- CRO is one of the most underestimated levers
that you have to optimize your business.
Everyone always talks about
optimizing your Facebook ad structure,
but nobody talks about optimizing your landing page.
Even on YouTube, the search volume for CRO is so low.
This needs to change.
Conversion rate optimization is one of the only things
that can double your business with just a few tests.
For those that are new here, I'm Davie Fogarty.
My Shopify stores have done over $270 million.
Today, we're gonna cover off my experience and tips on CRO.
First, let me explain what CRO actually is.
It stands for conversion rate optimization.
CRO is just a process of creating an alternative version
of your website that you can run traffic to.
You then measure the difference
between one variable or the other,
also known as A/B testing.
You can obviously optimize all kinds of things
such as Facebook ads and e-mail.
What we're gonna talk about today is actually website CRO.
A lot of tools like ClickFunnels
actually have their A/B testing built within their platform,
making it really simple for you to use.
Things like Webflow as well
have a really simple integration with Google Optimize,
allowing you to run your split tests.
While I hear that Shopify is working
on a solution like this, especially with the 2.0 themes,
it is still quite difficult to A/B test Shopify.
You may need to use something like Google Optimize
or another CRO tool as well as a developer and a designer.
What I recommend for CRO really depends on a lot of things.
It depends on your business size, your business resources
and also your tech stack.
What are you using to sell your product?
First, let me describe what I would do
if I was just starting out in e-commerce.
This is $0 to about $500,000 revenue per year.
With this amount of traffic coming to your store,
I still recommend doing CRO.
You might just be a little less structured about it.
You got so many things on the go that you're setting up,
figuring out with your creatives,
that it might not be your sole attention.
Regardless of your size,
I suggest starting with a post-purchase attribution survey.
This is going to start getting a lot more information
around why customers are buying your products.
Then, I would try incorporating that
into my e-mail split tests.
This will start giving you a lot more information
around what your customers are receptive to.
Now, if you're using Shopify and just the basic theme,
you might wanna use a page builder.
You can use something like GemPages or Shogun.
They actually have inbuilt A/B testing.
Providing you have some basic design skills,
I would try designing the page myself.
Split testing the insights that you've learned
from your survey.
Alternatively,
you can build an advertorial on ClickFunnels.
This can then push to a sales page
and then also push to one-click upsells.
This has an inbuilt CRO function,
so it's great to get started with.
If you really struggle with design,
you might just want to hire a virtual assistant
to build the page for you.
You can go into Upwork or Fiverr
and find a really great designer.
You're going to want to use the word landing page designer.
Look for someone with experience
in either ClickFunnels or GemPages,
whatever software you're using.
You need to understand basic CRO elements
so that you can manage this designer.
You can't expect a cheap designer
to understand these components.
I'm definitely gonna cover some of these theories
at the end of this video
and show you some winning tests of The Oodie.
If you're doing $500,000 to $2 million revenue,
you might be ready to hire someone in this area.
This might be scary to think about
because you're finally making some good profits.
But if you think about it,
you're probably spending a lot of money
on Facebook advertising.
By optimizing the landing page
that you're sending that traffic to,
the ad spend is gonna be far more efficient
and you're gonna just make more.
To run consistent A/B tests,
you're going to need a UI designer.
You're also going to need a developer
that can code those designs into the front-end
of the website.
You want this developer to be able to work
with one of the CRO tools such as Google Optimize.
The third person you need is someone that understands CRO.
As entrepreneurs,
we need to understand the levers of our business.
So this might need to be you.
However, if you just don't feel that you have this,
you can hire an expert on Upwork.
They are quite hard to find though
and you really wanna make sure
that the person can show past winning tests in e-commerce.
One of the hardest things
about CRO is getting those three elements in line.
It's not only the implementation and the testing,
but also the hypothesis around why this testing will work.
You really need the theory and the execution
to make it work.
If you are hiring someone,
you might wanna do a fortnightly meeting
where you go over the proposed tests that you're going to do
and then the implementation and the results.
Obviously the frequency of these meetings will be determined
by how many tests you're running
and also how many tests you can run based on the traffic
going to your website.
To ensure that you get a high enough confidence level
that a test is correct,
you do need a certain amount of traffic.
I can explain that a little bit more
when I show you some of our winning tests.
When you're doing over $2 million a year at great profits
you might really want to invest in your CRO team.
One structure that we are looking at
is a head of CRO, a UX designer, a front-end developer,
a data analyst and a direct response copywriter.
The head of CRO runs the tests and the projects.
If you're wondering what tests to run,
I suggest the ICE framework.
I first read about this
in Hacking Growth by Morgan Brown and Sean Ellis.
The ICE framework stands for Impact, Confidence and Ease.
So the impact is how much is it going to increase
your conversion goal?
Confidence is, based on your experience,
how confident are you think that this is going to work?
And then ease is implementation.
Do you need external teams
or a developer to actually implement the test?
This will really help frame your priorities
and get more out of your CRO program.
All righty.
As promised, let's head to The Oodie website
and check out some winning tests that we had
and why they worked.
So, this is definitely one of my favorite tests.
And so far, when I've rolled it out to any store,
it has always worked.
That's not to say that it's always going to work,
but so far it has for me, for all brands.
It's called a floating add to cart.
This test we're looking at now
actually shows the floating cart implementation on desktop.
We previously ran the mobile floating add to cart
and we got huge results.
We then implemented on desktop under the hypothesis that
if the CTA is always front of mind,
more people will add to cart.
We had 1.25% more revenue per session,
which based on where this site was implemented
and how many people are using desktop,
would equate to 1.7 to $3 million
for The Oodie Australia per year.
That's extra revenue we wouldn't have otherwise
with this small design change that made consumers shop more.
This other test I thought was really interesting.
By simply adding the New badge
to new products on our website,
we've got a great revenue uplift.
A hypothesis that people would be more likely
to purchase the new ones and feel excited about the product.
If this was implemented just 12 months ago,
we would've made 1.1 million more in revenue.
This test is also very similar.
It's showing the New badge on mobile in our collection page.
You might be thinking these are very, very small changes,
and you are right.
A developer can easily implement these
on your site and you can easily test them
without a designer, which is fantastic.
Remember the ICE framework.
The impact of these tests are generally pretty low.
Because we have a large amount of revenue
going in our store, it obviously feels significant for us.
The confidence we have in these tests is relatively high,
considering the basic selling principles
that people use quite often.
Ease of implementing these tests is extremely high.
So therefore in the ICE framework,
we should be rolling out these tests.
If you are just getting started,
you might wanna do a really impactful test,
such as changing the whole product page
as I described earlier.
These large amounts of macro changes
can have a more significant effect versus your control.
The more significant change in the user experience
is the more likely there'll be a significant change
in the conversion rate.
When you're starting out,
I don't think you should get too dogmatic
around what you're testing.
Golden rule of A/B testing is
only change one variable at a time.
If you change more than one, then you don't know
what impacted the actual positive result.
When you're just getting started out,
honestly, you're just trying to get
as many boosts as possible with very short amount of time
and resources.
I'd say that's going to competitor's websites
that you know are doing CRO testing,
and doing large changes at once
until you get a really strong baseline that you can't beat,
then do small incremental changes from there.
Otherwise, it's just too slow
and you're up against all your competitors
that you're trying to beat.
Final test that I wanted to show you today,
which Ezra Firestone absolutely loves and endorses,
is this social proof under the product title.
Social proof is generally found really low
on the product page.
By adding it this higher,
we can talk about our customer reviews
and get people to add to cart quicker.
Those are some tests that you can go ahead
and roll out to your store.
Before we wrap up,
there are some other things that you need to know,
some warnings, in fact.
First of all,
CRO tools can actually slow your website down a lot.
Same with design changes.
If you slow your website down too much,
by adding too many images,
it will negatively affect how your traffic
is behaving on your website.
You need to weigh this up.
This is often why I like to actually use hard coding things
into the website when there's actually an app available
that can do it for you.
It might be way cheaper to hire a developer for $25 an hour
rather than slowing your site down by a second
and costing you thousands in sales.
The other thing you also need to know
is how to measure success.
You need to be measuring revenue per visitor
or earnings per visitor.
There are a few things that make up this metric.
For example, average order value, conversion rate.
Also, the actual operational expenses behind your product.
For example, if you're doing an upsell
where you are selling three products through a sales funnel,
or an order bump that increases the amount of product
that people are buying,
there may be cheaper fulfillment rates for that product.
So, you need to consider all of these variables
when you are implementing a test.
Don't just discount heavily.
Think about your profit per visitor.
I hope today's video gave you a little bit more insight
on how I'd set up a conversion rate program for e-commerce.
If you have any questions,
please just leave a comment below or in our community group
and I'll try to get a conversion rate specialist
to answer them.
Thanks for watching.
Don't forget to like and subscribe.
Peace.