Less than 22% of businesses are satisfied with their digital conversion rates, despite acquisitions being the crux of every company’s success. No matter what this activity is referred to as, whether it is digital sales, digital acquisitions, or digital growth, it leads to business growth and expansion into new markets.
Naturally, resources are focused in this area, and weekly meetings are held to determine how to improve digital performance and conversions. These meetings are where digital objectives and movements in KPIs are reviewed, and where the team brainstorms hypotheses of underlying user behaviours and the potential tests that can be run to fix issues.
This is a continual reiterative process, known as hypothesis-driven optimisation, that involves a lot of guesswork to determine why metrics have or have not moved. By the time answers are discovered, tested and fleshed out, a big opportunity has already been lost and dollars spent on ineffective methods.
Instead, we are going to show you why you should have an insights-driven approach, which we will take a look at in more depth.
Digital Sales Meetings Today
Firstly, let’s take a look at how digital sales meetings are currently being driven from a hypothesis-driven approach:
A weekly meeting is held to review key digital sales and KPIs.
Data is reviewed from tools available to identify what part of the acquisition funnel needs fixing.
Hypotheses are made to determine what user experiences/behaviours are driving those metrics.
A brainstorm of potential tests is carried out to see what can be run to fix the gap in KPIs.
Why doesn’t this Approach Work?
While this system has been adopted by many businesses, it is slow, involves a lot of guesswork, and does not properly inform how to improve conversions.
Here’s why this approach struggles to support conversions:
The tools don’t have the right level of data required to answer the questions we are currently asking. We go into this topic in more depth in another post, but the crux of the issue is that many of the tools we use only show half the picture we need to get an answer. This means we need to rely more heavily on hypotheses and testing to find answers.
Hypotheses alone don’t help us get answers, and without proper data to back them up, a lot of guesswork is involved. Often multiple hypotheses are brainstormed based on past experiences and gut feel, but the more hypotheses we need to test, the longer the process becomes.
Testing is a slow process. Insights from the AB testing industry show that only one in every seven AB tests are successful. With industry standards recommending that AB test should be run for at least two weeks, time begins to add up often ending in a colossal waste of resources.
There is a limit on the number of tests that you can run. AB testing principles require that we don’t run tests that risk overlapping each other and invalidating the results. So with limited tests that can be run, we need to find a way to get the absolute most from them.
Taking these factors into account, it often takes many weeks, and many sales meetings, before being able to answer why business KPIs have moved.
By this stage, a lot of resources have been wasted and opportunities for growth have been lost.
Re-defining the Digital Sales Meeting
Now that we know how ineffective the hypothesis-driven approach is, it is time to look at the insight-driven approach and how it differs.
- Feed questions with answers, instead of more hypotheses. The key to having answers readily available when new questions arise, is in having all the data already available and searchable at your fingertips. Insightech’s Absolute Data and Unrestricted Search allow you to stop guessing, and start finding answers when you need them.
- Visually explore what your users truly experienced, to truly understand underlying behaviours. Insightech’s Point and Click Reporting takes the guesswork out of the equation, and shows you visually what your users experienced.
- Allow yourself to look at new data points historically. When you ask new questions, or look at new data points, you already have historical data to match up to the movements in your KPIs. Simply match up the trends to see what fits the picture.
- Better inform your AB testing. If tests need to run for two weeks or more, and you are limited on how many simultaneous tests you can run, inform them with granular data and insights. You will spend much less time while getting a much higher impact and testing success rates.
- Recreate and share website issues in an instant with a simple share of a link. Insightech’s Full Code Reconstruction provides everything you need to share and recreate experiences with a link, so that you can fix website issues faster.
While a hypothesis-driven approach has helped so far, there is now better technology available and we no longer have to use an outdated approach to grow digital conversions.
Instead of spending too much time with guesswork and long, drawn-out testing, we can now answer questions almost immediately and are better informed on how we can improve digital conversions.
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