Jakob Nielsen's Alertbox, September 6, 2005:

The Slow Tail: Time Lag Between Visiting and Buying

Summary:
Users often convert to buyers long after their initial visit to a website. A full 5% of orders occur more than four weeks after users click on search engine ads.

Dr. Alan Rimm-Kaufman from the Rimm-Kaufman Group recently tracked one million clicks on search ads on Google and Yahoo. These advertising clicks eventually translated into 41,377 conversions on the target websites. Although the clients in question must remain anonymous, they presumably have good sites since their conversion rate (4%) is twice that of average websites (2%).

B2C sites comprised 85% of the sample, leaving 15% for B2B. Conversions were mainly defined as actual sales, though a few sites used other definitions, such as catalog requests or other forward movement in more complex sales cycles.

Sales Cycle Delay

Once users arrived at the sites from the search engines, orders came fast and furious: half of the conversions occurred within 28 minutes. These are the people who know they want to buy something, and they'll give you the order if you have a good e-commerce site and a reasonable offer.

Although 75% of the conversions occurred within 24 hours, the last quarter took much longer to arrive. Orders didn't reach the 90% mark until 12 days after users had clicked on the advertisement, and it took four weeks to reach 95%. Thus, the last 5% of orders happened more than four weeks after the initial click.

The following chart shows the days required to reach a certain percentage of the ultimate conversions.

Percentile chart showing delay in orders, especially for the last 20% of sales (after the 80th percentile).

As the chart clearly shows, the curve breaks around the 80% mark. In other words, four-fifths of the orders happen quickly (within three days of the initial visit), but the last fifth constitutes a slow tail, where additional orders accumulate at a drastically reduced pace.

After two months, 99% of orders had been received; there was still one more percent to be gained during the third month.

The slow tail is more prominent for big-ticket purchases. For items costing less than $100, 90% of orders were received within eleven days. For items costing more than $300, it took eighteen days to reach that level.

Highly delayed conversions are a phenomenon I know well from my own business. People often tell me that they'd been reading the Alertbox for five years before they could convince their boss to pay for an independent usability review -- admittedly a big-ticket purchase at $38,000.

The Slow Tail: Design Implications

In general, the slow tail tells you that not all users are ready to commit on the spot. Don't rush them. Let users browse your site and gradually learn about your products, while making it easy for them to buy during future visits.

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Copyright © 2005 by Jakob Nielsen. ISSN 1548-5552