Conversion Rate Optimization: less investiment more growth

30/06/16

 

This is the first time since the beginning of digital marketing and e-commerce in Brazil which there is a low rate of growth. We are living in a time different from the usual and, therefore, our fear to perform some types of investments has increased. In this article we do not intend to discuss macroeconomic factors, but help you and your company with strategies that possibly could bring results to the business immediately and in the medium term, without necessarily having to increase investments.

It is natural tendency: when the road ahead seems cloudy, we must to walk slowly and be more careful or even change the course of our steps. So it has happened to some companies that are giving up actions that not show immediate results. This way the focus goes to projects with short-term return expectations, which seems to be obvious. However, this kind of strategy may not be beneficial to the company’s maintenance in long-term.

For example, if the organization only look at the results of performance, often branding actions will be neglected because sometimes they are not measurable. It is very clear that the number of paths to follow is so huge that generate paradoxes of choice.

We suggest you read this text thinking about this: less media investiment and more conversion. Let’s not talk about how to bring customers to your sales platform, but in how to retain them and guide them to purchase. That’s what comes to CRO – Conversion Rate Optimization.

1. Handling business intelligence, data and analysis

The ability to use strategically the data generated from many sources impacts directly on real earnings and growing of any business, whether it would be an e-commerce or not. Data are also the guarantee of customer experience’ improving. That is because data allow to know customer’s preferences, history, purchase behavior and other variables that define them.

The first analysis step is mapping the audience: how are we bringing customers to the website, portal, application and landing pages? This process is fundamental to advance to the second step, related to the business’s ability to generate consumer interest in their product / service.

At this point, data analysis can map the prospective client’s journey since they arrival, their navigation and coming to the detail of viewing certain product. The third evaluation step is the decision-making.

This is where it is possible to take some conclusions related to the time when the user is deciding to acquire or not the product. Once the consumer has chosen to purchase, we start a sensitive process of conclusion that requires sophisticated analysis for the complete understanding of the process. At this point we look for possibly difficulties with the intention of remove possible barriers. The final step of analysis refers to the number of requests per client, or to purchase frequency.

The first and the last stages of the process will always be the most strategic because they feed and nurture the conversion optimization process. It is important not to stand by only in the analysis layer, but trigger the data and validate the studies designed to match the performance of the purchase steps.

Something that can not be overlooked here is the evaluation of the competition, which is a key to positioning strategies and guide the next steps.

2. Improving the user experience

In possession of the organized data and the behavioral analysis, at this time is necessary to think about UX – user experience. Evaluate and understand user interactions on the site can direct us to different decisions than obvious ones, bringing innovation to the business. Investing in retention costs ten times less than acquiring new customers, according to a study of Econsultancy. So look to keep your customer engaged.

If it was not via UX, Apple would never be the market leader brand and design and usability reference. We must see the importance of investment in this area and address the customer in the full way, end to end.

It is no use accounting on analysts and teams focused on media and performance. It is also necessary look at conversion. The idea is to grow in a structured way on some pillars that will help in this regard.

A. BI (Business Intelligence): keep in mid that data is the basis of everything. Understand deeply where are the gaps and problem areas by looking at your available information

B. UX (User Experience): evaluate the reasons of certain behaviors and attitudes of your consumer on your pages

C. Optimization: deliver the right message to the right person at the right time. In addition to testing every type of event, we need to customize the content according to the user behavior

3. Increasing revenue

There are three basic factors that must be worked well, enabling any e-commerce to increase revenue: audience, product mix and conversion.

A. Audience increasing

If you have a thousand people accessing your website daily and make this volume grow to 10,000, probably your chance to increase sales will be proportional. However, this tactic usually involves to increase costs with: agencies, teams and media. Of course, the key point here is to bring qualified audience, but this demands an even higher investment.

B. Product mix increasing

Just randomly growing the product mix is not enough, this development needs to receive a specific focus. It is possible, in assortment increment aspect evolve into tactics like marketplace, change in audience and reset average ticket.

There are many cases where big brands perform bad results in terms of revenue and profitability in the online store and, in the same segment, other e-commerces medium and small with inventory planning and mix extremely assertive, able to compete with the big ones. The important thing here is to look at the reality of your business and understand what tactics are appropriate.

C. Conversion rate increasing

Conversion rate is a widely used term in terms of completion of purchases. However, a conversion is the same as a conclusion, in other words, it is an expected user action. Therefore, it is also the way the user performs and excecute their tasks, whether a purchase, a click, a registration or a survey.

Let’s focus on “low hanging fruits” or “quick wins” that can be applied to most e-business. When we are beginning the process of optimization of the site, portal or application, some settings will be decisive for the success of the venture.

I. Set who will be in charge of the project. Usually this task is hadle by the marketing team with IT supporting the technology point

II. Give autonomy to a person or team in relation to strategies and execution of product development

III. The vision for the project must come to meet the company’s strategies for business

IV. Create a CRO culture within the company. This action can provide maturity in decision making and avoid risky spending and often unnecessary

V. The most important point of all: test absolutely everything. If you’re not testing, you’re guessing. And now we can not take the risk, each visitor account.

Wraping up: CRO is the safest and inexpensive way to maintain growth without much increasing investment, because it looks to the customer that already exists. Investing in innovation, creativity and audacity pays off, but it all needs to be done on the correct basis: data, data and more data. This is the path and the correct answer.