Quantifying the Business Value of Shopping Browser Extensions
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Quantifying the Business Value of Shopping Browser Extensions
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Shopping browser extensions are one of the most popular consumer tools in the affiliate industry. Today, a sizable portion of affiliate revenue is credited to these products, which were developed by a myriad of publishers across various verticals to make it easy for consumers to gain product information and access offers as they shop online.
Some believe these vehicles dramatically enhance sales/conversion rates for merchants. Believers and extension vendors say they make it far more likely that a user will convert and may even drive larger purchases. Critics say they only reach users that were already on-site, take credit for sales that were all but certain to happen anyway, disrupt the shopping experience, and may increase the average discount applied at checkout.
Given how important browser shopping extensions are to our clients’ businesses and the uncertainty about their efficacy, CJ commissioned and conducted a massive industry study to determine the impact of these extensions on shopper behavior across 67 million shopping occasions.
Our data show that exposure to browser extension pops—whether or not they include offers—strongly impacts conversion rates and revenue and significantly increase the likelihood of customer purchases. Even though they help drive more purchases, they do not reduce AOV. Browser extensions create substantial increase in merchant revenue without significantly impacting margins.
This is good news for advertisers using browser extensions and challenges many of the common objections that advertisers have to working with extensions.
Browser extensions:
In addition to creating a streamlined user experience for discount-sensitive customers, browser extensions add value in two unexpected ways:
Browser shopping extensions gives shoppers easier access to the best information, deals, and pricing on products and services. A shopping extension alerts customers to product information and available deals and offers. When customers arrive on a website, they have immediate access to potentially appealing information and offers without visiting a deal aggregation or other online web presence.
The most popular shopping extensions include Paypal Honey, Rakuten Rewards, Wildfire, and Capital One Shopping, but there are many others. Google Chrome, the most popular browser worldwide, offers many different shopping apps and extensions through the Chrome Web Store.
To use a shopping extension, the customer downloads it to their browser from an extension store or marketplace. Once added to the shopper’s browser, an icon appears in the browser bar, and the extension provides access to information, discounts, cash back offers, and other value-adds as the customer visits merchant sites.
To read how automatic extension pops were accounted for in our research:
Our study tracked shopping and transaction activity across merchant websites in multiple categories across users of 35 different extensions and 67 million customer journeys. CJ partnered with the customer journey continuity platform, Namogoo, to get comprehensive and reliable data for this study. Namogoo’s unique platform enables brands to track all activity occurring in a customer journey, to help predict and shape the buyer experience, and flag any unwanted interruptions in the customer flow.
We compared the actions of an extension audience that saw proactive pops with an extension audience that did not see proactive pops. With our study’s design, we isolated the incremental business value of extension activity and messaging before checkout. We also studied the impact of pops where a deal or other value-add was present from those that delivered product information but no discount or other value-add.
Our study shows that users who download extensions are more prolific shoppers, spending 185% more than customers without extensions. This is true regardless of whether they interact with an extension or not. They exhibit higher add-to-cart rates, conversion rates, and AOV. This underlying difference in customer value was an important consideration as we designed our testing methodology.
We compared the actions of an extension audience that saw proactive pops with an extension audience that did not see proactive pops. With our study’s design, we isolated the incremental business value of extension activity and messaging before checkout. We also studied the impact of pops where a deal or other value-add was present from those that delivered product information but no discount or other value-add.
We measured cart loads, conversions, average discount applied, and AOV for:
– A simple schematic explaining the experience of our two extension user groups.
Our research primarily focused on the sales impacts of browser extension pops proactively delivered pre-checkout. Extensions may also increase conversion rates when they deliver messages in the cart. While this is an important consideration, users in-cart (by definition) already have extremely high buying intent, and so seemed a less impactful group to test. Studying the impact on pre-checkout interactions focuses on how extensions can drive more customers into and through their purchase journey.
Our findings showed that exposure to pre-checkout shopping extension pops significantly increased cart load and conversion rates while driving little change in the average discount applied at checkout.
Most extension messages contain discounts, cashback offers, or other deals to stimulate purchases. When users saw a proactive pre-checkout pop, add-to-cart rates increased by 38% and conversion rates increased by 64%. This amounts to an increase of 65% more revenue per session.
Comparing that group to extension users who did not see a pop to did see one, the difference in discount is negligible. Extension users who received a pop at any point in their journey only received 0.5% point more discount than users who received no proactive pop.
Extension messages seem to increase consumer confidence to purchase when no discount is available. Extension users who only had non-discounted products in their shopping cart and did not receive a discount via coupon were still 25% more likely to convert when they received a pre-checkout pop.
Proactive extension pops significantly affect shopper behavior, and strongly indicates that a customer’s presence on a merchant site does not indicate that they are already decided on purchasing from that merchant. Extensions provide third-party validation of available offers and coupons while keeping the user on a merchant’s site, reducing the likelihood that users will be exposed to competitive information or offers and ultimately result in a significant uplift in revenue per journey.
Based on this research, it’s clear that shopping browser extensions are an extremely valuable tool for merchants—one that deserves serious consideration as brands work to grow transactions, revenue, and profit. This is good news for advertisers using browser extensions and challenges many of the common objections that advertisers have to working with extensions.
Browser extensions:
Our findings indicate that the presence of browser extension pop-ups has a considerable influence on conversion rates and revenue and enhance the chances of customers making purchases. Despite their effectiveness in driving more sales, they do not decrease the average order value (AOV). Consequently, browser extensions lead to a substantial increase in merchant revenue without a significant impact on profit margins
Using the last-click crediting model, any customer journey involving multiple touches may “over-credit” the company that delivers the last touch. Extensions are more likely to capture that last-click credit because they impact the customer on-site. Savvy advertisers understand that it’s essential to recognize this issue and take appropriate actions to ensure that upstream publishers get proper value for their business-building activity.
To help compensate upstream publishers. advertisers increasingly use:
Get in touch with your partner development lead for more information.
We conducted this research to provide value to the entire affiliate marketing industry. If you have specific questions about the findings, or you’d like to discuss the study further, get in touch and we will connect you with a CJ expert.