SaaS

10 Conversion Optimization Myths that Just Won’t Go Away

Every industry is plagued by myths, misunderstanding, and half truths. This is especially true in digital marketing, and conversion optimization is no exception.

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How To Calculate and Increase Customer Lifetime Value

That it costs five to seven times more to acquire a customer than it does to retain one isn’t entirely true.

The origins of this myth can be traced back to the 1980s when the Technical Assistance Research Project published research that stated the cost of customer acquisition was significantly higher when compared to the cost of customer retention.

Soon after the research was published, other institutions like the Customer Service Institute, Consumer Connections Corp., and ITEM Group all “found” similar data.

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Tabbed Navigation

One of my favorite UX quotes comes from Chikezie Ejiasi, UX lead at Nest.

He wrote: “Life is conversational. Web design should be the same way. On the web, you’re talking to someone you’ve probably never met—so it’s important to be clear and precise. Thus, well-structured navigation and content organization goes hand in hand with having a good conversation.”

Can tabbed navigation be clear and precise? Of course it can, which makes it a valid form of navigation and content organization. What matters, as with most things related to UX, is how you implement it and how you optimize it.

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Password UX

Have you ever forgotten a password for a site? What about a security question?

Have you ever spent a ridiculous amount of time trying to think of a password you can remember, but also complies with a list of arbitrary requirements (e.g., seven uppercase letters, four special characters, etc.)?

When these UX problems pop up, they cause friction.

Friction that prevents new SaaS customers from signing up, friction that prevents loyal eCommerce customers from creating an account for next time, friction that prevents current customers from accessing their accounts.

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Banner Ads Suck (and How to Make Them Convert Better)

Back in 2013, Nielsen reported in its “Trust in Advertising” study that online banner ads are the least trusted form of advertising among consumers falling even behind traditional ads like in the newspapers or magazines. A few years later, Bannersnack reported that 54% of internet users don’t click on banner ads because they don’t trust them.

In fact, display ads have a click-through rate of just 0.05% (across all formats and placements). Certainly not encouraging.

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On-Site Personalization

In 1999, David Weinberger, a technologist and co-author of  The Cluetrain Manifesto, wrote, “Personalization: the automatic tailoring of sites and messages to the individuals viewing them so that we can feel that somewhere there’s a piece of software that loves us for who we are.”

Two decades later, ironically, personalization is being used by companies attempting to make the online experience more human.

Personalization has grown rapidly since David’s statement. So much so that personalized experiences have become the norm, not an option. [Tweet it!]

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Product Recommendations

Nowadays nearly every online shop utilizes some sort of product recommendation engine. It’s no wonder—these systems, if set up and configured properly, can significantly boost revenues, CTRs, conversion rates, and other important metrics.

Moreover, they can have considerable positive effects on the user experience as well.

This translates into metrics that are harder to measure, but are nonetheless essential to online businesses, such as customer satisfaction and retention.

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A Quick Guide to Successful User Onboarding for SaaS Products

You got people to sign up for your free SaaS trial—great! Trouble is, a significant percentage of users sign up for the trial, log in once, and never come back. You might as well have burned the money it took to acquire them.

The reality is, you’ll never retain all of your customers, and some of those reasons you can’t control:

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After the Lead Magnet: How to Nurture B2B Leads

When a prospect downloads your lead magnet, their journey to paying customer has only just begun—it may never finish. 

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The Essential SaaS Metrics for Growth

“If you cannot measure it,” declared Lord Kelvin, “you cannot improve it.” Perhaps SaaS companies have taken this advice too literally. 

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