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eCommerce CONVERSION RATE Optimization

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The 10 Minute MBA, is a no-fluff daily podcast that teaches you practical business lessons you can use to grow your business immediately.

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Welcome to the ten minute MBA. I'm your host, Scott D clary. On the ten minute Mba I give you strategies, tactics, tips insight so you can use to start, scale, grow or x Your Business. Today I'm going to teach you about conversion rate optimization, how to get the most bank for your buck when your customers actually hit your landing page. What's going on today? We're talking about conversion rate optimization. We're trying to get people to convert. So of course there's many ways to make money and before I even dive into this, I just want to let you know the conversion rate optimization. You can optimize the conversion rates of a phone call, you can optimize the conversion rates of an outbound campaign, you can optimize a conversion rates of even doing a demo or presentation in front of somebody. We're going to talk about conversion rates in the context of ECOMMERCE. So what can you do for your actual landing page so that you can convert more customers? What is the key to more sales and more revenue? So if you want to make more money from your store, we're going to dissect what's the best way to make that happen. So first you can try and get, of course, more traffic to your store. That's the obvious, logical, next best step. Presumably the more customers and visitors you get, the more sales you're going to make. However, sometimes more sales doesn't necessarily mean more profit, because there's a much better, more effective way to increase your overall sales and revenue then just driving more traffic, because more traffic, if they're not converting. Well, that could get you a little bit more revenue, but it's really not optimal. So what you want to do is you want to improve your conversion rate. Now, your conversion rate, by definition, is the percentage of your visitors, your website visitors in an ECOMMERCE context, who purchased from you. For example, if you have a hundred visitors and three of them buy from you, your conversion rate is three percent. Pretty simple. You can almost always improve your conversion rate on your website. No matter how good your website is today, it can definitely get better, and this is good news because it means you can get more sales and revenue without needing to spend more money to get traffic. Improving your conversion rate is called, quote unquote, conversion rate optimization, or Crro, and I'm not just saying this because I need to to explain an acronym to you. This is the technical term, so that if you do more research into this, you're going to look up crow, or conversion rate optimization. So let's say that you're using CRO and you're able to increase your sales from three out of a hundred visitors to six out of a hundred visitors by doubling your conversion rate. You've doubled your revenue without increasing your spend at all. And how do you actually do this? When I'm going to walk through some tips. Of course, this is what this whole podcast is about. But in a nutshell, it's all about a be testing. It's all about testing two variations of things against each other to see which produces more conversions. For example, you may try two different headlines on a page to see which generates more sales per five hundred visitors. That's what we're going to be talking about. Some ways to a be test different components of things on your website to again increase your conversion rate. So...

...a couple things to remember when you are doing a be testing. Always test one variable at a time. Let me. Let me just double down on that. Always test one variable at a time in order to measure the results properly. Focus on testing one change, because if you test more than one change, you're not going to know what's actually driving the different results between the two sets right. You're not going to know what the differentiator is. And also, you want to ensure your tests reach statistical significance. Statistical significance simply means that enough events have occurred so visitors clicks, page views sales to ensure the results are accurate and not some sort of flute. So the first technique that you want to test is price anchoring. So what is price anchoring? Well, the more someone feels like they're getting a great deal from you, the more likely they are to purchase from you. This is a sales technique that's used in many types of sales, not just ECOMMERCE, but it can be used an ECOMMERCE. With price anchoring, you include both a higher price and then your actual selling price next to all your products. It makes it appear that people are getting a good deal. Consider using the suggest at retail value or MSURP of a product, or how much you would charge for a full price iteration of whatever it is you're selling. So here's an example. So let's let's say that you're selling a course for a hundred ninety nine dollars. It contains five hours of material and your hourly rate is a hundred dollars. So the course is really valued at five hundred dollars. So that's five hours of material that's coming directly from you. You can use that figure as your price anchor to sell the course at one hundred and ninety nine dollars. So they're getting over fifty percent off the five hours they would be paying for if they were just going to spend those five hours directly with you. One thing that you should know about price anchoring. The difference between the price anchor and the actual price needs to be reasonable. It has to be acceptable. If you say you're selling a course for a hundred ninety nine dollars and your personal consulting rate is twentyzero dollars an hour, well it's not really a price anchor. It just smells like BS. So if you're going to use a price anchor effectively, and most people actually don't use them effectively. So if you have bought something online, sometimes you will see ridiculously outlandish price anchors that actually have more of a negative impact because, first of all, it doesn't achieve the desired result of actually anchoring a price high. It just seems ridiculous and superfluous, but secondly, it actually loses trust with the vendor. So the the consumer, the person who's actually the customer, they lose trust because they feel that the vendor is not being authentic with this higher anchored price. So then it creates a it creates a little bit of mistrust between the customer and the vendor. So people will definitely become suspicious if the difference is really too great, so be careful of that. The second thing you should do...

...on any landing page is to use incredibly high quality pictures and images. Remember, people are visual. It's important to remember that with online shopping, your customers can't physically touch or handle the products are looking at. If they can't touch the products you sell, they want to find a way to get as good a sense for what that product actually is like physically without being able to actually touch it. So it's critical to include excellent images of your products on your products page. This is also why? If you are selling, for example, consumer good or clothing apparel, you actually get a better response when you have a model that's wearing the actual thing versus just a stock image of the shirt, because the customer can actually start to visualize what that piece of clothing would look like on them versus just a shirt on a blank white background. So the more you invest in creating a visual experience for the customer, the more likely they can visualize what that product actually is like, and then, of course, it will help your conversion. So don't just use a hero shot at the head of your web page. Put various images of your products from various perspectives and, to double down on that, you may actually want to include a video or two so the shoppers can get even more of a feel for your product. So even a simple demonstration of how the product works can go along way in the minds of a customer or a shopper. When selecting photos and videos, ask yourself what you would want to see before purchasing. And by the way, that's just a general best practice. Marketing and sales doesn't have to be difficult. You just have to think about what would you want to see, what would you have to know so that you would actually make a purchase, and if you can answer that with your own sales or marketing or website design, then that's usually what works the best for your customers. The third thing you should try to do is create highly detailed product descriptions, so of course you're using high quality photos and even videos. All your product pages should contain in depth product descriptions. These product descriptions help customers understand exactly what they're getting. Again, you don't have an in person experience, so you have to overcommunicate so that the customer can build a sense of trust with what it is you're selling and make that purchase without ever seeing it in real life or even communicating or chatting with a sales rep that they would and a traditional brick and mortar experience. When you do your product descriptions, highlight the benefits of your product, so help customers understand just how much the product would help them, paint a picture of the good life or how your product will solve their problems, and be very clear on the features of the product. Nothing should be ambiguous. So this include that the things like size, weight, color, number of pages, if you're selling a book, modules. If you're selling a course, how many parts are included? If your product doesn't include something that people would expect, make sure to highlight...

...that as well. The more information your potential customers have, the fewer questions they'll have and the more likely it is will purchase from you, and also you'll remove any buyers remorse. So just think about the last time you bought something that wasn't exactly as described. You are either going to return it immediately to Amazon, or you're going to file some sort of contest with paypal or you're going to file a chargeback from your credit card, and if you don't do any of those things, you can damn we'll be sure they're never by buying from you again. So just overcommunicate what the customer is going to be getting, because it will increase your conversion rates and it will improve the chances of them doing business with you a second time and remove a lot of the customer success and support headaches that you may have if you sell something and the customer thinks they were getting something else. The fourth technique would be to include customer reviews. So social proof is huge all the time. It's very easy to do in an ECOMMERCE environment and if your product has a high number of positive customer reviews. If it doesn't, maybe you should think about what you're selling or how you're selling it. But if it does, and it should, remember if you were buying something, you would look for those reviews. So, as the vendor, you should put those reviews on your ECOMMERCE store. This is essential. The truth is that people have much more confidence than what others say about your products, than what you say about them, and if you don't have customer reviews, you're going to be at a disadvantage. Now it's hard when you're just getting started, but focus on asking for reviews from your customers. Build that feedback loop so that when they purchase the product they're prompted for a review or they're rewarded with a discount for giving a review, and it doesn't have to be a positive or negative review, it just get you want to include some sort of mechanism. It's asking customers for reviews and let your incredible product and your incredible brand and your incredible customer service do the rest of the works that those reviews are positive, and the simplest way to do this is really just ask, so after somebody makes a purchase, you can send out an automated email that goes out maybe a couple days after they've made that purchase, after they've received it, a course, not before they received it, but after they've received the product, asking for a review and sentivise them to leave review. And if the customer is happy and you ask them, they probably will leave review and if not, then you'll have the opportunity to solve a problem and win back the customers. So just keep asking and then when you have those reviews, because you'll start to get those reviews coming in, then showcase those on your ecommerce and you can also pull reviews from other platforms as well. If you have great facebook page reviews, or if you have a brick and mortar business and you have google business reviews or yelp reviews, if you're a restaurant, you want to throw those up there and show them. Find a way to capture those and display them to as many people as possible. You can even, to be quite honest, include those as part of your social media content strategy. Take some reviews, throw them on Instagram, go into Canava, take the review, put into a nice little you know, square picture and throw it up on instagram. That's a great piece of social content. It acts as social proof and it's promoting your business. Fifth Technique would be to make check out as simple as possible. So if customers go through a complicated check out process, your conversion rate will fall significantly. So how do you simplify check out? Think about some of these steps. So allow shoppers to check out as guests. Don't...

...make people have to sign up for an account before they purchase your items. Request the minimum amount of information. So if you're selling digital products, you don't need a person's physical address, don't ask for it. Be Sure every input field is clear. Some input fields, such as dates or phone numbers, require special formatting. Make it crystal clear exactly how the data should be entered by customers. Be Up Front with shipping costs. If possible, include them. The number one thing the customers do not like and the number one thing that turns customers off is getting to the check out page and discovering that their product that they purchased is twenty five percent or thirty percent or fifty percent higher because of fees and shipping. And then, of course, always make it easy to get to the shopping cart. So customers should would be able to view their shopping cards at any point in the shopping process. Just don't overengineer your website. There's a lot of really great, simple ECOMMERCE options and you don't have to build something yourself. You can if you want, but of course, if you are building it yourself, make sure that it's optimized for the best possible customer experience. The six technique would be to provide assurance to your customers. So for most people, shopping online is an exercise of trust. Unfortunately, every online shopper has had at least one bad experience. The more assurances you can give the shoppers, the more likely it is they'll purchase from you. So what is an assurance? Well, make your return policy abundantly clear to shoppers. Want to know that if they have a problem with the product, you'll solve it for them. Second, assure your shoppers that their information is safe with you. So the last thing anyone wants is to have their private information compromise. And finally, answer as many commonly ask questions about your product as possible. So if customers regularly ask the same questions about a particular product, include those answers to the questions on the product page. Seventh technique would be to make it very easy to contact you. So your customers, your site visitors, will have questions, concerns challenges. If you want to convert these visitors into paying customers who come back to you again and again and again, make it easy for them to get in touch with you. The more ways a customer can get in touch with you, the greater chance of you being able to turn them into paying customers. Make your contact information obvious, clear and easy to understand. Put a link to your contact page in your navigation menu as well as that the bottom of every page. One thing to think about. It doesn't matter how easy it is for customers to contact you if you don't resolve their issues in a timely manner. If you take ages to respond inquiries or problems, you won't win new customers and you'll lose your existing customers. So have some sort of customer support person, or could be yourself, where you set up a time every single day to answer customer questions and inquiries. Usually one day is fine. Most customers don't usually expect same day response from a small business, although it's great if you can do that, but if it drags on for two days, three days, that customers gone. So have a customer success, customer support strategy. A technique would be to draw attention to items that are on sale. And, of course, with all these techniques, I just want to reiterate...

...that you are a be testing how to do each one of these effectively. So you're a be testing the placement of certain widgets, you're a be testing to check out experience. You are a be testing the contact form and what type of information and ask for your AB testing how to actually capture customer data. And maybe less customer data allows somebody to check out easier, maybe more customer data allows you more information so that you can contact them at a later date or retarget them with various marketing tools. So all of these tips, these are all things that you ab test to continually optimize and improve, and all of these things combined lead to conversion rate optimization. Okay, so technic number eight is to draw attention to items that are on sale. So price is a huge factor when it comes to shoppers making purchases. If you have certain items on sale, draw a lot of attention to those items. I can't even tell you how many times I see items that are on sale that are hiding on second pages, third pages. Nobody knows they're on sale. If you are putting things on sale, highlight the sales on your home page and across your various product pages. You can also send out email campaigns. You can post things to social let it be known if you're putting these things on sale. It shouldn't be a surprise to customers. You have to get that information in front of them. There are various words you can use on your actual page, free, mark down on sale, percent off, limited time, things that drive curiosity and Fomo. One advantage offering items on sale is that you can cross sell and upsell different product so if you put an item on sale, it can be considered a loss leader, or even if it's not a loss leader, it's just something that is attracting customers to your sore and then you can upsell or cross sale or you can capture their information and you can remarket them for other products in the future. Basically, cross selling is just promoting related products, while upselling is promoting more expensive versions of the same products. Numerous ways to do this. Play around with it a little bit, but actually play around with it and test it out. Nine technique would be to offer numerous payment alternatives. Remember, we spoke about making it as easy as possible for customers. Your potential customers want to be able to use their payment method of choice. If you don't offer someone's referred payment method, there's a good chance they won't purchase from you. At a minimum, you should accept all major credit cards, so of course that's visa, master card, discover Mx. also, I would suggest apple pay, paypal, Google pay, venmo. If you don't have all of the payment methods, your customers are going to find somewhere else to buy the product. Ultimately, this is about providing convenience for your customers. If you want to have a high conversion rate on your site, it's important to offer your customers the convenient they are desiring, their requesting, they are needing. In a two thousand and twenty one ECOMMERCE world, remember this is not early days ecommerce. You have significant competition. Convenience is key and the last technique would be to create an abandon cart email sequence. So if your something, explain what this is. And it's an important thing that, if you're not doing you have to be doing it. So to optimize conversions, of course there's several things you can do the first time a customer hits your web page or your website,...

...but of course one of the most useful tools is to sell to them after they've left your web page. So if you're not trying to get customers to come back to their abandoned carts, you're leaving a huge amount of money on the table. And abandoned cart is when somebody says add the cart, I means there isn't intent to buy a product and then they forgot about it to do something else. They maybe they decide that that product wasn't for them at this moment in time. But there was that intent and you want to reignite that fire in your customer. So instead of trying to find new customers, you can work to convert these customers. They're already familiar with you, they're already familiar with your products, and one of the best ways you can do this to recover abandoned cards is to send out a sequence of emails to the customer, and it's usually just a simple reminder of what they left in the cart. They can emails can include a discount they return and complete the purchase, they can include support if they have any questions or challenges, or they can even be more of a time sensitive offer, such as the products in your cart or your cart will expire if you don't make the purchase in the next twelve hours or something like that. So you can send out these emails over a series of days. It's likely that when the customer sees these emails, not a hundred percent of them will be motivated to finish that purchase, but a percentage of them will. Of course, you're trying to create a sense of urgency for customers, so while they still care about your product, you're hitting them, they're hitting their inbox and they're being reminded of your product. Then they're going to hopefully come back and convert and there will usually be a percentage. The eleventh technique is to create a general sense of urgency, not just with abandoned card customers, but with customers that hit your website. So in customers feel a sense of urgency, they are always more likely to purchase from you. People always have a distinct fear of missing out or Fomo. So how do you create urgency in your store. You can highlight limited stock. If you have a limited number of particular product bring that to the customers attention. You can do limited time offers, so creating a discount that expires at a predetermined time is another way to increase your overall conversion rate. You can have a limited selling window. So if you limit when a person can purchase a product, it forces them to decide whether or not they really want to buy it from you. So, for example, this particular drop or this particular item is only on sale for one day only. Yeah, supreme is very good at doing limited merge drops where they have a certain amount of product and once that product is gone they'll never make that product ever again. So it creates an incredible amount of FOMO. Then you can also offer bonuses, so you give people that purchase right away something additional. It's important to note that the urgency you create has to be real. So if you tell people that an offer is only available for a limited time, keep your word. Don't reoffer it next week. If people see you still giving the same offer after the expiration date, they're never going to trust you ever again. And then next technique that recommend would be to make it extremely easy to find your product. What do I mean? What do I mean by this? So make it really easy to find your products on your website, especially if you have a large number of them. Your customers always want to get to where they're going quickly and with minimum fuss. So a couple things...

...to think about. Clearly, separate products by category, but the categories in your website navigation so that people can get to where they want to be within a few clicks of a mouse. Implement search within your ecommerce site so people rely heavily on search to find the products they want. So you can also use this to look at the products of people search for the most and then put those on your home page so that their front and center when people hit your ecommerce site. You can also implement search with a variety of widgets. If you're using wordpress and woo commerce or shopify, they all have search function built in and allow people to filter products by various characteristics and tags. So, for example, if you sell clothes, allow people to filter by size, by color other relevant attributes. Just make it as easy as possible for people to find the things they want to find. One easy way to tell if things are easy to find on your site is to ask real people. Ask Your friends, your family to navigate through your site. Have them record their experiences in real time using a screen recorder like loom or even quick time, and you will know if the average person who's hitting your site for the first time would have problems finding exactly what they want to purchase. And then I would say the last thing that I want to mention in regards to e commerce is to optimize the shopping experience from mobile and this is something that's very important, because a lot of people build great websites, but they don't think about the mobile shopping experience, where most of your customers actually find your website. There's a big difference between ensuring your site works on a mobile device and optimizing the shopping experience. When the shopping experience is optimized, it's easy and even pleasant to shop your store on a mobile device. So evaluate the shopping experience with some of these questions. Is the taxis easy to read? Can Shoppers quickly see all the details about a product, or are they forced to scroll through tons of text? Are the images clear and easily accessible and in the right spot? Are the call to action buttons. So placing cart by now obvious? Our reviews and ratings easy to find? Or are they buried at the bottom of the page? Are the check out fields kept to a minimum? No one loves typing a lot of stuff on a phone. If you want a great example of what a highly optimized shopping experience looks like, honestly, just go visit Amazon. They've spent literally millions of dollars creating the ideal experience for shopper on mobile and otherwise. But try and learn from people who've done it before. Of course, we're not all Amazon, but we can include some of the things I just mentioned and some of the formatting items and user experience and user interface items that e commerce giants implement help improve our decommerce store. Anyways, I hope that provides some value gives you a little bit of insight as to things to think about when you are building out an ecommerce environment for any product. Remember any business questions you have. Don't worry, I got you. This has been another ten minute MBA. Have a great night. I'll see you tomorrow and.

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