Understanding RX Site Merchandising

Did you know that for the average DTC brand, more than 30% of site traffic comes from collection pages? Collection pages are critical as not only do they generate clicks, but they also play a significant role in driving traffic to individual product detail pages. In fact, 39% of all clicks are to product detail pages - and many of these start on collection pages.

RetentionX's Site Merchandising optimizes your Shopify collection pages to ensure that your best-performing products get the visibility they deserve. By identifying products that convert well and drive long-term profit, RetentionX dynamically sorts your collections to help you generate more revenue from existing traffic.


 

Collection pages play a central role in the overall performance of your store. Improving them doesn't just affect one page; it creates a ripple effect across your site, increasing engagement on product pages and ultimately improving conversion rates.

Data shows that by increasing product clicks on collection pages, especially for products that are more likely to be added to cart and converted, you can increase revenue per session by up to 60%. That’s where RX Site Merchandising comes in.

How to Improve Your Collections Pages

When shoppers visit a collection page, they see a grid of products arranged in rows and columns. The position of each product in this grid has a major impact on how likely it is to be clicked.

Optimizing collection pages isn't just about visual appeal. It's about using behavioral data to determine which products should appear first to maximize engagement and sales.

Our analysis shows that the relationship between a product’s position and its likelihood of being clicked is not linear. Instead, it follows an exponential curve. Products placed higher or more prominently on the page receive disproportionately more clicks than those further down.

This insight has important implications for site merchandising. By placing high-performing products in prime positions, you significantly increase the chances that customers will click on them, add them to their cart, and ultimately complete a purchase that contributes to long-term profitability.

How RX Site Merchandising Works

RetentionX helps you assign the optimal position for each product on the collection page based on its individual performance, ensuring that the best performing products get the visibility they deserve. The following four metrics are considered to evaluate your products:

1. Click-Through Rate (CTR): We analyze both the expected and actual CTR for each product in its specific grid position. This helps us understand whether a product is over- or under-performing in its given slot, thereby measuring its attractiveness.
   
    

2. Add-to-Basket Rate: By analyzing the Add-to-Basket rate, we assess the quality of your collection offering by measuring how often a product is added to the cart. This helps us understand the effectiveness of your product detail page clicks.

   
    

3. Purchase Rate: The purchase rate evaluates how many products added to the cart actually result in a completed purchase. This metric helps us understand the efficacy of your products in converting customer interest into sales.

   
    

4. Product Lifetime Value: RetentionX also takes into account the 90-day LTV of each product. This metric calculates the average LTV of a new customer making that product their first purchase. By factoring in product return rates, repurchase probabilities, profit margins, and selling prices, we ensure that not only the top-selling products are prominently displayed, but also those with sustainable profitability.
   
    

What You'll Get

With RetentionX Site Merchandising, you gain a clear understanding of which products truly drive performance—and the ability to automatically prioritize them.

Once RX Site Merchandising is activated in your account, you'll benefit from:

• Unique Insights: Gain a comprehensive understanding of your product and collection performance, eliminating the guesswork from your merchandising decisions.

• Higher Revenue per Mille: Ensure that products most likely to drive revenue and foster customer loyalty are prioritized for visibility. This maximizes the revenue generated per 1,000 collection views. RetentionX tracks RPM for your collections and monitors its development after RX Site Merchandising has been activated.
  
  
   

• Operational Efficiency: Our automation sorts your products based on their performance scores in your Shopify storefront – and can be enabled individually for each collection.

  • You don't have to adjust anything manually; we provide visibility into the changes made and track performance.

  • The performance score isn't static; it's recalculated as new data comes in. This means that products are dynamically repositioned to ensure that the highest-performing products consistently receive the most visibility, while underperforming products can be demoted based on their updated scores.

  • You can also set sorting rules accordingly to boost new products, demote products with low inventory, or pin individual products.

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