CRO Identifies Millions in Revenue for Event Space
One of our clients manages a large event space in major metropolitan city. Most of the ticket sales occur via the space’s website. The averages approximately 1M visitors per month. However, there conversion rate is only 0.75% – substantially below industry average. Although ticket sales for the event space averaged between $20M and $25M annually, just increasing the conversion rate to industry average would double their revenue.
The Problem We Solve
To identify the potential causes of the low conversion rate, we deployed some tools at our disposal.
First, we looked at the site analytics to understand who our users were and how they were using the site. Going in the assumption was that the dominant demographic was international tourists. However, data not only showed most visitors to be American, they were from the same state! Moreover, it appeared there was a high bounce rate, meaning that most visitors were choosing to leave without ever seeing the price of the tickets. This tells us the underlying value proposition was not the problem. It was either lack of motivation, too much fear or too much site friction. Moreover, for folks that proceeded past the home page, the abandonment rates were low and page response rates were fast, which points to low site friction.
Next, we ran a social media scan to understand any emotions in the marketplace that could be causing. In particular, we’re looking for motivation to make a purchase or fear of making it. On the motivation side, we found the beauty of the experience was a primary motivation. But more importantly, we found a strong signal of fear the pandemic.
Last we ran our interaction diagnostics – heat maps and session recordings – which lets us see how users are interacting with the site. These tools showed us that the average user was not engaging strongly with the images surrounding the experience. Instead, they appeared to be searching on the home page for missing information.
Putting this information together, we built the following hypotheses:
- Our typical site visitor is aware of the primary value proposition for the space – the beautiful view – did not lack in motivation
- The low abandon rates on the deeper, cart related pages suggested to us the value exchange was solid, i.e. the ticket price was as not the problem
- The site performance being solid, the site was not the problem
- We hypothesized the cause was lack of prominent display of the COVID protection protocols that were in place to keep visitors safe
To address this issue, we worked with the client to build a variant of the home page which included a prominent and clear description of the COVID protocols. This variant is designed to allay potential fears and build confidence that the site could be visited safely.
We utilized a cutting edge causal analytics testing engine to test the variant against the control group of no notice and ran that test over a 4 week period.
Initial analysis of the variant tests show a 15% lift in conversion rate. Once implemented, these changes have the potential to result in an $3M increase in annual revenue.