– Conversion rates of popups are not the only important metric in marketing.
– The quality of the offer, the quality of the audience, and the timing all influence conversion.
– The correlation between sign up rate and conversion rate must be considered, as one does not necessarily cause the other.The key action item is to focus on the quality of the offer, the quality of the audience, and the timing for the audience when using popups in ecommerce. Additionally, it is important to analyze the correlation between sign up rates and conversion rates, rather than assuming that one causes the other.RANT TIME (AND YES, THERE ARE A LOT OF CAPS IN THIS POST)
Every time I post a picture of a popup, everyone asks, “How does it convert?” THIS IS A FUNDAMENTAL PROBLEM WITH MARKETING AND UNDERSTANDING CORRELATION AND CAUSATION. IT ALSO LEADS TO KPIS THAT DON’T MATTER AT ALL. If you’ve ever been or are still guilty of just looking at conversion rates of popups and benchmarking around them, please read the following:
There are three parts to a popup in ecommerce, and they all influence conversion:
1. Quality of offer
2. Quality of audience
3. Timing for said audience
ALSO, THE ONLY RATE THAT MATTERS IS SIGN UP TO CONVERSION. A SIGN UP RATE THAT IS HIGH ONLY MATTERS IF THE CONVERSION RATE FOLLOWING TO PURCHASE IS HIGH. ONE MUST LOOK AT THE CORRELATION OF THE TWO AND NOT ASSUME THAT ONE CAUSES THE OTHER.
I’ll try to break this down real simple:
– The blah offer to the right audience at the wrong time doesn’t lead to a sign up.
– The good offer to the right audience at the wrong time MAY lead to a sign up but requires nurturing to nail the timing and might need a better offer.
– The best offer to the right audience at the wrong time MAY lead to a sign up but requires nurturing to nail the timing.
– The blah offer to the right audience at the right time MAY lead to a sign up but may require a better offer to achieve conversion.
– The good offer to the right audience at the right time WILL likely lead to a sign up with reduced conversion relevant to the best offer.
– The best offer to the right audience at the right time WILL likely lead to a sign up and have a high rate of post sign up conversion.
NO MATTER THE OFFER, IF THE AUDIENCE IS WRONG, IT WILL NOT LEAD TO A SIGN UP (at least not one that is ever likely to convert).
From what I’ve seen, there is a high probability that most of the marketers out there are completely missing the boat on understanding this. If you liked this rant and want to see what really grinds my gears about ecommerce, tune into Experiment Nation’s Conference next week where you get 19 minutes of me telling you about the 5 things that piss me off about ecommerce and some solutions to them.
#rant #marketing #customerjourney #ecomhttps://www.linkedin.com/in/jivanco