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Conversion Rate Optimisation and Analytics

Andrew FurlongRedEye

2Source: Econsultancy/RedEye CRO Report 2013

Agenda

• Why is Conversion Rate Optimisation so

important

• What makes up the CRO toolkit

• Process and Analysis

• Maturity model

3Source: Econsultancy/RedEye CRO Report 2013

Why are conversion rates so low?

• Average retail conversion rate has declined from 8.4% to below 3.8% over last seven years. At same time market has grown from £30.2bn to £60bn plus.

• Due to move from “online purchasing” to “online shopping”• Improving website conversion is more complicated than spending

more with Google…Source: IMRG Capgemini e-Retail Sales Index

4Source: Econsultancy/RedEye CRO Report 2013

Satisfaction with conversion rates is low

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Conversion rate optimisation spend is lowCurrently for every $92 spent acquiring visitors, only $1 spent converting them. So spending money intelligently on Conversion Rate Optimization (CRO) should be a better investment than spending more money on generating traffic...

Acquiring customers

Convertingcustomers

Source: Adobe/eMarketer

6Source: Econsultancy/RedEye CRO Report 2013

Agenda

• Why is Conversion Rate Optimisation so

important

• What makes up the CRO toolkit

• Process and Analysis

• Maturity model

7Source: Econsultancy/RedEye CRO Report 2013

Methods used for improving conversion rates

8Source: Econsultancy/RedEye CRO Report 2013

Best practices carried out by organisations

9Source: Econsultancy/RedEye CRO Report 2013

Barriers preventing improving conversion?

Consistently top

10Source: Econsultancy/RedEye CRO Report 2013

Value and difficulty of different methods

*Size of the bubbles is directly proportional to the percentage of companies surveyed using each method for improving conversion rates.

A/B testing

Cart abandonment analysis

Event-triggered / behavioural email

Expert usabilityreviews

Multivariate testing

Segmentation

Usability testing

Competitor benchmarking

Abandonment email

Website personalisation

Copy optimisation

Customer journey analysis

HO

W D

IFF

ICU

LT

IT I

S T

O IM

PL

EM

EN

T

VALUE

Now look at top 4 methodsin more detail

11Source: Econsultancy/RedEye CRO Report 2013

Customer Journey Analysis• Customer journey analysis is the first step

in understanding what customers are doingon your site

• Typically not a simple sales funnel• Consider all primary user goals• Challenging e.g. cross device

• By understanding customer journeys you can pull yourcustomers through yoursite rather than push them,inbound rather thanoutbound

12Source: Econsultancy/RedEye CRO Report 2013

Usability testing

• Usability testing with eye tracking is the best wayto understand how your site design is performingand why your customers are doing the things yousee in the web analytics data.

• To get support for your website optimisation processshow key stakeholders and senior managementhighlight clips from usability testing showing usersstruggling to achieve those key goals.

• A/B and Multivariate tests can take can take a number of weeks to generate a statistically robust answer. So you really can’t afford to do random testing. Usability testing is a useful method to help prioritise tests.

 

13Source: Econsultancy/RedEye CRO Report 2013

Testing

Companies whose conversion rates have improved over the previous 12 months are performing on average 50% more tests to improve conversion than those companies whose conversion rates have not improved.

Sales Average number of tests each month

Large increase

7.88

Small increase

4.32

No change 2.61Decrease 1.86

14Source: Econsultancy/RedEye CRO Report 2013

Important to a successful testing strategy?

Top:Defining testing goalsand objectives &Prioritising tests

Bottom:Choosing software

15Source: Econsultancy/RedEye CRO Report 2013

Specifically for your website, what do you test?

Top four:- Call to action buttons- Page layout- Copy- Navigation

16Source: Econsultancy/RedEye CRO Report 2013

Agenda

• Why is Conversion Rate Optimisation so

important

• What makes up the CRO toolkit

• Process and Analysis

• Maturity model

17Source: Econsultancy/RedEye CRO Report 2013

What improves conversion - analysis of dataThe five additional variables most strongly correlated withimproved website conversion and sales are:

• Having a structured approach to improving conversion

• Having people responsible for improving conversion

• Perceived control over conversion rates

• Using a number of different methods used to aid conversion

• Cart Abandonment Analysis

• Note top 3 are all people issues

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Business objectivesGoals, aspirations, target audiences

InsightAnalytics, Usability testing, surveys…

Repository for quant & qual

Ideas & PrioritisationQuantify, Predicted Uplift, Justification

Testing (A/B, MVT)Test plans, UX Design variations, Reporting

& Measuring uplift / ROI

Continual Website ImprovementIncreased Conversion, AOV, X-Sell,

Retention, Loyalty, UX

Testing insights & learnings

Quick wins e.g.fixing usability issues, interaction problems, bugs

UCD/UX Design e.g.New functionality,redesigns, wire-framing, prototyping

Example of a structured process

19Source: Econsultancy/RedEye CRO Report 2013

Complimentary methods lead to better results

Companies with £10m+ revenues who integrated usability testing and analytics well were more than twiceas likely to have seen a large increase in sales as those that didn’t

20Source: Econsultancy/RedEye CRO Report 2013

Agenda

• Why is Conversion Rate Optimisation so

important

• What makes up the CRO toolkit

• Process and Analysis

• Maturity model

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Conversion Maturity Model

Littleor no control of conversion

½ personresponsible

for conversion

Starting to testlanding pages

Not using astructuredapproach

In control

1 personresponsible

for conversion

Testing landingPages

Starting testing

Structuredapproach

to improvingconversion

2 peopleresponsible

for conversion

Incentivisingstaff based on

conversion

Testing multiplelanding pages

Using A/Btesting or MVT

£

Time Starting Out Intermediate Strategic

Increasing number of complimentary methods used, tests and segmentation

22Source: Econsultancy/RedEye CRO Report 2013

Conclusion

Top 7 things to do to improve conversion:

• A/B and Multivariate testing

• Usability testing

• Customer journey analysis

• Having a structured approach to conversion

• Have people directly responsible for CRO with perceived control over conversion rates

• Use a number of different methods to improve conversion

• Cart Abandonment Analysis

23Source: Econsultancy/RedEye CRO Report 2013 Data Driven Digital Marketing

Thank You