Conversion Rate Optimization Chapter 5

Note: This chapter in its entirety is available as a sample chapter Conversion Rate Optimization (2 MB PDF)

CRO uses a wide variety of techniques including persuasive copywriting and credibility-based web design to convert prospects into buyers. By planning, designing, and optimizing your website to persuade, you can ensure that it will act as a more efficient sales tool. You can compare a conversion-optimized website to a successful (but commission- and salary-free) digital salesperson who works for you 24/7, 365 days a year, qualifying leads, building rapport, and even closing sales.

The Benefits of CRO

With the average conversion rate hovering between 2.5 and 3.1% (Fireclick 2008, Shop.org 2007), the importance of a conversion optimized site becomes clear. Although "your mileage may vary," you can expect that high-quality optimization will increase conversions by 50% to 200% or even more. For example, in Chapter 4 "PPC Case Study: BodyGlove.com" we discuss a case in which the increase was more than 600%.

CRO helps you to meet the following business goals:

• An increase in sales, revenues, and profits
• The generation of more leads for your sales team
• Boosting "opt-ins" to build your e-mail list
• Reduction of customer acquisition costs
• More page views for advertising
• Engagement of more users
• A permanent improvement to conversion rates

Best Practices for CRO

What follows are the best-practice principles behind CRO. It might seem at first like an extremely broad, almost intangible, idea. However, you can achieve conversion by following very specific steps using tools you already have at your disposal. CRO uses what you already know about your customers and their psychology to your advantage by using language, imagery, and a level of engagement that will make your site stand out among those of your competitors.

First we'll explore how the principle of source credibility can make your site appear more trustworthy. Next, we'll discuss the psychology of persuasion, including:

• The six primary psychological persuaders
• Maximizing conversions with personas

Then we'll highlight the top 10 factors that you can use to maximize your site's conversion rate, including:

1. Credibility-based web design
2. Easy navigation
3. Logo credibility
4. Memorable slogans
5. Benefit-oriented headlines
6. Best content placement
7. Calls to action
8. Benefit-oriented content
9. Using "hero shots"
10. Interactivity and engagement

You'll learn how to stage your CRO campaign through the discovery, planning, and optimization phases. Finally, we'll show these techniques in action by analyzing two examples of best conversion practices. Here is an outline of the chapter:

• Conversion Rate Optimization sample chapter (2 MB PDF)
• The Benefits of CRO
• Best Practices for CRO
• Source Credibility: Designing Gut Reactions
• The Psychology of Persuasion
• The six persuaders
• Reciprocation - Repaying an obligation
• Consistency and commitment - Little yeses
• Social proof - A best-seller!
• Liking - Friends selling bonds
• Authority - Dutiful deference
• Scarcity - Exclusive limited numeric offer!
• Figure 5-1. Orbitz.com using scarcity to sell airline tickets
• Maximizing Conversion with Personas (sidebar)
• Building trust to close the sale
• Top 10 Factors to Maximize Conversion Rates
• Factor #1: Use a Credibility-based Professional Design
• Factor #2: Make Website Navigation Easy
• Factor #3: Optimize the Credibility of Your Logo
• Factor #4: Write a Memorable Slogan
• Factor #5: Use Benefit-Oriented Headlines
• Optimum link length
• Figure 5-2. Link length versus success rate
• Factor #6: Give Important Content the Best Placement
• Factor #7: Include Appealing Offers and Calls to Action
• Factor #8: Deploy Persuasive, Benefit-Oriented Content
• Factor #9: Use Illustrative Product and Service Images - The "Hero Shot"
• Figure 5-3. Before and after shots for a cosmetic dentistry site
• Figure 5-4. Google lava lamp
• Factor #10: Use Interactive Elements to Engage Users
• Figure 5-5. Toyota Highlander Hybrid Flash movie
• Figure 5-6. LivePerson symbol
• Figure 5-7. Example from MyWeddingFavors.com of a video spokesperson
• Staging Your CRO Campaign
• Discovery
• Discovering personas
• Demographics
• Psychographics
• Geographic region
• Customer pain points and goals
• Value Proposition
• Benefits hierarchy
• Key frustrations and objections
• Buying criteria
• Risk reversal
• Keyword phrases
• The Unique Selling Proposition (USP)
• Step 1: Use your biggest benefits
• Step 2: Be unique
• Step 3: Solve an industry "pain point" or "performance gap"
• Step 4: Be specific and offer proof
• Step 5: Condense your USP into one clear and concise sentence
• Step 6: Integrate your USP into your website and all marketing materials
• Step 7: Deliver on your USP's promise
• Planning
• Step 1: Create the redesign plan: planning your site architecture
• Step 2: Plan your website design and color scheme
• Figure 5-8. IBM.com home page
• Figure 5-9. PartyCity.com home page
• Optimization
• Optimize with persuasive copywriting
• Appeal to the value hierarchies of your customers
• Create benefit-oriented content
• Write engaging headlines and copy
• Start (and end) each paragraph with a bang
• Include calls to action - Writing links, buttons, and offers
• Adopt a writing style
• Pain versus gain
• Past, present, or future tense
• You, me, and them
• Be consistent
• Effective writing techniques
• Use verbs and active voice
• Tug emotions through effective mental imaging
• Write for scanning
• Avoid jargon and hype
• Use testimonials
• Don't Be a wimp
• Offer a guarantee
• Ask for the order
• Use graphics to enhance the sales experience
• Putting it on paper and building graphical mock-ups
• Wireframe web templates and mock-ups to finalize "look and feel"
• Figure 5-10. Wireframe layout
• Figure 5-11. Conversion elements integrated into the MyWeddingFavors.com home page
• Figure 5-12. Ultimate Software's lead generation page
• Optimize your conversion paths to get the click
• Figure 5-13. Conversion funnel
• Figure 5-14. Google Analytics' Funnel and Navigation Report
• Test Everything
• Summary

References

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January 19, 2008, http://index.fireclick.com (Jan. 19, 2008).

Shop.org, "The State of Retailing Online 2007,"

National Retail Federation, September 18, 2007, http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=365 (February 15, 2008). The shopping cart abandonment rate peaked at 53% in 2003. The conversion rate for e-commerce sites peaked in 2002 at 3.2%. In the 2007 report, e-commerce conversion was 3.1%.

Robins, D., and J. Holmes. 2008. "Aesthetics and credibility in web site design."

Information Processing and Management 44 (1): 386-399. Preconscious judgments of aesthetics influence perceived credibility of websites. Voilà! Instant credibility.

Akamai. 2007. "Boosting Online Commerce Profitability with Akamai."

http://www.akamai.com (accessed February 15, 2008). Akamai estimated a 9%to 15% improvement in conversion rate after a website is "Akamaized."

Gamberini, L. et al. 2007. "Embedded Persuasive Strategies to Obtain Visitors' Data: Comparing Reward and Reciprocity in an Amateur, Knowledge-Based Website,"

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McAfee. 2008. "HACKER SAFE certified sites prevent over 99.9% of hacker crime."

http://www.scanalert.com/ site/en/certification/marketing/ (accessed February 18, 2008). McAfee claims an average increase in conversion rate of 14% among 150 million unique visitors who see the HACKER SAFE mark. Your mileage may vary.

Eisenberg, B. et al. 2006. Persuasive Online Copywriting--How to Take Your Words to the Bank.

New York: Future Now, 60-64. http://www.futurenowinc.com (accessed February 15, 2008). This is an updated PDF of the original 2002 book from Wizard Academy Press.

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ClickZ, http://www.clickz.com/ showPage.html?page=1588161 (accessed June 5, 2008.) Found over 1,100 factors that affect conversion rate.

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Behavior and Information Technology 25 (2):115-126. See also the introduction to Part II.

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Haig, W., and L. Harper. 1997. The Power of Logos: How to Create Effective Company Logos.

New York: John Wiley. Haig coined the term "credibility-based logo design" in his master's thesis at the University of Hawaii, "Credibility Compared to Likeability: A Study of Company Logos," in 1979. His Logos book expanding on his thesis followed.

Haig, W.L. 2006. "How and Why Credibility-Based Company Logos are Effective in Marketing Communication in Persuading Customers to Take Action: A Multiple Case Study Toward a Better Understanding of Creativity in Branding."

Ph.D. dissertation, Southern Cross University, Lismore, Australia.

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User Interface Engineering, http://www.uie.com (accessed March 30, 2008). Figure 5-2 reproduced by permission.

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New York: Oxford University Press. A theoretical but fundamentally important book for web designers.

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MarketingSherpa. 2005. Landing Page Handbook 1.

Warren, RI: MarketingSherpa, 51.

Ibid.,

49.

Ibid.,

51.

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International Journal of Human-Computer Studies 58 (3): 281-305.

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In HICSS 2006 (January 4-7, 2006), 9 pages.

LivePerson. 2007. "Hoover's increases conversion rates and average order values with LivePerson's proactive chat."

LivePerson, http://www.liveperson.com/customers/hoovers/results.asp (accessed February 17, 2008).

MarketingSherpa. July 19, 2005. "Video Spokesmodel Lifts Ecommerce Conversions 78%: A/B Test Results."

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In ICEC 2006 (Fredericton, New Brunswick, Canada: August 14-16, 2006), 463-470.

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