Conversion rate optimization (CRO) has generated plenty of hype in fact it is regarded as a silver bullet that may solve all of the problems the ecommerce business has.
The facts are you can find two sides of exactly the same coin. The initial one is that CRO is definitely as magical because the compound interest: just a 6% add of incremental increase will result in 90% more conversions in only 12 months. This implies you double your conversions and you also reduce the customer acquisition cost – double strike! This is actually the good side of conversion optimization.
On another hand, the bad side of CRO is that not absolutely all companies are qualified to start out the optimization process, rather than all of the companies that adopted this system are carrying it out correctly.
Further on, in this post, I wish to present you the true path of conversion rate optimization, from begin to success.
Before we do not delay – tackle concerning the phases of CRO, you need to understand that it is a process, not really a checkbox to tick. The framework that virtually all companies use may be the same from the design thinking. You identify the issue, develop a strategy, implement the experiment, analyze the impact and implement the winner.
1. Business research
First, let’s concentrate on the business enterprise research, and there are particular questions here which will result in outstanding answers. In this phase, whether you’re working in an organization or digital agency, ask the next questions:
- What does a conversion mean for the kind of business? – it’s rather a transaction, a lead, etc.
- Which micro-conversions can move the needle?
- Have you done optimization before? (in the happy case this happened) – it is very important to find what we must study from previous experiments and which will be the outcomes that people have got during the past.
- What may be the degree of freedom that people have to carry out conversion optimization: on what many visitors can we do CRO?
Using these details, we can think of a mathematical model to recognize the true impact of conversion rate optimization. Not absolutely all the websites have sufficient traffic to start out testing. Try this CRO calculator, play with the numbers to scale your organization and you may see on your own that improving conversion is preferable to acquiring new traffic. It’s time you utilize intelligent data to create better business decisions.
Based on the maturity degree of the business, conversion rate optimization can be viewed as only a nice thing to possess or perhaps a vital process to help keep it alive.
Once you have the answers to all or any these questions and you also have the numbers that demonstrate the necessity to concentrate on CRO, the next thing is to learn your buyer persona, the true data, and factors that generate growth.
2. Qualitative research
When it involves the eCommerce buyer persona, discover information such as for example demographics, psychological factors that determine his behavior and the emotions that stand behind his action. You can find two main categories that arise in line with the emotion type: good and, let’s say, bad emotions.
People are buying products since they desire to overcome a particular fear and pain, or since they desire to fulfill a desire and create a dream become a reality. That is why you need to identify the purchase intention, the barriers they will have, what drives them to convert and what stops them to get from your own website.
In this precise moment of the study, that can be done qualitative research to comprehend your buyer persona, know their cart abandonment reasons and the web Promoter Score for numerous kinds of customers. If you work with the RFM kind of segmentation, identify the NPS for gold, silver and bronze customers and offer them the proper incentive, at the proper time. We utilize it constantly at Omniconvert.
3. Quantitative research
Before even needs to dive in to the quantitative data, I would like to remind you the significance of data hygiene. Correctly collecting data is essential. So, check if your Google Analytics is established right and you also track the proper goals. You may use this free tool to find new insights about your organization predicated on your Google Analytics account.
As area of the quantitative research, the RFM segmentation is quite useful since it enables you to categorize users predicated on how recent their last order was (recency), how often do they obtain you (frequency) and how much cash do they devote to your eCommerce website (value). Utilize this precious information down the road once you plan a technique to boost the retention rate and implement experiments in accordance with every vital customer segment.
Another action which can be part of the qualitative research would be to analyze the transcripts of the support chat and calls. This may explain some conditions that customers experienced and you will develop the correct solution. You can’t take any pills before knowing the proper diagnosis.
Considering all of the elements above, consider these questions:
- Am I understanding my customers in accordance with their needs and emotions?
- Am I communicating the UVP that fulfills and solves my customer’s problems?
How is it possible to learn the answers to the problems?
By asking your visitors directly using surveys. Gathering qualitative data with on-site surveys may be the pillar and the start of any conversion rate optimization process. Needless to say, qualitative data needs to be backed by quantitative data to provide you with the complete picture of where you need to start.
Before ending the study phase, you need to know who your buyer persona is, purchasing barriers, RFM segments, as well as your most precious customers.
4. Craft the strategy
Using the outcomes of the study, plan your strategy. Develop a list of all of the insights you have, measure the business impact and enough time to impact, and prioritize. While prioritizing the hypothesis for further experiments, work with a framework that means it is clear for you personally which experiments to target. For example, we have been utilizing the PIE system from Widerfunnel also it works perfectly:
To summarize, prior to starting to experiment, ensure that you understand the pain of one’s customers and their behavior. It is very important to have a look at the hidden gems from your own Google Analytics and understand from the UX perspective which will be the blockers for the audience.
CRO is really a long-term process: you can’t shed weight if you visit the gym only one time per month. It’s a matter of habit and on-going activities.
May all of your conversion optimization efforts achieve success and don’t your investment main part: sometimes you win, sometimes you learn!