How to Design for Conversions
What is a KPI?
Let’s start by explaining a KPI. A KPI, or key performance indicator, is a measurable statistic or metric used to gauge the success of a given action, piece of media, or product. It measures success based on the item’s intended use.
Defining the Use Case
In market research, it is essential to define a marketing goal or use case so we can begin to answer the question: how do you define a successful project? Is the goal of the project to better understand the buying persona of a customer in the market for a new tent or to quantify the buying power of fishermen in the southwest? Both examples ask a clear question that can be broken down, measured, and answered with a clear response supporting the overall project goal. The success of both projects relies on a measure of success in answering those questions.
So why do so many marketers and designers attempt to answer the question, how do I get more sales with impressions with the impressions? Impressions are a KPI of noticeability, and conversions are a sales KPI.
“Impressions are a KPI of noticeability, and conversions are a KPI of sales.” – Justin Bahr
Taking a Step Back
Alright, so I know many sales and marketing professionals’ first reaction here will be, “you can’t have sales without impressions”. Yes, that is correct, it’s sales one-o’-one. Casting a wide net will, by sheer numbers, will inevitably produce sales. But why cast a large net in a large space with small gains when you can cast a small net in a small space with major gains? The basis of market segmentation, targeting, and an introduction to conversion ratio.
What is a conversion ratio?
It is a KPI that measures the number of sales by the number of impressions; a high ratio means that you have more sales per impression.
Bringing this full circle, the point I’m trying to make here is that we, as designers and marketers, need to focus less on the impressions KPI and more on the conversion ratio KPI. Our measure of success is tied to the overall business goal of growth and, in most cases, sales.
If your organization struggles to make more sales when the marketing team insists that the marketing efforts are “worth it” because “we have X number of impressions from Y campaign.” then it’s probably time to reevaluate because something is not quite connecting. The benefit of market research firms like Cairn Consulting Group is that we can dive into situations like this and identify where the mark is being missed. Where are you losing interest during the customer buying process, and how do you change your marketing strategy to fit the data? It’s one of the first steps in data-driven decision-making.
Conclusion
Please note that every organization may have different project goals, but the conversion ratio still holds true. If the goal of the project is to “get your brand name out,” then impressions are the success criteria of the project, but ultimately, the goal of marketing is to persuade others to take action in response to a campaign. So, if the goal is to get the word out, then the conversion ratio is that people remember your brand when mentioning a specific topic, product, or event. Repurpose key demographics to get buy-in.
Leveraging stakeholder engagement to improve overall outcomes and executing the fold below so that, as an end result, we can make the logo bigger. Demonstrate below the fold with the possibility to innovate.
We are looking to design for conversions, not just KPIs or “vanity metrics” or metrics that do not carry business value but simply make organizations and business owners feel good.
Let’s Talk KPIs and Conversions
Reach out today, and let’s have a discussion about KPIs and conversions in the context of outdoor hospitality.
