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Conversion Rate Optimization

What is Conversion Rate Optimization (CRO)?

Online traffic is highly inconsistent. If you’re unable to get visitors to enter your conversion funnel in the first go, the chances of them coming back and performing the desired action are quite low. This is nothing but an opportunity lost for your business. The best way to improve your chances and get more conversions is by running an effective CRO campaign.

A good CRO campaign not only means saving high on your time, money, and efforts but also exploring new growth strategies which were unknown in the past. In other words, CRO helps you in understanding your website’s usability better while giving customer behavior insights and tips on how to make your UX better to meet your goals.

To fully understand the essence of conversion rate optimization, let’s start by first understanding what exactly it is!

Conversion rate optimization (CRO) is the process of optimizing your site or landing page experience based on website visitor behaviour to help improve desired actions (conversions) on the said page.

At a process level, conversion rate optimization can be effectively achieved by following the below mentioned scientific process:

What-is-cro

At a strategic level, CRO is an ongoing process of learning and optimizing. Unfortunately, the “ongoing” aspect often gets ignored while discussing conversion rate optimization.

6 Primary Elements of Conversion Rate Optimization(CRO)

CRO is a comprehensive process that sprawls across a multitude of stages. A successful CRO campaign is the one that uses in-depth data to analyze results, runs multiple tests, tweaks content to make it more relevant to the visitors, and draws necessary conclusions. Throughout the journey of a CRO process, a marketer will encounter six primary elements which can be optimized.

Landing Page Design

Landing page design is the first and foremost element that defines the usability and success of a website. The more aesthetically designed a site is, the more traction it will get!

Let’s understand this using an example most of us maybe familiar with. Assuming that most customers landing on any of Amazon’s product pages come with the pure intention of buying its product(s), understanding the importance of design in driving conversions (how it can make or break a deal for the e-commerce giant), is important. The giant has strategically designed each of its product pages so as to make even the minutest of details prominently visible to its customers. For instance, when on a product page, customers can instantly add the product to their cart by conveniently clicking on the “Add to Cart” button (in a color that’s prominently visible - Orange) placed right next to product information column.

landing-page-design

How does this help? Orange is an intense color that complements the website’s white background making it easy for the visitors to identify and take the necessary action instantly.

Furthermore, the effective use of the white space to highlight the product’s features and smart use of large images on the left side of the page instills trust and quickly captures the attention of the visitors.

Website Copy

While a well-designed and aesthetically pleasing website can get more website traffic flowing on your site, words can verbally hook your visitors and convert them into potential leads. Writing relevant and engaging content that emphasizes on the product’s persuasiveness can make the difference between visitors staying on your website and taking the necessary actions and visitors leaving your site without taking any action. Website copy can be further divided into two subsections:

1. Headline
Headlines is the first and foremost thing a visitor sees on your landing page. It typically defines their first impression about your business. If they do not like it, they’ll not scroll down and check the rest of your page. To ensure you’re on the right track, focus on the following things:

1. Formatting: Typically focusing on the font type, font size and color to ensure it captures your visitors’ attention and is easily readable.

2. Writing Style: Keep the following things in mind:

  1. Ask a question - e.g. Do you know email marketing can add 30% more revenue to your business?, How to find the products of your choice? etc.
  2. Split your content into two parts – e.g. Internet marketing: what lies in store?
  3. Address directly – e.g. Can you rely on content marketing?
  4. Focus on the numbers – e.g. 10 ways to ensure email marketing adds to your conversions!

In either case, one should keep the headline short and to the point ensuring it talks exactly about what the product or service is about in a clear, concise manner.

2. Body Content
A well-written body content is essential for a website. It must answer the basic question - “what’s in store for me?” It must also be clear, concise, to-the-point, and portray your brand’s persona in the most efficient manner.

To draft good body content, consider the following:

1. Formatting:

  1. Cut content into relevant paragraphs for easy readability
  2. Use necessary subheadings to break down the content into glance-able chunks
  3. Bullet points or numbered lists wherever necessary
  4. Font type, size and color which matches the overall design guidelines of the brand

2. Writing style:

  1. Right tonality as per the target audience (fun, professional, casual etc.)
  2. Stylistic elements such as metaphor, adjectives, etc. to highlight certain points
  3. Address directly to the end user and what they are here for, answering their questions
  4. Add key phrases to improve the overall usability and easy takeaways
body-content

A catchy headline accompanied by content that’s concise and answers all the necessary questions makes any page look attractive, and does the desired work - getting customers onboard.

Call-To-Action

A call-to-action (CTA) is exactly what it sounds - a request or call for customers to take a desired action. This action could be anything - from subscribing to a newsletter to booking a slot in a webinar, making a purchase, availing a service, and so on. The stronger and crispier the CTA, the more leads it can generate.

But, is it this simple? Take a look at some of industry’s best CTA strategies and you’ll see that they all make use basic psychology to define their CTAs.

Quoting an example here, ADT, a Tyco International company, was able to increase its conversion rate by 60% by simply changing the primary text of its CTA button - from “Book a Free Survey” to “Get a Free Quote.”

call-to-action

Your site’s structure must focus on building an experience that’s easy to navigate. Site structure, at its core, is typically a graph of how different pages of your site interact with each other.

Although every site is different and have different navigations, this hierarchy style is a standard example.

navigation-and-site-structure

You typically start navigating from the homepage, then explore its series of categories and subcategories until you’ve found what you were actually looking for. If this entire process is fluid, as explained in the graph above, then your users will not have an issue navigating through your site. But, if it’s unstructured, they’ll be lost in the process; ultimately abandoning your site.

To accomplish this, one must ensure users are easily and quickly able to move between important sections of the website and are able to find whatever they need to accomplish their goals in the fewest clicks possible.

In other words, creating a fluid, easy-to-navigate website is the key to increasing conversions as well as your brand’s reputation.

Forms

Forms are crucial to most companies, especially if they’re a part of their sales funnel. Optimizing these important customer touchpoints can extensively help in improving conversions. While many theories follow on how to build an effective form for your website, these may or may not equally work for all companies. In many cases, having a comprehensive form has worked wonders for some organizations, while the shorter form has worked with many others. It is always a balancing act between lead quality and volume of leads that gets the best ROI.

Yet, four basic optimization tips to take your form from okay to outstanding are as follows:

  1. The fewer the fields, the better it is. True in most cases but not always, especially when you want your sales team to focus on only the most serious leads or in cases where it is paramount to get additional lead information like the industry or the city if you have lead workflows dependent on this additional fields.
  2. Good looking forms often equate to a nice user experience. Good forms constitute no flashing text, clear and consistent styling and tool tips and validation build at the right places. Good forms typically also have the most important fields are the top followed by less important fields. One can also experiment with progressive forms in order to improve their conversion rates without compromising on the depth of user information.
  3. Easy password creation makes the entire form filling process an easy breeze. As per internal VWO data, password is one of the fields which takes up most time to fill. Needless to say, guiding users on creating strong yet easy to remember passwords is the key to make this process more fulfilling for both the user as well as the business.
  4. Having one-click form submits using facebook or google SSO can also work wonders for your conversion process. Most times users are already logged into one of these sites and this helps them convert much more easily. It also alleviates the pain of creating and remembering new passwords. This, however, may not work in all cases, especially B2B contexts, where business work with business email IDs of their prospects.

Page Speed

Page speed or page load time has a huge impact on the overall performance of your site. In fact, it directly affects the experience of a user, conversion rate of the site, and its ranking on search engine. As per blog published by Semrush, if a site loads in 1.7 seconds, it’s comparatively faster than 75% of the web. While, on the other hand, if it loads in 0.8 seconds, it’s faster than nearly 94% of the web.

Load time delay of even one second can reduce your conversions by 7%. For instance, if your site is generating a revenue of $100,000 a day, then even a second’s delay in its load can cost you about $7,000 per day or even more.

The same one second delay also means that you’re prone to losing about 11% of your potential customers as they’ll simply close your page or back out without even thinking twice.

Benefits of Conversion Rate Optimization(CRO)

CRO enables you to optimize your website’s functionality, while helping you understand the whys and hows of visitor behavior. The fact is, your site never reaches its maximum potential until it’s rigorously experimented. Broadly the benefits of a CRO program can be categorised into two:

landing-page-design

Improving Marketing ROI

A well-structured and well-thought out CRO program based on strong analysis can go a long way in improving return on almost all your marketing activities by:

a) Improving quality/speed of experiments run on your website: CRO allows you to analyze the performance of your site by running tests and look for the best possible variations which promise conversions. By experimenting with different elements on your landing pages, you can not only check the areas which are giving the best results, but also use the gathered data as fundamental benchmark for your next round of tests/experimentations.

b) Better revenue with same traffic/incremental business returns: One of the prime benefits of running a CRO campaign is that every change you implement on your site, which eventually increases your conversions, is an incremental win for your business.

For instance, an online eCommerce company planning to enhance its customer experience in a way that it makes purchasing products easy and convenient for its customers can immensely benefit from CRO. How?

By running an A/B test, if it’s able to enhance its conversion rate even by 3%, it means that it’s getting 3% extra revenue day in and day out. Meanwhile, if it has a high volume of sales, 3% improvement can effectively translate its sales into hundreds and thousands of extra dollars for its business

Australian based eCommerce company ShowPo saw a 6.09% increase in its revenue by running a series of A/B tests and introducing new improved variants on its product pages!

Enhancing UX

Benefits of a CRO program spread well across just marketing ROI to give an improved user experience across all lifecycle stages of a visitor whether they’re a first time visitor or they’re a customer through:

a) Personalizing Experience for Your Site Visitors: In today’s time, visitors are too impatient. Unless you’re offering them a site that’s easy to navigate with fewer clicks and make the entire process an easy breeze, they won’t stick around and will eventually look for alternative options. By helping personalize sections of your site based on the visitors’ geography, device, local time or past browsing history, you can make the website that much more relevant to them.

b) Better Insights Into Your Visitor Behaviour: CRO process begins with understanding customer behaviour through tools like heatmaps and clickmaps which tell us which sections of the site, people spend more time on. Other tools which help us understand the user experience in a qualitative fashion as user session recording and session replay which help us understand the exact journey a user took in order to accomplish a goal on the site. By looking at enough of such sessions of users who didn’t complete the goal on the site, one can get to understand the pitfalls in their user experience. Other tools which can be used to improve UX can be form analysis and website surveys which can help us optimize our form filling experience and help us understand the exact answers to crucial questions (eg. were you able to accomplish your goal on this website, was this website easy to navigate, would you recommend this site to a friend etc.) respectively.

Who is Conversion Rate Optimization(CRO) Useful For?

Conversion rate optimization benefits businesses of all sorts irrespective of their size and industry. Here are some common business use cases for better CRO understanding.

Conversion Rate Optimization(CRO) for B2B/SaaS Companies

Lead generation is the initiation of grabbing the interest of your customers by engaging them on your site, gathering their information through various means (forms, sign-ups, surveys, etc.) and contacting them to convert them into loyal, recurring customers. As a B2B/SaaS business, it becomes your duty to help your customers find what they’re looking for, capture their interest and support their buying decision.

Case Study: Continuous Testing Helped POSist Improve their Demo Requests by 52%!

POSist is one of the leading SaaS-based restaurant management platforms that provide a complete range of online Point-Of-Sale (POS) solutions for all kinds of restaurants. The company wanted to increase their demo requests and reduce drop-offs on their homepage and Contact Us page. Evidently, these were two of the most important pages which helped the company get maximum conversions.

To achieve their goal, POSist decided to run a CRO campaign, which eventually helped them to identify the gray areas. The company modified their homepage by adding more relevant and conversion-centric content. This not only improved user experience, but also generated conversions. POSist generated about 52% more leads in a single month, which further lifted their website conversion rate to 3.4%, marking an overall increase of 25%.

useful-for-control useful-for-variation

Conversion Rate Optimization(CRO) for E-commerce Companies

Shopping cart abandonment serves as one of the major challenges to the E-commerce companies, costing billions in sales revenue generation every year. According to an analysis done by the Baymard Institute, nearly 69% of all E-commerce visitors abandon their shopping carts due to innumerable reasons. Hence, building a user-friendly E-commerce site with a great design, exclusive products, and nominal shipping cost that not only solves cart abandonment problem but addresses other drop off issues such as complex payment process, lack of basic informations, and so forth, is crucial.

Common reasons why people leave a site are as follows:

  • Distractions: Too many pop-ups or forms to fill can distract your customers.
  • Difficulty of checkout: The site may not offer a friendly check-out option which may complicate the purchasing efforts of the first time users.
  • Hidden costs: Most visitors get intimidated by hidden costs such as additional shipping charges, other taxes, and more.

Running a CRO campaign helps to identify and address such bottleneck issues and significantly contribute to improve the site’s conversion rate.

Case Study: PearlsOnly Increased its Revenue by 12% by Making its Check-Out Page more CTA Centric!

PearlsOnly is an online jewellery store based out of Houston that specializes in the sale of pearls. Since its inception, the organization has been constantly testing its website and making necessary amendments to stay abreast with the industrial trends and offer the best of services to its clients. Yet, it wasn't able to get as many conversions as it aimed. Running a CRO campaign, they concluded that their checkout page was too cluttered and distracted its site visitors, making them leave the page before they took the desired action. PearlsOnly, with the help of VWO services, optimized its checkout page while ensuring all its USPs were duly highlighted. They ran the campaign for about a month and the results were outstanding. The test helped PearlsOnly increase its revenue by 10%.

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cro-for-ecom-variation

Conversion Rate Optimization(CRO) for Media/Publishing Houses

For businesses like media agencies and publishing houses, reaching a larger audience base and keeping them engaged on their platform is crucial for their growth. Here, CRO can help them with this as well as test various site elements such as email sign-ups, social sharing icons, recommended content, and other promotional options to capture more attention.

Case Study: BluTV Increased its Mobile Conversion Rate by 42% by Simply Making the Homepage more Service-Friendly!

Being a subscription-based, over-the-top (OTT) video-on-demand service provider, BluTV’s success entirely depends on the number of active subscribers it has. Its primary objective was to get as many visitors to sign up for its paid subscription trials as possible. To start a trail, a visitor had to share their credit card information, and they would be charged only after they’d completed their 7-day free trial period.

Conducting research into visitor behaviour on BluTV’s site, Hype, a VWO Certified Partner performance marketing agency, found that the conversion rate for mobile visitors was quite low as compared to BluTV’s website average. The service provider’s mobile home page emphasised more on serving its active customers rather than the new visitors. Basis this, the two companies decided to completely revamp BluTV’s mobile home page. They removed all the distractions in the header section, promoted some of its most popular content, and added an FAQs section at the end. Running a split URL test for a duration of 19 days, they saw the alternate variation increased their conversion rate by over 42%

cro-for-media-publishing

Conversion Rate Optimization(CRO) for Travel Agencies

Compared to other industries, travel companies may face higher difficulty in getting conversions. Consumers in the category tend to take longer than usual to decide whether or not to make a purchase. They browse through various sites, compare deals, interact with their peers and only then take a call. Further, complex booking behavior also adds to the industry’s challenge. Running a CRO campaign can effectively help travel companies analyze their potentials and drawbacks, and enhance conversions.

Case Study: Bizztravel Wintersport Increased its Conversions by 21% by Simply Decluttering its Home Page!

Bizztravel Wintersport is a Dutch travel company that improved its conversions by 21% simplifying the way users searched for holiday destinations on their website. The company decluttered their site’s homepage by keeping only the most relevant information intact.

cro-for-travel-1 cro-for-travel-2

Conversion Rate Optimization(CRO) for Agencies

Talking about various sectors that have benefited from CRO, agencies like digital marketing, web development, and dedicated CRO consultancies are no exception. Running conversion rate optimization campaigns for their own websites or for their clients can significantly add to their conversions and uplift revenue which can lead to better ROI for their work and help in retaining clients and giving an overall good experience for their business.

Digital marketing agencies engaged in offering multiple services to its clients such as social media promotion, web content development, brand building and so forth, can pitch CRO services to their clients as a way to get more out of their existing traffic. This can not only help them pitch more clients by offering an additional service besides their usual services, but also enhance their overall business impact.

Case Study: Traffic4u helped its client Djoser Increase their Travel Bookings by 33.1%!

Traffic4u is an online marketing agency which uses VWO to optimize the websites of its clients and get them more conversions. In one such attempt, Traffic4u helped, Djoser, one of the leading Dutch travel agencies, to optimize their site and increase their number of online bookings.

Deeply studying Djoser site’s data, Traffic4u concluded that making an actual booking was a significant step for the users. Giving them an alternate option with greater flexibility to confirm their booking would encourage more users to book. Here, they decided to create a variation that had an extra link attached called “Take an option.” By clicking on the link, users were given an option to reserve their seat with an option to cancel with 72 hours. If no action is taken within the defined time period, the seat would be considered booked. Running the test for about 7 weeks, the variation resulted in 33.1% increase in Djoser bookings.

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Understanding The Conversion Rate Optimization(CRO) Process

Multiple conversion rate optimization frameworks exist which can effectively help conversion rate optimizers plan and execute optimization campaigns. At the simplest, the CRO process can be divided into 5 steps.

What-is-cro

Stage 1: Research Phase - Identifying the areas of improvement

Only one in every seven A/B tests gives a winning result. Why? Research!

As a general practice, most marketers tend to copy CRO strategies that yielded results for other firms thinking the same would work for them. But, they fail because every orange button cannot convert and every long form page cannot falter.

Understanding What Users Do/Quantitative

The first and the foremost thing to do is get familiarized with the basics.

1. Analyze what are your visitors doing?

Analytics allows you to make decisions based on facts and figures rather than pure instincts. In the CRO process, there are multiple ways to derive data to understand your results. For instance, you can fetch relevant information from your web analytics tools such as real-time data tracking, bounce rate, incoming website traffic sources, audience, demography, site behavior, and much. Google Analytics is one of the best tools to obtain in-depth quantitative data on what people are doing on your site.

2. How page features shape user behavior?

By using visitor behavior analysis tools such as heatmaps, session recordings, interview feedbacks, customer surveys, analytics, net promoter score, and so forth, see how different features on a page are influencing user behavior. For instance, you might find that the search tool placed on your landing page is getting you more conversions than the showcased product categories. Getting such insights can significantly help you eliminate unwanted features and focus more on the ones that convert users better.

areas-of-improvement

Understanding User Behavior/Qualitative

Customer psychology typically lays down the fundamental ground rules for CRO elements to follow.

Two essential elements that aid in understanding customer psychology are:

1. Principles of Persuasion: Human beings are highly susceptible to suggestions and cognitive biases. To quote an example here, knowing that an item is popular amid the masses becomes even more popular no matter it’s actual worth. At the same time, the rarer and more exclusive an item is, the more valuable it becomes. Understanding such human psychology is essential to effectively define your goals and draft a CRO plan that adds to your company’s profits.

Furthermore, adding social proofs in the form of reviews and testimonials on your landing page or wherever relevant can add to your efforts. As most case studies published[8] over the internet report, social proofing aids in more conversions!

2. Customer Behaviour: A research carried out by NN Group states that most people browsing through the internet don’t read; they merely skim through the posts. Another study reveals that younger people are more interested in browsing through flat designs as they are more “trustworthy” than their older counterparts.

Studying the behavior of your target audience gives an insight into “why they do what they do” over the internet, and how you can use this information to build a better-converting website.

There are two primary ways to study the behavior of your target audience:

  • Conducting tests and taking in-person interviews: Conducting tests and taking in-person interviews: Closely watching your customers interact with your website in real-time can give you significant data and insights on a plethora of things. These can include, the pages they most visit, the amount of time they spend on your website, the areas where they’re facing maximum problems such as finding difficulty in filling a form, unable to generate passwords, payment drop-off, and much more.

  • Reading case studies and following guidelines on user behavior: Many existing pieces of research and case studies can vastly aid in understanding the collective psyche of your customers, which can, in turn, serve as an excellent source for improving your website’s overall look and feel and increase conversions.

Combining the two together, these can collectively give you a much better fundamental understanding of how your customers are behaving on your website.

Understanding the Data Gathered

Data and customer psychology study can help you accurately pinpoint the actual reasons why users do what they do on your site.

understanding-user-behaviour

Use the gathered information as a benchmark study and decide the improvements which could benefit your business in the long run. It is also important to arrive at a quantified expected conversion rate as it gives your testing efforts a direction. Else, you might end up improving the conversion rate on a page by 1% and sit cozily without realizing its actual potential.

Qualitative vs. Quantitative Data

While quantitative data offers a good insight into your business’s performance, it doesn’t paint the entire picture. For this reason, gathering qualitative data is utmost important. Qualitative answers offer better insights on how your customers perceive your brand, why they are or aren’t buying your product(s) and/or service(s), and other breakthrough information.

quantitative Quantitative Data
qualitative Qualitative Data
Objective approach that provides numerical data to map actionable events. Subjective approach that offers in-depth narrative information, such as feedbacks, etc.
Insights:
  • Pages most and least visited by the visitors.
  • Amount of time spent by a visitor on a particular page.
  • Entrance path taken by the visitors to land on the site.
  • Pages they exit from.
  • Number of incoming visitor who convert.
  • Site’s bounce rate.
  • Links and pages least and most ignored by visitors.
Insights:
  • Purchase journey of a customer.
  • Exact root cause of abandonment(s).
  • Customer thoughts about your product(s) and/or services(s)
  • Their fears, doubts or hesitations before and during the purchase.
  • Their feedback after they receive/use the product(s) and/or service(s)
Precise Information Draws generalizations
Measurable data Descriptive Data
Conclusive Approach Exploratory Approach

Data Gathering Methods

Some of the best methods of gather data are as follows:

google-analatics

Google Analytics

Google Analytics is an integratedgit tool that offers numerical data about your website’s overall performance, reports on visitor activities, engagement, traffic inflow sources, content performance, and e-commerce sales.

customer-surveys

Customer Surveys

Customer surveys reveal information about the actual psychological thinking of customers - what convinced them to buy a product, what drew them away from the site, and so forth. It’s one of the best ways to learning strategies for effective site optimization.

usability-tests

Usability Tests

Usability testing is a smart way to evaluate the ease of using a website from a customer’s point of view, their engagement rate on a particular page, stumble spots and similar fall-off. It’s a powerful weapon that only aids in crafting a better user experience but increasing conversions.

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User Interviews

Interviews provide deep insights about your site, respective pages, and target audience. They’re more about gathering qualitative data than its quantitative data. Interviews can effectively lead to drafting campaign-changing test hypotheses.

net-promoter-score

Net Promoter Score (NPS)

Net promoter score (NPS) measures satisfaction in terms of customer loyalty. It classifies customers into three categories known as the promoters, passives, and detractors. While promoters are the ones who are most likely to turn into loyal customers, detractors do the opposite. Passives fall in the middle - they’re still in the evaluation phase (in terms of site likability). nps-image heatmap

Heatmaps

Heatmaps, in simple words, are graphical representations of data that informs about where visitors values are most contained, in the form of colors, within a matrix. The areas that most attention is marked red while others are shaded in green. This is a classic way to understand what users are doing on a single page.

clickmap

Click Maps

Similar to Heatmaps, click maps provide data about user interaction on a page by way of where they are clicking the most.

Scroll Maps

A type of heat map, scroll map analyzes the how a visitor scroll through the website. It aids in examining their behavior on various website pages and analyzing areas of concern.

The next step is to carefully draft your hypothesis!

Stage 2: The Hypothesis Phase - Construct an Educated Hypothesis

Using the information gathered in the research phase, you can now draft your hypothesis. At its core, a hypothesis is a proposed explanation of your research that typically comprises of 3 parts.

  • A particular change - based on insights derived from quantitative and qualitative data
  • A particular effect - a goal, a conversion metric or a similar element, which needs improvement.
  • A particular reason - the thinking behind why a specific change can bring about the desired effect.

The best way to step forward is to run an actual test!

Form a Hypothesis

Here’s an example of a good hypothesis.

“I believe adding social proofs on product pages will result in 5% more add to carts because it instills confidence about my purchasing decision.”

Based on this hypothesis, you make the necessary changes on your product pages. These new pages are known as variations. The primary objective of the test will check whether or not the new variation would get better conversions.

A well-structured hypothesis also paves the way to more optimization efforts. Even if your path fails, you can use the case to understand what exactly went wrong and take corrective measures. Without a structured process, optimization efforts can go in vain and even lose purpose.

Here’s what an unstructured hypothesis looks like:

“Let’s just combine the sorting and filter tool together because it worked for companies A, B, and C.”

This is precisely the kind of hypothesis you should avoid building.

State Your Hypothesis

As a rule of thumb, always back your testing with a solid purpose and authentic proofs. Make sure you have enough quantitative and qualitative data to support your testing reason(s). State your hypothesis as comprehensively as possible and even make a note of all the necessary information. CRO is an ongoing process. The more useful data you have, the easier it becomes to optimize in the future.

Decide How to Change Your Pages

Typically, there are two main ways to run a CRO test - test a completely different page or change one or a few page elements. Choose the one that's’ most appropriate and take a leap.

  • Test a Completely Different Page: If you’ve identified several areas which could be improved, consider starting from the very beginning. Identify the pages you think (based on statistical data) would best convert and showcase positive results. Remember, you may see similar or drastically different results. Use the information as ground rules and start fine-tuning.

  • Change One or a Few Page Elements: This is where A/B testing and Multivariate Split testing serves handy. Identify one or a few problems on your page, which (based on statistical data) may be the main areas of pain. Find their best possible variations, and run a test. Note that a multivariate split test involves testing more than one element at once. This means that it will run for a longer duration and take time to showcase actual results.

Once you’ve uncovered your optimization opportunities, plan and prioritize the elements you want to test. In simple words, schedule your test strategy!

Stage 3: The Prioritization Phase - Choose an Order

Here, a number of frameworks can help you through the process. Of these, the P.I.E. framework formulated by Chris Goward at WiderFunnel is what we most recommend:

Potential

Find out the pages that are performing worst and can improve greatly.

Importance

Then narrow down by selecting the ones that have the most valuable traffic. Traffic is valuable when it’s either costly (paid) or super relevant to your product offering.

Ease

Even when you have a final list of pages, it’s important to realize that not all pages are easily optimized. A page, such as an eCommerce product listings page, may be technically complicated to start optimizing while another, such as your home page, may have too many stakeholders to please. It’s important to go for the one that is easily optimized first and then move up the list.

Each of these has its own importance attached which can effectively help in prioritizing your testing elements and take you in the right direction.

Stage 4: The Testing Phase — A/B, Split, or Multivariate?

Before running a test, understand the basics:

  • What is statistical significance, and why is it critical?
  • How long do you need to run a test?
  • What should I use—A/B, Split, or Multivariate test?

What Is Statistical Significance and Why Is It Critical?

One of the primary reasons to run a test is to understand if a particular change on our site can help yield better conversions. For instance, you’ve decided to run a test on the first 100 visitors visiting your site. You see that 40 of the 100 visitors converted on the variation you’ve run against 20 on the original page. That’s a 20% conversion rate as compared to a paltry 10% on the original page.

But does this mean you’ll get a guaranteed 20% conversion rate, consistently? Probably not, because these 100 visitors may not be a good representation of the 10,000 visitors that pay a visit to your site every day. Here, statistical significance comes into play!

Considering another example, you’ve run a test whose results showcase that your implemented variation has outperformed the control (original version) with 93% statistical significance. This means that there are 7% chances that your variation outperformed purely by accident.

Concluding the example, the statistical significance of 93% states that it’s the right time to stop the test, provided you’ve run the experiment long enough to derive conclusions.

How Long Do You Need to Run an A/B Test for Dependable Results?

Before starting a test, define its run-time!

When you run a test on your site, visitors are constantly included in the test, and the numbers keep changing. This further means that your conversion rate would constantly rise, dip and even stagnate at different times throughout the testing phase. As statistical significance is displayed all-through the test, it can further showcase higher significance even before the test completes its intended duration. So, depending on when you decide to check the results of your test, its statistical significance could be high or low. This further paves way to the problem of “peeking.”

Peeking error

As the name says, peeking error means looking at the test results even before it has completed it due course of action. The chances are that you’ll discover statistical significance which is higher or lower than expected, and you may decide to stop the test, basis the test has or hasn’t performed well. This can, in turn, result in deploying a version which negatively affects your conversions.

Therefore, it is utmost essential to define test duration and declare a winner/loser only after it has completed its run-time.

Note: A test’s duration majorly depends upon the number of visitors visiting your site along with the expected conversion rate you’re looking for. You can use VWO’s free test duration calculator to find an ideal period for which you must run a test.

Bayesian vs. Frequentist A/B Testing

Most conventional A/B testing engines make use of the Frequentist method to make statistical computation and declare a winner. The method states that it’s essential to define an A/B test duration based on sample size to draw the right test conclusions.

But the fact is, businesses looking to scale up rapidly do not have the time to get into such nitty-gritty. So, an A/B test engine that bypasses the problem of waiting until a test completes its due course while still enabling rational business decisions became a necessity.

This gave rise to the Bayesian method, which is the cornerstone of VWO A/B testing platform. Bayesian method not only emphasizes on statistically significant but provides actionable results almost 50% faster as compared to the older Frequentist method.

Bayesian method tells you “at any point, given that you have enough data at hand, what is the probability that variation B has a lower conversion rate than variation A or the control.” Neither does it have a defined time limit attached to it nor does it require you to have an in-depth knowledge of statistics.

Suggested reading:

Bayesian vs. Frequentist.

What Should You Use—A/B, Split, or Multivariate?

There are three primary ways to run a test.

  1. A/B Testing
  2. Split Testing
  3. Multivariate Testing

Businesses often get confused amid the three - which kind of testing method would best suit their needs and demands. To keep such confusion at bay, here are some points to note:

  1. A/B, Split, and Multivariate are three different testing methods, each of which comes with its own set of pros and cons.
  2. The decision to use one of these three methods should purely depend upon the task at hand.
  3. For reasons of simplicity, A/B testing seems best fit. It is majorly used in cases when design changes aren’t complex.
  4. Split testing, or otherwise known as split URL testing is used when:
    • Design requires heavy modifications against its original version that creating a new, separate page with an altogether different URL is easier.
    • Back-end changes are needed, such as testing a pricing page which is linked to multiple tables at the back end.
    • To test pages which already exist on different URLs.
  5. Multivariate testing is used when there are multiple changes suggested on a page, and you want to separately test each combination.

Stage 5: The Learn Phase - How to Analyze A/B Test Results

While this is the phase where you draw final conclusions about your tests, close the loop for conversion rate optimization, and take a note of all the new information gathered for future testing. Unfortunately most optimizers only look at the test results to see whether a variation was a winning one or if it has failed, they’d go back to creating more hypothese. However, as an optimizer, it is important to dig deeper.

Considering a testing scenario. There are two possible outcomes of a test you’ve recently run.

When Your Variation has Won the Test

Your efforts have paid off well. But, what next? It’s time to seek answers to the following questions.

  • What is the cost of deploying the change(s) in terms of engineering hours, design hours and so forth.
  • Is the expected increase in the revenue doing justice to the actual cost involved?
variation-has-won-the-test

When Your Variation has Lost the Test

In such a case, make sure you:

  • Analyze your research, check your hypothesis and look for loopholes.
  • Study your test data. Segregate it further to examine the insights.
  • Validate your research data with all the data gathering tools used.
  • Go through all the relevant case studies. They could help you come across new perspectives which you’d missed before.
  • Reconstruct your hypothesis by accommodating new insights which you’d missed in your initial research.
  • Go back and test again.

Understand, CRO isn’t a once and done process. It is rather an ongoing process which demands constant analysis. There’s always some room for improvement no matter how tests you’ve run. Having a well-planned, well-designed CRO process effectively helps in identifying areas of improvements and implement optimization efforts to get better conversions, further drive more revenue.

Conversion Rate Optimization(CRO) Best Practices

4 Mistakes to Avoid When Running a CRO Campaign

Indeed, CRO is one of the best practices to optimize your site and increase conversions. Most individuals/companies jumping into the pool are unaware of CRO’s lengths and breadths and end up wasting a lot of time, money and efforts in the process. Drafting a fool-proof strategy and effectively following it is the key to CRO.

Here are the top four mistakes every CRO beginner must avoid:

1. Making Changes Based on Opinion Than Statistical Data

As a site owner, it is important to avoid silly mistakes. Avoid launching a new variation without testing it. Just because your site’s design looks cleaner, modish, and features better content than its previous version doesn’t mean it will churn out better results. Resist the urge. Be patient. If you do intend to make changes, make sure it’s backed by a reasonable hypothesis that assures the new variation will perform better.

A successful marketer isn’t the one who predicts which test will win, instead the one who doesn’t let biasness win over statistical data.

2. Writing Copy That Doesn’t Match Your Business Goals

Carefully drafted and SEO optimized content can do wonders. But, if it’s distorted and doesn’t match your business’s goals, it becomes useless. Build unique content that adds value to your site.

  1. Focus on your brand’s USP.
  2. Use simple language. Let it be crisp, precise, and to-the-point.
  3. Write for scanners, not for readers.
  4. Bullet points and ordered lists work better.
  5. Write catchy headlines.
  6. Add keywords that rank better.

3. Going for Small Tests Before Big Ones

When it comes to CRO, most people believe that running small tests is better than big ones. The fact is, small tests will only have a minor impact on conversion rate. Bigger tests with significant chances, wherein more than two elements are optimized will leave a lasting, noticeable impact off the table. These changes may include:

  1. Redesigning the page above the fold
  2. Redesigning the entire home page
  3. Redesigning the navigation menu
  4. Moving important elements to improve visibility
  5. Changing headlines, which is catchier and more impactful than before.

Psychographic segmentation is a crucial element here. It can significantly help to understand the needs and demands of your potential clients and make necessary changes to lure them to enter your conversion funnel.

4. Running Too Many Tests and Pop-Ups at the Same Time on the Same Page

Running multiple tests at the same time can significantly affect the analysis accuracy of each test. Every new element experimented may influence the test results others. Furthermore, running numerous pop-ups and site designs in the same user session disrupts their overall experience. In fact, it’s quite possible that such pop-ups may annoy and confuse users, making them abandon the site, and never come back.

Running multiple tests with altered variable, known as the multivariate test, usually works for high-traffic sites. Yet, not necessarily promising excellent results. Go step by step. Analyze your results; make the necessary changes; observe; then run another test.

3 Conversion Rate Optimization Challenges To Address

CRO one of the best ways to optimize your website and increase conversions. But, it comes with its own set of challenges and misconceptions, which must be addressed to ensure smooth adoption and implementation.

1. Politics and People

People and politics make for two main elements that define the culture of an organization. While the former highlights skills and mindset, the latter speaks of influential power. The real challenge surfaces when there’s no democracy amid people. Moreover, when the influential individuals of the organization try to enforce their thoughts over factual data. Solution:

  1. Educate people about the real benefits of CRO.
  2. Present competitive analysis
  3. Highlight the gaps in your current approach
  4. Show the data.

2. Structure to Support CRO

Putting together a structure to support CRO is a huge challenge for most enterprises. A series of questions come up here. Is it worth hiring a dedicated conversion optimization team; would it add to overall organizational expenditure; who will take the responsibility in case of failures; and so on!

Solution:

Before getting into the depth of CRO, it’s important to draft a proper CRO process. Create a dashboard or platform to plan, update and record all your conversion activities. Share the statistics with your employees. Encourage them to contribute to conversion optimization and make smart decisions based on factual data.

3. Insufficient Budget Allocation

Budget plays an important role when it comes to planning and running a CRO campaign. While companies back in 2013, spent as low of only 5% on CRO activities, the trend has improved with organizations increasing their spend on optimization. However, the problem lies in the correct budget allocation.

Solution:

Before zeroing upon an amount, organizations must analyze their ROI from CRO. They must invest in conversion optimization tools after thoroughly examining their goals and actual gains.

Conclusion

From mapping the importance of website optimisation to strategizing the means and ways to improve site performance, conducting A/B tests and using the results to boost marketing efforts, conversion rate optimisation has become a mainstream effort. It not only enables companies to understand how customers think, use, and perceive their brand and it’s offerings, but also exposes to an incredible range of data to shape their future business strategies. CRO is not just another tool to enhance your brand’s online performance, its ‘the’ tool to make you stand out!

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