Key things to look out for,
- The period of measurement aligned with development cycle and business goal. Each period should be identical to accommodate cyclic variations.
- Consistently major a single absolute parameter, can be events triggered, sessions or unique users
- Consider seasonality of business
- Data must achieve statistical significance to get some patterns out of it. Identify how much of the absolute establishes this significance for the business/industry.
- Identify if the user base is elastic or inelastic to price changes: elastic users are price sensitive and convert only on price cuts, inelastic users are value driven and they might convert even when prices are increased.
- Reduce friction as much possible — if purchase is the goal, then let the user achieve the goal first and then perform secondary actions. If there’s a value proposition for secondary action, then user will perform that as they have more agency as a paid customer.
Micro-conversions: User making incremental progress through the user interface.
Usability conversions: When users are given a scenario to complete the particular action. The conversion rate over here assumes the decision to complete an action is made by the user, and in such scenario how many users are able to convert.