Experiment Your Way Out of Recession

Experiment your way out of recession
21st of March 2023

Introduction to Conversionista! and ARC
Data driven way of work and CRO
Recession is not a new black
Follow your user’s behavior
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Agenda

© Curamando 2019
© ARC 3
The ARC family

+90
+1000
#1 in Growth & Experimentation
Conversionistas!
Oslo, Stockholm, Gothenburg & Malmö
Clients
2010
Established
We believe in the power of data as a driver for change.
Using scientiﬁc methods, we reveal our client´s growth potential and improve
the user experience.
That's how we help companies achieve their business goals.

RETAIL FINANCE INDUSTRIALS OTHER SERVICES
A CROSS SELECTION OF SOME OF OUR CLIENTS*
OSLO
GOTHENBURG
STOCKHOLM
Delivering digital transformation and growth in the Nordics
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MALMÖ
INTRODUCTION TO CONVERSIONISTA! AND ARC

Experience &
Behavior
Advisory
Experimentation
6
Where to optimize your CRO journey
Current state vs Goals
Your teams have different capabilities and maturity levels.
Understanding of your current strengths and weaknesses in the
area of Conversion Optimization is the key to decide what actions
need to be taken to optimize your CRO journey.
When you have enough data and
reports, but need insight and
results.
When you have many ideas but do
not know which one is the best
When you don’t know where you
should start your CRO journey and
how to manage your CRO for a
great results
When you truly want to understand
why your users do what they do,
and work with data-driven redesign
and interaction concepts
Examples why
Area of expertise
Data quality
Analytics
When data your gathering is not
accurate, you need help with
trackings or choosing the right tool
and get technical part done
INTRODUCTION TO CONVERSIONISTA! AND ARC

Recession is not a new black!
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Recession
Signiﬁcant decline in economic activity, last for
months or even years
Rising level of unemployment (number of layoffs)
Negative gross domestic product (GDP)
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Falling retail sales, and contracting measures of
income and manufacturing for an extended period of
time
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Unavoidable part of the business cycle
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Recession is a part of the normal economic cycle
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p
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n Peak
R
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D
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p
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Trough
Recovery
E
x
p
a
n
s
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o
n
Peak
R
e
c
e
s
s
i
o
n
RECESSION IS NOT A NEW BLACK!

“If you can’t measure it,
you can’t manage it.”
Peter Drucker, management consultant, educator and author

STANNA PÅ SAJTEN /
DATA DRIVEN WAY OF WORK AND CRO
Business tends to cut off the growth
program?
But what do you really cut off in this case?
Marketing and growth
Market shares
ROI

When you stop experimentation
program you cut off DATA and
Insights
A/B/n-testing randomly assigns users to different
variations of a page or website component.
The experiment is performed on your live website on
your real visitors, and they are not aware that they are
part of an experiment.

STANNA PÅ SAJTEN /
DATA is POWER
in high uncertainty times
Data is your valuable resource and power in decision making. It
allows to:
• Predict further changes in users’ behavior
• Tailored your strategy better and mitigate risks
• React faster
• Support creativity
• Support decision making and eliminate guesswork
• Evaluate result afterwards

Users’ behavior is on the front line to
change in recession context…
But how can you understand what is
this change about?

DATA = POWER. And you should be as close as possible to your real users
The old way
We ask people what they think motivates them and
build our services on that information
The new way
We conduct experiments to measure behavioural
changes. That data informs us on how we should
build our services

“Conversion happens when your
and your visitors goals meet”
John Ekman, founder of Conversionista
First law of conversion

Why is it important to base
website improvements on data?

What is the one thing that all organizations have?
Ideas

And what is thought to be the best source of ideas?
The Creative
Genius

So - this is your process
Creativity Ideas H.I.P.P.O BIG launch

What is the risks with this process?
Not data-driven
Unknown origin and what it’s
supposed to solve
“Hit or miss”
Not a repeatable process

This is “Hit or miss”
Launch
= +/-0
Time
Value

Some launches have
positive effect,
some negative = +/-0
Should this one have
been launched? Time
Value

By optimizing, we
can remove the
negative launches
Time
Value

= $
And focus our efforts
on positive launches
Time
Value

STANNA PÅ SAJTEN /
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Optimization wheel:
our way of working
Data
Behaviour
analysis
Hypotheses
Tools & Research Prioritization
Experiments

Recession is not a new black!
28

Recession is a part of the normal economic cycle
E
x
p
a
n
s
i
o
n Peak
R
e
c
e
s
s
i
o
n
D
e
p
r
e
s
s
i
o
n
Trough
Recovery
E
x
p
a
n
s
i
o
n
Peak
R
e
c
e
s
s
i
o
n
we are here
should be ready
time to act

Take that as a opportunity! - Recession is a perfect opportunity to build for the future
Grow your
business and
strengthen it
Focus on
the long term
Invest now, to
“skim the cream”
later
Do what you are
good at, just
differently

Follow your users’ behavior
31

FOLLOW YOUR USER’S BEHAVIOR
Why it is important to hear your users?
Align brand with
customers’
values
Loyalty to the
brand
Increase
customer
retention
Decrease churn
= $

Loyal customers 9x more likely to convert then the ﬁrst time ones
Convert Convert 9x
Adobe Digital Index report “The ROI from Marketing to Existing Online Customers”

Getting existing customers back is more valuable and cost-effective than
acquisition the new ones.
A small increase in your retention
rate by 5% might have a big impact
on proﬁtability, boosting it by + 25%
+5% retention +25% proﬁtability
Harvard Business School “The Economics of E-Loyalty”
= $
+

C
A
S
E
CASE - KIWI
Norwegian grocery chain
Empathy towards the customers =
unprecedented customer growth
Twice a year – on 1 February and 1 July – prices are
adjusted from the suppliers to the grocery chains. While its
competitors raised their prices, Kiwi declined to do the
same and prices reminded the same.
The store chain had 600,000 more customers in the ﬁrst
week after the turn of the month.
The market share of Kiwi in January increased by one
percentage point from the same month the previous year.
They now have 23.6 percent of the market.
FOLLOW YOUR USER’S BEHAVIOR - CASE
KIWI: Lavpriskjeden tjener godt på å hoppe bukk over prisøkningen 1. februar. Foto:
Mattis Sandblad / VG
article Kiwi: − Tidenes kundevekst (Kiwi: − The customer growth of the times)
Line Fausko for VG, 17.02.2023

Users’ behavior will change
The question is to what extent
and to which direction?

Gain valuable insights and adjust your strategy accordingly
STRATEGY
build for the future
Insights
Data
analytics
A/B/n testing
Qualitative
data

C
A
S
E
CASE - NorgesEnergi
Change in users’ behavior
before and after the price
increase
Before 2021 - Power was seen as a hygiene factor,
and users did not think much about power
consumption. If the invoice was too high, they
would blame the company.
After 2021 - "My page" became more important,
and users became more conscious about power.
They'd spend more time checking hourly prices,
and consumption. Now they are more demanding
on features to get control over daily prices, and
costs.
“I'm on the site every day after 1.30pm to plan when
the washing machine, and dishwasher should run,
and when the car should be charged.”
“I would have liked to have a
forecast and prediction for how
the electricity prices will be, an
opportunity to see what it might
look like”
“I have never used apps from electricity suppliers
before.”
“The most interesting thing about “My page” is
checking the invoice and whether you have the right
agreement.”

C
A
S
E
CASE - Norwegian
Full refund within 24 hours
Issue:
High drop off rate was detached on a funnel checkout step
Goal:
To motivate users to continue by highlighting beneﬁt of
cancellation within 24h close to the decision point
Result:
The variation is showing a signiﬁcant uplift of ≈ 3% in terms
of conversion rate
Original Variation

In the time of uncertainty data is your power, experiments -way to get insights
Data
=
power
=
insight from
your real
customers
Data
Experiment

“Don’t copy your competitors.
They also have no idea what they are
doing”
Peep Laja - Founder CXL

conversionista.com/no/ | hei@conversionista.no | + (47) 975 54 799

Experiment Your Way Out of Recession

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