Quynh - 11194447 - Business English 61C TABLE OF CONTENT ACKNOWLEDGEMENTS EXECUTIVE SUMMARY TABLE OF CONTENT LIST OF ABBREVIATIONS LIST OF FIGURES LIST OF TABLES INTRODUCTION 1. Research objectives 4, Research questions 5.
Scope of research 6. Structure of the research CHAPTER 1. INTRODUCTION OF LITCOMMERCE JSC 1. Brief introduction about LitCommerce JSC 1.
LitCommerce JSC’s Vision, Mission and Core Value 1. Current situation about conversion rate at LitCommerce JSC CHAPTER 2: THEORETICAL FRAMEWORK 2. Definition of Conversion Rate 2. Definition of conversion targets 2.
The Importance of Conversion Rate 2. Definition of On-site Traffic 2. Definition of Sales Funnel and Volume 2. Definition of Sales Funnel 2.
Definition of Sales Volume 2. The relation of Conversion Rate, Traffic, Sales Funnel, and Volume 2. The Official Website 2. The Introduction of Websites 2.
Roles of Websites as A Marketing Tool 2. The Analysis of Website's Factors in General Doan Thuy Quynh - 11194447 - Business English 61C 2. The Website's Factors Affecting Conversion Rate 2. Ranking and Traffic 2.
Click-through Rate 2. Bounce Rate and Time on Page 2. Conversion Audience and Their Tendencies 2. Content Direction and Conduct 2.
Browsing Experience and Ease of Web Maneuvering 2. Website Aesthetic and Length of Exposure CHAPTER 3: METHODOLOGY 3. Participants and Other Inputs 3. LitCommerce's JSC clients 3.
Data analysis procedure CHAPTER 4: DATA ANALYSIS AND MAJOR FINDINGS 4. Current Website Conversion Rate General Evaluation 4. Current Conversion Rate Evaluation 4. The Effects of Website's Factors on Conversion Rate at LitCommerce JSC 4.
Ranking and Traffic 4. On-page SEO 4. Off-page SEO 4. Click-through Rate 4.
Bounce Rate and Time on Page 4. Conversion Audience and Their Tendencies 4. Content Direction and Conduct 4. Browsing Experience and Ease of Web Maneuvering 4.
Website Aesthetic and Length of Exposure 4. The Evaluation of The Effects of Each Factor on LitCommerce Conversion Rate via Website 4. Recognizing The Root Issues of Low Conversion Rate 4. Approach to wrong audience Doan Thuy Quynh - 11194447 - Business English 61C 4.
Gaps in content direction and conduct 4. Unsatisfying responsiveness CHAPTER 5: RECOMMENDATIONS TO ENHANCE AND MAINTAIN THE CONVERSION RATE ACHIEVED VIA LITCOMMERCE'S OFFICIAL WEBSITE 5. Identify and target the right audience to LitCommerce's site 5. Develop insightful content strategy CONCLUSION 1.
Summary of findings 2. Limitations of the study 3. Suggestions for further study REFERENCE APPENDIX Doan Thuy Quynh - 11194447 - Business English 61C LIST OF ABBREVIATIONS JSC: 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 Doan Thuy Quynh - 11194447 - Business English 61C LIST OF FIGURES Figure 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 Doan Thuy Quynh - 11194447 - Business English 61C LIST OF TABLES Table 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 Doan Thuy Quynh - 11194447 - Business English 61C INTRODUCTION 1. Research title A study on the effect of website's factors on the conversion rate at Litcommerce JSC from January Ist, 2023 to March 31st, 2023. Rationale Conversion rate is one of the most critical metrics for any company that wants to succeed in the digital age. The term refers to the percentage of website visitors or potential customers who take a desired action, such as making a purchase, filling out a contact form, or subscribing to a newsletter.
In today's highly competitive marketplace, where companies must constantly vie for the attention of consumers, conversion rate is crucial because it directly impacts a company's bottom line. A high conversion rate means that a greater percentage of visitors to a company's website are becoming paying customers. This, in turn, translates into increased revenue for the company. When a company invests time and resources into marketing 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 campaigns are generating the desired outcome. Based on the given context, LitCommerce JSC is no exception when it comes to conversion rate. As a matter of fact, most of the company's sales volume comes from website 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 not only sales revenue but marketing strategy in general. Accordingly, understanding what factors are affecting the general conversion rate can help LitCommerce JSC optimize their website and marketing campaigns to drive even more conversions. By analyzing data from conversion rate optimization tools and identifying which elements of a website or marketing campaign is causing visitors to leave without taking the desired action, the director board can make targeted changes to improve their conversion rates, which may be referred to as optimization. Doan Thuy Quynh - 11194447 - Business English 61C Beyond that, any optimization such as website design (mentioned by Hausman and Siekpe, 2009), messaging or calls-to-action (LitCommerce internal document and reports), or promotions may entice visitors to convert (mentioned by Aladwani and Palvia, 2002).
These optimization efforts can lead to even higher conversion rates and, in turn, increased revenue. Finally, the conversion rate is important because it helps make informed decisions about their general marketing and sales strategies. By tracking conversion rates over time, LitCommerce JSC can assess the effectiveness of different campaigns and adjust their strategies accordingly. For instance, LitCommerce's director board might test different landing pages or ad copy to see which generates the highest conversion rate, and then allocate more resources to that strategy.
In conclusion, by analyzing the factors that impact conversion rates and making targeted changes to improve them, LitCommerce JSC can stay ahead of their competitors and maximize their revenue potential. Research objectives The research aims at identifying the factors that affect the conversion rate made via the Google search engine at LitCommerce JSC and producing a full evaluation of each. From the analysis achieved, the study is likely to indicate the root issues of the current defective conversion rate. Last but not least, a number of recommendations relating to improving the conversion rate at LitCommerce JSC will come into the scene.
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 main subject mentioned, assessing the factors, and giving out several suggestions for enhancing the overall situation. Question 1: What are the website's factors that impact the conversion rate at LitCommerce JSC? Question 2: How does each factor impact the general conversion rate? 10 Doan Thuy Quynh - 11194447 - Business English 61C Question 3: What actions can be taken to level up the conversion rate via the website and maintain it? 5. Scope of research The purpose of the study is to identify and evaluate the effects of factors affecting the conversion rate at LitCommerce JSC.
However, the study will only walk through the factors that have actual effects, which may indicate the missing of some elements that 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 investigations into website factors, including the ranking and traffic, click-through rate, bounce rate and time on page, conversion audience and their tendencies, content direction and conduct, browsing experience and ease of web maneuvering, website aesthetic and length of exposure. All the factors mentioned are retrieved from exploratory surveys, 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 and analytics.
Additionally, the assessment will be made subjectively as the study takes references from converted clients of LitCommerce JSC about their conversion journey and experience. Besides, the period during which the study takes place is from January 1st, 2023, to March 31st, 2023. Any further information and finding is likely to be excluded due to the limited time and resources. Research methodology The research is conducted under the official information provided by the Marketing & Sales department.