Guest Entry: Your conversion rate depends on one single word!

Guest Entry: Your conversion rate depends on one single word!

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Jonathan Løw is the CMO & co-founder of JumpStory, a startup combining AI and digital communication.

Besides being a startup founder, Jonathan is an often used expert on entrepreneurship and author of several books, including Listen Louder and Gurubogen.


If you’re working with digital marketing and communication you need to understand one thing: It all comes down to one word!

Given the dramatic increase in the amount of online content, the choice of words has become increasingly important. Despite of this, a lot of tech startups and growth companies are not obsessed with words and language, but obsessed with products and data.

In my own company JumpStory we’re crazy about words. We’re not the ones developing big analytical tools or fancy dashboards, but we’re obsessed with understanding, when and why a sentence works, and when it doesn’t. We use a combination of experience copywriters and artificial intelligence to do so.

JumpStory is founded to help the tech world turn their products and services into great stories, because unless this happens, we don’t reach the full sales potential of our ideas. We need to start taking digital content seriously – no matter if it’s SEO articles, blog posts, website texts, AdWords campaigns, newsletters etc.

I’ve personally worked with digital communication and marketing for 18 years – both in Denmark and globally. This has given a lot of insights into, when digital content works, and when it doesn’t, and I would love to share a few of these with you now …

 

A single word increased sales by 89%

The company Basecamp (previously Highrise) ran a campaign to get their users to sign up for a free edition of their HR-tool. To begin with they had created the content and landing page to your left:

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However, after looking at data and copywriting, they changed the communication to the wording on the left – increasing the clickrate with more than 30%.

What they did was really simple:

  • They communicated that their signup procedure lasts less than a minute

  • They added an exclamation mark at the end of the sentence to communicate the urgency of their offer.

In another similar example, the company Movexa added the word ‘supplement’ to their campaign:

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Simplexity increased the click-rate with 433%!

Admitted. An improvement in sales of 89% is nice, but what about 433%?

When the company Humana decided to work with, what I’ve named ’simplexity’, they saw dramatic results.

Simplexity is the art of making complex communication and storytelling simple. Typically, a tech company gets caught up in features and product-telling instead of storytelling and value creation. This results in poor communication and less sales than the product or service has the potential to create.

So when you work with simplexity, you look at how to turn some of the text into images, and how to make your call to actions more inspiring:

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Can you guess which of the two examples above resulted in the 433% increase?

 

Heard of the Hobson effect?

Have you heard about the Hobson-effect? If not you can check out this interesting article or just continue reading below.

So … you just experienced the so called Hobson-effect. When we’re presented with different choices as human beings, we like to have some choices, but not too many, and we like the choices to be closely linked.

I gave you the choice of clicking on a link and leaving this, hopefully interesting, article or staying here and getting the same information anyway. I would guess that about 90% of the visitors in here, including you, kept on reading.

When you present your customers with zero options, it feels bad. We feel left out. Nothing to pick and choose between. 

Having just one things to choose feels better, because we’re not missing out on anything. It doesn’t really get us all excited, because we don’t’ really have that much influence, but it’s much better than no choices at all.

Two options, named Hobson’s choice, is often, but not always the right way to communicate and market your products and services. In this article I gave you the option of staying or leaving. No matter what you chose, it felt good, because YOU made the choice. The important thing is to give your customers choices, but not too many. Too many choices will make us feel overwhelmed and poor at deciding stuff.

Let me give you an example from the Netherlands with these two differrent ads for an insurance company:

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Which one performed best, do you think? 

The second one is the answer, but the answer might still surprise you! The company included a link below the button to give the visitors the important choice, but actually hardly anyone clicked on this link. They still clicked on the much more visible button, but the additional option made them notice the button instead of missing it – and actually quite a lot of us have blindspots, when it comes to noticing buttons, banners etc.

The result was an increase in the click-rate of 244%, and the Hobson-effect showed it magical effect once again!

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