Digital Strategy Report: Conversation Rate Optimization at Coles

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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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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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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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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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.