How can you use conversion rate to improve user experience?

Conversion rates are flexible, scalable metrics because they apply to all stages of the customer lifecycle, but also to a specific user journey within the product. A good example to understand the application of conversion rate metric is to use FB Marketplace within the FB app. 1) users with Marketplace DAU as a % of DAU if not meeting targets highlights a discoverability issue vs 2) users with listing view as a % of marketplace DAU highlights an engagement/relevance issue. Both come with different approaches to solve and optimize for with in-product and out-of-product interventions which product teams can focus on and prioritize based on the product goals.

One important part of user journey analysis is tracking relevant dimensions, like data points that can help you understand your users and their behavior. They can be demographic data (like age, gender, and location), technical data (like device type and browser), or behavioral data (think pages visited and time spent on site). Tracking relevant dimensions can help you identify areas for improvement in your user journeys. For example, if you find that a certain demographic group is abandoning your journey at a particular step, you can investigate why this is happening and improve the UX for them. If users on certain devices or browsers are having trouble completing your journey, you can fix the technical issues.

To enhance user experience, it's crucial to utilize the conversion rate as a key metric effectively. Often, when evaluating user journeys, the focus tends to be on the ideal, or "happy path," neglecting the less ideal, or "failure paths." However, a holistic view of the user journey, including these failure paths, is essential. By identifying and addressing critical stages where the user experience may falter, you can gain a deeper understanding of how the conversion rate is influenced. This approach helps you uncover pain points, optimize those areas, and ultimately improve the overall user experience, leading to higher conversion rates.

Conversion rates are your compass for user experience. First, analyze where users drop off—identify pain points. Then, optimize those areas to increase conversions. Track the user journey, understanding their actions and hesitations. A/B test changes to pinpoint what resonates. Iterate based on data, aligning improvements with user behavior. It's a continuous loop of observation, refinement, and personalized enhancements that transforms the user experience.

A good example to improve UX with focus on conversion rate is e-commerce shopping Apps/websites. A funnel level analysis from the step when users are finding an item to visiting the item page to completing purchase should be done to understand which step in the funnel is contributing most to the user churn and what’s causing the unnecessary friction. Some examples could be asking to fill a long form for delivery address, creating forced account with too much details, not providing relevant payment options etc. cause bad UX impacting conversion rate negatively.

Start by crystalizing your conversion goals. Clearly define what actions you want users to take—whether it's making a purchase, signing up, or engaging with content. Align these goals with your overall user experience objectives. Knowing your destination helps map the journey. Once goals are set, each tweak and optimization should lead users seamlessly toward those conversion milestones. It's about building a pathway that naturally guides users from exploration to action.

Put your hypotheses to the test through experiments. A/B testing, usability studies—whatever fits the bill. Experimentation reveals what resonates with users, guiding UX enhancements. Test different elements of your user journey to uncover optimal paths. It's not just about what you think works; it's about what data proves. Embrace the iterative nature of improvement—each experiment is a step closer to a more refined and effective user experience.

Once your experiments yield insights, implement changes and iterate. Use feedback to refine and enhance the user journey. It's a dynamic process—constantly evolving based on user behavior and preferences. Don't just settle for improvements; strive for ongoing optimization. Implementing changes isn't a finish line; it's a checkpoint in the continual journey toward a seamless and delightful user experience. Keep adapting, keep refining, and stay committed to a user-centric evolution.

Tap into the collective wisdom by learning from best practices. Study successful examples in your industry and beyond. What works for others can spark inspiration for your user experience enhancements. Analyze their strategies, but don't copy blindly—adapt and personalize based on your unique context. It's about distilling the essence of success and infusing it into your own user journey. Best practices serve as guideposts, steering you toward a UX that resonates with users and stands the test of trends.

Drop-off and failure points are more important than successes. You'll find true insights from where your users do NOT convert. Always investigate these points of friction first. See where you are bottlenecking and underperforming and research the causes.