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7 Key Pillars of Mature Conversion Optimization Strategy
#convcon 2013 | Chicago
Michal Parizek (@parezem)
4,500 Miles
Michal Parizek (@parezem) | #convcon 2013 | Chicago 2
I have travelled around 4,500 to give you a speech about Conversion Rate Optimization Maturity Model. From Prague to Chicago.
Maturity Model
Michal Parizek (@parezem) | #convcon 2013 | Chicago 3
A maturity model in general is a model which describes different maturity stages of a particular discipline.
Conversion Rate Optimization
Maturity Model
Michal Parizek (@parezem) | #convcon 2013 | Chicago 4
A CRO maturity model focuses primarily on CRO. It consists of 7 key pillars and 5 maturity stages. The goal od the model is to help companies execute CRO more effectively.
Michal Parizek (@parezem) | #convcon 2013 | Chicago 5
These are the 7 key pillars and the stages a particular company reached in each of them: People, Tools, Knowledge, Activities, Processes, Testing & Sponsor.
YoY CNV: -11.1% YoY CNV: +19.7%
Sales: +€400k
Michal Parizek (@parezem) | #convcon 2013 | Chicago 6
An example what a maturity of CRO means in real business. A German affiliate of UPC in Europe was more mature in several aspects of CRO than a Switzerland one. And it meant $400,000 in yearly sales.
What are the aspects of a mature CRO program?
Michal Parizek (@parezem) | #convcon 2013 | Chicago 7
In the following slides I walk you through the key differences between a mature CRO company and an immature one.
Invest more $ in people than tools1
Michal Parizek (@parezem) | #convcon 2013 | Chicago 8
Most importantly these companies invest more $ into their staff than into the tools. All the fancy analytics, testing, research and targeting tools without people actually using it are rather useless.
Follow an optimization cycle2
Michal Parizek (@parezem) | #convcon 2013 | Chicago 9Execute a complete optimization cycle. Never stop.
Analysis & Research
Improvements Proposal
Testing
Michal Parizek (@parezem) | #convcon 2013 | Chicago 10
The optimization cycle always starts with an analysis. Then you propose improvements, prioritize them. Validate them by A/B testing, analyze the impact and start over.
Examination
Treatment Proposal
Treatment
Michal Parizek (@parezem) | #convcon 2013 | Chicago 11
It is like when you go to a doctor. She examines you first, only then she can propose you a right treatment. Then you apply the medicaments. And in a week or two you visit her again for an “after-treatment” check.
Analysis & Research
TestingImprovements
Proposal
Michal Parizek (@parezem) | #convcon 2013 | Chicago 12
In my experience the most underestimated step of a CRO cycle is the first one: “Analysis & Research”. It is the most difficult, but also the most important step.
+ 20%
Michal Parizek (@parezem) | #convcon 2013 | Chicago 13
A great proof of an importance of a research phase: An user survey revealed existing customers lack some important information about the product. By adding it to the site, we got 20% uplift in a conversion rate.
Prioritize initiatives correctly3
Michal Parizek (@parezem) | #convcon 2013 | Chicago 14
Prioritize your initiatives so you can focus on the ones which bring you the most profits. Plan your testing roadmap according the prioritization.
# InitiativeImpact Score
Feasibility Score
1 Implement popular local payment method 7 5
2 Remove unnecessary steps in OP 6 2
3 Add a contact details to TY page 2 1
4 Customize cross-sell offers based on customer shopping history 5 7
5 Test few versions of CtA copy 3 3
Hours of work needed or costs of production
$ initiative can bring
Michal Parizek (@parezem) | #convcon 2013 | Chicago 15
I have good experience with this simple table. There are two important scoring metrics: Impact ($), Feasibility (hours of work or $ too). Score all your planned initiative wisely.
Impact
Feasibility
2
1
3
4
3
Michal Parizek (@parezem) | #convcon 2013 | Chicago 16
Then set up such a diagram and map your initiatives there. Focus first on “low-hanging” fruit (high impact, low cost). In a long term start working on “high impact, high costs” and when you have time execute “low impact, low costs”. Avoid doing “low impact, high costs” initiatives.
Plan both long and short term4
Michal Parizek (@parezem) | #convcon 2013 | Chicago 17
When you’re finished with prioritization set up a plan of your CRO initiatives. It helps you and your team keeping on track: both deliverables and resources. Make both short and long term plans.
Long Term Plan
GOAL FOR Q1 2013: Optimize a checkout and increase CCR
Depth of information needed
from a customerNumber of steps
Copies and Call-to-Action
January February March
Michal Parizek (@parezem) | #convcon 2013 | Chicago 18In a long term plan outline the areas of where you want to focus each month/quarter.
Test 1
Test 2
Test 3
Test 4Preparation of
Test 2
Preparation of Test 3
Analysis of Test 1
Preparation of Test 4
Analysis of Test 2
Preparation of Test 5
Analysis of Test 3
#1
#2
Short Term Plan
W1 W2 W3 W4
Michal Parizek (@parezem) | #convcon 2013 | Chicago 19
In a short term plan go deeper and outline single A/B tests or other initiatives you’d like to execute. If you have limited resources or you can run only 1 A/B test at a time you might find handy this two-track planning.
Test iteratively5
Michal Parizek (@parezem) | #convcon 2013 | Chicago 20
Don’t A/B test chaotically. Have a system in your roadmap. Start testing first few different concepts. Then tune the winning experience by focusing on single elements. Iteratively improve.
Ad hoc → Regular → Iterative
Michal Parizek (@parezem) | #convcon 2013 | Chicago 21
That’s an usual evolution of A/B testing in a company. Move from ad-hoc testing to regular. Incorporate testing to your online sales agenda and processes. When you’re there implement A/B testing into a continual website and e-commerce improvement program. A/B test everything.
Do follow up tests
Michal Parizek (@parezem) | #convcon 2013 | Chicago 22
Spend enough time to do a proper A/B test finalization. It usually reveals something interesting about users’ behavior and opens few new ways what to A/B test. Do follow up tests on a regular basis, they are often more successful than the initial ones.
Learn from every test
Michal Parizek (@parezem) | #convcon 2013 | Chicago 23
Even an A/B test fails it tells you something important about your users’ behavior. Something you might use for your marketing campaign or even your offline ads. Store your learnings and share it with key stakeholders.
Test Name
Dates Impact (%) Impact ($) Learning
Homepage Content
May 23rd – June 5th -12% - $500/day
Current focus on customers needs works better than product features.
Homepage Layout
June 9th- June 18th -6% -$250/day A long homepage layout did
not work well
Homepage CtA
June 20th – July 2nd +9% +325/day Get a price quote works
better than Buy now
Michal Parizek (@parezem) | #convcon 2013 | Chicago 24An example how your A/B tests repository can look like.
Get tools which match your needs and skills6
Michal Parizek (@parezem) | #convcon 2013 | Chicago 25
I know quite a few companies who bought tools which were more sophisticated than the skill level of their staff. They not only wasted their budgets but also struggled with the tools and were ineffective in their daily workload. If it is your case provide trainings to your staff or consider changing vendors.
Have a sponsor. Ideally a CEO ;-)7
Michal Parizek (@parezem) | #convcon 2013 | Chicago 26
Sponsorship is rather a political issue, but it is crucial to sell your activities well and earn enough trust, budget and resources so you can focus on your job. Evangelize CRO in your company & share your success stories. When you do so always emphasize what’s the impact in $. That’s what management is interested in.
Michal Parizek (@parezem) | #convcon 2013 | Chicago 27
Have a look at what the CRO Maturity Model looks like in all its beauty! If you’re interested in more details, check out the link below the presentation in the description area.
Your turn
Michal Parizek (@parezem) | #convcon 2013 | Chicago 28
Enough theory for now. Study the CRO Maturity Model from the previous slide and think about how your organization fits there.
Where does your organization stand?
Michal Parizek (@parezem) | #convcon 2013 | Chicago 29
Score your organization in each of those seven pillars according the maturity stages described in the model.
Michal Parizek (@parezem) | #convcon 2013 | Chicago 30
Find out your weak point and outline where you want to be next year. Plan next steps and starting working on more mature CRO in your company today!
Michal Parizek (@parezem) | #convcon 2013 | Chicago 31
Takeaways
• Focus on research/analysis
• Learn from every test
• Test iteratively
Just few takeaways I’d like to emphasize: Focus on analysis before thinking what to A/B test. Learn from every test so you can gradually improve your success rate. And iteratively test and improve your online business.
Enjoy #convcon!
Conversion Conference 2013 | Chicago
Michal Parizek (@parezem)