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FFR 018 - The Power Law Of CRO
- This week I’ve read an excellent book from Dr. Karl Blanks and Ben Jesson called “Making Websites Win”. These are the guys from the word class CRO company “Conversion Rate Experts.
- The book is truly amazing and most definitely belongs on the desk of every CRO practitioner or business owner who wants to learn the science of boosting conversion rates and multiplying profits.
- https://www.amazon.com/gp/product/B076XSCTB2?pf_rd_r=JXSNWDZYREYK39CHW0JS&pf_rd_p=2d1ab404-3b11-4c97-b3db-48081e145e35
- And despite the book being focused on websites, the principles still apply equally to funnels.
- Anyway, one of the key takeaways of the book is what they call “The Power Law of CRO”
- This Power Law relates to an exponential improvement to the website (or in our case funnel) by applying three benefits.
- Benefit #1 is CRO gets you more customers (FOR FREE)
- Benefit #2 relates to the principle of your profit being more sensitive to your conversion rate than your revenue is... because if you double your conversion rate, all your costs don’t double. Ad costs remain the same and so do fixed costs.
- The only cost that will increase are your variable costs and are directly related to selling more units... which for experts selling digital and coaching products is next to nothing anyway.
- Benefit #3 is that CRO opens up floods of traffic, because you’re making so much more money you can afford to pay more to acquire a customer.
- And the point that Blanks and Jesson are trying to make is that when you multiply these 3 benefits by each other the results are exponential and create huge growth in a short period of time.
- Here’s a breakdown of how it works:
- So as you can see... even small increases to conversion rates can produce huge increases of profit and take the business well and truly to the next level.
- And to summarize all of this if you’re only dabbling or considering whether it’s worth implementing a proper CRO strategy... then this podcast should provide the inspiration you need to start taking it seriously.
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By Scott Dudley- This week I’ve read an excellent book from Dr. Karl Blanks and Ben Jesson called “Making Websites Win”. These are the guys from the word class CRO company “Conversion Rate Experts.
- The book is truly amazing and most definitely belongs on the desk of every CRO practitioner or business owner who wants to learn the science of boosting conversion rates and multiplying profits.
- https://www.amazon.com/gp/product/B076XSCTB2?pf_rd_r=JXSNWDZYREYK39CHW0JS&pf_rd_p=2d1ab404-3b11-4c97-b3db-48081e145e35
- And despite the book being focused on websites, the principles still apply equally to funnels.
- Anyway, one of the key takeaways of the book is what they call “The Power Law of CRO”
- This Power Law relates to an exponential improvement to the website (or in our case funnel) by applying three benefits.
- Benefit #1 is CRO gets you more customers (FOR FREE)
- Benefit #2 relates to the principle of your profit being more sensitive to your conversion rate than your revenue is... because if you double your conversion rate, all your costs don’t double. Ad costs remain the same and so do fixed costs.
- The only cost that will increase are your variable costs and are directly related to selling more units... which for experts selling digital and coaching products is next to nothing anyway.
- Benefit #3 is that CRO opens up floods of traffic, because you’re making so much more money you can afford to pay more to acquire a customer.
- And the point that Blanks and Jesson are trying to make is that when you multiply these 3 benefits by each other the results are exponential and create huge growth in a short period of time.
- Here’s a breakdown of how it works:
- So as you can see... even small increases to conversion rates can produce huge increases of profit and take the business well and truly to the next level.
- And to summarize all of this if you’re only dabbling or considering whether it’s worth implementing a proper CRO strategy... then this podcast should provide the inspiration you need to start taking it seriously.