conversion office hours with bounce exchange
TRANSCRIPT
© 2012 Jason D. Schwartz
Lesson Learned from Bounce ExchangeAcquisition & Optimization: What, When, How
Ryan Urban: CEO, Bounce Exchange
Jason Schwartz: VP of Product, Bounce Exchange
© 2012 Jason D. Schwartz
STARTING OFFRaise your hand if you are currently running:
Paid acquisition?
Retargeting?
© 2012 Jason D. Schwartz
USER ACQ EQUATIONThe equation we will use as the basis for our discussion.
Cost Per Acquisition must be < Lifetime Value Cost per click
% of users who do
desired action
=
$100 must be < $50$1
1%=
Optimize product
Optimize advertising
Optimize Lifetime Value
© 2012 Jason D. Schwartz
CALCULATING CONVERSIONTo calculate conversion, we need:
• Number of users who came in via each paid channel
• Of those, how many did our primary action
© 2012 Jason D. Schwartz
USER ACQ EQUATION
Cost Per Acquisition must be < Lifetime Value Cost per click(s)
% of users who do
desired action
=
$100 must be < $50$1
1%=
Optimize product
Optimize advertising
Optimize Lifetime Value
© 2012 Jason D. Schwartz
CONVERSION RATEUnpacked conversion rate
New Users
Signup
20%
20%
25%
Primary Action
Pay
1% conversion
© 2012 Jason D. Schwartz
$-$150$300$450$600$750$900
$1,050$1,200$1,350$1,500$1,650$1,800$1,950$2,100$2,250$2,400
1% 2% 3% 4% 5% 6% 7% 8% 9% 10%11%12%13%14%15%16%17%18%19%20%21%22%23%24%25%
CP
A
Signup Conversion
SignupConversioneffectonCPAwitha$1CPC
CPA
CAPTURE PAID USERSHow signup conversion effects the funnel on the previous slide:
Not optimized Optimized Super optimized
© 2012 Jason D. Schwartz
MOST OPTIMIZEDGroupon and Livingsocial spend millions on user acq. These pages probably
convert at 20%
© 2012 Jason D. Schwartz
DRIP EMAILMost users won’t do the thing you want them to on the first visit, and they will
never come back.
• Email retargeting is essential for paid user acq
• The email has to feel like content
• The link has to be the primary action of the site
© 2012 Jason D. Schwartz
DRIP EMAILCreate a distribution of time between Reg and Primary action
(Primary action date – registration date)
100.0% :448:08:16
99.5% :393:09:22
97.5% :220:09:40
90.0% :68:17:34
75.0% :19:14:56
50.0% :6:04:07
25.0% :2:00:46
10.0% :0:17:26
2.5% :0:00:07
0.5% :0:00:01
0.0% :0:00:01
Be aggressive before the
user hits the 50% mark.
© 2012 Jason D. Schwartz
VIRAL COEFFICIENTHow many users, does each user bring into the app?
No. of invites sent
per user
Viral
Coefficient=x Conversion rate
into a new user
Benchmark:
Must be over 1 to be viral
© 2012 Jason D. Schwartz
VIRALITY AMPLIFICATION• K-factor: number of invites sent per user x conv rate
• Amplification factor: 1/(1-K) (read more: http://linkd.in/1dCKGxf)
• Multiply amplification factor by number of users
© 2012 Jason D. Schwartz
VIRALITY AMPLIFICATION• K-factor: 0.5
• Amplification factor: 1/(1-.5) = 2
$100 must be < $50$1
(1%)=
$50 must be < $50$1
(1% conv x 2 amp)=
© 2012 Jason D. Schwartz
STARTING OFF
• Landing Page Optimization
• Product Page Optimization
• Checkout Optimization
• Actionable Tactics
© 2012 Jason D. Schwartz
GOALS DIFFERENTIATION
• B2B Goals
• E-Commerce Goals
• Publisher Goals
© 2012 Jason D. Schwartz
LANDING PAGE OPTIMIZATION
• Start With A Spreadsheet
• Benefits + Imagery + Social Proof + CTA’s
• Long Page vs. Short Page
© 2012 Jason D. Schwartz
PRODUCT PAGE OPTIMIZATION
• Do Not Be An Order Taking Mechanism
• Tell the Product Story
• Social Proof
© 2012 Jason D. Schwartz
CHECK OUT OPTIMIZATION
• Mini-Cart vs. Redirect
• Clean Out The Garage
• Add More Steps
• Payment Options
© 2012 Jason D. Schwartz
ACTIONABLE TACTICS
• What’s In It For The Visitor?
• Contrast The Critical Actions
• Stop The Leaks
• Sense Of Urgency
• Micro-Conversions
© 2012 Jason D. Schwartz
PICK THE WINNER
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Step 1
Step 2
VS.
