Turning users into paying customers: Enhancing conversion rates in e-commerce

Problem

Most e-commerce startups begin with narrow, unstandardized, and resource-intensive sales activities to gain first customers (personalized selling or inbound sales). For sustainable growth, firms operating in the digital economy need to find more efficient ways to generate new accounts. Very often, companies offer access to a limited version of the product or service for free or they offer a free trial period in order to make first contact with users. This freemium or free trial strategy aims at motivating a big share of those free users will later on decide for the full version of the product or service. However, conversion rates are often disappointingly small. Turning satisfied users of a limited service into paying customers of the full service seems to be a very significant challenge in e-commerce.
This master thesis will be conducted in cooperation and with support of the company FASHION CLOUD.

Objectives

  1. Conducting a literature-based research about conversion rates in e-commerce
  2. Deriving recommendations for increasing conversion rate, particularly regarding e-mail communication
  3. Testing recommendations in the real-world on the FASHION CLOUD platform (e.g. split testing, cohort analysis)