conversion optimization: how to double your revenue and profit
TRANSCRIPT
Digital Marketing Webinar
Conversion Optimization: How To Double Your Revenue &
Profits
May 7, 2014 | Manuj Bajaj (Business growth Consultant)
www.digitalvidya.com
CONVERSION OPTIMIZATIONHow to double your revenues and profits?
Manuj BajajGreyBox Technologiesmanuj@greyboxtechnologies.comwww.GreyBoxTechnologies.com
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AnswerI need better visibility
I need more visitors / trafficLet’s buy more traffic on the site
Let’s increase our ad spend / media spend
Two approaches to increasing online sales
JANUARY OPTION 1:Conversion Optimization
OPTION 2:Purchase Traffic
Spend Rs. 50,000 Rs 50,000
Traffic in December 10,000 visitors
Traffic in January 10,000 visitors 12,000 visitors
Conversion in December 3.0%
Conversion in January 3.6%(20% lift from ph-1 testing) 3.0%
Resulting Sales 360 units 360 units
Two approaches to increasing online sales
FEBRUARY OPTION 1:Conversion Optimization
OPTION 2:Purchase Traffic
Spend Rs. 50,000 Rs. 50,000
Traffic in January 10,000 visitors 12,000 visitors
Traffic in February 10,000 visitors 12,000 visitors
Conversion in January 3.6% 3.0%
Conversion in February 4.32%(20% lift from ph-2 testing) 3.0%
Resulting Sales 432 units 360 units
What happens if you stop spending?
MARCH - DECEMBER STOPConversion Optimization
STOPPurchasing Traffic
Spend Rs 0 Rs 0
Traffic 100,000 visitors 100,000 visitors
Conversion 4.32% 3.0%
Resulting Sales 4,320 units 3,000 units
That’s 44% more sales for the same 2-month investment!
Optimization is a process, not an event
Optimize your site
Increase salesLearn how your
customers think
With each
conversion lift,
you lock in the
gain and then
build on it for the
next round.
Conversion optimization works its magic over time, just like compound interest
Learning how your customers think helps you optimize faster
What kinds of images resonate?What messages do they respond to?Which calls-to-action work best?What assurances are most effective?
The more you learn [and apply], the more you’ll sell
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Ok, so how do I test it?There are many methods of testing but the most popular type of method is A/B testing
A/B testing is the core of conversion optimization, but there’s more to it
What are visitors
trying to accomplish?
Are they successful?
Why or why not?
Test alternate
experience
Simple example of an A/B test
Treatment A (or “Control”)
Treatment B
Treatment B drove 30% more clicks on their Sign Up button. That’s 30% more business for 37 signals, with no increase in traffic!!
Another example of an A/B test
Control: Treatment A Treatment B
Just a small change in CTA button from ‘Add this to my Cart’ to ‘Buy Now’ resulted in extra revenue of Rs. 16 Lacs per year.
Another example of an A/B test
Control: Treatment A Treatment B
Version A, the ‘See Product Video’ button call to action (CTA), increased form fills on the page following the button by 48.2% at a 98.5% confidence level.
Example of an A/B test
Control: Treatment A Treatment B
Additional navigation at the top of Version A helped convince 19% more visitors to purchase something.
Example of an A/B test
Control: Treatment A Treatment B
18.87% more shoppers converted from viewing their cart to entering the checkout process with Version A than with Version B. That’s a nice fat bump, especially considering the fact that both test carts used clean, best-practice-based design.
So, what can you test on your site?
Headings & sub-headingsNavigationLink labelsFormsImagesCalls to actionOffersPricesPage layoutPage flows
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Craft your hypotheses about how you can change the user experience
ASK THE QUESTIONM: How can I improve the relevance of my offering to visitors?
V: What kinds of changes might increase the impact of my product’s value proposition?
F: How can I reduce the friction my visitors encountered on my home page?
A: How can I alleviate the anxiety some visitors feel on my site?
CREATE THE HYPOTHESIS
By using a better screenshot, I will improve relevance.
By including social proof in my headline, I will make my value proposition more impactful.
By removing links and other distractions, I will reduce home page friction.
By displaying a phone number, I will alleviate visitor anxiety.
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Close the test, winner or not, and consider what you’ve learned
Winner or no result?
WINNER NO RESULT
Did your new design reflect
your hypothesis?
YES NO
Revise your hypothesis and re-test
Improve page design and re-test
Are there other pages in your primary funnel to test
the same hypothesis?
YES NO
Create new design on subsequent page and test
Test your next
hypothesis
... if you could double your site’s conversion rate?
A. Bank the money and enjoy life on the beach
B. Reinvest the money to buy more traffic
C. Hire someone to focus 100% on optimizing your site
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Want More Case Studies?
http://www.marketing-results.com.au/marketing-case-studies/
http://www.copyhackers.com/
http://whichtestwon.com/
Optimization Resources
Google Website Optimizer / Content Experiment / Behavior Experiments tool & tutorials:https://www.google.com/analytics/web/?hl=en#report/siteopt-experiments/https://support.google.com/analytics/answer/2844870https://www.youtube.com/results?search_query=google+content+experiments
Visual Website Optimizer tool & tutorials:http://visualwebsiteoptimizer.com/http://www.youtube.com/watch?v=vELzXfIdWvshttp://www.youtube.com/watch?v=tyH8GRTxJh0
A/B testing tool comparison chart:http://www.whichmvt.com/
Visitor feedback tools:http://www.google.com/analytics/http://www.crazyegg.comhttp://www.iperceptions.com/en/4qhttp://www.usertesting.com/
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