A Case Study on the Causes Behind the 17% Drop in Online Sales at Roots Company

UX Research Proposal

Roots recently experienced a significant decrease in online sales. To address this issue, a literature review will be conducted to develop hypotheses, which will then be tested using usability testing and eye tracking. Based on the results, an A/B test with eye tracking will be conducted to determine why most customers are not completing their online purchases.

Role

UX Research

Team

Individual

Client

School Project

Year

Nov 2023

Role

UX Research

Team

Individual

Client

School Project

Year

Nov 2023 (3weeks)

1.0 Introduction

Roots Company, a renowned brand with a rich history, is facing a critical challenge - a substantial decrease in the number of customers who complete purchases on their official website. This 17% drop in online sales is a cause for concern, prompting an extensive investigation into the factors contributing to the low conversion rates. It is essential for Roots Company to understand why customers hesitate or abandon their carts during the online purchasing journey. This understanding will help them refine their digital strategy, improve user satisfaction, and ultimately increase online sales. To tackle this issue, the research will adopt both quantitative and qualitative methods to investigate why fewer customers are completing their online purchases.

2.0 Methodology

Phase 1: Literature Review

Search for related papers to develop hypotheses.

Phase 2: Development Hypotheses

Based on the key findings of the previous step, research hypotheses will be developed.

Phase 3: Usability Testing and Eye Tracking

Usability testing and eye tracking will be conducted with the target audience to observe how users interact with the current site. This helps to identify whether issues are caused by interface design or user experience and test hypotheses.

Phase 4: A/B Testing and Eye Tracking

Design and implement an alternate version of the website (.vers B) based on the findings from the previous steps in order to figure out the causes of a 17% drop in online sales.

2.1 The Key Findings of Literature Review

This research looked into existing or previous studies that explore reasons for dropped online sales post-website redesigns. This can provide a theoretical framework or insights from similar cases. In this research, we will search for papers related to user experience, interaction and user interface design, online shopping, e-commerce, customer behaviour, and purchase rates. The key findings of the literature review are below.

2.2 Research Hypotheses

Based on the result of the literature review, this project developed 3 hypotheses.

H1: The list-style layout can positively affect customers' online purchase completion: each product on the website is currently displayed in a matrix layout. Therefore, the layout style might be one of the factors why customers are not completing their online purchases.

H2: The incorporation of product reviews and ratings can positively affect customers' trust in product quality and online purchase completion: currently, fewer people are reviewing and rating the product, resulting in insufficient review information. It might be one of the factors why customers are not completing their online purchases.

H3: Ensuring the safety of customers' personal and payment information in online stores can positively affect purchase completions: currently, the Roots website lacks transparent communication with customers about how their data is managed because customers need to know that their personal information is safe and secure during online shopping. It might be one of the factors why customers are not completing their online purchases.

2.3 The Plan of Usability Testing and Eye Tracking

To validate the hypotheses, this study will implement a detailed usability testing protocol complemented by eye-tracking technology. The usability test will be structured into various phases, ranging from an introductory session to a concluding questionnaire, as detailed in the following table. Additionally, the integration of eye-tracking technology will provide valuable insights by accurately capturing the specific areas of the website that draw the most attention from participants during their interaction. This combination of methods aims to offer a comprehensive understanding of user behaviour and experiences on the website.

  • Estimated number of researchers: 3 ( a moderator, a notetaker, an observer )

  • Estimated number of participants: 10 ( 5 frequent customers of Roots online shopping and 5 frequent customers of Roots in-store shopping)

2.4 The Plan of A/B Testing and Eye Tracking

In this study, A/B testing will be a critical method to evaluate the efficacy of website design changes. We will compare the current Version A of the website with an updated Version B, which will be redesigned based on insights from prior analyses. This comparison aims to evaluate the performance and user experience of each version, particularly in terms of completing online purchases. The key outcome is to identify which version demonstrates superior performance. Should one version clearly outperform the other, its successful elements will be adopted. In cases where results are negligible or ambiguous, further testing or adjustment of test parameters will be considered. Concurrently, eye tracking will be employed during A/B testing to observe whether participants' focus aligns with the intended modifications. This dual approach aims to provide a nuanced understanding of user interaction and response to the redesigned elements.

  • Estimated number of participants: 10 ( 5 frequent customers of Roots online shopping and 5 frequent customers of Roots in-store shopping)

3.0 Expected Outcomes

This research, through its application of a variety of methodologies, aims to find out the underlying reasons why a significant number of customers discontinue their purchase process on the Roots website. The expected outcomes include:

  1. Pinpointing Key Hesitation Points: Identifying specific stages or elements in the website that contribute to customer hesitation or indecision.

  2. Understanding Customer Behavior: Gaining a deeper insight into the behavioural patterns and preferences of customers during their online shopping journey.

  3. Uncovering the Root Causes of Cart Abandonment: Investigating and understanding the primary factors that lead to customers abandoning their carts before completing a purchase.

  4. Developing Actionable Improvement Strategies: Formulating concrete and tailored recommendations to enhance the online shopping experience, thereby reducing cart abandonment and increasing conversion rates.

4.0 Timeline

This study will run for two months (8 weeks), as shown in the following diagram.

References

1. Akhundova, N. (2022). The impact of web page design on consumer behaviour in online shopping. http://dspace.khazar.org/handle/20.500.12323/6153

2.Chen, C. H., & Zhai, W. (2023). The Effects of Information Layout, Display Mode, and Gender Difference on the User Interface Design of Mobile Shopping Applications. IEEE Access.

3.Haridasan, A. C., & Fernando, A. G. (2018). Online or in-store: unravelling consumer’s channel choice motives. Journal of Research in Interactive Marketing, 12(2), 215–230. https://doi.org/10.1108/jrim-07-2017-0060

4.Roots Casual clothing for men, women, and kids | Roots. (n.d.). Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis vulputate nulla at ante rhoncus, vel efficitur felis condimentum. Proin odio odio.. Retrieve: 2023/11/21

5. The System Usability Scale (SUS) (Video). (n.d.). Nielsen Norman Group. https://www.nngroup.com/videos/system-usability-scale/

Appendix1 System Usability Scale (SUS)

Learnings

  1. Gained knowledge on composing a UX research proposal.

  2. Learned some quantitative approaches to UX research while exploring methodologies in addition to qualitative methods.

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