We’re not going to bore you with what Conversion Rate Optimization (CRO) means. You already know all that.
But, If you were to remember one thing about Conversion Rate Optimization for your Magento store, remember this.
When looking to improve your conversion rate you must understand CRO as a process that connects the dots between WHAT, WHERE, WHEN and WHO.
Most of the optimizers out there are focusing on where and what, while WHO should be the first thing on their minds.
Proper research is needed to get to the heart of your customers. Both quantitative and qualitative research. Nothing good ever came from assumptions but something good did come from data-driven insights.
Whether it is a “choice-reduction” pop-up on the category page or an A/B Test on the cart page, as long as you do your research properly and have a clear picture of your persona you should be set for success.
How to do Conversion Rate Optimization for your Magento store using Omniconvert
We chose Magento not only to talk about, but also to build a product for it. We did this for the following reasons:
Popularity in eCommerce. Magento ranks among the top 10 most popular platforms in the eCommerce space (no matter the same of the eCommerce).
Relevancy in eCommerce. We know and you know that in order for an eCommerce to do proper CRO, it needs a significant volume of traffic. So, when looking again at stats, and taking into account only eCommerce stores with more than 100k traffic, Magento ranks 2nd.
Magento brings the data, CRO brings the strategy
We heard it over and over again: “We have data. It’s not data that we are missing. What we are missing is the action. Give me actionable insights I can work with!”
While Magento brings in the data, CRO comes in with the actionable insights.
Although I am sure you already tested various tools and extensions to augment your Magento store and improve your conversion rate, here’s a fresh perspective on how you can use Omniconvert to understand your buyers and optimize your conversion rate at the same time.
The first thing you will want to consider when looking to improve the conversion rate of your Magento store is how you can use RFM segmentation on your Magento customer database.
Understand who you’re designing for in order to create the best experience possible.
We talked before about the importance of discovering who your customers are. The WHO in the equation. RFM Segmentation fits like a glove as it does just this: uncovers the WHO.
RFM stands for Recency, Frequency, Monetary Segmentation and has been around for ages. (since the ‘70s to be more precise).
Used in direct marketing, this oldie but goldie marketing method helps marketers segment their customer database based on buying behaviors.
Knowing who their customers are, helps marketers to:
- Save marketing dollars by designing marketing campaigns tailored to their customers;
- Increase customer retention by providing each customer segment what they desire;
How does this work
Magento collects this information for each customer:
(R) the date of the latest purchase (aka Recency),
(F) how many orders a customer placed in his lifetime (aka Frequency)
(M) and the value of all these orders (aka Monetary).
Based on each customer’s purchase history, he/she receives a score, an RFM score which may indicate a VIP customer, an Active customer or a Dormant one.
We plugin into Magento, collect this data, apply a simple algorithm, and, based on that, we return customer segments. We then make it easy for any Marketer to import the customer segments into Omniconvert and design personalized experiences for each.
In this blog post, we tried to explain how we designed an automated RFM segmentation and how we are using it with our customers.
Katie likes to buy clothes from the “Matt’s hats for cats” online store. Matt keeps his customer data in Magento.
Katie’s most recent purchase was 30 days ago;
She placed 20 orders during her entire life with the store;
of a total value of 1,000 $;
If we want to understand what type of customer Katie is, we need to compare her buying pattern against the other “Matt’s hats for cats” customers. Where does she rank in terms of recency, frequency, and monetary value when compared to other customers?
This comparison will conclude in allocating Katie a score from 1-5 (1 being the lowest and 5 the highest).
Let’s say that once the comparison has been done, Katie receives an RFM score of 555 (which is the maximum score possible in this matrix).
This makes Katie a VIP customer, your store’s soulmate, the type of customer you would like to keep coming back and buy from you.
Makes sense to treat her differently. Maybe send her a cake for her birthday?
If a high-value customer only buys premium products, you should welcome them with a message that reflects that behavior. On the other hand, you can use a more general message for regular customers – such as a piece of information on a new range of products in your store.
What a customer with a high RFM score sees
What a regular customer sees
After all, is said and done…
Did you know that a VIP customer can be worth 300x times more than a newly acquired customer? Knowing this, would you do your best to understand who they are and what you can do to extend the relationship?
Are you curious to know who is hiding in your database? How many VIP customers expect you to discover them? How many customers are about to become inactive?
The RFM segmentation done inside your Magento gives you this information. Once you know this, it’s time to prepare the experiments.
The good news is that, for Magento stores, you can simply use our dedicated extension called Omniconvert Growth Engine. The extension automatically creates the RFM segments for you and also connects your Magento store to the Omniconvert platform making it easy for you to run A/B Tests, overlays and/or online surveys on the customer segments surfaced.
Once you segment your customers, what should you do?
The most frequent use for segmentation is to offer customized promotions.
For example, you might want to convert people who have previously abandoned their carts: simply segment your audience and then, the next time they will come to your website, welcome them with an offer.
Previously, you may have needed to work with a developer to set up your promotion overlays.
Omniconvert, helps Magento stores create overlays (such as pop-ups, ribbons etc.) without the help of a front-end developer. All you have to do is use the friendly editor to choose, upload your own or create a template from scratch. You can also take it a step further and personalize your website overlays for each audience segment if you want to: edit colors, adjust CTA buttons, experiment with the copy etc.
To give you an example of what you can achieve using Omniconvert, here’s an experiment we’ve run for one of your clients: two pop-up variations for desktop users,
one with 30% discount with a countdown (left),
and one with 20% discount and no countdown (right).
The overlays below were shown only to visitors who browsed through at least three pages before displaying an intent to leave the website.
The pop-up on the left recorded an increase of 19% in conversion rate and an increase of 10.73% in revenue/visitor. Also, we have noticed that new visitors and returning visitors displayed different behaviors, and because of that they react to different incentives.
Dynamic text replacement
Once you have truly understood your customers, the messages that you will be sending out will not be fairytales but things people really care about and can relate to.
It’s time for you to use those insights to personalize your messages.
One way to do that is by using dynamic text replacement. Dynamic text replacement is a real-time personalization technique that allows you to customize the text on your pop-ups, slide-ins, floating bars etc. based on different custom parameters. This means that you can automatically create targeted messages for each visitor that comes on your Magento store.
There are many ways in which you can use dynamic text replacement, but the most common ones are creating a feeling of urgency, scarcity or a real-time experience to influence customers to press the buy button faster.
Here’s how one of our clients, Covera, combined two custom variables, Region and Temperature, to create a real-time experience:
Sometimes, your customers might not be ready to buy right away, but that doesn’t mean that you should just give up. Exit-intent surveys are a great last-minute opportunity to interact and re-engage your store visitors. By gathering insights about them, you have a higher chance of converting them either on the spot, right after they’ve completed your survey, or on their next visit.
Here’s an example of how one of our clients used exit-intent surveys to treat objections:
After analyzing their customer data, the team found a potentially valuable and underperforming segment of engaged users that were not using the price filter. So they’ve used the Omniconvert tool to prompt them with an exit pop-up overlay that showed available price ranges in order to close the sale. The results were a 6% increase in conversion rate and a 1.68% uplift in revenue per visitor.
Looking at all the examples above, can you guess what they all have in common? Exactly, the images are high-quality.
When you write your website copy, you should take into consideration that 80% of online shoppers scan the web pages, don’t read. So having text on an image is a very effective way to get your customers’ attention and deliver your message.
An MIT study showed that the human brain can identify images in as little as 13 milliseconds and low quality or irrelevant images can actually stop people from converting. So, whether it’s the product images, your pop-ups or newsletter images, make sure they are all high-quality.
However, just because high-quality images perform better than low-quality ones doesn’t mean that all high-quality images perform the same. And that’s where the Omniconvert A/B testing tool comes in handy – you can experiment with different images (and different image copy) to find the one that works best for you.
High converting copy
Now, just because most online shoppers don’t read web pages doesn’t mean that you shouldn’t spend any time improving your website copy. On the contrary!
Great UX, high-quality product images and an easy navigation flow are all important for a good conversion rate, but the copy is the real foundation of your brand. It’s the tone of voice, product descriptions, and irresistible call to actions that persuade your customers to convert. However, an online store’s copy isn’t about fancy words or metaphorical descriptions, it’s about knowing, understanding and clearly communicating your key value propositions.
If you don’t already do this, you should really try using a copywriting formula. And even if you do use one, you should experiment with others too to see how it impacts your conversion rate. Here are four options from which you can choose:
- The 4U’s: utility, urgency, ultra-specificity, and uniqueness
- The 4C’s: clarity, conciseness, credibility, compelling
- Problem-Agitate Problem-Solve
Once you have decided which one to test first, it’s time for you to run some more A/B tests and analyze your results.
If you were to take one lesson from this article is that: we all sit on a pile of data, mountains of data everywhere.
The real difference lies in understanding how to put that data to work and extract those meaningful insights that will make you grow and make your customers stay with you for a longer period of time