Monday, November 2, 2015

Analyzing click-through rates to drive strategy

Websites show a lot of different links allowing visitors to go in a direction that best fits their needs.  Analyzing the amount of times a link was clicked and dividing it by the number of times it was viewed gives a company the click-through rate of each link (Reed College, 2015).  This information can be extremely helpful as companies try to understand their audience’s behavior.  In addition, a lot of websites have links that drive towards a conversion page.  In an effort to drive as much traffic towards the conversion pages, companies could utilize A/B testing.  When analyzing the test results, the click-through rate is a key number.

A/B Testing
The use of call to action buttons is one way companies try to drive traffic towards a conversion page.  The color, text, and position of the call to action button can have an effect on performance.  A successful strategy related to these factors will be different across websites due to the overall design and audience.  Therefore, it’s important that each company does their own tests to optimize their website.  An A/B test will allow the company to improve their performance while making small changes.  Below are a few examples of website optimizations that companies have tested and the results found.

Color Matters

ConversionXL wrote an article that touched on the colors of buttons.  The example used was the difference between a green and red button.  In this specific example, the red button saw a 21% increase in clicks when compared to the green button due to a higher click-through rate.  However, the author was quick to point out that green was used throughout the page.  Therefore, it blended in a more with the overall design (Niggulis, 2013).  This doesn’t mean red will outperform green on every website but for this company it was an easy optimization that helped drive additional traffic to the conversion page.  The use of the click-through rate allowed the company to put data toward this optimization.


Text Matters
Understanding the best way to talk with your audience can have an effect on the overall performance.  Websites that try to generate leads tend to have a call to action button on each page.  In the example below the website is trying to get people to give contact information for the pricing of the company’s service.  In an attempt to drive more clicks on the call the action link, the company tested the wording of the link.  The result was a 161% increase in the click-through rate allowing the company to gain more conversions (Deswal, 2012).


Position Matters
A lot of companies have call to action buttons in the top right hand corner of their website.  However, this doesn’t mean every company should go with this approach.  Again the answer to understanding the best approach is to do an A/B test.  The test can be looked at from a click-through rate perspective allowing the company to understand what position drew more visitors to click on the submit button.  In this case it was the position at the bottom of the page that saw the best results (Aagaard, 2013).


Conclusion
A/B testing is vital to a website and a company’s success.  As companies setup these tests they have to understand what metrics to evaluate.  If a company looks at clicks alone, the results could be incorrect depending on the number of impressions each test version received.  Therefore, the click-through rate takes this issue out of the equation.  It’s a simple metric that can help companies understand the actions a visitor takes on the website.

References:
Aagaard, M. (2013, March 25). 10 Call-to-Action Case Studies with Examples from Real Button Tests. Retrieved November 1, 2015, from http://contentverve.com/10-call-to-action-case-studies-examples-from-button-tests/

Deswal, S. (2012, October 4). How changing a single word increased click through rate by 161% - VWO Blog. Retrieved November 1, 2015, from https://vwo.com/blog/increase-click-through-rate/

Niggulis, O. (2013, January 16). Which Color Converts The Best? Retrieved October 31, 2015, from http://conversionxl.com/which-color-converts-the-best/

Reed College of Media. (2015, October 19). Lesson 2: Basic Web Analytics. WVU. Retrieved October 31, 2015 from http://www.ecampus.wvu.edu




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