red eye 2014
DESCRIPTION
Redeye - Digital Impact 2014TRANSCRIPT
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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
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ICU
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PL
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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