Merchant Shows 22.2% Lift in Conversion Rates with buySAFE Seal

buySAFE Case Study Preview

We’re going to publish a new case study soon that shows how a computer hardware and software store CompSource demonstrated a 22.2% lift in conversion rate after extensive test of buySAFE Seal™. We’re previewing a draft of this on the blog right now as a courtesy to our merchant readers who want to generate more sales during this critical shopping period. Our thanks to our friends at CompSource for cooperating with this test and case study.  

[Case Study #9  — DRAFT]

The CompSource Question

CompSource is a well-regarded online merchant specializing in name-brand computer hardware and software products. CompSource’s large sales volume enables it to offer super-competitive pricing. Ranked among the top 500 companies in the current Internet Retailer 500 Rankings and a CNET-certified merchant, CompSource receives over 3500 unique visitors daily to its website, www.compsource.com, and looks for innovative ways to convert these visitors to buyers.

To boost that conversion rate, CompSource undertook to evaluate the buySAFE Seal. The buySAFE Seal allows shoppers to guarantee their purchases with buySAFE bond up to $25,000, and lets shoppers know that they are dealing with a buySAFE merchant.

CompSource recently participated in a extensive test that placed the buySAFE Seal™ on half of its merchandise to answer the question:  Will the presence of the buySAFE Seal turn more shoppers into buyers at the CompSource website?

The Test

In order to test the impact of the buySAFE Seal™, CompSource worked with buySAFE to allow the buySAFE Seal™  to be placed on about 50% of the items on the web site during the summer … a so-called “A/B Test”. The items of merchandise WITH Seals (A’s) and those WITHOUT Seals (B’s) were chosen randomly – so that the presence of the Seal was the only variable between the two sets. The test conformed to statistically rigorous standards and was professionally administered. Over 360,000 shoppers visited the site during the testing period.

And the Results?   

The test results established that those CompSource shoppers who saw the buySAFE Seal were 22.2% more likely to make a purchase than those shoppers who did not. There are several conclusions and implications to these results:

1. The obvious one is that when consumers see the buySAFE Seal they are much more likely to buy than when there is no seal — from the SAME merchant.
2. That out of every 100 shoppers, there are differing priorities as to what factor will close the sale.  For some, it may be purely low price; for others, it may be credible messaging around risk-free shopping.  No merchant can afford to ignore that finding without hurting its conversion rate.
3. Even a very successful IR500 Merchant, which also has benefit of a CNET certification, enjoyed dramatic lift in its conversion rate … suggesting that size and reputation alone are not sufficient to resolve all shopper concerns:  the buySAFE Seal ™ adds value even to this class of merchant.
4. That for those shoppers who are especially looking for a safe shopping experience – no hassles -- low price alone is not sufficient to compel the purchase.
5. That those shoppers who are risk-averse may also have a higher propensity to purchase once their confidence threshold had been met …in fact, they plainly weigh the value of the safety promise more heavily than additional price discounts in making the purchase decision.    

The Bottom Line for Online Merchants

Consumer confidence at the point of sale matters. The presence of the buySAFE Seal™ has been proven with high statistical validity to cause a higher percentage of shoppers to buy WITH the Seal present than WITHOUT IT. Any merchant who decides NOT to use the buySAFE Seal is foregoing customers and revenue.  

Resources: CompSource Website