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What is Conversion Rate Optimization?
CRO is much broader than A/B testing…
CRO is the utilization of data (and human intuition) in a predictable,
repeatable and measurable manner to guide a set of actions focused on improving key performance metrics.
What can Digital Marketers learn from Product / IT?
Have you heard of…
• CMM – Capability Maturity Model?
• Agile Methodology? (Scrum or Kanban)
• Lean Methodology? (Lean startup, lean UX, or lean analytics)
CMM Methodology
“The Capability Maturity Model (CMM) is a development model created after study of data collected from organizations that contracted with the U.S. Department of Defense […]. The term "maturity" relates to the degree of formality and optimization of processes, from ad hoc practices, to formally defined steps, to managed result metrics, to active optimization of the processes.”
https://en.wikipedia.org/wiki/Capability_Maturity_Model
Lean Methodology
“The Lean Startup provides a scientific approach to […] get a desired product to customers' hands faster. The Lean Startup method teaches you how […] to steer, when to turn, and when to persevere-and grow a business with maximum acceleration. It is a principled approach to new product development.”
http://theleanstartup.com/principles
Agile Methodology
“Agile software development is a group of […] methods in which requirements and solutions evolve through collaboration between self-organizing, cross-functional teams. It promotes adaptive planning, evolutionary development, early delivery, continuous improvement, and encourages rapid and flexible response to change”
https://en.wikipedia.org/wiki/Agile_software_development
(VWO’s) Agile CRO Principles
1. Work in the Real World, not Opinion or Theory• Think in terms of hypotheses vs. absolutes• Focus on feasible vs. ideal• Work on the right things that have the biggest potential impact• Campaigns may produce results that are counter-intuitive or unexplainable.
2. Optimize for Speed & Cadence • Focus on Minimal Viable Campaigns• Design experiments for maximum learning in shortest amount of time• Learn from every experiment, especially the failures• Balance effort/cost with benefit. Several small wins might be better than 1 large win (or
vice versa!)
3. People, process and tools are all equally important• Exec sponsor + strategist + designer + front-end developer (in-house or outsourced)• Build a culture and awareness of experimentation across all disciplines• We all suck until we don’t. Focus on stepwise improvement
VWO Cart Abandonment Report - Key Findings
● 71% of cart abandonments are reversible - the visitors go on to purchase the products through other websites or stores
● At 29%, customer reviews is the single biggest way to gain shoppers’ trust online, followed by using security seals at 17%
● 58% shoppers will purchase an abandoned product if they get an email or are show an advertisement saying the product is on discount
● 25% shoppers say they have been forced at least once to abandon a purchase because their bank rejected the transaction
● 80% of ‘passive browsers’ can be converted to ‘active buyers’ by offering ‘limited-time discount’ or ‘limited-time free delivery’
To get the full report, drop a mail at [email protected] with “Report” in the subject line.
