Digital Strategy Report: Conversation Rate Optimization at Coles

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This report provides a comprehensive analysis of Coles Supermarket's digital strategy, with a primary focus on conversation rate optimization (CRO). It begins with an introduction to CRO and its importance, followed by an examination of Coles' current CRO approach, including its strengths and weaknesses. The report then delves into a competitor analysis, specifically focusing on Amazon and its strategies for improving conversation rates. A key component of the report involves mapping the online customer journey of a specific customer segment, which is crucial for understanding customer behavior and preferences. Based on this understanding, the report proposes two digital marketing objectives aimed at enhancing CRO and recommends user experience strategies to optimize the customer journey. Finally, it outlines a digital marketing mix to support the recommended strategies, identifies the required resources for successful implementation, and suggests methods to measure the performance of the proposed digital marketing plan. The report concludes with a summary of the findings and recommendations.
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Digital Strategy 1
Digital Strategy
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Contents
TASK-1 BRIEFING PAPER.....................................................................................................3
A. Introduction.....................................................................................................................3
1 (a)............................................................................................................................................4
Organization name- Coles Supermarket Company....................................................................4
Organization information...........................................................................................................4
Specific background...................................................................................................................4
Level of maturity in the use of CRO..........................................................................................4
1 (b)............................................................................................................................................6
Approach to CRO employed in Coles........................................................................................6
Task 1 (c)....................................................................................................................................6
Key competitor and evaluation of their approach......................................................................6
Task 2.........................................................................................................................................8
2 a...............................................................................................................................................8
Online journey of customer segment.........................................................................................8
2 b.............................................................................................................................................10
Two digital marketing objectives focused on CRO.................................................................10
2 (c)..........................................................................................................................................12
Recommendation and Justification for user experience strategy.............................................12
Task 3.......................................................................................................................................15
3a- Digital marketing mix to support an improvement in CRO...............................................15
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Digital Strategy 3
3b- required resources to support successful implementation.................................................16
3c- measure the performance of the recommended digital marketing strategy.......................17
Conclusion................................................................................................................................18
References................................................................................................................................20
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Digital Strategy 4
TASK-1 BRIEFING PAPER
A. Introduction
Conversation rate optimization (CRO) is the process of persuading the site of the company to
take appropriate actions that generate benefit for the company, by making a purchase or
committing to affirmative potential actions. It considers various approaches and techniques,
entailing persuasive credibility based web design and persuasive copywriting in order to
converts prospects into buyers. It is more efficient sales tool that helps in generating more
revenues by increasing the sales. There is a huge importance of CRO has become concise in
focus of the poor performance of unoptimized e-commerce websites which link with
conversation rates of between 2.5% and 3.1% (Digital Marketing, 2018). Digital innovation is
developing the way in which the customer edge with brands and companies are challenged to
refocus the process they link with customers by consolidating advanced channels into their
common client communication technique. There are plenty of approaches available that can
enhance the conversation rate within the business to generate more revenues.
The main aim of this assignment is to highlight the importance of digital innovation. The
assignment is based on the scenario of conversation rate optimization. The role of a
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marketing manager of Coles Company is necessary to consider all factors that affect the work
performance of the company. Improvement in CRO through the optimization of the user
experience as part of the online customer journey will be discussed under this assignment.
This assignment will be categorized into three parts in which first part will demonstrate the
evaluation of the approach to CRO employed by Coles Company. The customer online
journey will be explained by taking consideration of one key customer segment in order to
produce a customer persona that will handle decisions of digital marketing. At last, digital
marketing plan will be made in order to define the role of digital marketing mix in
development of CRO. Along with this the discussion will be made regarding needed
resources to support the successful implementation of the recommended strategy.
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1 (a)
Organization name- Coles Supermarket Company
Organization information
Coles Company is famous all over Australia due to its presence in the supermarket industry.
Headquarter of the company is situated in Melbourne in which it is owned and handled by its
parent company Wesfarmers. Coles, as well as Woolworths, have conquered the retail
industry of Australia. The company has an effective online presence which is majorly created
to help to its online audience. The main aim of this report is to recognize the aim of the site
and comprehend its web business model.
Specific background
The story of Coles begin on April 1914 opened by GJ Coles in Victoria and it has been found
that the beginning of 1930, the owner was flawed by the savage social influences of the huge
depression. In 2018, under the ownership of Wesfarmers, a new team of management led the
rotate of Coles, for the aim of restoring pride in the brand of Coles and created a six-point
plan to provide a range of delivering innovation and trust by Australian People (Coles, 2018).
The company has invested in noteworthy amendments in order to bring improvement in the
customer experience, involving the rollout of latest-developed stores to develop a culture of
serving and selling with personality. Coles invented a series of animal welfare and liable
sourcing proposal, entailing hormone-free beef and it has been committed by the company
provide cage-free Coles Brand eggs.
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Level of maturity in the use of CRO
There are major seven pillars of CRO that involve in developing an established CRO
Program. The areas are people, knowledge, activities, testing strategy and frequency,
processes, tools, and sponsors. The level of maturity of Coles Company in the use of CRO is
level 3 in which the main focus of the company is on regular online testing &optimization
with clear goals and plan.
Source: https://shop.coles.com.au/a/a-national/everything/browse?
cid=alwayson_link_Coles.com.au_homepage-meganavdropdown_shop-online
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1 (b)
Approach to CRO employed in Coles
There are various approaches to CRO employed in Coles that help the company to encourage
employees to move towards purchasing things from the company. With the help of
conversation rate approach, it would be easy for the company to evaluate the number of
employees who visit on the website of the company. It is an effective way to determine the
capability of online marketing to develop traffics (Dawson, Hirt and Scanlan, 20160. It has
been found that E-commerce websites with high rate of conversation rates have a huge
number of visitors who have power to access the site with the intent to buy, not merely
browse through marketing efforts. There are various approaches such as credibility-based
design, easy navigation, and memorable slogans, benefit oriented headlines, best content
placement, and logo credibility and benefit oriented content.
Source credibility theory facilitates to elaborate the visceral reaction that users have to the
site. It is the source in which the customer tends to believe messages from sources that show
to be credible. The customer of the company perceives the website to be credible and
authoritative, the message of the customer will be more persuasive. A credible site of the
company shows the number of specific features. For instance, they have effective
professional look that in stills confidence in their visitors. The company’s website has well-
structured content with instinctive navigation that helps visitors to search what they are
finding for easy manner (Billard, Faraj, Ferreira, Menir and Heiss-Blanquet, 2012). The
company use layouts optimized for how customers visit on the sites to absorb information on
the web. These websites initiate with a USP that clarifies what generates them a better choice
in comparison of the competition. There are certain benefits of credibility theory of CRO as it
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Digital Strategy 9
helps in solving issues and answering questions with content made to their target market and
even modified to the various personalities of their target customers (Ross, Beath and
Sebastian, 2017). There can be weaknesses of CRO such as conducting trials offshore may
raise ethical issues, possible confidentiality loss and project control loss. It is vital that you
connect with CRO which Coles Company is confident will handle the confidence of the
company (Cook, 2016). Along with that the company uses product listing for bringing
comfort to the customers.
Task 1 (c)
Key competitor and evaluation of their approach
Amazon is the major competitor of Coles Company that is well known e-commerce sites that
have started to provide grocery to number of customers all over the world. The conversation
rate of competitors is 74% in which top 25% of online retailers convert at 5.31% and 10% of
online retailers transits at 11.45% (BM Consulting, 2018). Amazon pay per click advertising
is an effective approach to amplify conversation and amplifies the sales. It helps in bringing a
product a higher listing that will present in front of the customers and will facilitate in
improving the rankings as well. The product of the company will show a sponsored front and
become a keyword targeted. This company is advanced as it has a high rate of conversation
due to external marketing, external marketing is the concept that covers re-targeting adverts
and social media. It is the site that helps in bringing attention of the customers towards
making product lists which can be taken into consideration by customers elsewhere too. In
the context of undervaluing performance, it has been found that the delivery system of the
company is not approachable in comparison of Coles Company. Coles Company mentioned
the vendor name with process with expected delivery time in which the sales team hired
delivery boy for them to deliver products at right time (BM Consulting, 2018).
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There are some ways adopted by Amazon in order to increase the rate of conversation rate so
that online selling can be increased. These ways are mentioned below:
Keyword research
It is necessary for the company to get good conversation rate to have a lot of traffic on site
through clicks and major keywords. It can be done through searching same kind of products
and use same kind of keywords in the products, the bullet points and description of the
products (King, 2018). Rack tracking tool can be used by the company in order to check
rankings for keywords.
Amazon PPC
Amazon Pay per Click advertising is an effective method of the company for the purpose of
amplifying the conversation and increase the rate of sales. This activity of the company is
helpful in bringing products in a higher listing (Takagi, 2001). It will represent to the
customers and will facilitate in making improvements in the rankings as well. The company
offers other companies to do advertising of the product of their company in an effective
manner by taking consideration of the Amazon tactics. The seller on Amazon only has to pay
when customers click on their advertising which takes them to the listing of the products.
It has apparent from above discussion that Amazon uses various approaches in order to make
improvement in conversation rates. Along with that the company encourages online selling
through providing platform to a number of sellers so that the customer can get what they want
without going anywhere.
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Task 2
2 a
Online journey of customer segment
The knowledge of the customer from buying the manufactured goods to use acquire is the
journey of the consumer from the first touch point to the last touch point with the brand.
Source:https://www.sitecore.com/company/blog/533/creating-personalized-customer-
journeys-for-your-most-important-user-segments-4469
There is number of customers of Coles that have different perception to buy products that is
why the company classify the customers into groups. It can be possible for number of groups
that they are valuable for the company in comparison of others (Ma, Han, Sun, Lu, and Ding,
2015). A segment is the group of visitors who manage same kind of features and have been
decided to advantages from the same kind of experience. Segments can be elaborated in
terms of the stage in the journey, audience types, industries, personas and product & service
categories.
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Interested visitors are major segment for the company in which it depicts registered customer
in the database of the company and downloaded all kinds of special offer. These are the
segments of visitors that get aware about the website and products of the company. After that,
the customer starts to research the products on the sites of the company. Evaluation is the
stage of the journey in which customer evaluate the products in an efficient manner. After
evaluating the products the customer focuses on the purchase of the products if it is
affordable for them (Mithas and Lucas, 2010).
Source: http://snapshot.numerator.com/brand/coles
The above picture depicts the demographic segment of the Coles Company that show that
there is higher age comes between 45 and 54 that go one website of the company to buy the
products. It is necessary for the company to focus on other factors such as customer
satisfaction of another age group from the company so that they can connect with the
company for a long period. The customer journey of demographic segment will be dependent
on the preferences and taste of people as there are many people who are non-vegetarian lover
and prefer to buy meat. On the other hand, vegetarians would not buy any item related to
non-vegetarian.
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Source: http://snapshot.numerator.com/brand/coles
Customer Persona
The customer persona is different in the context of the company as it can be focused by the
huge segment of the customer groups (SPENCER, 2016). For instance, the demographic
segment of the company shows the age group of the customer that connect with the company
for a long period. It elaborates the features of the huge audience as this persona relies on the
collected data from the web analytics research tools for the purpose of recognizing the
customer major factors towards purchasing products (Nelson, 2018). This would facilitate in
recognizing the buyer’s decisions making along with their attitudes in the context of
purchasing the products. There are various benefits of customer persona as it facilitates in
designing the products as per the expectation of the customers (Georgiev, 2017). With the
help of customer persona, Coles Company is able to find out the preference of the campaigns.
Along with that the company is capable to differentiate between less important product and
highly preference product by the customer.
2 b
Two digital marketing objectives focused on CRO
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There are major two objectives of Coles Company to get the attention of the customers
towards purchasing through digital marketing. The company can do improvement in the CRO
system as it would be helpful for the company to attain objectives of the company. There are
two objectives of digital marketing by taking consideration of CRO mentioned below:
to provide an online presence to your business through website and social media
To improve conservation rate in order to increase potential customers
To measure the improved rate of conversation in the company with the help of
proposed strategy
to provide an online presence to your business through website and social media is to
bring attention of the customer towards buying products
It is vital for the company to keep focus on the SMART (Specific, Measurable, Attainable,
Relevant and Timely) objectives while making plan for digital marketing strategies for the
company. According to Miikkulainen, et. al., 2017, the internet is considered as the
information platform by which the users can get information regarding the products.
objective is helpful to make aware people all over the world that the company has started
online business and ready to give satisfied services to the customers as per their demand (Lu,
Zhang, Chen and Gao, 2018). To accomplish this objective, the company need to focus on
some strategies or tactics from which the conversation rate gets increased. These tactics can
be search engine optimization, create an online shop, selling through the online market place,
email marketing and pay per click. This would be helpful in increasing awareness of the
company or message. There should be acquisition activities through making improvement in
the conversation rate so that more customers can be gained. Online sales will be increased
with the help of the conversation rate many customers would prefer o purchase products
online.
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The objective of the digital marketing strategy of Coles Company can be fulfilled by
searching out the exact imagery to hook the customers and draw them in the view of the
conversation. Another objective is to improve conservation rate in order to increase potential
customers will be helpful for the company to increase the demand of the customers.
Customer persona of Coles Company is related to the demographic segment and there is
number of customers that would like to get all grocery products at their home from their
preferred grocery store. An effective method to optimize the listing is through searching out
and determining the correct price for the product. Coles should compare process with their
competitors such as Amazon and another grocery store and after that they should pick the
cheaper alternative with high quality but the company should bear in mind that there should
not be compromised with quality of the products (Wang, Ma, Zhang, Bao and Su, 2017). The
objective of increasing conversation rate is the effective approach of the company in the form
of digital marketing objective because it would help to amplify the demand of the products
which would generate high revenues for the company. The company can endeavor running
discount prices to motivate conversions to encourage sales (Chaffey and Bosomworth, 2012).
2 (c)
Recommendation and Justification for user experience strategy
A user experience strategy is considered as the long-term plan to focus on each customer with
the vision for the experience of the user. There are some aspects of user experiences
strategies which are mentioned below:
There should be proper qualitative as well as a quantitative understanding of current
user experience.
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There should be explained vision by the company for the user experience the
company is endeavoring to generate.
There should be a proper roadmap of desires of the customers to happen to get from
where the company is and where it wants to be.
There should be a proper set of regular measurements in order to monitor success and
monitor.
A plan for improving the abilities and culture of the company to accomplish the
objectives.
It can be said that the user experience strategy can be referred to as the holistic business
strategy that supports across the company (Kapferer and Bastien, 2012). The
recommendation is mentioned below regarding techniques of user experience in order to
improve the conversation rate of the company.
Reducing from length
It is necessary for the company to make sure that the users of the website have to read what is
needed from them and determine a response in order to input that response. There should be
proper forms for the purpose of reducing the cognitive burden. In case of having non-
essential information such as secondary contact details, it is vital for the company to capture
this at another stage of customer journey (Hennigs, Wiedmann and Klarmann, 2012).
Progressive disclosure
Along with that the company should make sure that required information should be asked
from a customer for which there should be the use of progressive disclosure to make the
fields represent as per determined objectives. For instance, a user desires to get updated from
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Digital Strategy 17
the company, the company can wish to replace various areas requesting various contact
details such as postal address, phone number and email address with one question which can
be formed like “how would you wish to be contacted?”. It would be helpful for the user to opt
the medium from which they want to be contacted through the company.
Default selections
There are two kinds of default section such as member defaults and smart defaults in which
member default refers to those activities that have already started the form submission
process. With respect to smart selection, the company entails default responses in the fields of
form that are relied on the demographics of the majority of the customers (Taylor and Davis,
2015).
Supporting content
At the time of defining supporting content to help users by the form submission process, it is
vital for the company to keep the focus on making a balance between excessive instructions
and insufficient support content; otherwise, it may lead the company into adverse situation.
There should be a proper and concise way of communication major information.
Great visual design
In the view of outsiders as well as company’s employee, the role of good visual design keeps
significant value, but it is vital when it considers to web forms. However above mentioned
steps would be helpful in developing an attractive form but there are some other techniques
by which the company can develop more appealing forms. For instance, the artistic choices
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Digital Strategy 18
would be helpful for the company to make readable, contrast and ultimate accessible form,
which must be optimized in order to increase conversion rates (Sean. 2018).
In the context of the company, it has been found that Coles get a huge traffic on its websites
in which some of them are new users who visit very first time on the websites, some are
repeated users who come again on websites to get more information and some users are those
who diverted through some link on the website. The company focuses on the information and
capture in an efficient manner for each and every customer and develops an individual profile
or make record on its CRM. The CRM accumulates data on the person, internet behavior,
feedback, transaction data, contact report and his profile. Coles take advantages of this
information to not only remarket or retarget the products to the consumer of the company but
also with the aim to generate a good relationship with them. It has been evaluated that the
information on the CRM can be taken into consideration to develop a customized list of
shopping for the customers, or to imply them products based on their history of the
transaction. Hence, facilitating customers through its online presence and generating good
bonding with customers.
The discussion regarding web analysis and evaluation are mentioned below in the context of
Coles Company for which the company needs to take action so that the conversation rate can
be increased in a significant manner. More information is mentioned below:
Ease of navigation
Ease of navigation can be referred in the term of easing customer experiences at the same
time as finding the way for information or product on the website. It is vital for the website of
the company to have clear information in a simple manner. The website of Coles company
has two major colours such as red and white on which it is easy for the users to get
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information they are looking to search on website (Zhang, Yuan and Wang, 2014). Moreover,
the drop down list is available due to tabs to further make navigation easier.
Website traffic
It is not approachable for the company to developing only online presence because on the
other hand, it is vital for the company to get enough traffic. There are many other companies
as Coles that is number of channels to amplify or push the traffic on websites. For instance,
Coles uses social media channel to promote the product and services with a click; similarly, it
does the similar in the range of link marketing, online marketing and digital promotions in
order to develop campaigns for the purpose of diverting the traffic on the website (Orhan,
Erkip and Rangan, 2015). This activity would be helpful in developing the online footprint of
the company. moreover to it, if the page score of the company is high, it would shoot up the
online ranking, thereby moreover facilitating in amplifying traffic on websites.
Task 3
3a- Digital marketing mix to support an improvement in CRO
The digital marketing mix is fundamentally similar to the marketing mix. It has various
aspects that need to be focused at the time of giving preference to the digital marketing that is
product, place, promotion and place. Along with that it also includes the physical evidence,
process and people at the time of making planning for online services. The discussion will be
made regarding digital mix in order to increase conversion rate.
Place
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It is the major aspect of the digital marketing mix in which Coles Company can make activity
in the context of increasing conversion rate. It has been found that each person has their own
way of communication and it can be possible that one way of effective communication can be
frustrated to another one. It is necessary for the company to ensure that it can available for
many users as possible through various communication channels such as chat, form, phone,
email and any other ways.
Promotion
it is the major aspect of digital marketing strategy in which the role of the social networks is
considered as a fundamental piece, but it is vital for Coles Company to focus on the coherent
strategy. The company should focus on various strategy of communication to connect with
number of people in a one go.
Price
Price is the factor that can attract number of customer towards the shop. It is required by
Coles Company to focus on increasing conversion rate which can be developed by putting
affordable rate of their products so that one can afford the products of the company. along
with that the price should be determined after evaluating the price of competitors so that
correct price can be focused by the company. it would increase the conversion rate of the
visitors.
Product
If the company wants to get conversions for the long term, the trust of the customers should
be gained the company on prior basis. There is a great way for communities to do it. It will
help out to develop a long-term relationship with potential clients which can be the major
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reason for developing revenues. Moreover, this strategy will help out the company to develop
User Generated Content.
3b- required resources to support successful implementation
There are various resources such as financial resources and human resources which help
company to fulfill the objectives. The main resource in order to execute such strategy is
people, time and money, apart from the tools and metrics.
Financial resources
Financial resources are required by the company in order to fulfill the objectives or increasing
the rate of conversion so that the customers can increase. However, the budget is entirely
dependent on the capacity of the company. The budget can be 5000 £ to make plan for Coles
Company. It has been discussed that the company should focus on providing online presence
to your business through website and social media and to improve conservation rate in order
to increase potential customers.
Human resources
To accomplish the objectives, it is necessary for the company to have human resources in the
form of management and experienced person of digital marketing handling so that the
company can increase revenues. The role of the human resources keeps significant value
within the business or in order to increase the conversion rate optimization.
Gantt Chart
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3c- measure the performance of the recommended digital marketing strategy
There are various methods of making improvement in conversion rate such as copy
optimization, customer journey analysis, customer feedback, usability testing and A/B
testing. It has been found that A/B testing is one the famous approach of testing or measuring
the conversion rate improvement within the company. Multivariate testing refers splitting up
the traffic in the form of number of versions of the similar page (Chaffey, 2015). For this, it is
necessary for the company to have a huge amount of traffic for the purpose of testing a huge
number of combinations successfully.
There are major five steps through which one can measure conversion testing.
Explain specific goals and recognize how to measure success towards the objectives.
For instance, a goal is to amplify downloads to electronic books which the company
can evaluate by getting traffic that helps in reaching thank you page.
Allocate a landing page or a key web page on which conversion action is designed to
the place. This would be helpful in focusing on testing.
S.No
. Task
201
4
201
5
201
6
201
7
201
8
1 Focus on Conversion rate optimization
2 Data collection through various strategy
3 Data analyze
4 Discussion on improvement in CRO
5 Implementation of chosen method
6 Measuring CRO
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Digital Strategy 23
Decide which kind of key factors in the page of the company, the company would
desire to test like the Headline, Call to Action and Image.
Develop variations of the major elements the company want to taste. An illustration is
variations of the Call to Action, focusing on various wordings to deliver the call to a
specific action. The company can especially have more than 2 variables relying on the
volume but 2 variables for an A/B testing will be quite enough.
The company should choose A/B testing tool to use. these tools are accessible online
and the company can opt one relying on the budget, the capability to do not only A/B
testing but multivariate testing as well, and report generation.
There are number of ways which can be measured to increase the conversion rate in the Coles
Company. Kindly look below mentioned ways:
Compelling Calls to Action
It does happen sometimes for people to take action is to compel them with a bold call to
action. It is the way of measure as due to lack of this, website visitors would be unable to do
next unless the company specifically describe them so. Strategic locations are entailed calls to
action along with the company and highlighted with compelling graphics (Rabu, Janajreh and
Honnery, 2013).
Easy to accomplish Sign up forms
There are many organizations in the digital marketing era that take sign up forms in the range
of for granted. It is vital for the digital marketers to understand that forms in an adequate
manner in order to engage target customers and attain a better insight of them in the view of
the buyers. The company measures conversion rate through this approach and it is vital for
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Digital Strategy 24
the company to make easier sign-up forms. Long forms would be the cause of turn off-site
visitors (Ludwig, et. al., 2013).
Make it easy for site visitors to access Resources
There is number of online users who visit online sites to get more information regarding
ongoing strategy by number of companies and this information can reach them through
articles, blogs, e-books, video and whitepapers. It is the win-win situation for the company
with visitors getting free materials and in exchange the company can get important customer
information that the company can leverage for potential sales.
It has been analyzed through above mentioned discussion that the traffic can be wasted if
there is low traffic on the website or high volume of visitors. Even low traffic which is able to
convert them into sales will be obtainable to increase the conversion rates and generate
revenues for the company. it is vital for the company to keep focus on the Conversation Rate
Optimization on the top level of digital marketing. It would take some patience and an
effective effort on the company but the aftermath in the form of more sales due to valuable
conversion rate can lead the company in the success path.
Conclusion
It can be concluded from the above discussion that the role of the digital marketing strategy
in the Coles company have huge importance as it helps in increasing the sales of the
company. The discussion has been made on the conversion rates through which a company is
able to recognize the rate of the customer to visit on the sites for different purposes. There are
various resources that can be used in the context of making improvement in the conversion
rates. Coles has a good online presence on the web and the discussion has been made on this
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Digital Strategy 25
in an efficient manner. Required resources are mentioned under this assignment in order to
attain the objectives of the company. It has been found that increase conversion rate help in
attracting a large number of customers towards sales and increase the chance of potential
customers.
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