White Paper: Five Steps to Developing a Successful and Scalable Conversion Optimization Strategy

Transcription

1 White Paper: Five Steps to Developing a Successful and Scalable Conversion Optimization Strategy Summary Implementing a Conversion Optimization approach to a lead-generation or ecommerce website can improve the business value of the website. This White Paper provides the framework for developing the business case as well as an approach to optimizing the conversion rate on websites. Conversion Optimization is the science and art of maximizing the percentage of website visitors that become leads or customers through planned and ongoing quantitative testing. To optimize for conversions, companies need access to a cross-functional team as well as a rigorous process. Making a business case for Conversion Optimization testing is a relatively simple exercise that involves calculating the potential conversion rate lift that testing can generate. Business people can easily determine the incremental benefits as well as the ROI of Conversion Optimization. This White Paper also presents the Five Steps to a Conversion Optimization Strategy, including the role of the Conversion Optimization Champion in overcoming corporate inertia or outright resistance to testing. For more information on this report, contact us: WiderFunnel Marketing Optimization Tel: Fax: iwant@widerfunnel.com

2 Table of Contents What would a 10%, 20%, 50% or 150% rate increase in conversions be worth to your business?... 3 Conversion Optimization what is it and why it matters... 3 The solution to under-performing websites... 3 Why do most websites under-perform?... 3 Developing the Business Case for Conversion Optimization... 5 Five Steps to a Conversion Optimization Strategy... 5 Step 1: Align Website Objectives to Business Goals... 5 Step 2: Identify Conversion Funnels... 6 Step 3: Generate Great Test Hypotheses... 7 Step 4: Execute a Cycle of Continuous Improvement... 9 Step 5: Avoid Common Conversion Optimization Mistakes The Outsourced Option Hypothesis Creation (using the WiderFunnel LIFT Model) Test Design Document: the Funnel Experiment Map Graphic Design & Copy Development HTML/CSS Build Technical Installation instructions & QA Test Launch & Daily Results Monitoring Results Analysis & Recommendations Would you like to improve your website conversion rate? WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 2/14

3 What would a 10%, 20%, 50% or 150% rate increase in conversions be worth to your business? Results like these are not only possible; they are the expected outcomes of an effective and well-executed Conversion Optimization strategy. This white paper will help the Manager, Director, C-suite or Owner-operator of a lead-generation or ecommerce website to develop a business case and strategy for implementing a Conversion Optimization approach to improving the business value of the website. Conversion Optimization what is it and why it matters The solution to under-performing websites There is consensus that most websites today perform miserably at meeting the needs of visitors. The evidence is clear: high bounce rates, low form-fill rates, high shopping cart abandonment rates, and high rates of customer support inquiries to the call center. To business this means low website lead-generation and sales conversion rates with a high cost-per-lead and high cost-per-sale. Conversion Optimization is the discipline that remedies these problems. Conversion Optimization is the science and art of maximizing the percentage of website visitors that become leads or customers through planned and ongoing quantitative testing. It is a science because it is based on the scientific method of developing hypotheses on ways to improve website results hypotheses that will be proven or disproven using controlled scientific experiments. It is an art in that, to be developed effectively, the hypotheses and variations to be tested require creativity as well as a creative process. Creating solutions to solve business challenges requires lateral thinking and pattern-recognition that cannot be duplicated through purely logical deduction. Why do most websites under-perform? Most web designers and developers tasked with creating websites do not have training or experience in web persuasion. In addition, designers are oriented towards aesthetic considerations and not business problem-solving. To optimize for 2010 WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 3/14

4 conversions, on the other hand, companies need access to a cross-functional team with the skills of a persuasion copywriter; direct response designer and conversion testing strategist, among others, in addition to design and development. Here are some common reasons organizations create under-performing websites: Creative ownership Many companies still approach web design as a creative design project and not a business. If the goal of a website is to generate leads or sales, it should not be evaluated on how exciting, engaging or cool it is. It should be evaluated on business results. Web visitors do not care how clever the site is; they just want to solve their need on the website. Personal opinion Human beings carry assumptions and professional opinions about many things, including how a good website should look and perform. It is impossible to push aside preconceptions without a rigorous process that continuously challenges these preconceptions to prove with statistically valid measurement methods whether they are in fact correct. Confusing Usability Testing with Conversion Optimization Some companies confuse Conversion Optimization testing with Usability testing. Usability Testing is purely qualitative feedback that should be verified through quantitative testing. While Usability testing can play a role in Conversion Optimization to provide ideas for hypothesis development, it does not provide reliable, actionable and statistically valid information. Team experience Successful Conversion Optimization requires a cross-disciplinary team with a broad and unique set of skills that most companies simply do not have in place. This includes Marketing and IT departments that enjoy effective, crossfunctional project teams, and direct response planners, copywriters and designers who have firsthand experience optimizing conversions on competitors websites in addition to experience with other relevant industries. Most companies simply do not posses this. Lack of awareness Many companies are not aware how easy and accessible quantitative Conversion Optimization testing can be today. The testing tools are affordable or even free and qualified professional services can provide significant conversion rate lift to make large ROI multiples possible WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 4/14

5 Developing the Business Case for Conversion Optimization Making a business case for Conversion Optimization testing is a relatively simple exercise that requires knowledge of key metrics on the site such as monthly traffic; the current conversion rate; average order value (for e-commerce) and value of a lead (for lead-generation). By calculating the potential conversion rate lift that testing can generate, business people can easily determine the incremental benefits as well as the ROI of Conversion Optimization. Positive ROI from a Conversion Optimization strategy is most often possible. Particularly on high traffic websites that have not been extensively tested, the cost of planning and testing will often be covered many times over. More information and the tools for building a business case is available by downloading the applicable Conversion Optimization Model ROI Calculator at Five Steps to a Conversion Optimization Strategy Since 2007, WiderFunnel Marketing Optimization has been testing and improving clients conversion rates. The process described below is based on thousands of successful tests executed for a wide variety of clients in multiple industries. Step 1: Align Website Objectives to Business Goals What are your business goals and how does the website support these? A critical part of a website s strategic plan, which is rarely documented, is the determination of web page conversion objectives. Unclear objectives produce unclear results which in turn often lead to confusion and disagreement within organizations. Try this: Ask six people within your organization what the website s primary objectives are, on a page-by-page basis, and write those down. Chances are you may hear them say that the objective of a web page is one or more of the following: Provide information about our company Sell our products and/or services Generate leads for our sales team Support our communications campaigns 2010 WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 5/14

6 Provide customer support Distribute trial software downloads Acquire new members Reduce the calls to the call centre Increase calls to the sales Call Center Educate customers Engage with the brand Gather addresses for future communication Provide an enjoyable experience Guide the visitor to the information they re looking for Multiplicity of objectives within one page leads to confusion. If your organization cannot identify one primary web page objective, the outcomes of your Conversion Optimization efforts will be doomed. The Conversion Optimization objective should be determined based on how well it supports the overall business goals on the website: Business goals determine Website goals, which in turn determine web page conversion objectives. Examples: E-commerce retailers need to prioritize website sales conversions and Average Order Value (AOV). However, e-commerce retailers may also have secondary objectives, such as newsletter signups, Wish List creation, and Send-toa-Friend. Lead generation marketers prioritize form-fills and other data capture activity. Secondary objectives can include providing demo videos, trial software downloads, white paper downloads, a phone number and/or contact forms. To prioritize objectives, you must understand the value they add to the business. Step 2: Identify Conversion Funnels A conversion funnel is the steps (i.e. web pages) a given website visitor has to go through to complete an action on the site. After aligning website objectives to business goals you need to identify and prioritize all the conversion funnels on the website and create a prioritized list of funnels and user scenarios. This prioritized list must have buy-in from all stakeholders in the company. Conversion Optimization testing then starts at the top of the list WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 6/14

7 Try this: Leverage your web analytics data. Look for pages with the following: high traffic; low conversion rate; high bounce rate; and/or high visitor acquisition cost. In essence, you need to find areas where there is a lot of expensive traffic that is converting poorly. Step 3: Generate Great Test Hypotheses The results of Conversion Optimization tests will only be as good as the hypotheses being tested (anyone with experience around software developers knows the expression Garbage In; Garbage Out the same applies here). But, good hypotheses are not obvious. Hypotheses creation is the most valuable part of the process where your skills as a Conversion Optimization expert will be tested. Using a framework for analyzing the user experience and creating test hypotheses will help you in the idea-generation stage. The WiderFunnel LIFT Model for hypothesis development The WiderFunnel LIFT Model provides a framework showing the Six Conversion Rate Factors that allow you to evaluate your conversion funnel pages from the perspective of visitor Personas. See Fig. 1 for the conceptual graphic of the WiderFunnel LIFT Model. The core conversion rate factor: Value Proposition. The model shows that the vehicle that provides the potential for the Conversion Rate is the Value Proposition, making it the most important of the six conversion factors. The other five factors are either conversion drivers or inhibitors. The three conversion drivers are as follows: 1. Relevance Does the landing page relate to what the visitor thought they were going to see when they clicked on a link to land on your page? The Relevance of the Value Proposition and context of the source media is 2010 WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 7/14

8 critical. Each web page must use terms visitors can relate to and be consistent with the incoming link or the visitor will be disoriented and leave the page. 2. Clarity Does the landing page clearly articulate the Value Proposition? Clarity of communication via content, layout and design is the most common of the six factors that marketers struggle with. The two aspects of Clarity that must be analyzed are Design and Content. Designing for Clarity creates an unimpeded eyeflow. Content clarity ensures the images and text combine to minimize comprehension time. 3. Urgency Is there an indication that the action needs to be taken now? Urgency has two components: Internal (or how the visitor is feeling upon arrival) and External (or influences the marketer can introduce to the visitor). While Internal Urgency is generally pre-existing when the visitor arrives on the page, the tone of the presentation, offers and deadlines can all influence External Urgency. The conversion inhibitors are as follows: 1. Anxiety What are potential misgivings the visitor could have about undertaking the conversion action? Anxiety is a function of the Credibility built with the visitors and the Trust the web visitor is being asked to have. The lower the credibility and trust conveyed, the higher the anxiety the web visitor is experiencing. 2. Distraction Are there items on the page that could divert visitors away from the web page objective? The more visual inputs and action options a web visitor has to process, the less likely he or she is to make a conversion decision. Minimizing distractions like unnecessary product options, links and extraneous information will increase the conversion rate WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 8/14

9 Creating the right hypotheses Each one of the weaknesses uncovered through the LIFT Model generates potential solutions (hypotheses). Conversion Optimization experts will use the six factors discussed as well as many other sub-factors -- to develop hypotheses to be test. Additionally, there are many ways to gather source data for improving the quality of hypotheses, including the following: Usability testing (formal or quick & cheap like UserTesting.com) One-on-one interviews Click heatmaps (with tools like CrazyEgg) Visitor path and abandonment recording tools (such as ClickTale) Website feedback questionnaires (with a service like 4Q or Kampyle) Try this: Experience being a prospect on your own website the insights will most likely surprise you. Step 4: Execute a Cycle of Continuous Improvement One A/B or Multivariate test alone does not make a Conversion Optimization strategy. To get the full value of Conversion Optimization requires a commitment to ongoing testing. Research shows that the greatest contributor to landing page optimization success is simply repeated testing i. Business people new to testing often run into corporate inertia or outright resistance to testing as a means to improve the conversion rate. Entrenched methods of doing things are often hard to overcome and a Conversion Optimization Champion will often have to battle corporate culture or fight for resources to implement tests. Often, simply bringing in experts to help develop the business case as well as the Conversion Optimization strategy can overcome corporate cultural resistance. Secure organizational buy-in early from stakeholder groups: cooperation from IT, Marketing, Sales & Management (which a services company can also bring credibility for) WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 9/14

10 If you face a challenge getting approval for a comprehensive strategy, start with a single test on a targeted landing page then use the successful results to build a strong business case. Resist the temptation to stop testing if the first attempts don t meet expectations. Make a continuous improvement commitment and stick with it until you get statistically valid results. Step 5: Avoid Common Conversion Optimization Mistakes Below are some of the most common Conversion Optimization mistakes to be avoided: Not using a tool designed specifically for testing (A/B/n and MVT), such as a web analytics or pay-per-click ad management tool Without calculating the confidence level of a test result you are back to guessing. Testing web pages perceived to be unimportant first A shared perception that a given web page is hurting the company s conversion rate and overall business helps ensure buy-in from stakeholders. Even better: if the web page tested early on is also a paid traffic landing page. Testing unimportant things first Don't back yourself into a corner and limit your potential for improvement. If you start by testing inconsequential elements, or even important elements within a poor architecture, you will hit a conversion ceiling much too soon. Not getting a 'quick win' To gain or maintain support within the organization, you need to show significant positive results quickly. Judging your potential by the results of your first few tests Conversion rate improvements do not happen evenly. You are more likely to have several inconclusive tests mixed with one significant improvement test so stay committed to the strategy until it pays off. Starting with multivariate testing Multivariate testing is technology that attracts many to start testing, but it is usually not the best way to launch the strategy. Beginning with too many 2010 WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 10/14

11 variations is one of the most common problems, and it s harder to avoid with multivariate testing than with A/B/n testing. Not getting an outsiders perspective You are probably too close to your own website to be objective and generate powerful test hypotheses. The value of an experienced Conversion Optimization agency cannot be overstated. Trusting 'best practices' Do not look for lists of best practices tips. They do not solve your site s problems and probably won t work for you. HiPPO or committee approvals The HiPPO is the Highest Paid Person s Opinion in your organization. Too many layers of approvals will kill your best test ideas. You need a safe environment where you can test unusual or dramatically different variations without pre-judgment. It s much easier to get approval once you can show that a new page design will increase X% sales lift. Stopping the test too early You need to understand what your test results are telling you to know when you can declare a winner. Make sure you rely on statistically significant results. The Outsourced Option To guarantee better results sooner, you can hire a dedicated Conversion Optimization agency like WiderFunnel Marketing Optimization. Since 2007, WiderFunnel has been providing full service improvements on website conversion funnels and landing pages and guarantees statistically significant conversion rate improvement to a wide range of clients, across all industries and in three continents. By hiring an experienced Conversion Optimization agency with a proven track Fig 2: WiderFunnel Kaizen Method 2010 WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 11/14

12 record, you are leveraging the results of thousands of successful test results to gain a competitive advantage. The Kaizen Method is WiderFunnel s Conversion Optimization process. It ensures that our Testing, Web Analytics and Website Design services work together to achieve your business objectives. See Fig 2 for an illustration of the Kaizen Method. Kaizen refers to the philosophy and practices that focus upon continuous improvement and that s what WiderFunnel clients get. We begin with an analysis of your web analytics data, business goals, marketing research, technical environment and demand-generation campaigns. The resulting Kaizen Plan identifies and prioritizes all experiment and web analytics opportunities to maximize your conversion rate improvement. With the Kaizen Plan as the strategic guide, we then execute the prioritized test rounds on specific web pages on the site. Test rounds include hypothesis creation, test design document creation, graphic design and copywriting, web page development, experiment technical instructions, experiment monitoring, results analysis and recommendations. Hypothesis Creation (using the WiderFunnel LIFT Model) The creation of valid test hypotheses is one of the most critical steps in the process. Our multi-disciplinary team analyses your original page or conversion funnel and identifies the most important hypotheses that will improve your conversion rate. Test Design Document: the Funnel Experiment Map The Funnel Experiment Map is the document that specifies the test design. It includes the experiment objective, structure, traffic estimates, LIFT Analysis, hypotheses, the number of test variations, wireframes, timing and technical notes. Graphic Design & Copy Development Leveraging the learning from thousands of successful tests, once the Funnel Experiment Map is client-approved, our conversion-trained graphic designers and copywriters create and fine-tune all the test variations from a conversion perspective WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 12/14

13 HTML/CSS Build Our developers take your source html and modify it to match our design variations using fully commented and efficient html/css code. Technical Installation instructions & QA Our relationship with your IT team is a priority for us and we engage them early in the planning process. When we deliver html, css and image assets, our developers will already have had conversations with your developers so that there are no technical implementation surprises. We will adapt our process to your coding, QA and launch requirements so the implementation is smooth. Test Launch & Daily Results Monitoring Once the test launches, WiderFunnel monitors results and makes recommendations for when to prune variations and when to declare a winner. Clients also have login access to view ongoing results at any time (Warning: it can become addictive). Results Analysis & Recommendations Once the experiment achieves statistical significance, WiderFunnel presents a detailed Results Analysis with recommendations for the next test in the Kaizen Plan. The winning page can be immediately implemented as the new Control page for all visitors so that the conversion rate improvement is locked in. We also update the your custom PlayBook, which will provide guidance to your internal and external web design resources so they no longer guess what might work on your site. Instead, they will have proven results on which to base new design across your site WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 13/14

14 Would you like to improve your website conversion rate? Find out how WiderFunnel can help you get more leads, more registrations and more sales. At WiderFunnel, we guarantee you will. Call Us: +1 (604) UK: Us: Visit WiderFunnel.com: - View case studies - Sign up for blog updates by or RSS - Contact a Conversion Optimization expert to get more leads and sales from your website! i Source: MarketingSherpa 2009 Search Marketing Benchmark Guide 2010 WiderFunnel Marketing Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Page 14/14