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6 Reasons Why Your Conversion Rate Is Zero

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Nothing is worse that abandoning a good idea because it ended with zero % conversion rate. That’s called a false negative.

Here are a few things to check when our conversion rate looks so low that we’re considering abandoning the idea. This list is in order of least likely to most likely based on personal observations and experience.

6) Can’t find the button!usability testing for low conversion rates

It doesn’t happen that often, but it does happen. Maybe the hero image is a bit too colorful and it’s obscuring the CTA. Maybe there’s a cross-browser issue making the button hard to find.

How to fix it:

A simple round of usability tests can fix most obvious landing page issues. For a single page, a handful of usability tests can be done on paper prototypes and then full color mockups in an hour or two. It’s a small cost to make sure the page has basic functionality.

5) Customers don’t want it

Product/Market FitYep…sometimes. It just so happens that customers aren’t interested in our product. While it’s not surprising this is on the list, it’s not the top reason.

How to fix it:

Back to the drawing board. Time to pivot the value prop or the customer segment.

4) The wrong people

If your conversion rate is zero, make sure you're sending to the right peopleSometimes its not that the idea is bad, it’s that we’re showing the value prop to the wrong people.

As entrepreneurs, we’re often trying to conquer the world with products for “everyone.” This is a terrible waste of a great idea that might be perfect for a growing niche that will soon become the mainstream.

Poorly targeted channels means our early adopter niche might get washed out by an overly general (and uninterested) audience.

How to fix it:

Use customer discovery interviews to create good customer personas and use those personas to pick highly targeted marketing channels. Only send people who fit our early adopter profile to the page!

3) Not enough people!

a low sample size can lead to a low conversion rate if the target audience gets drowned out but a more generalized audienceStatistics is not a common skill set. When we look at the results of the test, are we including a margin or error? Do we know what the desired confidence level is?

If not…consider reading a good book on the subject. Naked Statistics is a fairly good read.

Another simple option is to google “Sample size calculator” and playing around with one of several margin of error/sample size calculators available.

By changing the numbers, we can understand which variables have an impact on our interpretation of the data. It’s worth digging into details.

Still struggling with this? Tell @TriKro to write a post on statistics by clicking here: Hey @TriKro, please write a post explaining statistics for Product Managers!

How to fix it:

If we can easily increase our sample size, send more people!

If we can not increase our sample size, test big changes that are likely to have big effects. With 100 people visiting a landing page a week, testing 41 shades of blue is not going generate a detectable difference. Go for big bold changes in the value proposition.

2) They don’t understand it

Comprehension test - stop clubbing baby sealsAs experts in a particular domain, we sometimes talk in our own specialized language that a user may not understand. This can’t be emphasized strongly enough…

USERS WON’T BUY WHAT THEY CAN’T UNDERSTAND

Once simple real example: “Increase your customer LTV”

Guess what? SMB eCommerce owners don’t know what LTV stands for.

Try: “Increase your customer Lifetime Value”

Oops….what does “lifetime value” mean?

If only 50% of visitors can clearly understand our value proposition, we’re throwing away 50% of our sales.

Keep it simple! e.g.: “Get your customers to stay longer and spend more money”

How to Fix it:

Run a comprehension test before running a landing page test. Here’s a toolto track your tests. Come up with a few understandable variations and then A/B test them.

1) The analytics are broken

Zero conversion rate? Check if analytics are brokenYep. The most common reason for an unexpectedly low conversion rate is simple that there’s a bug in the code or analytics. Could be we’re not screening out internal traffic from our team in the results or that a javascript snippet got mangled.

It seems ridiculous that this is the most common reason for a low or zero conversion rate, but I will swear up and down that it’s true. I’ve personally seen very very smart people screw this up. Sometimes a small typo will break things.

How to fix it:

Just test it before deploying! Manually if needed.

It’s a decent idea to have more than one analytics package installed to double check things. Most are asynchronous javascript and won’t add to page load time and tools like segment.io can let you still one bit of javascript and send the data to multiple analytics services.

HeapAnalytics.com is also worth checking out for early stage startups as they allow for retrospective analytics. Tools like Google Analytics may require detailed configuration of a conversion funnel. When the funnel changes, adjusting the GA settings may happen too late and data is lost. Heap saves all the data and can be reconfigured even after the fact.

Conclusion

Don’t panic! Don’t give up on your vision because of a bad result. Debrief and do a retrospective and understand why the numbers are bad before passing final judgement.

Happy testing!

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About the Author

This article was written by Tristan Kromer of Grasshopper Herder. Tristan helps product teams go fast. As a lean startup coach, he works with innovation teams to run at least one experiment/research per week to improve their product and business model.To do this, they apply lean startup principles and break down big problems in small steps.For early stage startups, Tristan volunteers his time Lean Startup Circle. For larger companies and governments, Tristan’s team at TriKro LLC coaches teams on an ongoing basis and help design Innovation Ecosystems.

Entrepreneurship

Will Financial Liberalisation Trigger a Crisis in China?

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The People’s Republic of China (PRC) has been liberalizing its financial system for nearly 4 decades. While it now has a comprehensive financial system with a large number of financial institutions and large financial assets, its financial policies are still highly repressive. These repressive financial policies are now a major hindrance to the PRC’s economic growth.

The PRC is at the beginning of a new wave of financial liberalization that is necessary for supporting the country’s strong economic growth. The country’s leaders have already unveiled a comprehensive program of financial reform, which includes 11 specific reform measures in three broad areas: creating a level-playing field (such as allowing private banks and developing inclusive finance), freeing the market mechanism (such as reforming interest rate and exchange rate regimes and achieving capital account convertibility), and improving regulation.

But could financial liberalization lead to a major financial crisis in the PRC? What would be the consequences for financial stability as the PRC moves to further liberalize its financial system? If the PRC repeats the painful experiences of Mexico, Indonesia, and Thailand, then it might not be able to achieve its original goal of overcoming the middle-income trap.

International experiences of financial liberalization, especially those of middle-income economies, should offer important lessons for the PRC. In our new research, based on cross-country data analysis, we find that financial liberalization, in general, reduces, not increases, financial instability. This powerful conclusion is valid whether financial instability is measured by crisis occurrence or by fragility indicators, such as impaired loans and net charge-offs. The only exception is that financial liberalization does not appear to significantly lower the probability of systemic banking crises, although it does lower the risk indicators for banks. These results have higher statistical significance and are greater in magnitude for the middle-income group than for the entire sample.

The insignificant impact on banking crises, however, should be interpreted with caution. One of the possible explanations is that under the repressed financial regime, the government supports banks with an implicit or explicit blanket guarantee. This reduces the probability of an explicit banking crisis, although the banking risks may be even greater because of the moral hazard problem. In fact, government protection of banks could also increase the probability of a sovereign debt crisis or even a currency crisis before financial liberalization.

If financial liberalization significantly reduces the likelihood of financial crises, especially in middle-income economies, then why did some middle-income economies experience financial crises following liberalization? We further investigate whether the pace of liberalization, the supervisory structure, and the institutional environment matter for outcomes of financial liberalization.

We obtain three main findings. First, an excessively rapid pace of financial liberalization may increase financial risks. The net impact on financial instability depends on the relative importance of the “liberalization effect” and the “pace effect.” In essence, what the “pace effect” captures could simply be the prerequisite conditions and reform sequencing that are well discussed in the literature. Second, the quality of institutions, such as investor protection and law and order, also matter. International experiences indicate that investor protection can significantly reduce the probability of financial crises. Third, the central bank’s participation in financial regulation is helpful for reducing financial risks during financial liberalization. This is probably because central banks always play central roles in financial liberalization, especially in the liberalization of interest rates, exchange rates, and the capital account. If a central bank is responsible for financial regulation, its liberalization policies might be more cautious and prudent.

Our research findings offer important policy implications for the PRC. (1) Further financial liberalization is necessary not only for sustaining strong economic growth but also for containing or reducing financial risks. (2) Gradual reform may still work better than the “big bang” approach, and sequencing is very important for avoiding the painful financial volatilities that many other middle-income countries have seen. (3) The government should also focus more on improving the quality of other institutions, especially market discipline, to contain financial risks. (4) It is better for the central bank to participate in financial regulation. The new regulatory system should focus exclusively on financial stability and shift from regulating institutions toward regulating functions. It should also become relatively independent to increase accountability.

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About the Author 

This submitted article was written by  and  of Asia Pathways, the blog of The Asian Development Bank Institute was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in the Asia-Pacific region.

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Entrepreneurship

Women on Top in Tech – Chrissa McFarlane, Founder and CEO of Patientory

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(Women on Top in Tech is a series about Women Founders, CEOs, and Leaders in technology. It aims to amplify and bring to the fore diversity in leadership in technology.)

Chrissa McFarlane is the Founder and CEO of Patientory, a patient-centered enterprise solution on the blockchain to store, secure and access healthcare information in real-time. She is a leader and an entrepreneur with a passion for creating cutting-edge healthcare products that transform the face of healthcare delivery in the United States of America and abroad.

What makes you do what you do?
I am passionate about helping people, especially when it comes to their healthcare. This is my daily motivation for pushing forward in one of the most challenging industries to innovate.

How did you rise in the industry you are in?
Through my networks and maintaining a strong advisory board, I am able to make an impact.

Why did you take on this role/start this startup especially since this is perhaps a stretch or challenge for you (or viewed as one since you are not the usual leadership demographics)?
I took on the role and decided to start this startup primary to follow my passion and be an inspiration for other women who are seeking to start their own business.

Do you have a mentor that you look up to in your industries or did you look for one or how did that work?
I have multiple mentors. I met them through my networks.

How did you make a match if you did, and how did you end up being mentored by him/her?
Through introductions and after speaking with them I saw a character alignment that prompted me to ask them to by my mentor.

Now as a leader how do you spot, develop, keep, grow and support your talent?
Through one on one meetings, and team building.

Do you consciously or unconsciously support diversity and why?
I consciously support diversity because a diversity of thought breeds success in the workplace. It is important to have different lenses of thought to be represented. Our company is a representation of the people we serve.

What is your take on what it takes to be a great leader in your industry and as a general rule of thumb?
A great leader in healthcare is equipped to serve the people. Unlike many other industries, healthcare is centered around sustaining the health of the human being. You certainly need to encompass a passion for seeing individuals live and lead healthy lifestyles.

Advice for others?
In building emerging technology, education is always key to success.

Our first Inaugural Blockchain Healthcare Summit will take place on May 31st in Atlanta, GA where we will discuss the current state of blockchain projects and opportunities for the future.


If you’d like to get in touch with Chrissa McFarlane, please feel free to reach out to her on LinkedIn: https://www.linkedin.com/in/chrissamcfarlane/

To learn more about Patientory, please click here.

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