How can your product improve conversion rates?

Marketing is like cooking Chinese food. The same ingredients and seasonings can produce completely different tastes if you change the order of adding them and the heat.

I have tried the dish of broccoli with garlic. There is a world of difference between adding the minced garlic before the broccoli and adding it at the end of the dish.

For example, even if you are doing the same advertising, the ROI will be completely different depending on the timing, the type of ads shown to which customers.

Fortunately, operations are more structured than Chinese food. With data as support and matching it with the correct methodology, you can achieve ideal results.

Many of the clients we work with initially had a negative attitude towards online paid advertising because the ROI was far below expectations. We also found that these customers have one thing in common: they use one-size-fits-all advertising groups and plans, while ignoring the value of the customer purchase journey.

If you expect a customer to visit your website and convert after seeing your Google ad for the first time, the chance of success is only a few tenths of a percent.

That’s why we do retargeting.

1. Opportunities behind 98% of visitors

According to statistics, only 2% of users achieve conversion on their first visit to the website, and 98% of users leave without taking any action after their first visit. This is very common sense, because from the customer's purchasing process, he has just learned who you are and is in the Awaer stage, and is far from being ready to buy.

Let’s compare it with the customer value journey diagram: (For details, please see From Marketing to Sales – The Uncrossable Customer Value Journey).

However, usually most of the conversions on a website come from returning users. Let’s take a look at the real data of one of our customers: conversions from new customers only account for 30%, and 70% of orders come from second-time or higher users.

Goodway’s survey data shows that redirection can save 90% of the cost per conversion; and 71% of online conversions come from redirection.

Therefore, don’t waste 98% of the traffic you bought with real money. Bringing them back using redirects will definitely significantly increase your website's conversion rate .

So, what exactly is a redirect?

2. How is Retargeting implemented?

In most cases this is done through cookies.

First, embed a script in the website that the user is not aware of at all, so that every time a new user browses the website, the script will throw a cookie to the user's browser ; next time the user browses other websites, the cookie will trigger the pre-set advertisement and attract the user back to your website.

This picture from Retargeter is more vivid:

In addition, if the company has a large enough database of potential customers, it can also be achieved by matching the information in the database.

For example, a company launches a new software and wants to showcase it on Facebook to customers who have previously subscribed to the company's free version of the software. Then the company can upload this list to the background of Facebook ads manager. If the customer's Facebook ID matches the subscription ID, the corresponding advertisement will be shown to him when he visits FB. Users who are not on this list will not see the ad.

List-based redirection requires a rich enough database to be effective. However, compared to cookie-based redirection, it is more customizable and more accurate.

3. Retargeting Segmentation: Don’t Ignore Matching with the Customer Value Journey

Usually, we would think that if we show ads to 98% of our customers and bring them back, our conversion rate will definitely increase. Sorry, it’s not that simple — the customer’s buying journey is not linear, they may buy after seeing the ad for the third time, or they may return to the site, browse products, but leave again.

Fortunately, there are some great marketing tools that take this complexity out of the equation. For example, shoelace further segments users by identifying typical customer behaviors at each stage, matching the customer's purchase journey with advertising display, making delivery more precise.

For example, a user who visits the website for the first time spends 3 minutes on the site, browses products, and clicks to view product reviews; the second user only spends 45 seconds on the site for the first time. Then the retargeting ads that these two users see next are different - the first user will see a 15% off promotional ad, which aims to encourage customers to place orders; the ad shown to the second user is intended to bring customers back to the website rather than rushing to facilitate a purchase.

Summarize

Identify the key behaviors of potential customers, match them to different stages of the purchasing process, develop tailor-made marketing plans, and then use retargeting to show the right ads to the right people at the right time - this is one of the secrets to improving conversion rates.

What is another important area related to conversion rate? Stay tuned for the next episode to find out.

Source: ROCKETSHP