CRO Summary PDF

**Detailed Summary of CRO Module 5: Conversion Rate Optimization** **1. Introduction to Conversion Rate Optimization (CRO)** **Definition:** - Conversion Rate Optimization (CRO) focuses on increasing the percentage of website visitors who perform a desired action, known as a conversion....

**Detailed Summary of CRO Module 5: Conversion Rate Optimization** **1. Introduction to Conversion Rate Optimization (CRO)** **Definition:** - Conversion Rate Optimization (CRO) focuses on increasing the percentage of website visitors who perform a desired action, known as a conversion. This can include anything from signing up for a newsletter to making a purchase. - Conversion rate: number of sessions with conversion divided by total number of sessions and that multiplied by 100 **Types of Conversions:** - **Micro conversions:** Represent smaller actions, such as viewing a product video or downloading a PDF. These often act as stepping stones toward macro conversions. - **Macro conversions:** Larger, high-value actions, such as completing a purchase or booking a consultation. **Importance of CRO:** - Before you had Adwords (launched by google), you paid a couple hundred euros and you had a lot of traffic to your website. Now it is seven euros per click. High cost per click, so you try to get the most out of your money. You optimize all your channels that generate traffic. But what else can be done? Look at your 4 variables (TRAFFIC, AVERAGE ORDER VALUE, CONVERSION RATE, PURCHASE FREQUENCY) Generating traffic is most expensive. Try optimizing the other variables to increase the conversion. That is why CRO is important. It increases revenue without needing more traffic. - As digital advertising costs rise, it is essential to optimize the efficiency of your traffic. CRO ensures you maximize the return on your advertising investment. - Example: If 100,000 visitors generate a 1% conversion rate with an average order value of \$100, total revenue is \$100,000. Doubling the conversion rate to 2% doubles revenue without increasing traffic. **Challenges in Modern Marketing:** - Traffic generation costs have risen substantially, making it increasingly important to extract maximum value from existing visitors. - CRO enables businesses to focus on optimizing other key variables like average order value, purchase frequency, and conversion rates to drive revenue growth sustainably. **2. Key Principles of CRO** **CRO is a Process:** - CRO is not a one-time task but a continuous process of testing, analyzing, and refining. **Core Tenets:** 1. **Profit Over Conversion Rate:** Higher conversion rates must lead to profitable outcomes. For example, slashing prices to increase conversions might undermine overall profitability. 2. **Avoid Radical Redesigns:** A/B testing smaller, incremental changes is often more effective than completely redesigning a website. Radical redesigns risk alienating existing users and undermining performance.The right approach to adapting a website is to make adjustments step by step so that A/B tests can be registered. This way you can find out which changes have a positive effect, which have no effect and which have a negative effect. Useful redesign: Outdated, amateurish, few web visitors, too many web problems. 3. **Continuous Improvement:** CRO requires consistent, long-term effort, with ongoing tests and adjustments. 4. **CRO is not just A/B testing**: You start Cro from research and after that you can start with targeted A/B testing, A/B testing is just a part of CRO. 5. **Limitations of A/B Testing:** A/B testing requires significant traffic (1,000+ transactions per month) to yield statistically significant results. Alternative methods, such as expert reviews or qualitative research, are valuable for smaller websites. It Is better than doing nothing but only A/B testing can show you the effect of changes on the users. 6. **Case Studies:** Don't use them blindly. Results from case studies are not universally applicable. Factors like audience demographics and industry nuances affect outcomes. The study might not be reliable because of small numbers, and the study might not be applicable to your website. (red button green button) 7. **You can't always win:** Success Takes Time. **S**ignificant improvements often come from sustained effort and incremental gains. It can take months to grow your conversion. Not every test is +. 5% increase is already a victory. 8. **Being unique can be disappointing:** Practical Innovation. Creativity must align with user expectations. For example, placing a shopping cart in an unconventional location may confuse users and reduce conversions. If you know your problems, look at competition for inspiration. 9. **CRO Hierarchy:** CRO success begins with functional websites and progresses through usability, accessibility, and psychological engagement. Psychological at the top, functionality at the bottom. ( work from bottom up) No use in good psychological tricks if no functionality. 10. **CRO is more than design:** The design of a website can have a major impact on conversion, but only if it is accompanied by good (micro) copy. A call-to-action is important. **The Hierarchy of Conversions:** - **Functionality:** The website must work properly on all devices and browsers. - **Accessibility:** Content should be mobile-friendly and usable by all visitors, including those with disabilities. Mobile-first approach. - **Usability:** Ensure intuitive navigation and simple processes, such as streamlined checkout. Fill a big list, go to next, realise a mistake, go back, everything is gone. Bad usability - **Intuitiveness:** Does the website encourage visitors to the next step? Address common user questions and remove friction from the buying process. Friction: you order something but need to go to another page with lots of texts to see delivery time. By eliminating obstacles, you encourage visitors to progress naturally. - **Psychological Influence:** Use psychological principles like scarcity(limited stock or temporary discount), social proof (reviews=confidence), and authority to guide user behavior. Afbeelding met ontwerp Automatisch gegenereerde beschrijving **3. The Dexter Method for CRO**  Gather data BEFORE A/B testing. **Overview:** The Dexter Method provides a structured, five-step approach to CRO: 1. **Data Collection:** - Tools like Google Analytics, heatmaps, scrollmaps, and visitor recordings identify pain points and conversion obstacles. - Form analysis, Live chat analysis, customer support interview, user testing, customer survey, sec test, web surveys. - Example analyses include funnel exploration, path exploration, and site speed reports. - Key questions: - Where are visitors dropping off? - Which pages or elements cause friction? 2. **Execution:** - Implement insights from research without testing if the solution is straightforward. Not everything needs A/B testing (e.g., fixing broken links or adding missing CTAs). - Prioritize hypotheses based on impact and feasibility. If you have less than conversion a month, you are forced to execute the hypotheses that you made during your research. This can results in positive and negative changes that will be implemented. - Collect your research, execute or test?, what execute first?, measure impact 3. **Testing:** - Use A/B or multivariate testing to validate proposed changes. - Tools include Google Optimize, Optimizely, and Unbounce. - What is our hypothesis? What will we test first? Which tools can we use? A/B testing, multivariate tests or AI? - Refrain from making additional changes when testing something. Unless you apply them to both variants. 4. **Evaluation:** - Measure results with statistical significance tools like Bayesian analysis, google analytics. - Analyze test performance using segmented data for deeper insights. Once the tests have gathered enough data, it\'s up to us to interpret the data correctly 5. **Repetition:** - Iteratively test, refine, and implement changes to build upon insights and drive continuous improvement. - Not every test will yield a winning variant, but every test provides data that you can work with. - For instance, your A/B test might have shown that the variant you created for your website is a winner, but only on mobile phones. There might be no significant difference on the desktop version, and you might have insufficient data for the tablet version. **4. Research Methods in CRO** **Essential Research Methods for Larger Websites:** - **Expert Reviews:** CRO specialists evaluate websites for issues like friction, unclear messaging, and poor design. Keep in mind that experts tend to get irritated more quickly than end-users. Therefore, substantiate each finding with data that represents the visitor\'s opinion and don\'t get too carried away with personal frustrations. An expert\'s evaluation is valuable but don\'t take it as the ultimate truth. An expert\'s opinion can help in forming hypotheses that you can further test using other research methods. - **Click maps:** Click maps show us where our visitors click. During the analysis, you will quickly notice that visitors click on various elements, even those that are not clickable. When observing peculiar clicks, we can ask ourselves the following questions: \"Why are visitors clicking in those areas? Do they expect something to happen? What do they expect to happen? Should I facilitate an additional pathway here? \...\" - **Heatmaps and Scrollmaps:** Tools like Hotjar and Microsoft Clarity track user interaction and scrolling behavior. The main questions here are: How far do visitors scroll? How can we encourage visitors to scroll further? Which elements should I place in the red. - **Visitor Recordings:** Analyze how real users interact with your site. With this method, you can track the visitor\'s mouse movements. However, please note that other tabs or programs the visitor has open are not visible. If the visitor does not close your website and is on another tab, their actions will not be recorded. Consider this method as complementary to click maps and scroll maps because it is a very time-intensive process. - **Form Analysis:** Tools like Zuko.io reveal form completion rates, drop-off points, and time spent per field. How many visitors see the form and start filling it out? A low percentage could indicate a page that doesn\'t look trustworthy, for example. At which fields do they drop off? Are the fields too personal or not functioning properly? The form might also be too lengthy. Perhaps there\'s something unclear that you can easily resolve with microcopy. In summary, you can gather a lot of information from this tool that is crucial for conversion. Similar to Google Analytics, this tool helps you identify the pain points. To understand why a specific problem exists, you\'ll need to apply other research methods. - **User testing:** If you had to choose only one research method, user testing is undoubtedly the most important. In user testing, we analyze the actions and thought processes of a real user. The difference from visitor recordings is that the user verbalizes their thoughts aloud while performing a set of predefined tasks. The user\'s facial expressions are also recorded. 3 types: Face to face user testing, remote user testing ( more reliable than 2f2, no contact), live remote user testing( like 2f2 but on call). Keep in mind that this is qualitative research. Not everything mentioned by the tester is relevant or representative. - **Customer Surveys and Live Chat:** Provide qualitative insights into user concerns and preferences. Installing a live chat on your website can provide valuable insights. This doesn\'t mean the live chat has to be available 24/7. Visitors understand if you\'re only available during office hours. So, if you have the capability to offer live chat support, it\'s highly recommended. Reveals pain points. - **Five second test:** First impression, what is the website about, what is being offered, why here and not the competition? **For Smaller Websites:** - Focus on qualitative methods, such as user testing and expert reviews. - Use live chat or surveys to gather insights directly from users. **5. Framework for website evaluation USED FOR EXPERT REVIEWS** The framework evaluates websites using a structured model with the following five key criteria: 1. **Clarity:** - Ensures that the product and value proposition are clearly communicated. - Includes both content clarity (e.g., clear descriptions and appropriate photos) and design clarity (e.g., a visual hierarchy that guides users toward their goals). - Clarity in the value proposition 2. **Friction:** - Identifies elements causing frustration or delays, such as slow load times, complex forms, or missing payment methods. **What is Friction?** - Anything that causes frustration or hesitation in the user journey, such as: - Slow load times. - Confusing navigation. - Lengthy or unclear forms. **Reducing Friction:** - Minimize the number of goals per page (e.g., one primary CTA). One main goal, possible 1 sub-goal. - Avoid distractions like excessive links or unnecessary elements. - Use clear, user-friendly CTAs like "Add to Cart" instead of "Buy Now" when users are in the browsing stage. - Match ad messaging with landing page content to meet user expectations. 3. **Distraction:** - Minimizes elements that divert users from their primary objectives, like unnecessary links, irrelevant visuals, or cluttered layouts. 4. **Relevance and Buying Phase:** - Matches the content and calls-to-action on the page to the visitor\'s stage in the buying journey. For example, "Add to Cart" is often more effective than "Buy Now" for users who are still browsing. 5. **Motivation and Incentives:** - Incorporates psychological principles, such as scarcity, urgency, and persuasive copy, to encourage conversions. **Expert reviews:** 1. Readability - Contrast: ensure adequate contrast - Font size: at least 16 pixels and titles with a larger font. Average sessions double when going from 12 to 16. Max 4 diff fonts - Whitespace: You can start a new paragraph every 3 to 4 lines with subheadings every one to two paragraphs. - Heading are summaries of paragraphs: Ensure that the headings and subheadings serve as conclusions for the paragraphs. Visitors often only read the titles on the page. - Columns read better on desktop: it takes more effort for the reader\'s eyes to move from one end of the screen to the other. Keep the line length within a maximum of 70 characters. - Left aligned test is easiest to read 2. Call to actions and buttons - Align the CTA with the main goal of the page - Make clear what the main button is - Don't let visitors overthink - Ensure contrast 3. Forms - Less is more: it needs to be understood quickly with no second thoughts - Be crystal clear: it needs to be clear what every button means - Use real time inline validation: if there is an error or invalidation, it needs to say specifically what is wrong so people don't need to guess - Error messages in the form: if an error occurs, the user needs to be told of the error. - Indicate what is mandatory: for example with the \* - Break up long forms: a few short forms see quicker than a singular long on ( like those tests with pages to click through) - Start with the easiest fields: such as email and name - Do not use inline labels - Use dropdown menus sparingly - Show password: able the show password button - Don't make password selection too complicated - Microcopy: 1. Be clear and instructional 2. Adress fears, uncertainties and doubts 3. Less is more 4. Avoid unclear language such as jargon and abbreviations 5. Be specific and clear 6. Allocate extra time to error message microcopy 7. Speak like your customers **6. Leveraging Psychology** **Cialdini's 7 Principles:** 1. **Reciprocity:** Offer value upfront to encourage users to reciprocate (e.g., free trials, downloadable guides). When you do something for someone, they are more likely to want to give something back to you. example is a course where you can take the first lesson for free. Or an online store that immediately indicates that you will receive a free product before you have already made the choice to purchase. 2. **Consistency:** Use multi-step forms to build user commitment incrementally.. For example, you have a long form with 13 fields. With a multi-step form, you divide the form into 3 steps. First, you show three fields that are easy for the visitor to fill in. So you don\'t immediately ask what their national register number or VAT number is. The next two steps consist of 5 fields. If the visitor has already completed the first step, he is more likely to complete the rest of the steps because he has already made some effort. Or a decision button such as 'no thanks, I choose not to make money' 3. **Social Proof:** Highlight user reviews, testimonials, and statistics (e.g., "10,000+ satisfied customers"). 4. **Authority:** Showcase endorsements from experts or trusted organizations. People are more likely to believe your message if an authority approves it. There are different ways to use this for a website. Every niche has its authorities. Then choose the right authorities. It doesn\'t always have to be an influencer or famous person. They could just as well be engineers, doctors, dentists, chefs, etc. 5. **Liking:** Build emotional connections through storytelling and relatable branding. People are more likely to buy from you if they like you. This is where the importance of storytelling and branding comes to the fore. An About Us page with your story can make a difference if it is put together well. 6. **Scarcity:** Use time-limited offers or stock alerts to create urgency. When there is a feeling of scarcity, there is greater pressure to make an immediate purchase. Just make sure you\'re honest. If you are not honest with the visitor, in most cases they will notice and you will lose their trust. 7. **Unity:** Foster a sense of belonging (e.g., exclusive member benefits). Someone who belongs to a certain group or has a feeling of belonging will make efforts to maintain that identification. **Other Psychological Principles:** - **Anchoring:** Display higher-priced options alongside regular prices to make the latter appear more affordable. - **Loss Aversion:** Emphasize potential losses (e.g., "Don't miss out on this deal"). - **Emotional Engagement:** Use emotionally resonant imagery and language to connect with users. **7. Testing and Implementation** **A/B Testing:** - Compare two versions of a page to determine which performs better. - Best for incremental changes, such as testing CTAs or headlines. - A/B testing, also called split testing, is a testing method in which you create two versions of a page. Page A and page B. You show variant A to 50% of your visitors and variant B to the other 50%. The distribution is done using: tools such as Google Optimize, Unbounce, Optimizely, etc. When a visitor receives a certain variant, a cookie is stored on his computer so that when the visitor returns, he will see the same page. It is not the intention to confuse our visitors with different variants. So we are going to test a variant A against a variant B. You can also expand it further to a variant C, D, etc., but the more variants you have, the longer it takes to collect data. If you have a limited number of visitors, it is wise to stick to two variants. There are two types of tests in A/B testing - Split-URL test: you refer the two test groups to two different URLs OR same url. An easier way is to use an A/B testing tool like Google Optimize that sends both groups to the same URL. The A/B testing tool manipulates the pages the way you set it up. Which one is more suitable for your test? It depends on. If you are going to make minor adjustments, the A/B testing tool is the easier option. However, if you are going to make major adjustments with a completely new layout, a URL split test is more suitable. As an aside, it is also possible to do URL split testing in your A/B testing tool. **Multivariate Testing (MVT):** - Test multiple elements simultaneously to find the best-performing combination. - Requires substantial traffic to yield actionable insights. - With MVT tests you will adjust different elements and test them in combination. Suppose you have 3 different call to actions in combination with 2 photo layouts in combination with 3 ways to show your reviews, this can be done via MVT. The MVT will then test the different combinations of your given assignment. You will then receive a total of 3 CTA X 2 photo layout X 3 review = 18 tests in total - is not an option for most websites because you need tons of visitors to get representative results. Another disadvantage to MVT testing is that you do not learn much from it. The only thing you can conclude is that a set of combinations works best but you don\'t really know why. It does not give you insights that you can use later in future tests. - MVT is especially useful if you already have a winning website and you want to further fine-tune your website. For more serious adjustments, A/B testing is recommended. **AI Testing:** - Uses machine learning to optimize based on real-time user behavior. - Suitable for e-commerce sites with large datasets. - You can compare it to MVT that is driven by AI based on how well or poorly elements perform. However, little is known about how the AI ​​tool chooses winners. - They do not use classical statistical calculations but have their own mechanism. How exactly does the tool work? First, you give the tool all the information about the different tests you want to perform. For example, you want to test 5 headers, 3 CTAs and 5 photos. The tool first tests each element separately and chooses the winning variants per element. The tool therefore looks for the element variants that have "good genes". The winning variants are then combined so that the website can evolve into the best version of itself. - Faster than MVT - DIsadvantages: Just like with MVT, you don\'t learn much with AI testing. In addition, it takes a lot of work to come up with different variants. You have the option to create many variants per element, which means that the chance increases that you will be more inattentive in submitting variants. Any test is only as good as the input you provide. If you neglect the input, the outcome of your test will also be worthless. , it is not yet able to replace a CRO specialist and will not be able to do so for a long time. **8. Tools for CRO Analysis** **Heatmaps and Scrollmaps:** - Show where users click and how far they scroll. - Use these tools to identify underperforming elements and improve layout. **Visitor Recordings:** - Provide insights into user behavior, such as mouse movements and navigation patterns. **Form Analysis:** - Measure form interaction rates, identify drop-off points, and refine field designs to reduce friction. **Customer Feedback Tools:** - Surveys and live chats uncover qualitative insights into user needs and preferences. **Evaluation Metrics:** - Use Google Analytics to measure segment-specific performance. - Test for statistical significance using tools like AB Test Guide's Bayesian calculator. **9. Best Practices for CRO Success** - **Prioritize Clarity:** Ensure clear messaging and intuitive navigation. - **Minimize Friction:** Reduce distractions and streamline processes. - **Leverage Psychology:** Align design and messaging with user motivations. - **Focus on Continuous Improvement:** Treat CRO as an ongoing process, not a one-time project. - **Use Data-Driven Decisions:** Base changes on research and testing, not assumptions. **Conclusion:** By integrating these strategies, businesses can enhance user experiences, improve conversion rates, and achieve sustainable growth through CRO.