Conversion optimization

Key concepts

Fundamentals

Conversion funnel

Volument uses the standard AIDA model to measure the funnel performance:

The classic AIDA funnel

Conversion funnel shows how effectively your website can turn new visitors to return visitors, leads, promoters, and paying customers. Everything in Volument is based on this classic conversion funnel because it measures the actual visitor behavior.

We measure the steps on this funnel as follows:

Awareness — Engagement on the landing page

Interest — Engagement on the first visit

Desire — Retention

Action — Conversions

Traction — The score for all above

Engagement

Engagement is your website's ability to hold visitor attention. That is: the longer they stay, and the more content they consume, the more engaging the experience is.

First landing

The very first seconds of engagement is extremely critical: it's where the visitors become aware of the product, and they form their first impression.

This important moment gives us a possibility to detect website bottlenecks by sorting your landing pages in the following important ways:

By bounce count — these are the number of visitors who leave the site in 7 seconds after entering the page. This sorting method is a way to find your biggest “leaks.“

By bounce rate — this is the ratio of visitors who leave the site in 7 seconds. This ranking is a way to find pages that are broken the most.

First visit

The first visit spans all the pageviews that the visitor craws in the first interaction with the product. The visitor starts building interest.

Visitors with excellent first-time user experience (FTUX) are more likely to come back than the ones with a bad experience.

Improving the first-time user experience is the most effective way to improve the overall performance of your conversion funnel because all the more important conversion metrics depend on this.

More importantly, metrics under the first visit are actionable — i.e., you can actually influence them. These are called leading indicators because they give early signals about the upcoming retention and conversion events

Retention

Retention measures you ability to get visitors back to the site.

Retention is the most reliable indicator of whether you are making something people want. The more intensively people return, the more they seem to want to interact with your product, and stronger is your product/market fit. And the stronger your fit, the more conversions you can expect to come.

Retention is said to be the king of all metrics because as you increase retention, you also increase virality and repeat purchases. Visitors who come back often have more chances to invite other users, and you have more opportunities to monetize them.

To increase retention, you should focus on improving the first-time user experience, so the visitors want to come back. A typical way to harm retention is overselling, particularly on the landing page.

Conversions

A conversion happens when someone responds to a call-to-action: an anonymous visitor becomes a lead, or a lead becomes a paying customer.

Conversions are at the bottom of the funnel are called lagging indicators — they are easy to measure but hard to influence. So to increase conversions, you should really focus on improving the metrics at the top of the funnel.

Traction

Traction measures the width of the conversion funnel. The wider (and taller) and the funnel, the stronger your product/market fit and the better your business model is working. To illustrate:

product-market-fit-compared

Volument measures a weighted score for traction we can rank your market segments from good to bad, and you can make a new version of your site and see if it generates more traction.

The sole purpose of Volument is to help you increase this metric because it is the one metric to rule them all. Traction is your north star metric because it measures the strength of your business model.