Using A/B test software to optimize a web page is a powerful way to increase the conversion rate of your website (that is, your ability to convert visitors into customers). Many companies, including Amazon and Google, use this technique. Here is our guide for beginners to understand what CRO and A/B test softwares are.
What does an A/B test software do?
If you have two possible owners for your website but you can not decide which one to use, you can run an A/B test, in which half of your visitors will see title A, and the other half will see title B. Then you can count the orders for each title and determine which title was obtained by a greater number of sales.
Then, an A/B test software allows you to perform these type of tests, although they often take several weeks to complete. Multivariate tests, however, allow you to perform many of these analysis at the same time.
For example, while you analyze what title to use, you can also try many other elements of the page (such as text, images, prices, offers and buttons), all at once. Each of your visitors will see a different combination of these elements, and then the multivariate test software will calculate, on average, which of the elements had the best performance. This information will help you design a high conversion “superpage”.
And we would be testing these variables all at the same time. Not only that, but the multivariate testing software will tell us which version of each item on the page, on average, attracted the most customers. Powerful, right? If you conitnue reading our full article, you will know more about the conversion rate optimization (CRO) than 99% of digital marketing specialists!
What is the conversion rate?
When we say “conversion rate”, we refer to the percentage of visitors who end up reaching a certain goal on our website. Typical objectives include making a purchase, sending a query form and signing up for a free newsletter.
Why do you need to increase your conversion rate?
You must make conversion rates your number one priority for these three reasons:
- There is a lot of room for improvement: most websites are losing sacks of money every day because they do a horrible job trying to sell products or services to their visitors.
- Paid search will remain more competitive: increasing your bids indefinitely is not a sustainable option over time.
- A/B test software is now highly affordable: it allows you to test changes on your website and inform you about what changes are preferred by most customers.
Unfortunately, an A/B test software does not tell you what to try. That’s where our experience comes into play. And all this website gives you an idea of what we have the ability to do.
Some interesting benefits of increasing your conversion rate
Even though we have explained some of them, let us dive deeper into this important aspect. If you double the conversion rate of your website, you will reduce your “cost per acquisition” (CPA) by half. This tool shows you how much more you will earn. (By the way, CPA means how much it costs to get each new customer).
However, when your conversion rate increases, we recommend that you do not relax to enjoy the benefits (however tempting it may be). Instead, we recommend that you take advantage of the fact that you can now pay double per visitor, which means:
- You can pay approximately twice as much per click in AdWords, which can give you a disproportionate number of additional visitors.
- You can start advertising on previously expensive media such as full-page magazine ads, newspaper ads, direct mail, radio ads, etc…
- Your affiliates can earn twice as much as before, and this will cause large affiliates to abandon your competitors and join you.
As the number of orders soars, your company gains more bargaining power with your suppliers, so your cost per unit sold tends to decrease. Besides, the company becomes more efficient due to economies of scale.
Why many companies can double their conversion rate?
What is the current conversion rate of your website? 1%? 5%? A conversion rate of 10% means that of every 10 visitors to your site, nine leave empty-handed. Do you really think you could not reduce that number to eight out of 10?
Look at it in another way: to double your conversion rate, you only need to increase the conversion rate of your ads by 19%, home page by 19%, product page by 19%, shopping cart for 19% (the figure is 19%, not 25%, because each improvement is added to the previous one).
These increases may seem exorbitant, but to increase the conversion rate of your home page by 25%, for example, you should only make an improvement of 2.27% in ten aspects of your website. Such as: the proposed value of your company, the owner, the introductory text, the price, the guarantee, the picture, the readability, the usability, the navegation, the products, the offers, the opinions of clients, the call to action, the design of the website, the return policy, and the list goes on…
Does a 25% increase sound more achievable now? With the right A/B test experiments, the adjustments you make to these elements can lead to powerful results, and ultimately double your conversion rate.
Success stories
A/B testing has been instrumental in helping numerous large companies optimize their platforms and enhance user experiences. Here are a few notable success stories:
1. Amazon
This e-commerce giant is renowned for its extensive use of A/B testing to refine various aspects of its platform. For instance, the company continually experiments with the design of its product detail pages to improve the visibility of customer reviews. What’s more, by testing different layouts and features, Amazon ensures that its platform remains user-friendly and effective in driving sales.
2. Booking.com
The travel industry giant employs A/B testing to optimize its search results pages and user interface. In 2020, the company tested a new search results page featuring larger images and more detailed information about listings. Such experiments help Booking.com enhance user engagement and conversion rates by identifying the most appealing and functional designs.
3. Netflix
The popular subscription-based streaming service uses A/B testing to improve its user interface and content recommendations. In 2019, the company tested a feature that allowed users to shuffle episodes of a TV show, providing a more personalized viewing experience. Experimenting with new features is what ensures that Netflix meets user preferences and maintains high levels of customer satisfaction.
In conclusion, these examples demonstrate how A/B testing enables large enterprises to make data-driven decisions and leads them to improved user experiences and increased conversions.
Why A/B testing is essential for your website
Leveraging A/B test software is a game-changing strategy for optimizing your website’s conversion rate. It allows you to make data-driven decisions that directly impact your revenue and customer acquisition costs. With a systematic approach to testing and refining elements such as titles, images, and calls to action, you can uncover the winning combinations that resonate most with your audience.
Remember, even small improvements across multiple aspects of your site can collectively lead to significant gains. With the increasing affordability and sophistication of A/B testing tools, there has never been a better time to prioritize conversion rate optimization (CRO). The potential to double your conversions, reduce costs, and unlock new advertising opportunities is within reach. Start testing today, and you’ll not only stay ahead of the competition but also create a more engaging and effective experience for your users.