Article

8min read

The Ideal CRO Structure for Sustainable Growth

With experimentation, the goal is simple: find out what resonates best with your digital audience to create a relationship and drive business growth. But, how do you reach the point of success?

Experimentation opens the door to fresh insights that are only found through testing, compelling you to continuously refine different facets of your website for an improved digital experience across the board. Once you take your first steps down your experimentation roadmap, your path toward optimization evolves to the point where you can become a more prominent digital player.

However, experimentation success will introduce growing pains – especially if you’re a company starting its CRO journey. Allocating your CRO resources early and efficiently is important to set your business up for continued success, prosperity, and evolution.

A firm foundation and building good habits from the start is the best way to ensure that your growth won’t stop.

How to build out your CRO team following the centralized model

A successful CRO team needs to be well-equipped with the necessary resources to carry out their missions which include time, tools, people and technology.

The first step in creating your team is to focus on leadership. The leader of your team needs to set an example by prioritizing experimentation and making it a part of your organization’s values. Your leader needs to value and encourage experimentation by creating a safe environment for testing where failures are seen as learning opportunities. CRO organizations need to create a culture of collaboration and communication where everyone works together to achieve a common goal.

It’s important to keep in mind that experimentation requires a lot of collaboration. By having a vast team equipped with different skills, you’ll need to facilitate communication between different teams, such as designers, developers, marketers, and data analysts.

This means that everyone needs to be aware of the goals and deliverables of each experiment, the roles of each stakeholder, the project timeline, and certainly if there are changes to the roadmap. This requires constant and open communication to keep everyone prepared. Each team member needs to be able to trust their teammates to perform certain tasks and have confidence in their own individual role.

With open communication and frequent regroups to check progress and share ideas, you can ensure that everyone is aligned and working towards the same objectives. Sharing results builds trust between team members and gives everyone an opportunity to celebrate wins, support each other through the learning opportunities and create a positive environment where feedback is welcome.

What is the ideal CRO team structure?

When picking the ideal structure for your CRO team, you have to keep in mind that this will vary depending on your organization’s size, goals, and resources at hand.

A small CRO team following the centralized model will need to have individuals responsible for covering all core responsibilities – from ideation to implementation to examination. Ideally, this would include:

  • CRO Manager
  • UX/UI Designer
  • Data Analyst
  • Web Developer
  • Content Specialist

To continue CRO team expansion, a medium-sized or large team should adopt the positions above and some or all positions listed below:

  • Product Manager
  • Product Designer
  • Data Scientist
  • Content Designer
  • Content Writer
  • Conversion Rate Optimizer/Tester
  • Technical Web Analyst
  • Website Animation Specialist

The skills needed to perform CRO are vast. A person equipped to be a great addition to your CRO team will most likely have a background in one of the following areas:

  • Chief Data Officer
  • Full Stack Developer
  • Functional Designer
  • Digital Marketing Specialists
  • Data Scientist (Specializing in CRO)
  • Web Analyst

Keep in mind that a CRO team is typically a cross-functional team and team members may be involved in other projects simultaneously. As each organization is completely unique, there are no hard and fast rules for the “perfect” team. Your ideal structure may shift as you go, reminding you of the importance of flexibility.

Rapid CRO growth

To put the rapid growth of CRO teams into context, let’s take a quick look at one global leader in the premium cosmetics industry: Shiseido.

Even though Shiseido already had a CRO team in place, they wanted to grow and turn their constricted experimentation strategy into an intuitive and scalable optimization program. They went from running four tests per year to over 10 tests per month using AB Tasty and expanded their team accordingly to cover more ground and expand their experimentation goals. Growth can happen quickly when setting new priorities and adopting a new mindset. See how Shiseido revitalized its experience optimization strategy with AB Tasty.

Steps for successful CRO implementation

Mindset shift

Building a culture of experimentation is crucial for a successful CRO organization. There needs to be a mindset shift towards data-driven decision-making, embracing bold decisions and viewing failure as an opportunity to learn and improve.

One of the most significant obstacles in establishing this culture is the fear and apprehension linked to failure. CRO teams need to recognize that failure is a natural part of the experimentation process and that every failed experiment provides valuable insights and learnings. By embracing what doesn’t work, CRO teams can create a culture that encourages experimentation and embraces risks.

All data derived from tests is valuable for building out future steps. The sooner an organization can adapt to this mentality, the more stable its CRO foundation will be.

LOOKING FOR MORE about the culture of experimentation? 

Listen to the 1000 Experiments Club PodcastThe only podcast that interviews industry experts who have run over 1,000 experiments.

Set goals for your CRO team

CRO teams need to define exactly what they want to achieve through experimentation and how they will measure success. With this being said, data should be at the heart of all experimentation. Decisions should be made based on data collected and not only a gut feeling. By setting goals and assigning metrics to track progress, CRO teams can stay focused on their vision to achieve their objectives and track their progress.

Define the challenges of CRO implementation

There will be challenges to any success story. It’s important to address the potential challenges that may arise early on to keep your team prepared for any tough moments.

Barriers to continual success could include time restrictions, lack of adequate resources, employees with sub-par attitudes, pressure from HIPPOS, technology or anything that could potentially interfere with your roadmap.

After setting your goals and defining the next steps on your roadmap, it’s easier to outline the barriers that may prevent you from achieving those objectives, such as technical limitations or budget constraints.

Outline the team’s roles and responsibilities

Next, define the team’s roles and responsibilities. All team members should be aware of their personal objectives and how their work contributes to the overall success of the project (and their impact on the organization).

This includes identifying who will be responsible for testing, analyzing data, creating content, and making technical improvements to the website or app. Especially if team members have cross-functional roles where their time is divided, their responsibilities during each project should be clearly defined.

Standardize the A/B test process with your CRO Team

To standardize the A/B test process in your organization, there needs to be coordination of all digital teams around A/B tests and your overall CRO strategy. Your testing roadmap should outline the experiments your team will conduct, the hypotheses they will test, and the metrics they will use to measure success. By developing a testing plan, CRO teams can ensure that their experiments are aligned with their goals and that they are testing the right elements of the website or landing page.

With your new CRO team, it’s important to always start with identifying the most valuable tests at the right time. By brainstorming with your team to identify multiple elements, you will have various high-value optimization paths available to you when your team has the bandwidth.

When implementing a test, you must have a team ready to create the design and content for the test and another team available to put it all into production.

As a post-launch follow-up plan, you will need to develop an optimization plan to cater to the results.

  • Implement the winning variation – If your variation shows better results when compared to the original, plan for adequate time in your roadmap to incorporate any permanent changes.
  • Develop a new variation – Let’s say your variation wasn’t more influential than the original version. You’ve learned more about your audience that you can use in the future. If you’ve found what doesn’t work, leave room in your plans to go back to the drawing board to find a variation that resonates better with your audience.
  • Accept the original version – If you and your team are happy with the performance of the original version of your webpage, it’s time to move on to the next priority on your optimization list.
  • Re-challenge the winning variation – Consumer preferences are constantly changing. What worked 6 months ago might not resonate with your audience in the same way down the road. Plan time in your roadmap for more challenges to see continued success.

To promote communication, your experimentation roadmap and the results of each experiment should be accessible to everyone and promote transparency. This keeps your team aligned to standardize your process.

In CRO, you need to be adaptable. You won’t know the outcome of a test until it’s over (you don’t want to develop a bias by trying to guess the results either!). Based on the results, you and your team need to be ready to react quickly to follow the next steps of whichever path you choose.

A centralized CRO team built for sustainable growth

Developing a CRO team that’s built to grow and build a sustainable culture of experimentation is not the easiest task. There is always room for trial and error when figuring out what works best for your organization.

With a mindset shift, a well-equipped team, and a clear understanding of goals, barriers, and team roles, your organization will be prepped to carry out your winning strategy. With these elements in place, your organization can continuously test and optimize all digital e-commerce channels, leading to increased conversions, higher customer satisfaction, and ultimately, better business results.

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Article

7min read

Personalization Approach Remastered | David Mannheim

David Mannheim explains a remastered approach to personalization for long-term customer loyalty

With over 15 years of experience in digital businesses, David Mannheim has helped many companies, such as ASOS, Sports Direct and Boots to improve and personalize their digital experience and conversion strategy. He was also the founder of one of the UK’s largest independent conversion optimization consultancies – User Conversion.

With his experience as an advisor helping e-commerce businesses to innovate and iterate personalization and creativity at speed, David has recently published his own book where he tackles the “Person in Personalisation”, why he believes personalization has lost its purpose and what to do about it. David is currently building a solution to tackle this epidemic with his new platform; Made With Intent – a product that helps retailers understand the intent and mindset of their audience, not just their behaviors or what page they’re on.

AB Tasty’s VP Marketing Marylin Montoya spoke with David about the current state of personalization and the importance of going back to the basics and focusing on putting the person back in personalization. He also highlights the need for brands to build a relationship with customers based on trust and loyalty, particularly in the digital sphere instead of focusing on immediate gratification.

Here are some key takeaways from their conversation. 

Personalization is about being personal

David stresses the importance of not forgetting the first three syllables at the beginning of personalization. In other words, it’s imperative to remember that personalization is about being personal and putting the person at the heart of everything- it’s all about customer-centricity.

For David, personalization nowadays has become too commercialized and too focused on immediate gratification. Instead, the focus should be on metrics such as customer lifetime value and loyalty. Personalization should be a strategic value add rather than a tactical add-on used solely to drive short-term sales and growth. 

“If we move our metrics to focus more on the long-term metrics of customer satisfaction, more quality than quantity, more about customer lifetime value and loyalty as well as recognizing the intangibles, not just the tangibles, I think that puts brands in a much better place.”

He further argues that there is a sort of frustration point when it comes to the topic of personalization and who actually does it well. This frustration was clear after David interviewed 153 experts for his book, most of whom struggled to answer the question of “who does personalization well” and found it difficult to name any brands outside of the typical “big players” such as Netflix and Amazon.

This frustration, David believes, stems from the difficulty of replicating an in-store experience in a human-to-screen relationship. Nonetheless, when customers are loyal to a brand, that same loyalty should be reciprocated from the brand side as well to make a customer feel they’re more than just a number. The idea is to achieve a sort of familiarity and acknowledgment with the customer and create a genuine, authentic relationship with them. This is the key to unlocking customer-centricity. 

It’s about offering a personalized experience that focuses on adding value for each individual customer, rather than exploiting value where only customers end up with a commercialized experience geared towards driving growth for the company itself.

Disparity between brands’ and customers’ perceptions of personalization 

Citing Salethru’s Personalization Index, David refers to a particular finding in their yearly report where 71% of brands think they excel in personalization but only 34% of customers actually agree with that.

In that sense, there’s a mismatch between customers’ expectations and brands’ own expectations of what is competent customer service.

He refers to recommendations as one example that brands primarily incorporate into their personalization strategy. However, he believes recommendations only address the awareness part of the AIDA model (Awareness, Intent, Desire and Action).

“Product discovery for me is only one piece of a puzzle. If you take personalization back to what it’s designed to be, to be personal, well, where is the familiarity? Where’s the acknowledgment? Where’s the connection? Where’s the conversation?” David argues.

What’s missing is a core, intangible ingredient that helps create a relationship between two individuals, in this case, a human and a brand. Because brands have difficulty pinpointing what that is, they choose instead to base their personalization strategy on something more tangible and visible – recommendations.

For brands, the recommendations narrative is fully immersed within customer expectations and so encompasses the idea of personalization, particularly as that’s the approach that the “bigger” brands have adopted when it comes to personalizing the user experience. 

“It becomes an expectation. I go on X website so I expect the bare minimum which is to see things that are relevant to what I search for or the things that I’m interested in…..This is what people associate personalization to,” David says. 

Recommendations are an essential first step of personalization but David argues the future of personalization requires brands to go even further.

Brands should focus on building trust

In order for brands to build that sense of familiarity and truly become more personal with customers, brands need to take personalization to the next stage beyond awareness. For example, customers should be able to trust that a brand is recommending to them what they actually need rather than what makes the most profit.

David believes that the concept of trust is missing in a human-to-screen relationship, which is what’s hindering brands from reaching that next level.

In other words, it’s all about transforming the whole approach of personalization along with its purpose to demonstrate greater care with the few rather than “trying to get the many” to establish trust with customers. Brands should shift their focus to care, which David believes is what makes a brand truly customer-centric.

“I think it’s an initiative, if you can call it that, to focus on care. It does make the brand more customer-centric. You’re putting the customer, their experiences and expectations first with the purpose of providing a better experience for them.”

 In that sense, two crucial aspects play into the concept of trust, according to David: competence and care. 

Brands need to be able to be competent in that customers can trust they’re being recommended the most suitable products for their needs rather than the one that has the higher profit margin; in other words, recommending products that are best for the business instead of the customer. At the same time, brands need to demonstrate care by being more personable with customers to be able to create a connection between brand and consumer. 

“The more caring you are, the more you can demonstrate trust,” David says.

Think of banking. Banking demonstrates all the competence in the world, but no care whatsoever. And that therefore destroys their trust. Think of the other way around. Think of your grandma giving you a sweater at Christmas. I’m sure you trust your grandma, but you won’t trust her to buy you a Christmas present, for example.”

For David, context is a prerequisite for trust and the best way to understand user context is through intent, which is where the difference between persuasion and manipulation lies. This is why he has been busy building Made With Intent for the past 8 months focused on that very same concept. 

When it comes to recommendations, in particular, it’s essential to contextualize them and understand customer intent. Only then can a brand excel at its recommendation strategy and create a relationship of trust where customers can be confident they’re being recommended products unique to them only.

What else can you learn from our conversation with David Mannheim?

  • His take on AI and its role in personalization
  • Ways brands can demonstrate care to build trust and familiarity with their consumers
  • How brands can shift their personalization approach
About David Mannheim

David has worked in the digital marketing industry for over 15 years and along with founding one of the UK’s largest independent conversion optimization consultancies, he has worked with some of the UK’s biggest retailers to improve and personalize their digital experience and conversion strategy. Today, David has published his own book about personalization and is also building a new platform that helps retailers understand the intent and mindset of their audience, not just their behaviors or what page they’re on.

About 1,000 Experiments Club

The 1,000 Experiments Club is an AB Tasty-produced podcast hosted by Marylin Montoya, VP of Marketing at AB Tasty. Join Marylin and the Marketing team as they sit down with the most knowledgeable experts in the world of experimentation to uncover their insights on what it takes to build and run successful experimentation programs.