![\"factors](\"https:\/\/thegood.com\/wp-content\/uploads\/Models-2A-1-888x1024.png\")
<\/figure>\n\n\n\nThis means you can\u2019t look at another company\u2019s conversion rate to measure your own success. The effort is futile.<\/p>\n\n\n\n
Does that mean comparisons are bad? Of course not. Instead, you need to look at your own specific users and then compare yourself on multiple metrics (in a more nuanced fashion) against a recipe for high performance.<\/p>\n\n\n\n
So, what’s that recipe? We figured it out by asking hundreds of the highest-performing digital optimizers.<\/p>\n\n\n\n
In this article, we\u2019re going to talk briefly about why benchmarking doesn\u2019t work. Then we\u2019ll introduce you to a better way to measure the efficacy of your optimization efforts: a 5-Factors Scorecard\u2122<\/a>.<\/p>\n\n\n\n Industry benchmarking is the obvious starting point for anyone who wants to take optimization seriously. You don\u2019t know what your goals should be, so you look to your competitors. It\u2019s like looking at the crowd when you aren\u2019t sure how to behave. We want to anchor ourselves to something.<\/em><\/p>\n\n\n\n Unfortunately, comparing your conversion rate to other companies, or even to your industry as a whole, is practically meaningless.<\/p>\n\n\n\n We discuss the problems with benchmarking in our article \u201cWhy Industry Benchmarks are Bullshit<\/a>,\u201d but it comes down to this:<\/p>\n\n\n\n Essentially, benchmarks are too simplistic to be useful, especially if you\u2019re looking at only one metric like conversion rate. And even if you match your competitor\u2019s metric, it\u2019s not like you\u2019re going to stop optimizing. You always want that number to improve.<\/p>\n\n\n\n So what\u2019s the alternative? Instead of benchmarking against competitors, we recommend the recipe that works for top companies: setting strong data foundations, checking your assumptions about your audience and their behavior, and building a research practice.<\/p>\n\n\n\n Instead of sticking to traditional website benchmarking, let\u2019s explore a better way to score your performance. We call it the 5-Factors Scorecard\u2122.<\/p>\n\n\n\n We conducted a study of hundreds of optimization experts to uncover the key factors that influence the success of digital products.<\/p>\n\n\n\n Based on their responses, we identified five competencies that set high-performance teams apart. Teams that excel in these 5 Factors are 60% more likely to meet their annual performance targets and twice as likely to rank \u201cexcellent\u201d in customer satisfaction.<\/p>\n\n\n\n So, armed with your 5-Factors Scorecard\u2122, you\u2019ll know where to invest to improve your digital experience and what steps you need to take to grow your impact in your organization. Take the quiz to get your 5-Factors Scorecard\u2122<\/a> and keep reading to find out more about the 5 Factors.<\/p>\n\n\n\n The 5 Factors emerged from our study of hundreds of digital leaders on what drives the success of their optimization teams.<\/p>\n\n\n\n Here\u2019s what our respondents look like:<\/p>\n\n\n\n After analyzing their responses, we identified a clear narrative about what makes optimization teams successful. We\u2019ve distilled these learnings into the 5 Factors.<\/p>\n\n\n\n The highest-performing digital leaders share these five common factors:<\/p>\n\n\n\n No optimization team is complete without access to a solid layer of data. Anything from basic pageview and page path data to time-on-site, bounce rates, top-selling products, geographic or demographic information, and more advanced business analytics.<\/p>\n\n\n\n What makes for good data?<\/p>\n\n\n\n Many organizations are operating in less-than-ideal conditions when it comes to data. Building a healthy data flow you can trust should be your first step to building a strong optimization program.<\/p>\n\n\n\n Key Takeaway:<\/strong> A solid data foundation allows you to align your strategies with actual user behaviors and needs. Ensure data accuracy and accessibility to make informed decisions based on reliable insights.<\/p>\n\n\n\n The most successful digital leaders adopt a user-centered approach that places the needs, preferences, and abilities of users at the forefront of the optimization processes.<\/p>\n\n\n\n This approach involves understanding the users’ perspectives, behaviors, and goals to create products that are intuitive, usable, and enjoyable.<\/p>\n\n\n\n Our respondents typically have:<\/p>\n\n\n\n Key Takeaway:<\/strong> Understanding user behaviors and goals helps organizations design experiences that increase engagement and conversions. Prioritize users to create products and services that are intuitive and enjoyable to use.<\/p>\n\n\n\n Optimization is often used as a shorthand for on-site experimentation. In reality, it\u2019s a much bigger tent. Successful optimization programs require multiple people with diverse expertise. Moving through the phases of the optimization process requires research, data analysis, design, and engineering, among other disciplines.<\/p>\n\n\n\n Marketing is the most plentiful expertise on optimization teams. Over 50% of our respondents work in marketing-related positions.<\/p>\n\n\n\n Still, most teams get by with just five or fewer hours of support per week from other disciplines. Engineering plays the smallest role: some organizations have no engineering support at all. Generally, this is due to a lack of buy-in from higher-ups.<\/p>\n\n\n\n That lack of optimization resourcing comes with its setbacks. Teams with high marks for annual performance or high NPS had at least 5 hours or more, on average, of each necessary discipline.<\/p>\n\n\n\n Key Takeaway:<\/strong> Assemble or outsource a team with varied skill sets to address different aspects of the optimization process effectively. Adequate support lets you move through optimization phases smoothly, leading to faster iterations and better outcomes.<\/p>\n\n\n\n The most successful digital leaders have a variety of tools for planning, measurement, and protocols. Having a proven toolkit is crucial as it keeps you moving relentlessly forward toward your goals.<\/p>\n\n\n\n Your toolkit requires three critical tools: Prioritization, research, and experimentation.<\/p>\n\n\n\n Most successful optimizers agree that their goals are clear and they understand their organization\u2019s prioritization process. 73% have a clear goal and 57% say they use a standardized process when project planning. (To be fair, some optimizers admit to struggling with prioritization in cases where those decisions are made at a higher level.)<\/p>\n\n\n\n Optimizers use a patchwork of prioritization processes<\/a>, but they usually start with a prioritization framework, such as RICE, ICE, or PIE. The right framework for your organization depends on your culture. Impact, investment cost, customer satisfaction, and speed are the top prioritization factors.<\/p>\n\n\n\n Other unique prioritization factors, such as political effort or legal compliance, can be useful as well, depending on your needs.<\/p>\n\n\n\n One thing is true for sure: \u201cOne-size-fits-one.\u201d There is no best<\/em> prioritization framework. The key is finding the one that works for you, aligning your entire team around it, and following it relentlessly.<\/p>\n\n\n\n The best optimizers conduct a lot<\/em> of research. This falls into two categories: 1) Generative research helps you understand your audience. 2) Evaluative research helps you understand if your solutions work.<\/p>\n\n\n\n Over 70% of the respondents conduct generative research methods at least a few times per year. This includes techniques like data analysis, customer interviews, surveys, and heatmap analysis. 60% of respondents conduct evaluative methods like task completion analysis and sentiment testing.<\/p>\n\n\n\n On-site experimentation is the favored validation method for the best optimizers. The use of A\/B testing<\/a> in production has increased. This is a powerful method, but it comes with challenges: it’s complex to execute, requires a significant volume of traffic and conversions, and can easily be done incorrectly.<\/p>\n\n\n\n Leaders can expand their toolkit with other off-site validation methods, such as card sorting, preference testing, tree testing, and first-click testing. These tools are often faster, less expensive, and more appropriate than on-site experimentation methods.<\/p>\n\n\n\n Key Takeaway:<\/strong> Prioritization frameworks keep you focused on high-impact initiatives. Make use of evaluative research and off-site experimentation techniques to validate your changes.<\/p>\n\n\n\n The optimization teams that create the biggest impact tend to have strong buy-in from their leadership. Leadership buy-in delivers sufficient budget and people resources and creates a culture that values experimentation<\/a> and incremental change.<\/p>\n\n\n\n Organizations with leaders that don\u2019t bring an optimization mindset see reduced impact. Even though most of the respondents to our survey conduct in-house experimentation, only about half say their leaders cite experiments, consumer research, and user experience research as influencing their decisions.<\/p>\n\n\n\n Key Takeaway:<\/strong> Strong leadership buy-in creates a culture that values optimization and ensures sufficient resources are allocated to optimization efforts. Buy-in is a key ingredient to driving meaningful impact.<\/p>\n\n\n\n You don’t need to score perfectly in all 5 Factors to get an edge. Even the top performers still had room for improvement.<\/p>\n\n\n\n The first step is just understanding where you stand today.<\/p>\n\n\n\n This scorecard automatically measures you against the highest-performing teams to expose what stands between you and digital excellence. To evaluate your 5 Factors and how you stack up against top performers, take this short assessment<\/a>.<\/p>\n\n\n\n Armed with your 5-Factors Scorecard\u2122, you\u2019ll know where to invest to improve your digital experience and what steps you need to take to grow your impact in your organization.<\/p>\n\n\n\nWhy Traditional Benchmarking Is Ineffective<\/h2>\n\n\n\n
\n
A Better Way to Measure Success<\/h2>\n\n\n\n
\n
The 5 Factors of Digital Success<\/h2>\n\n\n\n
\n
1. Data Foundations<\/h3>\n\n\n\n
\n
![\"\"](\"https:\/\/thegood.com\/wp-content\/uploads\/Data-Foundations-1-1024x603.png\")
<\/figure>\n\n\n\n2. User-Centered Approach<\/h3>\n\n\n\n
\n
3. Resourcing<\/h3>\n\n\n\n
4. Building a Toolkit<\/h3>\n\n\n\n
Prioritization<\/h4>\n\n\n\n
![\"toolkit](\"https:\/\/thegood.com\/wp-content\/uploads\/Toolkit-1-1024x740.png\")
<\/figure>\n\n\n\nResearch<\/h4>\n\n\n\n
![\"toolkit](\"https:\/\/thegood.com\/wp-content\/uploads\/Toolkit-2-1024x537.png\")
<\/figure>\n\n\n\nExperimentation<\/h4>\n\n\n\n
![\"toolkit](\"https:\/\/thegood.com\/wp-content\/uploads\/Toolkit-3-1024x468.png\")
<\/figure>\n\n\n\n5. Impact and Buy-In<\/h3>\n\n\n\n
How To Know Where You Stand: The 5-Factors Scorecard\u2122<\/h2>\n\n\n\n
![\"unlock](\"https:\/\/thegood.com\/wp-content\/uploads\/Screenshot-2024-05-06-at-12.08.06\u202fPM-1024x640.png\")
<\/a><\/figure>\n\n\n\n