Fifty Shades of Conversion

“In order to truly master conversion you have to understand that there is not just one conversion rate, but numerous conversion rates throughout your site.” —Bill Gurley

“The best place to focus your efforts to improve conversion are within the product itself. Conversion at its essence is a proxy for usability and convenience.

“There are two reasons why customer acquisition alone is a poor place to establish your company’s competitive advantage. First, the sheer intensity of the competition for effective AdWord inventory reduces the likelihood of a sustainably high ROI. Second, ad spending does not provide leverage. Each year, your company will want to grow by a higher absolute dollar amount than the previous year, and as a result you will need to buy even more traffic. This is the piece that the LTV-zealots always miss: the spending will never stop.

👉 “The LTV Model Is Used To Rationalize Marketing Spending.”

“Unfortunately, conversion improvements typically are the aggregate gain of 100 tiny improvements, not one silver bullet. Rarely will you find one single change that is going to have a 5% lift in conversion (you might if you have never tried, but this type of win will go away quickly). Rather you will find 30 things on a page that all have a tiny impact, and the overall impact, after months of work might be 5%. You have to be willing to toil in the minutia knowing that the impact on the overall system will be the combined result of many tiny little changes.”