Introduction to CRO
A free video tutorial from Brian Bozarth, M.A. Marketing
VP of Marketing
4.3 instructor rating • 7 courses • 43,677 students
Learn more from the full course2020 Complete Marketing Masterclass #3 | CRO
Session 3: Conversion Rate Optimization on all your digital marketing channels.
02:50:01 of on-demand video • Updated March 2019
- You'll be able to understand modern marketing, spread your ideas and gain empathy for those you seek to serve.
- Lead a marketing team
- Oversee marketing strategy
- Understand the modern and essential elements of marketing.
- Implement a strategic marketing playbook for your organization.
- Outline full-funnel marketing campaigns for the entire year.
English [Auto] Hello and welcome to session three of the modern marketing course for leaders in this session we will look at conversion rate optimization or more well known as CRM. Now so far in this course we have spent a great deal of time talking about the fundamentals of building a solid data informed marketing framework. In this session we will begin to dive into some of the more practical marketing aspects that will help drive your numbers up. Remember this is not the 1990s anymore meaning marketing today is much different than it was 20 to 30 years ago. The point is this you have competitors out there who are marketing. In today's world with today's tactics and tools and to keep up with them and really win in this marketing game you should too which is why we begin with the topic of CRM. The reality is that most likely you already have visitors coming to your primary marketing channel that is your Web site. So rather than first focusing on getting more of what you already have that is visitors let's look at what you are doing with those visitors in session for after we learn how to convert current visitors. We will look at how we can capture more traffic and ultimately customers. But first let's look at some stats to show you why this topic of conversion rate optimization is important. Now these statistics may apply to you as well such as only about 22 percent of businesses are actually satisfied with their conversion rate. Now I would suggest to you that no business should ever be satisfied with their conversion rates. Remember we don't live in our market in a static environment everything around us is changing and the moment we are satisfied are content with our numbers is the same moment we get overtaken by the competitors. Now for Officer businesses could be unsatisfied for a number of reasons. One of the reasons as you can see here could be the amount we actually spend on conversion rate optimization. Only about 1 percent of marketing funds are spent converting versus acquiring customers. Sadly this underscores the value that people place on CRM. Conversely I like what Rand Fishman says about the importance is CRM. Now if you've been around the marketing world at all over the last decade or so then you've heard of the name brand fish can. Or maybe you've seen him at a conference or seen his whiteboard Friday videos he is. I believe he's a self entitled guru of moss. Either way he is pretty smart when it comes to marketing and he's been quoted in saying CRM is the most important marketing activity because it makes every visitor exponentially more valuable. You can see right off that adding value to each visitor is a win for your bottom line. Now he points out in their case study that initially they did have high traffic but few visitors took the next step. In other words they each visitor had little value. Now it didn't matter to the business if 50000 visitors read their blog. What mattered was that they only had a handful of conversions from those visitors. The disconnect presented a massive opportunity to them right to leverage CRM. And so that's what they did and ran would go on to say that if he could go back in time he would have gotten religious about CRM sooner. When he speaks about the most valuable Web market activity he always puts CRM o first and so should we. And here's why. If you have not already seen this graphic let me introduce you to the power law of CRM. It's a principle developed by conversion rate expert Scott now as they point out the obvious reason to improve your conversion rate. First is that you want more customers without having to spend any more on advertising or gaining new visitors right. This simple sero equation shows that your revenue is equal to your visitors multiplied by your conversion rate. That is the percentage of your visitors that turn into customers and we'll look at that in just a little bit. Multiplied by the lifetime customer spent. That is the amount that each of them spends with you. Now the point is this if you double your conversion rate you double your revenue. Now let me ask how difficult or expensive would it be to get twice as many visitors in order to double your revenue or get your current customers to spend twice as much as you can see. Conversion rate is the lowest hanging fruit in this equation but this chart shows a second benefit as you can see here your profit is even more sensitive to your conversion rate than your revenue is. That is your cost generally double if you tried to attract twice as many visitors right. But your conversion rate does not. You can see the obvious implication for a business when revenue increases proportionately larger than your costs. The end game is exponential gains in revenue which is why I do agree with Rand Siro is the most valuable marketing discipline to execute on first. Unfortunately this is not the case for most businesses. Now let me underscore this point even more by pointing to a few more stats and as I do so let me say that zero is not the same as you ex. However poor UX will lead to poor conversion rates because 79 percent of visitors will search another site to complete a task. If your site is simply too confusing and look at this one. Mobile users are five times more likely to abandon the task if the site isn't optimized for mobile. Now this is important because according to Search Engine Watch 60 percent of consumers use mobile exclusively to make purchase decisions. Now two thirds of mobile consumers are looking to make a purchase the same day. This is common sense right. Wrong. Most businesses may agree that conversion is important but remains low on the list of marketing priorities. Again let's look at the impact of CRM at this time. Let's take a look at it in chart format. Now you may have asked this question why is the arrow important. Well let's take a look at three sample companies in this very basic diagram that should drive home an important point. Now as you can see here there are three companies and each company has the same amount of traffic that has 10000 monthly Web site visitors. The only thing that changes is the conversion rate. Now what I want you to notice is that the conversion rates are not ridiculous but can be very standard for most industries such as company a has 1 percent and that may be on the low end and Company C has 3 percent and that may be on the high end. But for the most part they are still very reasonable. The key point here the key takeaway is trying to generate more Web site traffic isn't necessarily the right approach. Not only is generating more traffic costly and takes time but most businesses have a finite demand for products and services so it's imperative that you make the most out of your existing web site traffic. Let's take this one layer deeper and look at a few primary assumptions we can make concerning the buyer's journey. As you can see here before people purchase they generally go on a journey right the buyer's journey. And here are some just basic assumptions. Number one most businesses have a primary goal that is a specific defined activity that they want you to perform such as purchase or subscription or free trial whatever it is. Secondly every user starts from a specific source. If not online like Google or Facebook or an email then it's a direct reference from a friend. Commercial or print publication right. Number three. Third assumption there are touch points on this journey on the buyer's journey and each touchpoint along that journey has a specific conversion rate. Although many will focus on just the primary step of conversion such as qualified lead to paying customer. The reality is that every touchpoint is an opportunity for increased conversion rates. Number four generally speaking you are able to combine different groups of people into personas. As we saw in the last session and these personas will have similar expectations and exhibits similar behaviors. In a nutshell CRM is simply about increasing the flow of qualified buyers throughout the entire journey along every touchpoint to that primary goal. Reality check though is don't expect that you're going to rank for a keyword drive someone to your site for the first time and convert them instantly. That rarely happens sometimes but rarely rather in this realm of zero. We have to constantly thinking How can I delight people and how can I satisfy their wants their needs and pain points during every step of the funnel. The goal is that we build a rapport in the consumer's mind that we actually care about them and that we are the authoritative trustworthy experts for any given subject and therefore are able to be trusted with another click and ultimately their business. However if we're simply doing the same marketing activities day in and day out without the purposeful intent on understanding and satisfying the unique consumer's wants needs and pain points at each touchpoint of the journey then we do it. Albert Einstein said and that is the definition of insanity is doing the same thing over and over again and expecting different results. Now may I ask you is your marketing department insane. Don't answer that but you get the point. Write blog post may not have worked for you in the past so generating more blog posts won't necessarily work for you in the future. And yet so many businesses continue to do that social may be very unsatisfying in the sense of new leads or even traffic. And yet since most companies have a social presence you may feel inclined to automate this part of your marketing. My goal though during this session is to cause you to think about every marketing activity and see what can be optimizing what needs to be put on hold right priority is the key here. Which marketing activities have the opportunity for the lowest hanging fruit. Do those first and foremost to the best of your ability and then and only then move on as the old cliche goes. Less is more. And this is absolutely true when it comes to marketing. Less marketing activity but with high quality and intent will win every time. All right. In the next section we will move on to some common zero definitions so that we are all on the same page concerning this topic of conversion rate optimization.