Conversion Rate Optimization (CRO)
Conversation rate optimization is the process of improving website elements to influence user intent. Such improvements can profoundly affect behavior and purchase decisions. CRO is identifying what customers are looking for, why their not converting and solving it!
With proper channel selection, visitors are coming to your website. You’re receiving a good amount of traffic but conversions are lower than expected. Understanding how visitors behave on your site determines if leads become sales. Moreover, whether customers become loyal lifetime clients. Conversion rate optimization isn’t just about increasing leads to sales thru analytics. It’s also about refining the customer experience.
A higher conversion rate equals a higher ROI. With industry conversion rates hovering 3% on average, companies face difficulty understanding what impacts purchases. In 2014, approximately 75% of shopping carts were abandoned and it’s on the rise. Chances are you’re using paid search to generate leads. Driving traffic that doesn’t result in conversions won’t help your bottom line. It also affects your company’s path for growth.
Define Key Performance Indicators (KPIs)
Before you can get to conversion rate optimization, you need to define key performance indicators (KPIs). Most people equate conversions with sales. Although important, sales are not the only KPI. Not every visit will result in a sale. You must define what action or set of actions you want visitors to take. As part of this process, one should establish micro and macro conversions. In addition, the sales funnel should be clearly defined for the products and services. If not, you won’t be able to answer the reason why sales are not improving.
Understanding Your Audience
In order to achieve successful CRO, you must be intimately familiar with your audience. For each product or service, user types and behavior will differentiate. To do so, you must create what is known as marketing personas. Personas represent the type of people that buy a particular brand or use a type of service.
• Review analytics to see how visitors navigate your site
• Identify where your visitors are coming from
• Establish demographics for each persona
A keyword by itself provides nothing about who a potential customer is. Who is actually is behind the keyword does. Once you’ve established personas, you can accurately speak to the needs and wants of your audience.
Testing an Optimization Plan
After you have gathered data, the next step moves into a testing phase. Choosing the right test to conduct is critically important. A misstep could have a very real and negative consequence. There are two types of tests to conduct your hypothesis: Split A/B or multivariate.
1. A/B Testing or split testing. This is entails showing two variations of a web page. The goal is to see which page performs better. A split A/B tests against multiple elements. This is suitable if you’re looking to achieve improved results within a short period.
2. Multivariate Testing. A multivariate test is far more advanced test where elements are changed across several pages. The goal is to see how a change impacts behavior. The idea is to establish which elements inside a page have the biggest affect for that page. This also requires more traffic over a longer period of time to be conclusive.
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What is Growth Marketing?
Unlike traditional media, growth marketing is using channels that are trackable, scalable, and optimizable. It focuses on tactics associated with improving customer acquisition rather than traffic per se. The emphasis is on ROI. First, one must define actionable goals. Ultimately, the aim is to improve something that is good and make it great. In order to accelerate growth, one must first identify what users actually want. Secondly, one must also determine customer types.
Growth hacker marketing starts with analytics but can encapsulate many things. A few are listed below.
- How Product/Services are Delivered
- Leveraging Technology
- Improving The Online Experience
- Working to Redefine The Product
- Improving Marketing Channels
- Increasing Customer Retention
- Understanding What Users Want
Although growth hacking leverages data from marketing channels, it can also go beyond that. It’s about thinking outside the box. One example is Airbnb using Craigslist to post ads. There really is no set way. It entails experimenting, testing, and changing the way you think.