Welcome back to the A-CAR series! This blog will explore the importance of conversions for non-technical founders building a marketplace. As a non-technical marketplace founder, you understand the significance of attracting users to your platform. However, attracting users is the first step in building a booming marketplace. You must focus on converting those attracted users into customers to drive success and revenue. In this blog, we will provide you with key strategies to improve conversions and drive success for your business.
Background on Nick and the MAD marketplace
Let's introduce Nick, a non-technical founder who started the MAD (Mobile Auto Detailing) marketplace. Nick recognized the need for a convenient platform that connects car owners with professional auto detailers. Despite needing more technical expertise, Nick was determined to build this marketplace and provide a solution for car owners and detailers. Nick found Sharetribe and could spin up his own without code in hours.
The MAD marketplace has gained significant traction, with car owners and detailers signing up for the platform. However, Nick now faces the challenge of converting those users into paying customers, which is where the concept of conversions becomes crucial.
The significance of conversions in product development and marketing
Conversions refer to turning website or app visitors into completing a significant action: payment, signup, listing, etc. They are crucial for marketplace success as they directly impact revenue and growth. Modifications indicate that users find value in your platform and are willing to take the desired action, whether purchasing, booking a service, or subscribing to a membership.
Nontechnical founders can optimize their product development and marketing processes by focusing on conversions. Conversions provide valuable insights into user behaviour and preferences, allowing you to refine your platform better to meet their needs.
It is crucial to diligently track your platform conversion funnels to help steer your roadmap. If a core workflow converts poorly, that may be cause to enhance it through a Design Thinking Sprint to uncover the unintentional friction points and how to resolve them. You can use easy tools like Pendo and Mixpanel to track platform adoption at manageable and startup-friendly costs.
Nick understood there was no point in blowing his money on marketing spend when the front door was jammed half open.
Critical strategies for improving conversions
User experience optimization: A user-friendly interface and smooth navigation are essential for driving conversions. The critical bit is to marry both sides by adding intentional friction into core areas. Nick kept saying, "If it's easy, everyone will do it!" which is precisely what you don't want initially. Nick doesn't want a lower-quality user who will not invest extra effort to complete an action and gain access to MAD.
Conversion rate optimization: Understanding and analyzing conversion metrics is crucial for improving conversions. Monitor key metrics such as conversion rate, bounce rate, and average session duration. Identify areas of improvement and implement strategies to increase conversion rates, such as streamlining the checkout process or offering incentives for completing desired actions.
Effective marketing techniques: Targeted advertising and marketing campaigns can significantly impact conversions. Identify your target audience and create tailored campaigns that address their needs and pain points. Utilize social media platforms and influencers to attract and convert users. Leverage user-generated content and testimonials to build trust and credibility.
Case study: Nick's journey with MAD marketplace
Let's look at Nick's journey with the MAD marketplace to understand how he implemented these strategies to improve conversions.
Initially, Nick attracted users to the MAD marketplace through targeted online advertising and word-of-mouth referrals. However, he faced challenges in converting those users into paying customers. Many users would browse the platform but still need to complete the booking process.
To address this issue, Nick focused on optimizing the user experience. He revamped the website design, making it more intuitive and visually appealing through a Design Thinking Sprint using the Marketplace Studio Pre-Development process. By doing so, he was also able to simplify the booking process, reducing the number of steps required.
Additionally, Nick implemented conversion rate optimization strategies by closely monitoring key metrics by Mixpanel. He analyzed user behaviour and identified areas where users were dropping off. By making targeted improvements, such as adding trust badges and improving the checkout flow, Nick was able to increase conversion rates.
Conversions are a crucial aspect of building a thriving marketplace. As a non-technical founder, focusing on converting attracted users into paying customers is essential. By implementing strategies such as user experience optimization, conversion rate optimization, and effective marketing techniques, you can improve conversions and drive success for your business.
We encourage you to implement the strategies discussed in this blog to improve your marketplace. In the next blog of the A-CAR series, we will discuss adoption and how non-technical founders can effectively retain and engage their customers. Stay tuned for more insights and tips on building a thriving marketplace!