3 ways to maximize ROI by 30%+ based on user traffic type
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Context: Different users coming from different marketing channels have varying intent levels. It’s important to have awareness of this as a company. More importantly, design user flows that cater to a varying spectrum of user intent to increase revenue and conversion rate for your product. This becomes especially important for paid traffic as you spend money acquiring users. In this post, we will share 3 examples of how to use this learning to design experiments at acquisition, conversion, and checkout levels respectively to have a significant impact on the business.
Experiment 1: Removing distractions for Paid traffic increases Free Trial starts by 5%
Applicable in: Fintech, B2B/B2C saas, Consumer, Marketplaces
Problem: Paid traffic users tend to have relatively lower intent than organic traffic. Given the lower intent, the conversion rate is also lower.
Old Solution: Paid users had the same landing page/user flow as the organic users for unicorn renovation saas company but the conversion rate of paid was lower than organic.
New Solution: Creating a dedicated landing page for 3D floor plans for paid traffic that removes all distractions. Remove all headers or any other information other than 3D floor plans.
Impact: 5% increase in Free Trial starts
Development Cost: ~2 days
Experiment 2: Skipping Onboarding for unicorn renovation saas company Paid traffic increased Free Trial conversion rate of 20%
Applicable in: Fintech, B2B/B2C Saas, Consumer, Marketplaces
Problem: Paid traffic users tend to have relatively lower intent than organic traffic. Given the lower intent, any friction within the flow will cause an increased drop-off for this traffic type. For this purpose, we need to consider different user flow for onboarding organic users vs paid users.
Old solution: There are four steps in onboarding for paid and organic users. Sign up -> Profile set up -> Pricing -> Rest of Onboarding.
New Solution: one experiment a unicorn renovation saas company ran was there was a subset of paid traffic that had software intent so we needed to send them directly to the pricing page (the profile was less relevant to them).
Impact: 20% increase in Free Trial conversion
Development Cost: ~2 weeks
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Experiment 3: Increase conversion rate and GMV by 15% by skipping product details page for eBay
Applicable in: marketplaces, e-commerce, Saas
Problem: Different segments of customers have different intent levels. Some with high intent don’t require too much information before purchasing while others like those with low intent buyers need more convincing (details) before making a purchase. The important part is segmenting these two types of users and designing the user flow accordingly.
Old Solution: Buyers coming to eBay from external vendors have the same experience as regular eBay customers (going to the product details page first).
New Solution: Al Muthuraman and the eBay team learned that Buyers coming from external vendors have relatively higher intent as they were coming from a specific advertised product on their vendor website. The team designed 2 variants: A: take users directly to checkout (as shown) and B: give the buyer two options (review product or complete checkout). The option in variant B performed better because it catered to the differing purchasing intent of the users.
Impact: conversion rate and GMV increased by 15% adding $10s of million in additional revenue for Variant B. Note: Variant A - straight to checkout - still had a 5% increase in conversion rate but did not maximize revenue for the cohort that needed more convincing to purchase. They used this learning to expand the next steps for the following scenarios:
To products with multiple quantities and colors
People coming from emails give them a link directly to checkout
Repurchasing flow: users that wanted to rebuy the same product.
Development Cost: < 1 week
There was a time when the core of a PM's job description was primarily focused on shipping great products.
Now, the emphasis is on creating impact and driving outcomes. As markets have become more competitive, the focus on increasing revenue and hitting goals becomes even more crucial to your career progression.
We are building a 2-week case study program to solve this problem and learn how to level up your revenue impact as a PM.
Apply here or reply back to this email if you’re interested. Applications close Monday May 8th.