Conversion Rate Optimisation (CRO) brings together business intelligence, market research and AB/ Multivariate Testing to improve the performance of websites.
About the author: @tombowdenCRO is the Head of Conversion Rate Optimisation (CRO) and User Experience (UX) here at HP Group. He is an avid beard grower and enjoys shooting the Highest Paid Person’s Opinion and making websites easier to use. His portfolio of work includes Sony, Motorola, Denby, Safestore, Haart and Secondlife.
CRO Tutorials #2 – Complete Avinash Kaushik Clear Line of Sight Model
If you want your website to convert better then you need to be organised and clear in what you are trying to achieve. The excellent Avinash Kaushik Digital Marketing and Measurement Framework/ Clear Line of Sight Model will help you.
This is stellar. It is also a little time consuming. But, get it right and you will never go wrong.
This framework is a great and simple way to ensure that your web team has a clear direction and list of action points to ensure that you are very successful. It is a fantastic method of taking marketing concepts and making them practical items for your team to work on.
A link to download the spreadsheet is here:
Zqi.me/waline
Taking marketing concepts and making them practical:
Avinash Kaushik Clear Line of Sight
Those marketers amongst you will be very familiar with the following:
Net Income = Margin v Volume
(In other words… if you get the margins right and sell enough you will make lots of income.)
You will then be familiar with the elements that contribute to each of these
Margin = Price Strategies + Cost Strategies
(In other words… if you get the price right and keep costs down you will make good margins. Easy.)
Volume = Market Share v Market Size
(In other words… you need to both increase the share of the market that you currently win and also the size of the total market. Easy.)
What this framework then makes you do is define what you can actually do to affect these four elements:
Price Strategies – How will you ensure you are maximising the price?
Cost Strategies – How will you reduce costs?
Market Share – What will you do to increase Market Share?
Market Size – What will you do to increase the size of the Market?
Here are some idea and suggestions for each of these:
Price Strategies – How will you ensure you are maximising the price?
- Improve Product Quality to charge a premium price
- Introduce Tiered Pricing in Relation to Quality/ Volume
- Charge people in UK More > Charge people in Greece Less
Cost Strategies – How will you reduce costs?
- Stop Wasting Money On Facebook
- Cancel Contract with Yell
- Reduce PPC Expenditure on Poor Performing Keywords
- Outsource your Marketing to the HP Group Award Winning team
Market Share – What will you do to increase Market Share?
- Steal customers from your competitors
- Dominate the Google listings
Market Size – What will you do to increase the size of the Market?
- Roadblock the YouTube Homepage with a video demonstrating your brilliant product
- Related New Markets – Sell your umbrellas to people in China as parasols
- Related New Products – Create a larger version of the iPhone and convince everyone they need it
- More Usage Occassions – Convince people that their socks can be used as gloves so that they buy two pairs
- More Usage Per Occasion- Convince people that the best way to keep their feet warm is to layer their socks and that therefore they should wear two on each foot.
Avinash Kaushik - What Matters Most
Then for each of these you should set a target:
Price Strategies – How will you ensure you are maximising the price?
- Improve Product Quality to charge a premium price – Charge 50% more for ‘Premium’ version
- Introduce Tiered Pricing in Relation to Quality/ Volume – New pricing strategy offering £5, £10, £15 and £20 options to go live tomorrow
- Charge people in UK More > Charge people in Greece Less – UK Price £1000 > Greek Price 3 Drachma
Cost Strategies – How will you reduce costs?
- Stop Wasting Money On Facebook – Turn it off today and review in 1 week (Saving £5000pm)
- Cancel Contract with Yell – Turn it off now and never worry about it again (Saving (£1000pm)
- Reduce PPC Expenditure on Poor Performing Keywords – Aim to reduce spend on those keywords by 20% within 2 weeks
- Outsource your Marketing to the HP Group Award Winning team – Do this immediately
Market Share – What will you do to increase Market Share?
- Steal customers from your competitors – Aim to get 1 each week
- Dominate the Google listings – Focus on term x to move 5 positions each week
Market Size – What will you do to increase the size of the Market?
- Roadblock the YouTube Homepage with a video demonstrating your brilliant product – Target 5million views
- Related New Markets – Sell your umbrellas to people in China as parasols – Aim for 10% additional sales in this region
- Related New Products – Create a larger version of the iPhone and convince everyone they need it – Aim to sell 50% of existing iPhone sales
- More Usage Occassions – Convince people that their socks can be used as gloves so that they buy two pairs – Sell 1000 double packs each week hereafter
- More Usage Per Occasion- Convince people that the best way to keep their feet warm is to layer their socks and that therefore they should wear two on each foot – Sell 1000 double packs each week hereafter
You now have a clear list of jobs and targets that you can get you or your team to work on!
Try and ensure you have 1) a target and 2) a timeframe and then your team should be wonderfully focussed on the right tasks thus ensuring you hit your targets, get a pay rise and live out your retirement in the Bahamas.
Please share if you found this useful and follow @tombowdenCRO
If you don’t know who Avinash Kaushik is then please take the time to visit his blog. He writes about good ways to measure your marketing and is really very good. His twitter handle is @Avinash and this article is unashamedly a re-write of the following article he wrote: http://www.kaushik.net/avinash/win-web-metrics-line-sight-net-income/
Related posts: