how to use conversion optimization to drive growth

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Sean Ellis, CEO of Qualaroo & founder of GrowthHackers.com Unlock Your Company’s Growth Engine With Conversion Rate Optimization

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Page 1: How to Use Conversion Optimization to Drive Growth

Sean Ellis, CEO of Qualaroo & founder of GrowthHackers.com

Unlock Your Company’s Growth Engine !With Conversion Rate Optimization

Page 2: How to Use Conversion Optimization to Drive Growth

@ThueLMadsen #KISSwebinar

Join the conversation

Page 3: How to Use Conversion Optimization to Drive Growth

Sean Ellis - Qualaroo & GrowthHackers.com - @seanellis !Sean Ellis is the CEO of Qualaroo and founder of GrowthHackers.com. Prior to Qualaroo, Sean held marketing leadership roles with breakout companies including Dropbox, LogMeIn (IPO), Uproar (IPO), Eventbrite and Lookout.

Your presenter

Page 4: How to Use Conversion Optimization to Drive Growth

@SeanEllis #KISSwebinar

Hit me up on Twi!er

Page 5: How to Use Conversion Optimization to Drive Growth

1 Growth has Changed

2 How CRO Drives Growth

3 Gain Traction with Conversion Efforts

Today’s agenda

4 Using User Intent to Drive Growth

5 Growth & Optimization Process

6 Tying CRO to Growth Levers

Page 7: How to Use Conversion Optimization to Drive Growth

Section One

1

http://i.imgur.com/FmRlA.jpg

Growth Has Changed

Page 8: How to Use Conversion Optimization to Drive Growth

US Online Ad Spend Per User 2000 – 2012

$0

$20

$40

$60

$80

$100

$120

$140

$160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

3.5x

Page 9: How to Use Conversion Optimization to Drive Growth

Rapidly Evolving Customer Acquisition Channels

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

WOM Email

MySpace

Facebook

Craigslist

Twitter

iOS Android

James Currier

Page 10: How to Use Conversion Optimization to Drive Growth

Li!le or no traditional marketing…

Yet Some Massive Startup Successes

Page 11: How to Use Conversion Optimization to Drive Growth

Section One

1

Engineered Growth Momentum

Page 12: How to Use Conversion Optimization to Drive Growth

Example: LinkedIn User-Get-User

Page 13: How to Use Conversion Optimization to Drive Growth

Used a Growth Hacking Playbook

• Experiment with all available growth levers

• Understand what’s driving growth, test to improve it

• Heavy focus on product and optimization

Page 14: How to Use Conversion Optimization to Drive Growth

Growth Without CRO is Very Difficult

Page 15: How to Use Conversion Optimization to Drive Growth

Not All CRO = Growth

Page 16: How to Use Conversion Optimization to Drive Growth

Which Makes it Very Frustrating

Gut-Driven Test Ideas

Test SmallChanges

No Growth

Page 17: How to Use Conversion Optimization to Drive Growth

Section One

1

How Do You Get Traction with Your CRO Efforts?

Page 18: How to Use Conversion Optimization to Drive Growth

Place Your Bets Wisely

• Don’t guess, research…

• Quantitative Research What people are/aren’t doing? !

• Qualitative Research Why are/aren’t they doing it?

Page 19: How to Use Conversion Optimization to Drive Growth

Quantitative: Visitor Behavior

Page 21: How to Use Conversion Optimization to Drive Growth

Quantitative: Discover Your Magic Number

Page 22: How to Use Conversion Optimization to Drive Growth

Quantitative: Twi!er’s Follow 30 People

• Twi!er wanted to know what made someone become a core user !

• The number of people you follow determines activation rate !

• "Once a user follows 30 people, they're more or less active forever.” – Josh Elman, Greylock

Page 23: How to Use Conversion Optimization to Drive Growth

Qualitative: Understand Why

• Discover the why can lead to breakthroughs in growth

• HotelTonight found poor data connections drove conversion rates UP. !

• WHY?

Page 24: How to Use Conversion Optimization to Drive Growth

Section One

1

Understand Intent Understand Growth

Page 25: How to Use Conversion Optimization to Drive Growth

Key Conversion Levers

Why do users exit without converting? !

Not enough desire Too much friction

Desire – Friction = Conversion Rate

Page 26: How to Use Conversion Optimization to Drive Growth

Qualitative: Understand Why

• Address intent first !

• Strong authentic promise(connects to intent)

• Social proof

• Address fears and UX issues

Page 27: How to Use Conversion Optimization to Drive Growth

Growth is a Process – Not a Bunch of Tactics

1. Ideas

2.Prioritize

3.Test 4.Analyze

5.Optimize Looks a lot like a CRO process.

Page 28: How to Use Conversion Optimization to Drive Growth

Growth is a Process – Not a Bunch of Tactics

If product is hard to market, try complementary product and cross promote.

Page 29: How to Use Conversion Optimization to Drive Growth

Section One

1

Double Down to Build Momentum

Page 30: How to Use Conversion Optimization to Drive Growth

Qualitative: Understand Why

• Airbnb discovered that listings with high-quality photos received 2-3x bookings !

• Airbnb invested in professional photography !

• Booking activity explodes as desire increases

Page 31: How to Use Conversion Optimization to Drive Growth

Section One

1

Growth = Increased Units of Gratification

Page 32: How to Use Conversion Optimization to Drive Growth

Growth Hacking Toolkit

• Analytics — Identify drop-off points and under-performing pages (e.g. Google Analytics, KISSMetrics)

• Qualitative Insights — Uncover the why behind the numbers (e.g. Qualaroo, SurveyMonkey)

• A/B Testing — Find be!er performing combinations to drive conversion rate (e.g. Optimizely, Unbounce)

Page 33: How to Use Conversion Optimization to Drive Growth

Continuous Optimization of Growth

1. Ideas

2.Prioritize

3.Test 4.Analyze

5.Optimize

Page 34: How to Use Conversion Optimization to Drive Growth

Key Takeaways

• Marketing challenges require rethinking growth

• Effective CRO essential for growth

• Continuous experimentation critical for finding new growth levers

Page 35: How to Use Conversion Optimization to Drive Growth

Questions?

Thue Madsen Marketing Associate

KISSmetrics @thuelmadsen

Sean Ellis CEO of Qualaroo

Founder of GrowthHackers.com @seanellis

Page 36: How to Use Conversion Optimization to Drive Growth

THANK YOU

Sean Ellis @seanellis