Conversion rate optimization fundamentals

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This brief presentation explains what Conversion Rate Optimization is, how to calculate your website's conversion rate and how to get started with website conversion optimization.

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  • We’ve identified 5 main focus areas or steps that can be taken to optimize a site in a highly strategic way. Each area on itself will have a certain effect; however combined they will have a profound, exponential impact.
  • Conversion rate optimization fundamentals

    1. 1. Conversion Rate Optimization Fundamentals
    2. 2. About Catchi and Traffic Conversion ProTraffic Conversion Pro has been created by Catchi, dedicatedCRO consultants to a wide variety of companies, large andsmall, in the US, Australia and New ZealandExperts in turning website traffic into paying customers andqualified leadsCover both areas of what to test (marketing) and actualtesting (technical)Saw a real need for an online course, teaching people how toimprove their conversion ratesAbout CorneliusInternet Marketer since 2001Built successful global online business with over2,000 affiliates and high conversion ratesStarted specializing in CRO after recognizing it asthe easiest and fastest way to improve onlinespend and ROIStarted Catchi which is now fast growing
    3. 3. ©2013 Catchi LimitedWhy Website Conversion Optimization?Working with website conversion rates is the best, most systematic way tomeasure the effectiveness of your website. It’s a very fast growing area now andmore and more people recognize its importance.Your Conversion Rate should be used as the benchmark for your digital success.By taking your website conversion as the point of reference throughout anongoing process of improvement you can work on your website in a step by stepway that can be measured and adjusted along the way.Increasing your Conversion also allows you to improve your results from all otheronline campaigns, including SEM (e.g. Adwords), SEO, SMO, Social Media, etc.At the end of the day, all we want is results and this is how you get them!
    4. 4. ©2013 Catchi LimitedWebsite Conversion Optimization is fascinating!Working with website conversion rates is truly fascinating and can be veryrewarding when you ‘get the hang of it’.When visitors visit your website, they go through a certain process in their mind.They keep thinking – often totally subconscious- things like “What is this allabout? Is this for me? Can I trust these people? Will I get value? How can I findout more? Why should I buy from these people instead of others?”So when looking at CRO, you are getting into people’s thought processes. AsConversion Rate experts call it “we optimize thought sequences”. The goal is toguide these processes and give them what they need in order to make adecision.
    5. 5. ©2013 Catchi LimitedMany companies are struggling with the same questionMost companies these days have a website; it is a must if you are serious about yourbusiness and promoting your products or services to a wider audience.We however saw so many companies struggling with the same question:once you have set up your site, how do you make sure it works most effectively? How doyou make sure visitors buy your products and/or services? How do you ensure yougenerate leads? In other words, what steps do you need to follow and what elementsshould we look at to get more people to take action on your website?Catchi has developed Traffic Conversion Pro an onlinecourse that will not only give clear, applicableanswers to these questions, but will also provide youwith a roadmap you can follow to ensure you createan effective website, get the best possible results anddramatically increase your online sales and leads.
    6. 6. ©2013 Catchi LimitedDefinition of Website Conversion Rate“The percentage of visitors that converts from casual content views or websitevisits into desired actions based on subtle or direct requests from marketers,advertisers and content creators”‘Action’ can be, but is not limited to:Buy a productMake a phone call to your office after seeing your contact detailsDownload a free newsletter or whitepaperRegister for your newsletter or a seminarOpt-in for your weekly tipsRefer a friend to your siteClick to chat with you onlineRequest a call back or more information
    7. 7. ©2013 Catchi LimitedOr, to say it with an image...Your Conversion Rate is how many ofthese visitors turn into these visitors“Finish” for you could be a sale, a lead, anewsletter signup, a whitepaper download, etc.We express this as a percentage
    8. 8. ©2013 Catchi LimitedCalculating your Conversion RateExamples:1. Your “desired action” is for your visitors to purchase your product. If you have100 unique visitors a day, and 2 of these purchase your product, yourconversion rate is 2%2. You desired action is for your visitors to download a whitepaper and/or opt-into your email list. You have 500 unique visitors a day and 25 take this action.The conversion rate is 5%
    9. 9. ©2013 Catchi LimitedWhat is a good conversion rate?E-commerce websites report an average conversion rate of 2.2%according to shop.orgConversion rates are very different across industries, ranging from 0.4%(Electronics) to 4.3% (Specialty stores).Top 10 converting e-commerce sites report an average conversion rate of12% (however, this is due to the fact they have built a trusted brand andpeople go there specifically to buy something, e.g. Amazon, ProFlowers,Office Depot)
    10. 10. ©2013 Catchi LimitedHere’s a question:If we want to increase the revenue on our site,what do you think we should we work on FIRST:1. increasing traffic to our site OR2. increasing our conversion rate?”
    11. 11. ©2013 Catchi LimitedExample: you sell a $500 product on your siteStart Scenario: your average traffic is 3,000 people a month, on average 30decide to purchase your product. Your conversion therefore is 1%, and yourturnover per month is $15,000 (or 30 leads if that is the focus) as per theillustration.Traffic3,000conversion1% (30)Turnover$15,000
    12. 12. ©2013 Catchi LimitedLet’s see what happens if we work on Traffic firstScenario 1: you FIRST work on increasing your traffic.Thanks to your efforts of spending time and $ your traffic increases to4,000 visitors a month. Your conversion rate is still 1%. This results in 40sales/leads per month.Your turnover has increased to $20,000 as per the illustration.Traffic4,000conversion1% (40)Turnover$20,000
    13. 13. ©2013 Catchi LimitedScenario 2: Let’s say we FIRST work on your conversion rateThanks to a series of adjustments your conversion rate increases to 2%conversion (which is very achievable in most industries). Without anyinvestment to increase your traffic, so with the original 3,000 visitors a month,this will convert to 60 sales/leads per month, creating revenue of $30,000.Traffic3,000conversion2% (60)Turnover$30,000What happens if we work on Conversion Rate first?
    14. 14. ©2013 Catchi LimitedScenario 3: The most effective and efficient way.Increasing your conversion rate FIRST to 2%, and THEN increasing your traffic to4,000 visitors will result in 80 leads or $40,000 in sales.Key Takeout:If you work on a better converting website first, your subsequent investment intraffic generation will yield a much better return, creating higher budgetefficiency. You also ensure you don’t ‘burn’ valuable traffic.Traffic4,000conversion2% (80)Turnover$40,000Working on Conversion first, then on traffic
    15. 15. ©2013 Catchi LimitedHigher conversion rate = higher visitor valueAnother important metric you need to measure on your website is VisitorValue; it tells you how much money you make every time a visitor visitsyour website. This is great info when doing price testing. It is also vitalwhen using paid traffic so you know the maximum you can afford to spend.You can either use gross sales or net profit.
    16. 16. ©2013 Catchi LimitedHere is why optimizing your conversion rate is a mustMost if not all websites can do better, very often they can do A LOTbetter. By constantly changing and testing your site, you get a betterresult all the time: free extra customers!The effect of an increased conversion rate is ongoing; it’s not a oneoff increase in sales. Once your conversion is up, you will benefitfrom it from then on. It’s very powerful!A small increase in CRO can make a huge difference to your profitmargin. As your cost are often sunk, all extra revenue is direct profit.CRO will help you get to know your site really well as you work on itquite extensively, it will also help you distinguish any “revenueleaks” you site may have. (unclear pages, lack of navigation etc)
    17. 17. ©2013 Catchi Limitedkey advantages of optimizingyour conversion rateYou will get a much better understanding of and insight into your market,visitors and customers thanks to the process of optimization. You will findyourself going much deeper into the how and what of your site and thelikes and responses of your customers. This will lead to a betterunderstanding of and connection with your visitors.If you use paid searches (Adwords for instance), you will have noticedthat in this day and age you need to pay more and more for it, due toincreased competition. By having a higher conversion, your visitor value ishigher, which enables you to pay more for a visitor and still make a profit.
    18. 18. ©2013 Catchi LimitedA higher visitor value and a higher conversion rate will make your affiliateprogram very attractive compared to that of your competitors, as youraffiliates will be more successful and will make more money from theirpromotions. A higher conversion rate therefore can skyrocket yourbusiness in terms of affiliate sales.If you do it right, increasing your conversion rate will make your websitemore appealing to visitors, so other sites are more likely to link to it.Take the guess work out of it and let your customers show you what theylike to see and read. It can all be tested.More key advantages of optimizing your conversion rateAttract high quality affiliates
    19. 19. ©2013 Catchi LimitedConversion Rate Optimization helps you to get ahead ofyour competition. If they aren’t focusing on CRO, youwill have a BIG advantage. And here’s the thing: at somepoint, they WILL start paying attention to it as well, soit’s better for you to stay ahead of the game instead ofchasing their tail.A high conversion rate means your visitors enjoy yoursite and probably prefer it above othersIf your conversion rate is better than your competitors,even just a bit, you will continually outperform them inVisitor Value which gives you just the edge you need tostay ahead when doing PPC etc.One more advantage: staying ahead of your competition!
    20. 20. ©2013 Catchi LimitedHere’s a Paradigm shift we suggestMany people and companies look at websites as a one off creation whichcan then be left to “do its job”, while hoping it works. The onlyadjustments they make are in elements such as price points,announcements, new products and possibly a blog; not to the differentbasics of their site.Working from the point of actively working on your website conversionrate means a Paradigm shift for many people: it’s based on theassumption that a website is an ONGOING work in progress based onvisitor and customer input and feedback and testing.
    21. 21. ©2013 Catchi LimitedA systematic approach to improvementIntroducing our Catchi Method: asystematic way to keep improving theperformance of your website by goingaround our “wheel of optimization”.This will get your business moving!
    22. 22. ©2013 Catchi LimitedA holistic approach to success:include and align all elementsThis can be compared with the work of a Real Estate Agent:If your site is your home, You want to make your visitor feel welcome and gently guidethem through the different rooms, while showing them the different benefits of thishouse. You may ask them questions to find out what is important to them, what they arelooking for and what they think of the house. After checking out a room, you will invitethem to come into the next room and have a look and show them how wonderful andlarge it is.You may give them your business card and aflyer or other additional information on thehouse. You may also ask them for their detailsso you can follow up.All in all, you are guiding a process ofdiscovery, igniting interest and getting thevisitor to fall in love with the property.
    23. 23. ©2013 Catchi LimitedYour goal: “Creating the “YES"Your website process is a funnel. It’s like a series of “Yesses” to get to theultimate YES: the purchase, enquiry or sign up. Each “Yes” is a part of the chainand this chain can be optimized.
    24. 24. ©2013 Catchi LimitedWhat is your weakest link?
    25. 25. ©2013 Catchi LimitedThe role of CRO in this processWith CRO you look at all the different elements that will keep the visitorhappy and engaged and willing to spend precious time at your site. Eachelement can be tested and adjusted.In the full course, we will discuss each element in detail and show youexactly how to work on these best, complete with comprehensiveexamples and suggestions.For now, they key to realise is that the decision of your visitor to takeaction will depend these different elements working well and inalignment. As with the different players, or elements in an orchestra ifthey work together you will get the best result.
    26. 26. ©2013 Catchi LimitedEach element will make a difference!More clarity on homepage: conversion +5%Better Value proposition: conversion +10%Better shopping cart process: +8%Better navigation: +12%Displaying products better: +10%Better price point: +20%Better font: +4%Etc.
    27. 27. ©2013 Catchi LimitedNo more arguments about what is “right”The great thing is, that you can take your personal views, opinions andpreferences and those of others out of it and let the optimization processdo the work for you; your customers will tell you what they prefer viatheir browsing behaviour. If your research shows that they prefer shortcopy vs long, then you know you should have the short copy on your site.If they prefer image A instead of image B, that’s what you will use.So CRO can be tackled in an analytical, scientific way. It’s measurable andthe results are very clear.
    28. 28. ©2013 Catchi LimitedCatchi’s key “filters” : create TRAC-tiontm!Build TrustBe RelevantBe AppealingCreate ClarityYour website and all these different elementsalways need to…
    29. 29. ©2013 Catchi LimitedYour mantra when working on CRO...“I now create TRAC-tionTMon my site!”
    30. 30. ©2013 Catchi LimitedFind out more on www.TrafficConversionPro.comor contact the Catchi team: www.catchiwebsiteconversion.com

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