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How to Add Over $1,000,000+ to Your E-Commerce Brand with CRO

Oliver Kenyon
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January 30, 2024
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Are you a brand owner and looking for amazing ways to level up your earnings with CRO? Oliver Kenyon, a co-founder of ConversionWise and CRO strategist reveals that 70% of purchases are made by returning customers along with strong ways to optimize the conversion rate optimization that helps increase the sales for an online store. 


The blog post delves into a presentation by Oliver Kenyon (Co-founder of ConversionWise)  and Ezra Firestone, a renowned marketer and digital entrepreneur from Smart Marketer, Zipify, Boom Beauty, and other brands. The focus is on conversion rate optimization (CRO) and sharing valuable insights for ecommerce success.

Understanding the Importance of CRO:

A. What is Conversion Rate Optimization (CRO)?

Imagine walking into a store, browsing aimlessly, and then leaving empty-handed. That happens when website visitors come and go without taking the desired action. 

Conversion Rate Optimization (CRO) aims to flip that script, transforming hesitant window shoppers into loyal customers. In simplest terms, CRO is the scientific art of boosting the percentage of website visitors who complete a specific goal, be it signing up for a newsletter, making a purchase, or downloading an ebook. It’s like a digital alchemist, turning digital traffic into tangible business success.

conversionwise

B. Importance of CRO in Digital Marketing:

In today’s competitive e-commerce landscape, every click and scroll matters. CRO is the secret weapon that maximizes the return on your marketing investment. CRO is about attracting more visitors and converting those visitors into engaged customers who bring your business to life.

Consider it like this: acquiring new customers is like filling your bucket with water. But if the bucket has holes, your efforts are in vain. CRO patches those leaks, ensuring your precious leads stay in the bucket and ultimately contribute to your business growth.

Balancing AOV and Conversion Rates:

Balancing Average Order Value (AOV) and Conversion Rates is crucial in optimizing e-commerce success. Finding the proper equilibrium ensures not only increased revenue per session but also an enhanced overall customer experience.

Striking the perfect balance between AOV and Conversion Rates is the key to unlocking sustained growth in your online business.

Overview of the CRO Cycle:

CRO thrives on a systematic approach. The cycle typically involves six key steps:

  1. Observe Data: Gather data on visitor behavior, identify your current conversion rate, and pinpoint areas for improvement.
  2. Research and Audit: Analyze user journeys, understand pain points, and identify potential optimization opportunities.
  3. Create Hypothesis: Formulate a testable theory about what might improve conversions based on your data and research.
  4. Test Hypothesis: To validate your hypothesis, implement A/B tests or other experiments.
  5. Analyze Results: Analyze the test data to see if your hypothesis was correct and measure the impact on conversions.
  6. Implement Successful Test: If your hypothesis holds water, roll out the winning variation across your website to reap the conversion rewards.
cro setup

Importance of a Well-Structured CRO Process:

Treat your CRO efforts like a scientific experiment. Following a well-defined process ensures you avoid random guessing and make data-driven decisions that steadily increase your conversion rate.

Essential Tools for CRO:

The right tools are like a carpenter’s hammer and chisel, crafting your website into a conversion masterpiece – crucial tools include AB testing, heat map, and survey software. Post-purchase surveys are emphasized for qualitative data.

  • A/B Testing Software: Test different website elements to see which version drives more conversions.
  • Heatmap Software: Visualize where users click and scroll, revealing hotspots and neglected areas.
  • Survey Software (KNO): Gather rich user feedback through polls and questionnaires to understand their motivations and pain points.

Evaluating Tool Suitability for Business Needs:

Remember, a fancy hammer won’t build a house if you need a screwdriver. Choose tools based on your specific business goals and website type. Start with the essentials and scale up as your CRO maturity grows.

Data Collection and Analysis:

data collection

Why Data is Crucial for CRO?

Data is the lifeblood of CRO. It’s the map that guides your optimization journey, highlighting pain points, revealing user behavior, and ultimately pointing you toward conversion gold.

The Role of Data in CRO:

Data helps you:

  1. Identify optimization opportunities: Pinpoint website elements impacting conversions negatively.
  2. Measure the impact of changes: Track conversion rates before and after making changes to quantify the effectiveness of your CRO efforts.
  3. Personalize user experience: Tailor your website to specific user segments based on their behavior and preferences.

Strategizing with Data for Effective CRO:

Turn data from dull numbers into actionable insights. Don’t just measure, but use data to understand user intent, motivations, and the friction points that impede conversions. Ask questions like:

Where are users dropping off in the conversion funnel?

What elements are confusing or misleading them?

What content resonates with them the most?

Understanding Your Audience:

A. Tapping into User Insights:

Your audience is not a faceless mass but individuals with unique needs and desires. Uncover their motivations and preferences through

Surveys and polls: Ask targeted questions to understand their thoughts and feelings about your website and brand. Analyze user browsing patterns, clicks, and interactions to see how they behave on your website.

Customer interviews: Conduct in-depth interviews to gain rich qualitative insights into their perspectives and experiences.

B. Informing CEO Efforts Through Audience Understanding:

By delving into customer preferences, concerns, and feedback, CEOs can make informed decisions that align with their audience’s needs. This strategic approach ensures a customer-centric focus, leading to  more effective and successful business endeavors.

The Best Questions to Ask in Surveys:

Open-ended questions that delve more deeply than “yes” or “no” (e.g., “What were your biggest challenges while navigating our website?”).

Likert scale questions to gauge satisfaction and importance (e.g., “On a scale of 1 to 5, how likely are you to recommend our product to a friend?”).

A/B tested questions to compare responses to different wording or phrasing.

C. Mining Survey Data for Insights:

Refrain from letting survey data gather dust in a digital drawer. Analyze it thoroughly to identify the following:

  • Recurring themes: Look for response patterns that point to common pain points or preferences.
  • Sentiment analysis: Gauge the overall positive or negative sentiment towards your brand and website.
  • Demographics: Segment your audience based on age, location, or other relevant factors for targeted optimization.
understanding audience

D. Identifying Patterns in User Feedback:

  1. Negatives vs. Positives: Pay close attention to negative feedback, which often reveals critical conversion roadblocks. While positive feedback is encouraging, don’t let it lull you into complacency.
  2. Pain Points and Friction Identification: Look for recurring complaints about specific website elements, unclear calls to action, or confusing navigation. These are goldmines for CRO opportunities.

E. Outcome Objectives:

  1. USPs Extraction: Analyze user feedback to identify unique selling propositions (USPs) that resonate with your audience and differentiate you from competitors.
  2. Relevance Assessment: Ensure your website messaging and content directly address user needs and pain points, eliminating any feeling of disconnect.

CRO Strategy:

A. Formulating a Hypothesis:

  1. Components of a Strong Hypothesis: A reasonable hypothesis is specific, actionable, and measurable. It clearly states what you expect to happen if you change your website.
  2. Guiding CRO Efforts: Your hypothesis acts as a roadmap, guiding your testing efforts and focusing your resources on the most likely avenues for improvement.

B. Prioritizing Tests Based on Data and Survey:

  1. Identifying High-Impact Tests: Prioritize tests with the potential for significant conversion rate increases. Consider the impact of the tested element and the frequency of user interaction with it.
  2. ROI-Focused Prioritization: Remember the money! Choose tests that offer the highest return on investment, considering not just conversion rate increases but also potential cost savings.

A/B Testing:

Principles and Best Practices:

Foundational Principles:

  • Control vs. Variation: Test one element at a time to isolate the impact of the change. Compare the original version (control) with the modified version (variation).
  • Statistical Significance: Ensure your sample size is considerable enough to draw statistically valid conclusions from your test results.
  • Duration: Run your test for sufficient time to gather enough data for accurate analysis.
  • Randomization: Randomly assign visitors to the control and variation groups to avoid bias.
conversion design vs. ab testing

Best Practices:

  • Clear Hypothesis: Start with a specific, actionable hypothesis you want to test.
  • Avoid Conflicting Tests: Don’t run multiple tests simultaneously that could interfere with each other’s results.
  • QA Your Test: Double-check your test setup to ensure the changes are implemented correctly.
  • Prioritize Revenue Over Conversion Rate: Remember, ultimate success often lies in increased revenue, not just a higher conversion rate. Optimize for the outcome that matters most to your business.

Winning Tests Conducted by ConversionWise:

1. Mega Menu Enhancement

  • Objective: Improve website navigation and user experience.
  • Strategy: Redesigned the mega menu for better usability and accessibility.
  • Results: Significantly increased predicted revenue and revenue per session.

2. Landing Page Redesign for Boom

  • Objective: Enhance landing page engagement and click-through rates.
  • Strategy: Implemented a strategic redesign focusing on readability and user interaction.
  • Results: Marked improvement in click-through rates, showcasing the positive impact on user engagement.

3. Homepage Redesign for Increased Revenue

  • Objective: Optimize the homepage layout to boost revenue.
  • Strategy: Implemented a simplified layout with one column, increased font size, and emphasized titles.
  • Results: Generated over $20,000 in additional revenue through analytics-based changes.

4. Cart Optimization for Improved Revenue

  • Objective: Streamline the checkout process and increase revenue.
  • Strategy: Removed the discount code prompt, simplified the checkout process, and highlighted brand trust.
  • Results: Achieved over $40,000 increase in revenue per month.

5. Collection Pages Optimization

  • Objective: Enhance collection pages for improved user engagement.
  • Strategy: Added descriptive labels to product images, displayed prices for transparency, and improved navigation.
  • Results: Increased revenue per session by nearly $30,000 through improved collection page features.

FAQS:

What is Conversion Rate Optimization (CRO), and why is it crucial for my e-commerce business?

Conversion Rate Optimization (CRO) is optimizing your website or online store to encourage visitors to take a desired action, such as purchasing.  

It is crucial for e-commerce businesses as it directly impacts revenue by improving the percentage of visitors who convert into customers. Effective CRO strategies can enhance user experience, boost sales, and maximize the return on investment.

How can I prioritize which tests to run for CRO on my website?

Prioritizing CRO tests is essential for efficient resource allocation. Consider frameworks like the pxl framework or the ICE framework, which weigh each test’s impact and implementation effort. By prioritizing tests based on these factors, you can focus on the most impactful changes feasible.

What are some practical examples of successful CRO tests for e-commerce brands?

Successful CRO tests often involve homepage redesigns, above-the-fold optimizations on product detail pages, cart optimizations, and collection page enhancements. For instance, simplifying the homepage layout, improving call-to-action language, and incorporating social proof can substantially increase revenue per session.

How can post-purchase surveys benefit my CRO strategy, and what questions should I include?

Post-purchase surveys provide valuable qualitative data by gathering insights into customer preferences, concerns, and reasons for purchase. Include questions about the overall shopping experience, product satisfaction, and their purchase decision. This data helps refine your CRO strategy based on honest customer feedback.

What tools and resources are essential for effective Conversion Rate Optimization?

 Essential tools for CRO include AB testing software, heat map software, and survey tools. These tools help observe user behavior, analyze data, and gather insights. Additionally, tools like Zipify for upsells, Heatmap.com for detailed insights, and Figma for design play crucial roles in optimizing various aspects of an e-commerce website.

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