Conversion Rate Optimization Formula
Why would you want to optimize your website or platform for conversions anyways? Reason being, is to reduce CAC(Customer Acquisition Cost) , CPA and ultimately increase LTV across your entire company. Being completely objective here matters.
To do conversion rate optimization, businesses typically analyze customer behavior data to identify areas where they can improve the customer experience or make it easier for visitors to convert. They then test different changes on their website or platform to see if they result in a higher conversion rate.
Generic Conversion Rate Optimization Formula’s Don’t Cut It
There is no one formula for conversion rate optimization, as the strategies and tactics used will vary depending on the goals and objectives of the business or organization. However, some common elements of a successful conversion rate optimization formula may include A/B testing, audience testing, usability testing, creative testing, and real time customer feedback.
68% percent of small firms do not follow any Conversion Rate Optimization plan (SOURCE)
Try These Conversion Rate Optimization’s
Don’t be afraid to talk to your customers, as they have quality insights.
However, customers sometimes don’t know what they actually want, and aren’t aware what pieces of creative actually influence their decision making. This is why you can only really depend on data driven strategy and implementations.
3 Straight-Forward Conversion Rate Implementations
#1) Headline Change
#2) Offer Pricing Change
#3) Secret Shopping
Now, let’s talk about each one.
#1) Headline Change. Your biggest “Needle” mover is generally the headline, or the entry point hook. This is the main piece of context that brings a customer into your reality, and give them a chance to know why they are where they are, and if they are in the right place.
You want a headline to…
A) Address The Problem
B) Benefit Driven / Avoidance of Pain
C) Time Period
Example: We Solve Difficult Customer Acquisition Issues So You Can Reduce Your CPA and Increase Customer LTV in 6 Months Or Less
#2) Offer Pricing Change. Do your customers buy on price, or value? Most industries compete on price. Luxury industries compete on value. Some companies can LOSE money on the front end acquisition, and make up for the lost value on the backend. Test various pricing offers, make drastic packaging and offer changes. A/B split test them.
#3) Secret Shopping. The biggest most unconventional conversion rate optimization we offer is secret shopping. Generally sales and marketing departments don’t always see eye to eye. Sales blames their problems on marketing, and vice versa. Pretend you’re a customer, and go through the entire sales process. Imagine you were a customer engaging with your product. Identify the gaps, notice where the process doesn’t flow as smoothly as it could. Recognize the follow-up sequences you have in place, and notice how your onboarding process goes as well.
You’d be surprised the gaps you’ll find when you go through your own companies processes. It’s easy to wear rose-colored glasses when it comes to your company, being the secret shopper is extremely revealing.
Troy is the CEO & CIO at Legacy Media Partners. We manage large media budgets, and solve complex scaling issues that Mid-Market companies always face. In 2021 we added $7.6 Million in additional profits to our client’s bottomline.
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