The document discusses conversion rate optimization (CRO) and analytics. It notes that average retail conversion rates have declined in recent years despite market growth. Improving conversion is more complicated than spending on traffic. Conversion rate optimization spend is low compared to customer acquisition spend. The CRO toolkit includes methods like A/B testing, usability testing, and customer journey analysis. Testing, having a structured process, and assigning responsible staff are linked to improved conversion rates. A maturity model shows increasing CRO sophistication over time.

1. 1
Conversion Rate Optimisation and
Analytics
Andrew Furlong
RedEye

2. Source: Econsultancy/RedEye CRO Report 2013 2
Agenda
• Why is Conversion Rate Optimisation so important
• What makes up the CRO toolkit
• Process and Analysis
• Maturity model

3. 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
Source: Econsultancy/RedEye CRO Report 2013 3

4. Satisfaction with conversion rates is low
Source: Econsultancy/RedEye CRO Report 2013 4

5. 5
Conversion rate optimisation spend is low
Currently 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
Converting
customers
Source: Adobe/eMarketer

6. Source: Econsultancy/RedEye CRO Report 2013 6
Agenda
• Why is Conversion Rate Optimisation so important
• What makes up the CRO toolkit
• Process and Analysis
• Maturity model

7. Methods used for improving conversion rates
Source: Econsultancy/RedEye CRO Report 2013 7

8. Best practices carried out by organisations
Source: Econsultancy/RedEye CRO Report 2013 8

9. Barriers preventing improving conversion?
Source: Econsultancy/RedEye CRO Report 2013 9
Consistently top

10. Value and difficulty of different methods
Website personalisation
Event-triggered / behavioural
email
Expert usability
*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
Source: Econsultancy/RedEye CRO Report 2013 10
reviews
Multivariate testing
Segmentation
Usability testing
Competitor benchmarking
Abandonment email
Copy optimisation
Customer journey analysis
HOW DIFFICULT IT IS TO IMPLEMENT
VALUE
Now look at
top 4 methods
in more detail

11. Customer Journey Analysis
• Customer journey analysis is the first step
in understanding what customers are doing
on 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 your
customers through your
site rather than push them,
inbound rather than
outbound
Source: Econsultancy/RedEye CRO Report 2013 11

12. Source: Econsultancy/RedEye CRO Report 2013 12
Usability testing
• Usability testing with eye tracking is the best way
to understand how your site design is performing
and why your customers are doing the things you
see in the web analytics data.
• To get support for your website optimisation process
show key stakeholders and senior management
highlight clips from usability testing showing users
struggling 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.

13. Source: Econsultancy/RedEye CRO Report 2013 13
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 2.61
Decrease 1.86

14. Important to a successful testing strategy?
Source: Econsultancy/RedEye CRO Report 2013 14
Top:
Defining testing goals
and objectives &
Prioritising tests
Bottom:
Choosing software

15. Specifically for your website, what do you test?
Top four:
- Call to action buttons
- Page layout
- Copy
- Navigation
Source: Econsultancy/RedEye CRO Report 2013 15

16. Source: Econsultancy/RedEye CRO Report 2013 16
Agenda
• Why is Conversion Rate Optimisation so important
• What makes up the CRO toolkit
• Process and Analysis
• Maturity model

17. What improves conversion - analysis of data
The five additional variables most strongly correlated with
improved 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
Source: Econsultancy/RedEye CRO Report 2013 17

18. 18
Business objectives
Goals, aspirations, target audiences
Insight
Analytics, Usability testing, surveys…
Repository for quant & qual
Ideas & Prioritisation
Quantify, Predicted Uplift, Justification
Testing (A/B, MVT)
Test plans, UX Design variations, Reporting
& Measuring uplift / ROI
Continual Website Improvement
Increased 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

19. Complimentary methods lead to better results
Companies with £10m+ revenues
who integrated usability testing and
analytics well were more than twice
as likely to have seen a large
increase in sales as those that didn’t
Source: Econsultancy/RedEye CRO Report 2013 19

20. Source: Econsultancy/RedEye CRO Report 2013 20
Agenda
• Why is Conversion Rate Optimisation so important
• What makes up the CRO toolkit
• Process and Analysis
• Maturity model

21. 21
Conversion Maturity Model
Increasing number of complimentary
methods used, tests and segmentation
Little
or no control
of conversion
½ person
responsible
for conversion
Starting to test
landing pages
Not using a
structured
approach
In control
1 person
responsible
for conversion
Testing landing
Pages
Starting testing
Structured
approach
to improving
conversion
2 people
responsible
for conversion
Incentivising
staff based on
conversion
Testing multiple
landing pages
Using A/B
testing or MVT
£
Time
Starting Out Intermediate Strategic

22. 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
Source: Econsultancy/RedEye CRO Report 2013 22

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