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Telestream sees 26% increase in cart conversion rate over 6 months

How we achieved 10X ROI for this Technology company

Last updated: March 1, 2015

TEL logo

Business need: Increase overall revenue
Solution: A conversion optimization program
Website: telestream.net
Case study PDF: Telestream Case Study PDF

The company

Telestream® offers software that allows users to get video content to any audience regardless of how it is created, distributed or viewed.

Their flagship products include ScreenFlow (screen recording and editing) and Wirecast (video streaming and production). Their mission? To enable users in a broad range of business environments to leverage the value of their video content.

The goals

Telestream acquires customers by driving traffic to their site, where users can try or purchase software from their online store. Users can buy the software, download it, and start using it immediately. The software license is perpetual (with a few paid upgrades thrown in to increase customer lifetime value).

We partnered with Telestream to provide full service Conversion Rate Optimization (CRO). Our goal was to optimize the entire purchase funnel, from the home page, to the product pages, to the cart pages.

The goals

  • Increase site conversion rate, sending more traffic to the cart pages
  • Increase cart conversion rate, converting more shoppers to buyers
  • Maintain or increase the average order value (AOV)
  • Increase overall revenue

Challenge faced: Avoiding the homepage

After conducting an in-depth analysis of Telestream’s website performance, we identified several problem areas where they were leaking revenue. Using the PIE Framework, we were able to focus our optimization energies on key areas with the most impact and traffic, ensuring we could maximize revenue potential in the shortest amount of time.

PIE framework for A/B testing prioritization.
WiderFunnel’s PIE framework for A/B testing prioritization.

We hoped to start with the homepage, then move on to the product pages, then the cart pages. But, making changes to a homepage can often be challenging : there are so many stakeholders and review cycles are lengthy.

We made the call to move on to the product and cart pages, where we could get some quick wins (and more organizational buy-in).

The Results: $2M in additional yearly revenue

Over the 6-month optimization program, Telestream achieved a 10x return on their investment. Not only did their cart conversion rate increase by 26%, but Telestream also decreased its cost of acquisition, boosting their total marketing budget.

This improvement translated into a total $2M in additional revenue per year (forcasted revenue). Telestream also gained valuable insights about their customers buying behavior, which now can be applied to their website and other cart templates to further increase revenue.

Here’s how we did it.

Part I: Site-wide navigation

We began our partnership with a series of tests on Telestream’s site-wide navigation. In the initial LIFT analysis, we identified that the “Buy Menu” was confusing in a couple of ways:

  • The CTA under the menu “Buy” said “Contact”, which was inconsistent with the original promise.
  • The links under “Buy” opened up an email window where users had to type in their requests. In order to buy from the web store, users actually had to go to the “Products” tab in the top nav.

Talk about confusion!

In this experiment, we simply brought the links to buy each product originally under the Products menu) and put them under the Buy menu.

By adding Clarity and removing frustration, the experiment ended up generating a lift of 4% site-wide. Don’t be fooled by what may seem like a small lift. The estimated additional revenue per year was $395,000.

Part II: The product pages

Round #1

We turned our attentions to Telestream’s Product page. Overall, the pages were text heavy and overwhelming. Eyeflow was disjointed: some elements were center-aligned and some sections had multiple columns. The hero section featured 3 calls-to-action, all of which were given equal weight.

TEL Original PP
The original Telestream product page.

Plus, important product features were pushed far down the page. Scroll map data had revealed that few users were actually scrolling down to see those features. Ironically, click map data revealed that the Features tab just under the hero section received the most interest even though those features were described further down on the page.

TEL Scrollmap & Clickmap
Scrollmap data (right) revealed that few users made it to the Features section, while clickmap data (left) revealed that users were most engaged with the Features tab.

We built several variations to test against the original using isolations so that we could track each individual change: in Variation A, we played with the CTA confusion, downplaying the “Download Free Trial” call-to-action and removing the distracting third CTA.

Variation B was built on A, but removed the 2 sections just beneath the hero and gave the ‘Features’ more prominence, moving these just below the hero. This variation was our clear winner, increasing completed orders by 16%!

TEL Feature Variation
The winning variation with the Features just below the hero section.

Round #2

In this round, we focused on the imagery being used on the Product page hero section. The hero shot on the original page was very futuristic and abstract, featuring light hitting the top of a planet in space.

TEL Original Hero Image
The original hero section featured an abstract, futuristic background image.

According to famed Harvard Economist, Theodore Levitt,

Tangible products must be intangibilized to add customer-getting appeal, and intangible products must be tangibilized.

We wondered if Telestream users would be more influenced by a background image that made the product more tangible and approachable.

We tested two variations against the original: in Variation A, the background image featured a smiling girl actually using the product. We wanted to emphasize the user and show the product in use.

TEL Person Focus Hero Image
The image in Variation A featured a smiling girl using the product. This variation increased conversions by 11%.

Variation B was similar, but we placed the product at the forefront of the image so the emphasis was more on the product itself and its interface.

Both variations beat the original, but Variation B was the clear winner, lifting order completions by a whopping 26%.

TEL Winning Hero Image
The winning variation featured the same user, but emphasized the product and its interface. It increased conversions by 26%.

Part III: The cart pages

Round #1

When we got to the Telestream cart pages, we observed several barriers to conversion, including issues of Clarity, Distraction, and Anxiety.

The LIFT Model™
WiderFunnel’s LIFT Model® looks at barriers to conversion from the perspective of the page visitor.

For instance, the prominence of the Discount Coupon box seemed to be adding unnecessary Distraction to the first step of the 3-step checkout funnel, and may have been contributing to cart abandonment.

Our strategy team wondered if hiding the coupon code box might reduce cart abandonment and increase conversions.

TEL Original Cart
Step 1 of Telestream’s original cart.
TEL Original Cart Step 2
Step 2 of Telestream’s cart.

As for Clarity, the call-to-action on step one of the checkout funnel read “Place Order”. But when the user clicked this CTA, it actually took them to the second step of the checkout funnel where they could review their order. The CTA on this second page also read “Place Order”.

The initial CTA might’ve been misleading, as users may not have known that there was a second step where they could review their orders.

We wanted to set more accurate user expectations. We hypothesized that changing the wording of the calls-to-action to clarify that users would need to review and confirm their order would reduce cart abandonment and increase conversions.

We designed two variations to address these main issues of Distraction and Clarity. In VarA, we hid the coupon box behind a check box on step 1.

We built VarB on top of VarA, but in this variation, we addressed the call-to-action confusion. In step one, we changed the CTA from “Place Order” to “Continue >”. We also added a sub-header that read “You can review this order before it’s final.” On step 2, we left the call-to-action as “Place Order”.

With Variation C, we hypothesized that encouraging users to scroll down to the billing and payment sections on step 1 would ensure that users didn’t miss these sections. We replaced the faux “Total Price” ‘button’ just below the Order Summary with a “Checkout CTA” that, when clicked, scrolled down smoothly to the billing section of the page. This third variation was built on variation B.

TEL Winning Cart
The winning variation.

Each variation saw a conversion rate increase: hiding the coupon code box resulted in a 2.9% lift, clarifying the CTAs and hiding the coupon code box resulted in a 4.3% lift, and forcing users to scroll, clarifying the CTAs and hiding the coupon code box (Variation C) resulted in a 6.8% conversion rate increase.

Round #2

In this round of cart page testing, we wanted to identify the optimal number of steps in the checkout process. While there is a best practice that suggests that less (steps) is more, even best practices need to be tested.

The original checkout had 3 steps, but each page was crowded with information.

TEL Cart Original
Original step 1: Cart & CC information
Original step 2: Order Review

We tested a variation that included all of the same information, but simply spread that information across 4 steps instead of 3.

We hypothesized that increasing the number of steps in the checkout process would make each page less overwhelming for the user, increasing clarity and driving sales. There was, of course, the added risk that each additional step might increase the chance that a user would drop off in the middle of the checkout process.

TEL Cart Winner
The winning variation featuring an extra step: Shopping Cart > CC Information > Review

Turns out, Telestream users were more responsive to less copy and shorter pages (despite the longer checkout process). Our 4-step variation beat the original, increasing conversions by 5.5%. Clarity is key!

Telestream’s conversion optimization efforts have boosted their entire marketing budget. But a 26% increase in cart conversion rate and an additional $2M in annual revenue are just the beginning: true conversion optimization is ongoing.

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