"Without Conversion Rates You Dont Know If Youre Mickey Mouse
Or Mickey Mantle"
I couldnt agree more with the headline of this article and its one
Im afraid I cant take credit for. I found this line in Paco Underhills
book, Why We Buy The Science Of Shopping, and found myself comparing many
of the things he has measured in the retail world to the tests Ive done
with online, visitor-based activity. The conversion rate on a website is easy
to measure. Unfortunately, businesses too busy concentrating on their bottom line
most often overlook it. The point of this article is to define what a conversion
rate is and show you how you can begin to start improving your own websites
conversion rate and therefore your bottom line. At the same time, I will relate
my observations to Pacos on offline retailing.
In Cyberspace No-One Can Hear You Shop
According to Paco, the main problem with websites is that, owing to media attention
and the love of technology, retailers went online without knowing why. Its
true that in the late 90s businesses were going online because their competition
had, or because they feared that they would be left behind by not embracing
the new technology. Not great reasons to spend time, money and resources on
a website. The painful thing is that, since going online, most of these websites
have not changed much for the better. Yes, they look nicer now, but the number
of glorified poster sites I still see never ceases to amaze me. In order to
combat this lack of purpose, I propose you look at four goals and adapt them
to your own business requirements. One of these goals should be the primary
focus of your entire website design.
1) Prospect Acquisition
To deliver qualified leads and prospects through the website.
2) Sales/E-commerce
To sell products and services online directly through an e-store.
3) In-House Cost Saving
To cut costs, usually resources such as printed material or time, by automating
in-house processes online such as timekeeping systems and human resource procedures.
4) Customer Service
To improve customer service by providing answers to queries and complaints online
automatically where possible.
With the goal clearly defined, it is easier to measure the effectiveness of
your site because you know what to look for. Conversion is defined in relation
to the goal youve chosen.
So measure prospect acquisition as the percentage of visitors who give you
their details out of the total number of visitors to your website. Measure conversion
on sales as the percentage of people buying a product against the total number
of website visitors. Conversion on in-house cost saving is simply the number
of people using the system as a percentage of the number of people supposed
to be using the system. A good internal policy here will mean this is a 100%
conversion rate. The number of people using the resources and systems you have
put in place as a percentage of total visitors to the support web pages can
give you your customer service conversion.
So why measure conversion? Because it allows you to accurately measure the
impact of changes you make by measuring the performance of your website before
and after the change. With that valuable information in hand, you can make adjustments
accordingly.
The Butt Brush Factor
In many instances in his book, Paco refers to The Butt Brush Factor
the way people, women in particular, dont like enclosed spaces
where other people constantly bump into them from behind. It usually led to
the prospective shopper feeling frustrated or feeling uncomfortable and leaving
the store or going somewhere else. You might be thinking, well how does
that relate to an online experience? It is true that no-one usually bumps
into you from behind while youre sitting in front of a computer, but how
many times are you made to feel irritated, uncomfortable or just downright frustrated
by a website? How often do you leave one and look at another because the first
one doesnt have what youre looking for? This Butt Brush Factor
is incredibly relevant to websites, more so I think than even in ordinary retail.
Here are some examples of common online Butt Brush Factors that
you will see in many business websites.
1) Latest News.
The landing page has the latest news about the company links. What exactly is
the point of having a bunch of latest news links on your landing page? What
good is that to a browser arriving at your landing page knowing and caring little
about your company? A browser wants to know what you can do for him right there
and then, not how your company stock is doing. An About Us section
is a much more reasonable place to put these links.
2) Awards.
A landing page with awards screams, look at us, look at what weve achieved,
arent we clever? It also completely wastes space on the most important
page of your website. It can be compared to what Paco said when he talked about
going into a car showroom and seeing manufacturer awards. That is unlikely to
make much of an impression on the average shopper.
3) Poor Headlines.
Welcome to Company Name is the most common waste of a headline I
ever see. Probably the company is unknown to the visitor so youre wasting
his or her time. A headline, which communicates the need of the target audience
and how you can solve that need, improves reading and click through by up to
35% in recent tests we made.
4) Submit Buttons.
Why tell the visitor to submit? Submit actually means To yield
or surrender (oneself) to the will or authority of another according to
dictionary.com, so why ask innocent web browsers to do that in order to read
your monthly newsletter? Subscribe to our newsletter is much more friendly,
I would say.
5) Bad Use Of Flash.
This is a common problem with media companies in particular. I understand why
they do these all singing all dancing interactive flash websites, which often
are works of art and showcase their ability. However skip intro
is a common link on the majority of these websites. That is because some people
find them a waste of time. Why have an intro at all? Why not just have a showcase
of what you can do on a normal fast, efficient website which tells me what I
need to know quickly? If I decide I have the time to look at flash animations
I will.
6) Poor Use Of Imagery.
Im guilty of this myself. We used to have a picture of a squirrel flying
through the air with whats your objective on our landing page.
It might have worked had we been selling nuts or seed, but a company improving
website conversion? Not really relevant! It was more a result of my ego, pride
and photographic luck in capturing said squirrel with my digital camera, and
then thinking of a way I could use the picture, than thinking of a good picture
which was relevant to what we were trying to say and using that. This kind of
thing is repeated on many websites people with briefcases, bridges, animals
and other general graphics, which can be turned with words into anything you
want the image to say. But on first glance, they dont really show any
relevance. All communication should be relevant and, ideally, persuade the user
to do something.
Again, conversion is an important measurement here. It can be applied to all
of the changes you make to your site as you eliminate these Butt Brush
Factors. Later in this article, Ill explain how.
Attention All Shoppers
For the next fifteen minutes, in the frozen food section, free passion
fruit sorbet for everyone is a perfect way to instill urgency in shoppers
to go to that section of the store and get the freebie. They know they only
have 15 minutes, and they know that after that time they wont get the
lovely sorbet. This was Pacos way of showing how stores could be more
imaginative. The store knows that that section of the store is going to be jammed
with people for that 15 minutes and can capitalize on impulse sales. Thats
how it works in the retailing world, but what about online? Instilling urgency
online is a major factor overlooked by many business websites. Some examples
of how you might want to start employing this technique online are listed below.
1) Time Expiry Offer.
Just as in the above example, you could let your readers know they will miss
out if they havent subscribed or bought your product by a certain time.
2) The First Number.
Your website could offer the first 50 subscribers a free e-book or could advertise
that the first 50 items sold will be at a 30% discount. This could be combined
with a counter showing the number of places/items left, so that the browser
thinks I have to subscribe before those places are taken up.
3) The Nth Number Competition.
The website states that if you are subscriber number 1000, you get a free website
makeover, again combined with a visible counter of the current number of subscriptions.
This could be tied into a referral deal so that if the subscriber is not the
lucky number and does not get the deal, at least he could be offered something
for making the referral while his friend might still end up being the lucky
number and win the prize.
So how does conversion relate to all these changes? The conversion rate should
and can be measured in every instance.
The Science Of Online Marketing
There are two incredibly significant lines in Why We Buy:
Science is by and large the study of very small differences and
When you change one thing, everything changes.
The first very small difference and changing one thing
situation I came across in my online marketing career was a complete mistake.
I was working for a large press organization and one day I had to change some
HTML code on a sales form. By mistake, I removed a voucher entry field from
the form. As a result, people could no longer enter their voucher number to
get a cheaper deal. Conversion improved by three times. I told our editor who
was amazed but instructed me to put the voucher field back on the form while
they figured out what to do. There was a good reason for the voucher; in fact,
it was the entire reason the page was there. However, putting the voucher entry
field back resulted in a drop in conversion to almost the identical sales that
we had been getting before my mistake. The voucher idea was eventually scrapped
on that page and sales sky rocketed again. The reason, we ascertained, was that
visitors figured that they could get a cheaper deal with a voucher. The voucher
could only be gotten by physically buying a newspaper and that limited us to
around 10% of the audience. Nine out of ten people visiting the website did
so from a place where they couldnt buy the newspaper at that time, so
it was obvious that the voucher idea could only be good for the local readers.
This experience was a catalyst for me personally, and from then on, I began
to understand the importance of measurement online. In particular, the measurement
of conversion.
So in order to turn the online changes you make into a science, follow three
simple rules.
1) Measure Conversion.
Conversion is a percentage, a calculation of the number of people who take the
action you desire as a percentage of the total number of visitors to the page.
Using percentages makes the actual number of people arriving at a page irrelevant.
It becomes possible to compare a busy week with a quiet week.
2) Change one thing at a time.
An average page has lots of variables: graphics, headlines, paragraphs, sentences,
links, testimonials and probably a lot more. By only changing one thing and
always measuring for the same period of time (30 days is good), you will get
a fair result. So for instance, if you change a headline, look at the page click-through
and if possible the length of time an average visitor stayed on the page for
30 days before the change. Make the change and measure the results for the next
30 days. Then if conversion is higher (more people reading or more people clicking
through), keep the change. If its lower, revert to what you had before.
3) Experiment.
Dont limit yourself to headlines. Copy, content, graphics, adding competitions,
etc. try them all. But remember the rule: change only one variable at
any one time.
Summary
Ive desperately been trying to keep this article short; I think I could
have written an epic on this subject. If I were in the same room as Paco Underhill,
we would have an awful lot to talk about. However what Im trying to say
is that businesses should start waking up to the fact that online marketing
is as much a science as Paco demonstrates in the retailing world. Measuring
conversion rates online is the beginning of making it scientific.
About the Author:
Steve Jackson is Editor of The Conversion Chronicles, a respected writer and
author of the e-book Learn Before You Spend - 6 Ways to measure web traffic
costing $30. You can get a free copy by subscribing to http://www.conversionchronicles.com
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