Conversion Optimization for Startups

The Presentation inside:

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Hello! I am Espen Grimstad Serial Entrepreneur, Product Manager & Conversion Optimisation advisor / Experiments AS @espengrimstad [email protected]

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What is your Conversion rate?

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Avg. U/A conversion rate on e-commerce sites 2014 2.2% #smartinsights

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Optimization before marketing build optimize drive traffic

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Figure out what works, do more of that Chris Neumann

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CRO Marketing Chris Neumann Product

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Don’t assume, use science

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Conversion Optimization for Startups Agenda ■ What is CRO? ■ Gains ■ Method ■ Tools ■ Case study

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CRO Gains Why do we do CRO?

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Improves any metric on your website

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Super high ROI, super measurable

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Increases new customers, registrations, downloads

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Creates the musthave user experience

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Builds long-term business value

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CRO Method How to apply CRO to your startup website or app?

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“ “a method of using science and tools to continuously improve the performance of your website or app”

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Conversion Rate Optimisation Method Plan Investigate Ideate Experiment Collate

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STEP 0: PLAN Define Scope. Create Focus and Directions

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Figure out what doesn’t work

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Dave McClure’s Pirate Metrics

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Dave McClure’s Pirate Metrics AARRR

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Example AARRR metrics Dave McClure

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Estimating conversion value

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Select the investigation scope Dave McClure

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STEP 1: INVESTIGATE Understand User Behaviour

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Figure out why it doesn’t work

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Quantitative tools

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Qualitative tools Insights User behavior UX research

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STEP 2: IDEATE Create your hypothesis

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Come up with ideas on how to fix it

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Everything is an ASSUMPTION Change Page Layout New Header copy Remove functionality Add new CTA Insert Video on page Add trust badge in footer

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Your Hypothesis Change you want to make will lift conversion rates for Signups / Product sale

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Ideation tools

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STEP 3: EXPERIMENT Setup Your A/B Test (or A/B/C/D Test)

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Test your ideas

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Basic A/B testing

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Experimentation tools

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STEP 4: COLLATE What have we learnt? Analyze and implement

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Summarize results and add to roadmap

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Collation tools

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THE STACK What, Why, How and When

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The CRO Stack options The What The Why Quantitative Tools Qualitative Tools The Creative Ideation Tools The How & When Experimentation Tools The Learning Collation Tools

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TRANSFERCAR CASE Optimizing their request funnel Increasing annual revenue with est. 2.5M NOK

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The Rental Car Industry Business Problem Rental car companies are spending large amounts of money on transferring cars between their branches in order to position their fleet for new hires. Most companies are hiring trucks or trains to transfer their cars, and the average cost is over $600 per car. How can the rental car companies save money on car transfers?

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The Solution Transfercar matches rental cars with travelers that need to be transferred willing to drive them for free Rental companies gets a low cost transfer, Travelers gets free one-way rental cars, Transfercar gets paid by the rental car companies - it’s a win-win-win!

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Drivers get free service and free rental cars

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3 countries 140 80,000 registered drivers companies 35,000 transfers

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The planning Transfercar case

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Plan: optimize Transfercar request funnel RO’s (O) Users (U) Request funnel New requests (R) Inventory (I) New bookings (B) New Cancellations (X) Completed Relocations (C) New listings (L)

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Request funnel details view Users (U) Home page Content pages incl. Blog and Help Search page Details pages Authentication wall Confirmation page Request confirmed (R)

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Project plan (Scope: US website 1. Investigate funnel with and Mixpanel – Collect test results in Sheets, break down problems per page – Report in Slides 2. Ideate. Convert findings to ideas. – Add ideas to Prodpad – Vote on ideas 3. Experiment with Optimizely in voting order – Collect results – Update Prodpad ideas on Impact 4. Prioritize ideas on Impact vs Effort (most low-hanging fruit) in Prodpad – Decide product roadmap in Prodpad – Implement

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The Transfercar project CRO stack Investigation Tools The What The Why • Quantitative • Qualitative The Creative Ideation Tools The How & When Experimentation Tools The Learning Collation Tools

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The investigation Transfercar case

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Conversion rates (before) - Mixpanel

Slide 59 test script (extract) 1. Tell us about the first impression the site gives you. What is offered? Is it relevant to you? Would you feel it's worth spending more time here? 2. Feel free to click around. What do you feel like doing next? Go ahead and do what comes natural. Tell us what you're thinking, what you're looking for, and what you find good or annoying. Proceed to the next question once you're ready for a new task. 3. Now tell us about your second impression. What is offered? 4. Would you personally be interested in using this service (why/why not)? Do you feel like you can trust the company and the product/service offered? 5. At this point, would you feel comfortable booking a car through Transfercar? Do you have any questions you'd want answered before you would proceed? If so, go ahead and see if you can find these answers. Please talk about what you're thinking and looking for along the way.

Slide 60 investigations ● 20 trial user test: ● 10 computers ● 5 smartphones ● 5 tablets ● Additional 40 user test: ● 20 computers ● 10 smartphones ● 10 tablets 60 tests in total

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Result: Over 180 issues collected Users (U) Home page 15 Search page Content pages incl. Blog and Help 4 30 Details pages 35 Authentication wall 20 Confirmation page 44 Request confirmed (R) ...and many more. View all issues collected.

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Details page top issues Desktop and tablet Mobile Not clear that days have to be selected in the calendar picker (13) Difficult to see the details on a phone (1) Pricing is confusing. Does not understand the pricing at all, does not understand that some day are free and additional days cost extra (4) Phone - picking dates on the calendar is difficult (1) "or similar" is a negative. Want to know the exact vehicle type (2) Branches - what does the big circle mean? Would it be better with a pin? (2) Importance: High View 14 video highlights from listing details page test Importance: Medium

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Auth wall top issues Desktop Mobile and tablet Long wait for confirmation email, or not received during the test at all (**often with Yahoo!**) /went to spam (10) On tablets: Email not recognized as an email address at first entry. Maybe because of "space" after .com? (4) Believes if registering, it takes the user to the front page and have to start all over again (does not understand that he can enter the code directly) (3) Suggest "log in with Facebook/G+/Amazon" or other known service (2) Importance: Medium View 9 video highlights from auth wall test Importance: Low

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The ideation Transfercar case

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The experimentation Transfercar case

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Experiments ● Conducted 19 Optimizely experiments based on Prodpad votes (high impact/low effort) ● A/B and multivariate testing

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Details page original

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Details page variant Bold and rephrased label in a color separating from calendar picker bigger button and font size

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Details page results

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Auth wall variant new copy

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Auth wall results

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Experimentation results ● ● ● ● 9 weeks 5 experiments negative 14 experiments positive Request funnel conversion rates increased from 2.02% to 2.68%

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Conversion rates (after)

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The collation Transfercar case

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Impact and effort aids roadmap decisions

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The aftermath Transfercar case

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Search page: New search engine ● ● ● Replaced the existing search page with a new (Solr) search engine, with faster results and faceted search Not possible to analyse with Optimizely due to complexity Mixpanel data shows Search page to Details page conversion rate increased 1.65%

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Details page redesign Old New

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Auth page redesign Old New

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Conversion rate after redesign

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Project results ● ● ● ● ● 5 months 5 experiments negative 14 experiments positive Total cost 34K NZD (175k NOK) Request funnel conversion rates increased from 2% to 3.3% $490k NZD (2.5M NOK) est. annual revenue increase

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Thanks! Any questions? You can find me at: @espengrimstad [email protected]

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