How to develop a Conversion Strategy

How to Develop a Conversion Strategy

Due to the availability of testing tools combined with an infinite number of testing options you can find yourself down a rabbit hole testing. Without a clear focus your testing program will have no clear direction forward resulting in a lacklustre performance. After running of 3,000 tests across more than 100 clients we have learnt the three main areas to creating a winning Conversion Strategy being; fundamentals of what makes a strategy, focus on both micro, macro goals and don’t get married to your strategy.

Key Points

Strategy Definition

High Level plan to take you from where you are to where you want to be in an environment of uncertainty with the limitation of time and money.

Micro & Macro Goals

Focusing on micro goals you will be able to influence the macro goal and systematically nudge users through your sales funnel.

Don’t Marry the Strategy

Strategy is not a plan set in stone. It should evolve with iterations based on learnings.

What is conversion strategy?

It is surprising the number of strategist who when asked to define strategy will spend 10 minutes flapping their wings and producing a lot of air but will struggle to articulate the definition of “Strategy”

Using interpretive dance to communicate the definition of strategy.

Using interpretive dance to communicate the definition of strategy

Based on Wikipedia, the definition of strategy is; A high level plan of how to get from where you are to where you want to be in an environment of uncertainty with the limitation of time and money. Adjusting this for conversion it could be; A high level plan to go from 2% to 3% conversion rate while combating in a aggressive competitive landscape with limitation of budget and skills.

While a quick google for Conversion Strategy will result in a number of great articles titled “30 best conversion strategies” “7 Highly effective conversion strategies” “11 simple strategies for increased conversion” which are valuable in their own right, however they are more tactical than strategic.

To effectively build a conversion strategy, you must first document what is your current state and where you want to go. We love the S.O.S.T.A.C methodology from PR Smith which adjusted for conversion would be;

Current Situation

  • Current technology stack
  • Current company structure
  • Current website performance
  • Customer insight
  • Marketplace opportunities
  • Competitor benchmarking

Objectives

  • Defined vision
  • Aligned business goals
  • Set Smart Objectives
  • Set KPIs
  • Define reporting

Once know where you are and where you want to go, you can now start building out your conversion strategy which could have five main points;

  1. Segmentation and Targeting
  2. Positioning and Marketing Mix
  3. Multichannel experience
  4. Engagement and Content strategy
  5. Contact Strategy

Starting and Focusing on “Segmentation and Targeting” lets explore how this blends with a Conversion Strategy through Micro and Macro goals.

Micro and Macro Goals

It is taught, that when solving a complex problem, to break it into smaller more manageable tasks. Much is the same when wanting to change the site conversion rate from 2-3% is to focus on micro metrics such as the cart abandonment rate, or effectiveness of PDP to add to cart rate etc.

Based on Nudge Theory from Richard H. Tailor and in his book Nudge. Nudge Theory refers to deliberately manipulating how choices are presented to consumers. Its goal is to influence what consumers choose, either to steer them toward options that the marketer believes are good for them or simply to stimulate purchases and increase sales. Combining Richards Nudge Theory with Optimizely goal tree, Conversion Kings has created a metric based conversion strategy.

A metric based conversion strategy is a compilation of metric strategies the work together to collectively move the macro metric of site conversion rate.

Basic Metric
Device type: Desktop / Mobile

Advanced Metric
Device type: Desktop / Mobile
Website Journey: Individual metrics
Customer Segmentation

Don’t Marry the Strategy

Remembering a strategy is a high level plan, not one that is set in stone. The nature of a strategy will have time based points to review whether your strategy is working or you need to adjust. As what may have been relevant in the beginning may not be relevant now. Like a pillow can lose its shape so can you strategy.

Korean man on his wedding and honeymoon

Korean man on his wedding and honeymoon

If you are not getting the result you need such as getting to 3% conversion rate, you need to ask yourself; Is it my approach? The limitation of software? Experience of my team? Lacking of internal support? Or you may find that everything was going perfectly then a competitor enters the market and now your main value proposition is seen as a negative and you need to pivot hard…. Uber anyone?

Summary

Creating a conversion strategy will ensure you get the most from your conversion efforts and setup up for success. To create an effective strategy start with, defining what you strategy is, break it into micro strategies and finally don’t be afraid to pivot and change.

If you need assistance in creating a Conversion Strategy for your unique business, feel free to give the experts at Conversion Kings a call as they will ensure you hit your conversion goals based on your business needs.