“Hal Varian [Google's Chief Economist] believes that a new era is dawning for what you might call the datarati—and it’s all about harnessing supply and demand. “What’s ubiquitous and cheap?” Varian asks. “Data.” And what is scarce? The analytic ability to utilize that data. As a result, he believes that the kind of technical person who once would have wound up working for a hedge fund on Wall Street will now work at a firm whose business hinges on making smart, daring choices—decisions based on surprising results gleaned from algorithmic spelunking and executed with the confidence that comes from really doing the math.”

The question is frequently asked: What is conversion optimization?

Well, looking up at Hal Varian’s quote (he is helping run arguably the world’s most innovative company, so we’ll listen to him), it is the analytic ability to use your data and benefit from a structured website optimization and formal testing program. Here are a few tips and tools to get your optimization programs off the ground:

1. Start making decisions based on data, not on opinion.
2. Get analytics set up well, so you really know which pages, products, acquisition sources, etc, your money is coming from. Knowledge is power (and profit).
3. Start carrying out split tests (A/B tests or multivariate tests) on different aspects of your website.
4. Use advanced heat maps and user videos to see what your users are really doing. Use ClickTale or CrazyEgg.
5. View the data and the interpretation of that data from a neutral position. Far too often employees are fearful of poor results, when in fact poor results were likely always occurring.
6. Remember a Click to Conversion increase from 1.5% to 2.0% for a company doing $1 million a year sales translates to a sales lift of 25%. That’s fantastic business growth based on testing and acting on those tests.

Lastly and most importantly:

Create a culture in which people are rewarded for carrying out tests, and not punished for making mistakes.

Want to get your Conversion Optimization program off the ground and start increasing sales? Contact Us Now!

Related Articles:

• The Rise Of The Datarati (andrewsullivan.theatlantic.com)
• Google’s Varian: Search scale is ‘bogus’ (news.cnet.com)