Conversion Rate Optimisation (CRO) | Double your Shopify sales in 2024

Summary

In this video, Davie Fogarty emphasizes the importance of Conversion Rate Optimization (CRO) in e-commerce, sharing his personal experiences and tips for increasing revenue through website optimization. He highlights how CRO can significantly boost business performance with simple A/B tests, from the basics of landing page tweaks to hiring specialized teams for larger operations. Fogarty explains tools, testing strategies, and frameworks like the ICE method to guide testing priorities. He also shares practical case studies, stressing that small design changes, such as adding floating add-to-cart buttons, can lead to substantial gains in revenue.

Takeaways

• 😀 CRO (Conversion Rate Optimization) can significantly boost your revenue by optimizing your website and converting more visitors into customers.
• 😀 A/B testing is crucial in CRO: it allows you to compare different versions of a website or landing page to measure which performs better.
• 😀 Even if you're just starting out with a small revenue ($0 to $500K/year), implementing CRO through simple tools and surveys can yield valuable insights.
• 😀 Post-purchase attribution surveys are a great way to understand why customers buy from your store and guide your future optimization efforts.
• 😀 For businesses making $500K to $2M in revenue, hiring a dedicated CRO team, including designers and developers, can significantly improve your results.
• 😀 The ICE framework (Impact, Confidence, Ease) helps prioritize CRO tests by evaluating their potential impact, your confidence in them, and the ease of implementation.
• 😀 Simple design changes like adding a floating add-to-cart button can lead to substantial revenue increases (e.g., 1.25% more revenue per session).
• 😀 Small updates, such as adding a 'New' badge to products, can have a large impact on sales, even if the changes seem minor.
• 😀 Social proof, like displaying customer reviews higher up on product pages, can drive faster purchasing decisions from visitors.
• 😀 Be cautious with the tools and design changes you implement; CRO tools and too many images can slow down your site, hurting your traffic's behavior.
• 😀 The key metrics for measuring CRO success include Revenue per Visitor (RPV), average order value, and the effectiveness of upsells or order bumps.

Q & A

What is Conversion Rate Optimization (CRO) and why is it important for e-commerce?

CRO, or Conversion Rate Optimization, is the process of improving the effectiveness of your website in converting visitors into customers. It's important because it helps e-commerce businesses maximize their existing traffic without having to spend more on ads. By optimizing elements like product pages and checkout processes, businesses can increase sales and revenue.

How does CRO compare to optimizing Facebook ads?

While optimizing Facebook ads is important for attracting traffic, CRO focuses on improving the experience of users once they land on your website. CRO involves testing and optimizing different elements of your website (such as landing pages) to increase the conversion rate, making your ad spend more efficient.

What is A/B testing in CRO and how is it applied?

A/B testing in CRO involves creating two versions of a webpage or element (such as a button or headline) and testing them against each other to see which version performs better in terms of conversion rates. This helps businesses make data-driven decisions on what works best for their audience.

What tools are recommended for A/B testing on e-commerce websites?

Tools like **ClickFunnels**, **GemPages**, **Shogun**, and **Webflow** are commonly recommended for A/B testing. These platforms offer built-in testing features, making it easy to set up and analyze tests. For Shopify users, Google Optimize can be integrated to run split tests, though it may require additional development skills.

What is the ICE framework and how does it help prioritize CRO tests?

The ICE framework helps prioritize CRO tests by evaluating three factors: **Impact** (how much the test could improve conversions), **Confidence** (how sure you are that the test will succeed), and **Ease** (how easy it is to implement the test). This helps businesses focus on the most promising and manageable tests.

What should small e-commerce businesses (under $500k in revenue) focus on when starting with CRO?

For businesses with under $500k in revenue, it's recommended to start simple with a **post-purchase attribution survey** to gather customer insights. This data can be used to optimize email campaigns and refine product pages. Basic tools like **GemPages** or **Shogun** can be used for A/B testing without needing a dedicated team.

At what stage should businesses start hiring for CRO expertise?

Businesses making between $500k and $2 million in revenue may need to hire a **UI designer**, **developer**, and **CRO expert** to help implement and manage A/B testing. These hires are important for improving the efficiency of ad spend and ensuring continuous optimization of the website.

How do small design changes, like a 'New' product badge, impact conversions?

Small design changes can have significant effects on conversions. For example, adding a 'New' badge to products can make them more attractive to customers, encouraging them to purchase more. In the case of **The Oodie**, this change resulted in a revenue uplift of $1.1 million, showing that small adjustments can drive big results.

What are the risks of using too many CRO tools and design changes?

Using too many CRO tools or making excessive design changes can slow down your website, negatively affecting user behavior and conversion rates. It's important to balance optimization with site speed and ensure that the changes you implement don't cause performance issues.

Why is it important to measure **Revenue per Visitor (RPV)** in CRO?

Measuring **Revenue per Visitor (RPV)** is crucial because it accounts for various factors that impact profitability, such as **average order value** and **conversion rates**. By considering RPV, businesses can optimize their site in a way that maximizes not just conversion rate but overall profit, including upsell opportunities and operational costs.