Conversion rate optimization fundamentals

Conversion Rate Optimization Fundamentals

About Catchi and Traffic Conversion Pro
Traffic Conversion Pro has been created by Catchi, dedicated
CRO consultants to a wide variety of companies, large and
small, in the US, Australia and New Zealand
Experts in turning website traffic into paying customers and
qualified leads
Cover both areas of what to test (marketing) and actual
testing (technical)
Saw a real need for an online course, teaching people how to
improve their conversion rates
About Cornelius
Internet Marketer since 2001
Built successful global online business with over
2,000 affiliates and high conversion rates
Started specializing in CRO after recognizing it as
the easiest and fastest way to improve online
spend and ROI
Started Catchi which is now fast growing

©2013 Catchi Limited
Why Website Conversion Optimization?
Working with website conversion rates is the best, most systematic way to
measure the effectiveness of your website. It’s a very fast growing area now and
more and more people recognize its importance.
Your Conversion Rate should be used as the benchmark for your digital success.
By taking your website conversion as the point of reference throughout an
ongoing process of improvement you can work on your website in a step by step
way that can be measured and adjusted along the way.
Increasing your Conversion also allows you to improve your results from all other
online campaigns, including SEM (e.g. Adwords), SEO, SMO, Social Media, etc.
At the end of the day, all we want is results and this is how you get them!

Website Conversion Optimization is fascinating!
Working with website conversion rates is truly fascinating and can be very
rewarding when you ‘get the hang of it’.
When visitors visit your website, they go through a certain process in their mind.
They keep thinking – often totally subconscious- things like “What is this all
about? Is this for me? Can I trust these people? Will I get value? How can I find
out more? Why should I buy from these people instead of others?”
So when looking at CRO, you are getting into people’s thought processes. As
Conversion Rate experts call it “we optimize thought sequences”. The goal is to
guide these processes and give them what they need in order to make a
decision.

Many companies are struggling with the same question
Most companies these days have a website; it is a must if you are serious about your
business and promoting your products or services to a wider audience.
We however saw so many companies struggling with the same question:
once you have set up your site, how do you make sure it works most effectively? How do
you make sure visitors buy your products and/or services? How do you ensure you
generate leads? In other words, what steps do you need to follow and what elements
should we look at to get more people to take action on your website?
Catchi has developed Traffic Conversion Pro an online
course that will not only give clear, applicable
answers to these questions, but will also provide you
with a roadmap you can follow to ensure you create
an effective website, get the best possible results and
dramatically increase your online sales and leads.

Definition of Website Conversion Rate
“The percentage of visitors that converts from casual content views or website
visits into desired actions based on subtle or direct requests from marketers,
advertisers and content creators”
‘Action’ can be, but is not limited to:
Buy a product
Make a phone call to your office after seeing your contact details
Download a free newsletter or whitepaper
Register for your newsletter or a seminar
Opt-in for your weekly tips
Refer a friend to your site
Click to chat with you online
Request a call back or more information

Or, to say it with an image...
Your Conversion Rate is how many of
these visitors turn into these visitors
“Finish” for you could be a sale, a lead, a
newsletter signup, a whitepaper download, etc.
We express this as a percentage

Calculating your Conversion Rate
Examples:
1. Your “desired action” is for your visitors to purchase your product. If you have
100 unique visitors a day, and 2 of these purchase your product, your
conversion rate is 2%
2. You desired action is for your visitors to download a whitepaper and/or opt-in
to your email list. You have 500 unique visitors a day and 25 take this action.
The conversion rate is 5%

What is a good conversion rate?
E-commerce websites report an average conversion rate of 2.2%
according to shop.org
Conversion rates are very different across industries, ranging from 0.4%
(Electronics) to 4.3% (Specialty stores).
Top 10 converting e-commerce sites report an average conversion rate of
12% (however, this is due to the fact they have built a trusted brand and
people go there specifically to buy something, e.g. Amazon, ProFlowers,
Office Depot)

Here’s a question:
If we want to increase the revenue on our site,
what do you think we should we work on FIRST:
1. increasing traffic to our site OR
2. increasing our conversion rate?”

Example: you sell a $500 product on your site
Start Scenario: your average traffic is 3,000 people a month, on average 30
decide to purchase your product. Your conversion therefore is 1%, and your
turnover per month is $15,000 (or 30 leads if that is the focus) as per the
illustration.
Traffic
3,000
conversion
1% (30)
Turnover
$15,000

Let’s see what happens if we work on Traffic first
Scenario 1: you FIRST work on increasing your traffic.
Thanks to your efforts of spending time and $ your traffic increases to
4,000 visitors a month. Your conversion rate is still 1%. This results in 40
sales/leads per month.
Your turnover has increased to $20,000 as per the illustration.
Traffic
4,000
conversion
1% (40)
Turnover
$20,000

Scenario 2: Let’s say we FIRST work on your conversion rate
Thanks to a series of adjustments your conversion rate increases to 2%
conversion (which is very achievable in most industries). Without any
investment to increase your traffic, so with the original 3,000 visitors a month,
this will convert to 60 sales/leads per month, creating revenue of $30,000.
Traffic
3,000
conversion
2% (60)
Turnover
$30,000
What happens if we work on Conversion Rate first?

Scenario 3: The most effective and efficient way.
Increasing your conversion rate FIRST to 2%, and THEN increasing your traffic to
4,000 visitors will result in 80 leads or $40,000 in sales.
Key Takeout:
If you work on a better converting website first, your subsequent investment in
traffic generation will yield a much better return, creating higher budget
efficiency. You also ensure you don’t ‘burn’ valuable traffic.
Traffic
4,000
conversion
2% (80)
Turnover
$40,000
Working on Conversion first, then on traffic

Higher conversion rate = higher visitor value
Another important metric you need to measure on your website is Visitor
Value; it tells you how much money you make every time a visitor visits
your website. This is great info when doing price testing. It is also vital
when using paid traffic so you know the maximum you can afford to spend.
You can either use gross sales or net profit.

Here is why optimizing your conversion rate is a must
Most if not all websites can do better, very often they can do A LOT
better. By constantly changing and testing your site, you get a better
result all the time: free extra customers!
The effect of an increased conversion rate is ongoing; it’s not a one
off increase in sales. Once your conversion is up, you will benefit
from it from then on. It’s very powerful!
A small increase in CRO can make a huge difference to your profit
margin. As your cost are often sunk, all extra revenue is direct profit.
CRO will help you get to know your site really well as you work on it
quite extensively, it will also help you distinguish any “revenue
leaks” you site may have. (unclear pages, lack of navigation etc)

key advantages of optimizing
your conversion rate
You will get a much better understanding of and insight into your market,
visitors and customers thanks to the process of optimization. You will find
yourself going much deeper into the how and what of your site and the
likes and responses of your customers. This will lead to a better
understanding of and connection with your visitors.
If you use paid searches (Adwords for instance), you will have noticed
that in this day and age you need to pay more and more for it, due to
increased competition. By having a higher conversion, your visitor value is
higher, which enables you to pay more for a visitor and still make a profit.

A higher visitor value and a higher conversion rate will make your affiliate
program very attractive compared to that of your competitors, as your
affiliates will be more successful and will make more money from their
promotions. A higher conversion rate therefore can skyrocket your
business in terms of affiliate sales.
If you do it right, increasing your conversion rate will make your website
more appealing to visitors, so other sites are more likely to link to it.
Take the guess work out of it and let your customers show you what they
like to see and read. It can all be tested.
More key advantages of optimizing your conversion rate
Attract high quality affiliates

Conversion Rate Optimization helps you to get ahead of
your competition. If they aren’t focusing on CRO, you
will have a BIG advantage. And here’s the thing: at some
point, they WILL start paying attention to it as well, so
it’s better for you to stay ahead of the game instead of
chasing their tail.
A high conversion rate means your visitors enjoy your
site and probably prefer it above others
If your conversion rate is better than your competitors,
even just a bit, you will continually outperform them in
Visitor Value which gives you just the edge you need to
stay ahead when doing PPC etc.
One more advantage: staying ahead of your competition!

Here’s a Paradigm shift we suggest
Many people and companies look at websites as a one off creation which
can then be left to “do its job”, while hoping it works. The only
adjustments they make are in elements such as price points,
announcements, new products and possibly a blog; not to the different
basics of their site.
Working from the point of actively working on your website conversion
rate means a Paradigm shift for many people: it’s based on the
assumption that a website is an ONGOING work in progress based on
visitor and customer input and feedback and testing.

A systematic approach to improvement
Introducing our Catchi Method: a
systematic way to keep improving the
performance of your website by going
around our “wheel of optimization”.
This will get your business moving!

A holistic approach to success:
include and align all elements
This can be compared with the work of a Real Estate Agent:
If your site is your home, You want to make your visitor feel welcome and gently guide
them through the different rooms, while showing them the different benefits of this
house. You may ask them questions to find out what is important to them, what they are
looking for and what they think of the house. After checking out a room, you will invite
them to come into the next room and have a look and show them how wonderful and
large it is.
You may give them your business card and a
flyer or other additional information on the
house. You may also ask them for their details
so you can follow up.
All in all, you are guiding a process of
discovery, igniting interest and getting the
visitor to fall in love with the property.

Your goal: “Creating the “YES"
Your website process is a funnel. It’s like a series of “Yesses” to get to the
ultimate YES: the purchase, enquiry or sign up. Each “Yes” is a part of the chain
and this chain can be optimized.

What is your weakest link?

The role of CRO in this process
With CRO you look at all the different elements that will keep the visitor
happy and engaged and willing to spend precious time at your site. Each
element can be tested and adjusted.
In the full course, we will discuss each element in detail and show you
exactly how to work on these best, complete with comprehensive
examples and suggestions.
For now, they key to realise is that the decision of your visitor to take
action will depend these different elements working well and in
alignment. As with the different players, or elements in an orchestra if
they work together you will get the best result.

Each element will make a difference!
More clarity on homepage: conversion +5%
Better Value proposition: conversion +10%
Better shopping cart process: +8%
Better navigation: +12%
Displaying products better: +10%
Better price point: +20%
Better font: +4%
Etc.

No more arguments about what is “right”
The great thing is, that you can take your personal views, opinions and
preferences and those of others out of it and let the optimization process
do the work for you; your customers will tell you what they prefer via
their browsing behaviour. If your research shows that they prefer short
copy vs long, then you know you should have the short copy on your site.
If they prefer image A instead of image B, that’s what you will use.
So CRO can be tackled in an analytical, scientific way. It’s measurable and
the results are very clear.

Catchi’s key “filters” : create TRAC-tion
tm
!
Build Trust
Be Relevant
Be Appealing
Create Clarity
Your website and all these different elements
always need to…

Your mantra when working on CRO...
“I now create TRAC-tion
TM
on my site!”

Find out more on www.TrafficConversionPro.com
or contact the Catchi team: www.catchiwebsiteconversion.com

Conversion rate optimization fundamentals

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