(Paid Advertising)

Conversion Rate Optimization: The CRO Mindset

Ryan Chute
Ryan Chute
June 8, 2022
Conversion Rate Optimization: The CRO Mindset

Is your residential home service company getting a good amount of website traffic but the phone isn't ringing? You see the growth potential but you can't seem to get conversion rates up. Sure, getting traffic is great, but if those visitors aren't becoming customers, then what's the point? Whether you're an HVAC, plumbing, or closet door company trying to get people to book an appointment, conversion rate optimization (CRO) should be THE key focus for your website. The thing is, many businesses don't hold the right CRO marketing mindset to get the results they're looking for. They see conversion rate optimization as a one-time event rather than an ongoing process. Conversion rate optimization isn't about doing a major overhaul to your entire website that sacrifices time and money, it's about making small tweaks to your website design, copy, and user experience to get more people to take the desired action. So, ready to get into the mindset of a conversion rate optimization champion? This article has got all the precious little details you need to get your conversion rate up in no time!

What is CRO?

Conversion rate optimization (CRO) is the process of optimizing a website to increase the percentage of visitors who take a desired action. This can be anything from making a purchase, signing up for a newsletter, or filling out a contact form. Conversion rate optimization usually involves A/B testing, which is where two versions of a page are shown to users at random and the version that performs better is used as the new standard. Other forms of CRO include:

  • User experience (UX) optimization: This involves making changes to the design and layout of a page to make it more user-friendly and improve the overall experience for visitors.
  • Landing page optimization: This is the process of optimizing a landing page to increase its conversion rate.
  • SEO: Search engine optimization can be used as a form of CRO to improve the ranking of a page in search engine results pages (SERPs), which can in turn increase traffic and conversions.
  • PPC: Pay-per-click advertising can be used to drive traffic to a page with the goal of increasing conversions. Better copy, hooks, and relational-friendly transactional offers drive more people to your page to convert as long as the experience stays consistent.
  • Social media: Promoting a landing page or website on social media can also be a form of CRO, as it can drive traffic to a CRO page. In some cases, you can skip the off-platform linking and get the conversion right on the website they are on.

It is important to note that conversion rate optimization is an ongoing process, not a one-time task. To keep conversion rates high, continual testing and tweaking of website elements are necessary.

The History

The History

Surprisingly enough, conversion rate optimization isn't a new concept. In fact, the history of conversion rate optimization dates back to Leonardo Da Vinci. In 1430, Da Vinci was employed to create an automated kitchen feast. He did this by designing conveyor belts to transport food to the preparers and a sprinkler system for safety measures. Even though considered by many as the first use of technology before the Industrial Revolution, both contraptions failed — the conveyor belt operated too erratically, and to make matters worse, the sprinkler system went off and ruined all the food. In hindsight this experiment was a comedy of errors, it is an early example of conversion rate optimization. In the case of Da Vinci's automated kitchen, there were two conversion opportunities - getting the food to the preparers and then getting the customers to eat it. The first opportunity was lost because the conveyor belt was unreliable, and conversion stopped entirely because the sprinkler system went off. In modern conversion rate optimization, we often talk about conversion "funnels." Just as there was a process in place for food to get from the kitchen to the customer's table, there are steps that need to be taken for a website visitor to become a customer. Make sure your process is reliable and seamless, otherwise you risk losing conversion opportunities. Need help with your website conversion rate? At Wizard of Ads®, we take pride in helping businesses build brilliant brands that turn shoppers into buyers. Book a call with us today to learn more about our conversion rate optimization services!

The Right Mindset

As business owners, when we aren't getting the number of conversions we want, our minds tend to immediately jump back to our acquisition efforts. We think that we need more ads, more SEO, more content, or something else entirely. While this can sometimes be the case, almost every time what you really need is get out more of what you already have. This is the CRO mindset that you want to nurture. While everyone else is breaking their backs for more traffic and spending an imperial buttload on garbage leads, you can work the much more effective angle of conversion. To get into the right mindset, here are some quick tips:

  • Embrace failure. Failure is inevitable. If you're not failing, you're not trying hard enough. The best way to learn and grow with CRO is by making mistakes and learning from them.
  • Experiment. No risk, no reward. With CRO analytics, you need to be able to put your opinions aside and simply follow the data. Be prepared to take risks - you never know what might work until you try it.
  • Avoid tunnel-vision. You don’t want ALL the leads. You only want the good leads. It's easy to get hyper-focused on one specific conversion metric and lose sight of the bigger picture. Remember that conversion rate is just one part of the puzzle, and optimize accordingly.

Follow these tips, and you'll have the mindset of a conversion rate optimization all-star in no time.

First Example of Conversion Optimization

First Example of Conversion Optimization

We've talked about Da Vinci and how his conveyor belt disaster was suggested to be the very first occurrence of CRO in action, but is there another example that has can be considered the first conversion rate optimization case study? Subject to debate, of course, some people believe that the first CRO case study came instead from a statistician named R. A. Fisher in the early 20th century. Fisher was hired by an agricultural research center with the duty of determining what external factors were affecting the growth of various plants and crops. He did this by designing experiments on soil type, sun exposure, precipitation, and so on. His experiments were both controlled and randomized, which helped him analyze and evaluate results for optimizing plant growth — what the preferred conditions were and what factors modified growth the most. When we looked at this example closely, we found Fisher actually did A/B testing — he was constantly comparing two different versions (controlled and randomized) to see which one had better conversion rates (in this case, growth). Compare this to the digital world today, and you'll see how conversion rate optimization has taken the same basic idea and applied it to web design, user experience, and the buying journey. At its heart, conversion rate optimization is all about testing different versions of your website or touchpoints (variables) to see which one performs better in terms of conversion rate (the goal). It's all very scientific and data-driven, which is why CRO has become such a popular and effective method for understanding how to optimize for growth.

A/B Tests and Google

Speaking of A/B tests, ever wonder what the first running CRO internet A/B test was? It was actually created by Google back at the turn of the millennium. The test was simple: to determine the optimum number of results to display on the SERP (search engine results page). The first test was unsuccessful due to slow loading times from glitches with the Google code, but later on, A/B testing became more advanced. Though the principles and foundation are generally the same, in 2011 Google ran over 7,000 different A/B tests - 11 years after Google's first test. So what does all this tell us? In general, A/B tests are used to improve conversion rates - whether that's on your website, or in this case, on a SERP. By constantly testing and tweaking different elements, Google has been able to increase its conversion rate and keep people using its search engine. If even the king of search engines has failed with its CRO testing in the past, that should give you some comfort that it's okay to make mistakes when you're testing. The key is to learn from those mistakes and keep moving forward.

CRO in the Residential Home Service Industry

CRO in the Residential Home Service Industry

We've gone over a lot of old examples of conversion rate optimization, so now let's go full circle and apply what we've learned to the scenario given in this article's introduction: You own a residential HVAC company, and you're getting a healthy amount of traffic on your website, but the phone isn't ringing... You decide to get into your CRO mindset. You stop yourself from cranking out more website content like SEO articles, Facebook ads, etc. because you know that will only lead to burn-out and an emptier wallet. Instead, you take a step back to reevaluate your website and marketing content with a conversion-centric perspective. From there, you decide to recycle your older content and focus on optimizing it to increase conversion rates. You first set up an A/B test to see which version of your website copy converts better. You find that the slogan "We're the best HVAC Service in Town!" actually decreases conversion rates, your images are outdated, and your CTA buttons are difficult to find. So, you experiment with different slogans, images, and CTA buttons on your website. After a few weeks of testing, you find that a picture of a smiling HVAC contractor along with the text "Helping Your Home Stay Comfy Cozy All Year Round" generates more conversion than any other combination that you've tested. Over time, you finally see an uptick in phone calls, and Google Analytics tells you that conversion rates for your key pages have increased by 15%. Not too shabby! That's how conversion rate optimization works: by taking a close look at your website's conversion funnel and making improvements where necessary. CRO elements can be used to improve anything from website copy to call-to-action buttons to overall design. It's just a matter of figuring out what's not working and then making changes to see if conversion rates improve.

Conclusion

Conversion rate optimization doesn't have to be a complete makeover of your website, and it doesn't mean you have to pump out more content in the hopes it'll convert customers. Sometimes, less is more. Believe in the power of quality over quantity. Embrace failure and be open to taking risks. Trust the data and remember the big picture. When you embrace these concepts, your conversion rate optimization will be flawless in no time. However, not every company can do it all on their own. At Wizard of Ads®, we help residential home service companies create and implement a marketing strategy that tells your authentic brand story. We show you what it takes to have an eye-catching brand image that not only gets heard and found… but converts like crazy. We'd be happy to help get you started with an impactful plan that considers all of these factors and more. Book a call with us today so we can get started!

(Online)
(Offline)
Ryan Chute
Ryan Chute

Helping small businesses become BIG brands with a holistic marketing strategy that speaks the same language across all sales and marketing channels.

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Who does the Wizard of Ads® for Services work with?

Wizard of Ads® for Services work with healthy and growing businesses hungry to grow by multiples, like you.

You are ready, willing, and able to grow your business. You are open to change and are seeking a distinctive angle of approach to gain the time and attention of a too-busy public.

You know that lasting relationships take time, patience, and good energy to nurture and cultivate. We carefully enter into every arrangement with the intention of working with you for as long as you own your business. You prefer lasting partnerships.

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How does the Wizard of Ads® for Services charge?

Traditional full service marketing agencies are designed to capture the greatest amount of revenue from a client, regardless of results. Every last item is billed and expensed to the client. Typical agency fees can represent a whopping 55% of the entire advertising budget. That means a $5 million dollar advertising budget, you would spend $2.75 million on agency fees.

Think of Wizard of Ads® for Services as the Anti-Agency.

Our income is not tied to your advertising budget. Our income is exclusively tied to your growth. Our goal is to maximize your advertising impact with the lowest reasonable spend. This allows you to spend only what is necessary or to put extra horsepower into aggressively growing in your market.

The genius of this model is that it perfectly aligns our motivations as true partners for exponential profitable growth without the pain of being unaffordable. Ultimately, we are confident in taking the risk of being underpaid in the first few years because we know the results always speak for themselves.

Next, we do not accept commissions, referral fees, kickbacks, or other compensation from any service providers we recommend or engage for production work. Most agencies do. This includes the 15% agency commission for media buying. This approach is considerably different from the compensation plan employed by most advertising agencies, as it eliminates any potential conflicts of interest and allows us to focus our entire attention on helping you grow your business profitably as a true partner. For example, a $500,000 annual media buy would involve a $75,000 commission that we would have removed directly from your media providers' invoices.

This is the perfect pricing model for services who sell goods with a long purchase cycle.

By tying ourselves to gross revenue, we only have one motivation. Your motivation. We have no motivation to convince you to spend more money on marketing than what is necessary, and since we are a variable expense to sales, we NEVER become too expensive to have us on your team.

In almost every case, we end up lowering the amount of money you spend. We will stay within your planned marketing budget, including your media spend, production, and our Annual Fee. Add on the fact that you get any and all commissions back for media buys and various services provided by outside providers, and you will actually save money having us on your team.

Don’t forget, we have the largest buying power in North America for media buying, meaning for every dollar you spend buying media, we only spend 27 cents on average. This stretches your reach, impact, and frequency in a way no other agency (or yourself) can achieve on your own, saving you hundreds of thousands of dollars, eventually millions, every single year.

Clients who heed our advice and embrace our Marketing Strategy quickly add $1 million in incremental revenue to their business, making your investment a smart bet and a bit of a no-brainer.  

There is no longer any guesswork, hope, or fear that our marketing strategies are going to work. If our client’s are able to abandon any limiting beliefs about marketing, deliver operational excellence, and play the long game, our marketing strategy will accelerate their profitable growth.

Wizard of Ads® for Services pricing model is based solely on the top line revenue of your company. It consists of an Upfront Fee and an Annual Fee. These fees are inclusive of scheduled travel, services, and all other expenditures as outlined in the Consulting Agreement.

The Upfront Fee covers the intensive Uncovery Process, the first year’s Media Buy, the Creative Process, and the Market Research while the Annual Fee goes toward implementation, ongoing creative and consulting, and next year's media buy. You get a team of 3.5 people, with direct access to a top tier Creative Lead and Media Buyer, and on-demand access to me as your Master Strategist. You will also have a full-time Account Manager keeping everything on track.

While the upfront does have an initial pinch, it is easy to amortize the investment over the many years we will be working together to grow your business. Wizard of Ads® retain clients for 10 years, on average. The sale of the business is the number one reason for termination. We actively terminate the bottom 1% of clients who are unwilling or unable to follow our strategies.

Wizard of Ads® for Services believes that all rewards should be directly correlated to the success of our clients. This means that the Wizard of Ads® for Services only receives a raise when the company achieves growth. For example, if your gross sales for the year have increased by 25%, the Annual Fee you pay us in the following year will also be increased by 25%. Likewise, if your gross sales decrease, our Annual Fee will decrease by the same percentage during the following year.

This is an exceptionally easy and fair way to track and reward success. This model was developed by Wizard of Ads® over 35 years ago and has served us well because it serves our clients well.

As a rule of thumb, we take the risk of working for considerably less than our actual value in the first few years as we help accelerate growth. This means you need to be willing to pay us exceptionally well when you start doing even better.

When should I engage The Wizard of Ads® for Services?

There are four key revenue stages for engagement with the Wizard of Ads® for Services.

  1. Under $3.6 million in revenue
  2. Between $3.6 and $10 million in revenue
  3. Between $10 and $20 million in revenue
  4. Over $20 million in revenue

Under $3.6 million in revenue is an investment in your brand. This will serve you well in establishing your brand story early on and help you with your name, logo, and truck wrap design. It's easier to create pictures from a story than it is to make a story based on pre-drawn pictures. You'll be glad you did. Everyone on a fast path to growth is.

Most clients start with Wizard of Ads® for Services between $3.6 and $10 million in revenue. They have often seen a natural ceiling with their leads for demand service and are looking for ways to push past the ceiling. This can only be done with a properly executed brand strategy, specifically in mass media with a sticky story.

Between $10 and $20 million in revenue, Wizard of Ads® for Services has some natural economies of scale. This is a sweet spot where Wizard of Ads® for Services can offer some added value in getting the ball rolling.

Over $20 million in revenue is actually the lowest cost point of entry as a percentage of revenue, but not the cheapest time to start with the Wizard of Ads® for Services. Leveraging all economies of scale aside, we have been left out of the upside along the way, so engaging when over $20 million in revenue means we have to mend a lot of fences damaged along the way. This is also where clients see significant savings in their media buys and production costs.

There are also three market sizes to consider.

  • Primary Markets are the top 50 cities in America.
  • Secondary Markets are the smaller cities in America.
  • Tertiary Markets are the more rural trade areas in America.

When considering an engagement with The Wizard of Ads® for Services, consider what size market you are in. For example, a $3.6 million company in a Primary Market will struggle to get the necessary reach needed to make a splash. You either have to be more patient than a larger company or spend more money to accelerate your reach.

Alternatively, a $5 million company in a Secondary Market will look like a pretty darn big fish in a medium-sized pond.

A $20 Million company in a Primary Market will feel like a $50 million company using our strategies to potential customers.

The key to remember is that the earlier you start with the Wizard of Ads® for Services, the lower the investment to get started. As they say, the best time to plant a tree was 20 years ago. The second best time is today.

Are production costs included in your fees?

Offline, the Wizard of Ads® for Services Creative Lead will create the ad copy, cast the voice actors, source the production house, direct the performance, pick the music bed, manage all the edits, and provide you with the completed ad for final approval before sending to air on your behalf. This is included in our fees.

You pay for the production house, actors, royalty-free music, and jingles directly to avoid any potential for markups, commissions, or management fees.

We have many friends in the industry that give our clients good deals due to the large volume of work we provide them. We will introduce you to them.

Online, the Wizard of Ads® for Services Digital Lead will either coordinate production in-house or work with your preferred digital vendors. The scope of work will be determined and fees will reflect the scope of work to be done.

How long before a brand-forward strategy starts working?

In approximately three months of activation, we’ll just be getting live on air. In six months (3 months on air), you’ll be getting anecdotal feedback from people that you are being heard, but there will be no direct line to revenue.

After 6 months on the air, you’ll think you made the biggest mistake of your life signing up for this branding nonsense. After 9 months on the air (12 months in) you’ll see the light at the end of the tunnel.

At 12 full months on the air, you’ll know why you did this branding thing. Two years from now, we'll be clinking champagne flutes as you wonder why you didn’t do this sooner.

How long before we’re live?

The general guideline is 70-120 days, depending on the level of production needed and if there is a name change to your business.

This includes an onsite visit, a deep dive into research, and getting things created, negotiated, approved, produced, and live on the air.

  • Uncovery - 15-30 days based on travel. 1-2 days onsite.
  • Research - 30-60 days based on the scope of work.
  • Creative and Media Buy Process - 45 to 60 days
  • Offline Production - 15 days for radio. 30 - 60 days for television.
  • Online Production (if switching) - 60 days

This means planning for roughly 90 to 120 days in the proper development and production of a completely unique Marketing Strategy before anything hits the airwaves.

Are you exclusive?

Creatively, yes. During the term of this Agreement, all Creative Partners assigned to your Account shall not engage, directly or indirectly, as an employee, officer, manager, partner, consultant, agent, owner, or in any other capacity, in any competition of the client, including any company engaged in marketing consulting.

For clarity, the Creative Partner is defined as the individual Wizard of Ads® Partners who is responsible for creating your creative strategy and ongoing creative copy. Competition is defined as companies that engage in the same industry and business units (e.g., Furniture, Automotive, etc.) as you. The market area is defined as the area where the marketing message naturally reaches through DMA or 60 miles from the city center of the client's service area(s).

Naturally, we exclude any potential future competition in markets where you are not currently active at the date of signing.

We do not limit Media Buyers in any market. Media Buyers get better deals for larger volumes, making it beneficial for the client to have the Media Buyer available to do as many buys as possible to secure the best deals on the client’s behalf.

Do you do digital marketing?

Wizard of Ads® for Services can provide a host of digital marketing solutions for services. Wizard of Ads® has specialized Partners that provide digital services that serve services effectively. Under no circumstances will digital marketing services be offered without Wizard of Ads® for Services core solution.

It is most likely that Wizard of Ads® for Services will work with your existing digital partners and suppliers. If you do not have a reliable digital provider, we would be happy to introduce you to a number of great providers that play nice with Wizards.

Do you do jingles?

Wizard of Ads® for Services can assist you in getting a jingle for your business. Like any other tactical element of a marketing strategy, we do not produce a jingle for the sake of a jingle.

If you do not have a story or a strategic reason to have a jingle...or an ad campaign to tie it to, do not waste your hard-earned money on a jingle. You are wasting your time and money.

When you do build a single unified marketing strategy that incorporates a jingle for a specific (often scientific) reason, we have a Jingle Wizard who has studied the art and science of jingle design.

He will score you an original, royalty-free jingle, including professional singers, musicians, and producers. He will not knock off a generic jingle from a publicly available music bed that sounds like everyone else's jingle.

Your jingle will serve a very specific reason and produce a very specific result. Have you guessed how much we love jingles yet?

Who owns the copyrights?

Wizard of Ads® for Services owns copyrights for two very specific reasons. We also provide a fair use clause in all contracts to ensure you are in no way limited to the access of your creative works, whether you are working with us or not.

The first reason we own your copyright is to ensure that we do not have to go up against our own creative works in other markets we serve. This means you are not allowed to lend, give, borrow, tweak, rent, lease, or sell your creative works to any other company at any time.

The second reason we own your copyright is that we can establish a one-time value for your creative works in the event that someone steals the content. Upon selling you the copyrights, you can go after the perpetrator for theft and make a considerable bounty in a slam dunk case.

Here is how Wizard of Ads® word the fair use of your copyright for as long as your business is in operation:

All writing and/or marketing materials we create for you are not works-for-hire. Wizard of Ads® for Services hereby irrevocably grants you, and your successors in interest, the non-exclusive, royalty-free, non-transferable, and worldwide right to use the Works in connection with the marketing of your business pursuant to the Marketing Strategy for so long as your business is operational.
How do I measure brand results?

There are a number of interesting ways to measure results. Some people like to get unique identifying telephone numbers, or create branded URLs that redirect to landing pages or the website. However, much of this is a waste of time and energy as it never tells the true story of the brand journey and how it affected the decision-making process.

Other indicators of brand effectiveness include tracking new customers, reactivated customers, or running a brand equity survey to get a sense of your share of mind. Digitally you will see direct search increase, which cannot be affected by anything digital, as well as branded keyword inquiries increase. You’ll, of course, need to get your digital people to add these to your campaigns if you hope to see an increase in conversions.

Wizard of Ads® for Services racks the simplest of indicators. Top line revenue. When your branding takes effect, and the company responds in kind from the phone call or form fill-on, top-line revenue will increase. Efficacy is plotted on a T12, and total lead volume from all sources is tracked.

12 things you should know before signing up.
  1. Quality relationships take time. Branding is a long-term strategy. That’s why most services do it wrong, or not at all. There is always a lag between the start of the new campaign and the time it takes your customers to connect the dots. You MUST BE READY, WILLING, AND ABLE to endure this lag period. In our experience, the lag is typically 6 to 9 months, depending on how competitive the marketplace is, your company’s reputation, your budget in relation to reach, and the eight uncontrollable environmental factors. During this time, we will be helping you implement a transition plan to ease the pain. The good news is that this lag only happens once.
  2. Decisions by Committee. We completely reject the notion of decisions by committee. We work with a single, courageous decision-maker. We welcome decision influencers, but we only look to the Owner for the final decision. All decision-makers and influencers must be involved in the Uncovery and Marketing Strategy Presentation if they want to offer input in the future. It is critical that we have a 100% fully approved plan that can be defended and championed by all leaders in the organization.  
  3. Proven Strategy. That means we are not the low-cost provider. With hundreds of service clients and a playbook of strategic devices, tools, and tactics, this isn’t a guessing game for us. We know what to do to make your goods and services appealing to potential buyers. If you can deliver the goods, we can  build the relationships. If you are uncomfortable with the idea that you are paying us less now so that you can pay us considerably more once revenues allow, please do not commit. We intend to be your true partners, in sickness and in health...so long as you own your business.
  4. Automatic Payments. Everything is on automatic payments. If you struggle with managing cash flow, figure that out in your business first. We accept all major credit cards and ACH payments.
  5. We Cause Problems. If you don’t have a capacity issue now, I promise you will in about 9 months. Let’s deal with recruitment out of the gate as part of your comprehensive marketing strategy.
  6. We Own the Copyrights. All writing and/or marketing materials we create for you are not works-for-hire. We irrevocably grant you, and your successors in interest, the non-exclusive, royalty-free, non-transferable, and worldwide right to use the Works in connection with the marketing of your business pursuant to the Marketing Strategy for so long as your business is operational.
  7. Brand Building. We will be steering you to limit the use of discounts, rebates, coupons, and sales to attract clients. We know this feels counterintuitive to many, and we will clarify our reasoning. Rest assured, we have considerable experience in creating similar offers that are not damaging to your profitability, your brand’s integrity, and your preferable long-term client relations.
  8. Creative Authority. We must have creative authority over the words. You can accept copy as written or reject it outright, but you cannot modify the words yourself. If you do not like something as written, we are happy to discuss it and make the necessary change to maintain the integrity and intention of the words chosen. Alternatively, we will scrap the concept and create new copy that you are happy to get behind 100%.
  9. Proprietary Algorithm. The media buy must be structured in a very specific way, including running a full 52-week schedule. It is based on brain chemistry, not P&Ls. Once we have committed to the buy, it’s important to avoid adjustments unless they are calculated additions.
  10. Knucklehead Factor. You should expect knuckleheads. For example, when you start running ads that are certain to get attention, you need the courage to continue running those ads, even when you receive complaints. We celebrate complaints. It means we’ve made people feel.
  11. Digital Weasels. In about three months from the time your advertising campaign hits the airways, your digital marketers will show you a marked increase in direct and organic traffic. Some Digital Marketers will mistakenly claim this success as their own. Done properly, you can continue to spend less and less on digital lead generation by increasing your branded keyword online presence.
  12. Annual Marketing Meetings. Travel permitting, we prefer to hold Annual Marketing Meetings (AMMs) outside your city. Years of experience have taught us that we get better results when decision-makers are outside their sphere of influence, away from the day-to-day distractions of the office.

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