YC
Kevin Hale - How to Improve Conversion Rates
@ Y Combinator
09/07/19
Takeaways
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Kevin Hale
09/07/19
@ Y Combinator
Improving conversion rates primarily focuses on landing pages, but the principles can enhance any user interface.
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Kevin Hale
09/07/19
@ Y Combinator
When trying to improve a conversion rate, you're aiming to increase the efficiency of moving users from one step to the next in the conversion funnel.
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Kevin Hale
09/07/19
@ Y Combinator
Growth is determined by the balance between conversion rates and churn, and working on reducing churn is generally easier than improving conversion rates.
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Kevin Hale
09/07/19
@ Y Combinator
You should only work on improving your conversion rate if you have a leaky bucket, meaning you're losing users at a significant rate.
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Kevin Hale
09/07/19
@ Y Combinator
Industry benchmarks for conversion rates vary: casual download games average about 2%, while freemium SaaS companies range from 1.5% to 5%, with an average around 3%.
KH
Kevin Hale
09/07/19
@ Y Combinator
A high conversion rate example is TurboTax Online, which boasts a conversion rate of around 70%, indicating very high user intent.
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Kevin Hale
09/07/19
@ Y Combinator
To solve user interface problems, I use the knowledge spectrum framework, which identifies the knowledge gap between the user and the product.
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Kevin Hale
09/07/19
@ Y Combinator
Every interface problem aims to close the knowledge gap, either by increasing the user's knowledge or decreasing the knowledge required to use the product.
KH
Kevin Hale
09/07/19
@ Y Combinator
When designing a landing page, I simplify the process to a one-button interface, focusing on the minimum information needed to encourage users to push the button.
KH
Kevin Hale
09/07/19
@ Y Combinator
The call to action should be closely aligned with the 'magic moment'—the point when users realize the value of your product and feel excited to use it.
KH
Kevin Hale
09/07/19
@ Y Combinator
A good test for clarity is whether I can explain the product in a simple sentence that my mom would understand, avoiding jargon and complexity.
KH
Kevin Hale
09/07/19
@ Y Combinator
Users quickly assess if a product is right for them by looking for reflections of their needs on the page, so the design should not appear spammy or untrustworthy.
KH
Kevin Hale
09/07/19
@ Y Combinator
People are more likely to use a product if they see that others are using it, as it creates a shortcut for trust and legitimacy.
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Kevin Hale
09/07/19
@ Y Combinator
You should have empathy for your users; they often hesitate to use a website without knowing the cost or what's involved, which can negatively impact your conversion rates.
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Kevin Hale
09/07/19
@ Y Combinator
If you're offering something for free but your business model relies on other revenue streams, it's crucial to explain that to users to alleviate their concerns and build trust.
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Kevin Hale
09/07/19
@ Y Combinator
Some users prefer to ask questions directly rather than navigating through your website, so make it easy for them to contact you for help.
KH
Kevin Hale
09/07/19
@ Y Combinator
When evaluating a website, I look for a clear call to action that guides me on what to do next, which is essential for improving user experience and conversion rates.
KH
Kevin Hale
09/07/19
@ Y Combinator
It's important to streamline the user journey; if there are too many steps or competing calls to action, users may get confused and abandon the process.
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Kevin Hale
09/07/19
@ Y Combinator
To enhance user experience, consider adding a video that showcases the product's capabilities, helping users understand its value more quickly.
KH
Kevin Hale
09/07/19
@ Y Combinator
Avoid using carousels for important information, as they can hide critical details that users need to make informed decisions.
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Kevin Hale
09/07/19
@ Y Combinator
If your product is in an open beta, be cautious about how you present it; unclear messaging can lead users to feel unprepared to use it effectively.
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Kevin Hale
09/07/19
@ Y Combinator
Displaying user engagement metrics, like how many people have downloaded templates, can help build credibility and encourage new users to try your product.
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Kevin Hale
09/07/19
@ Y Combinator
Ensure that your website clearly communicates that it offers more than just a simple tool; users need to understand the full scope of what you're providing to build trust.