We launched Local Logic and created our first location scores because we believe that location preferences are very important for home-buyers, and this information was not readily available to them on real estate websites. Along the way we realized that location information is important to other end-users, like renters and travellers.In addition to end-users, we also had a hunch that displaying this information would benefit real estate and travel websites.
Our hypothesis was that knowing the location characteristics of a property would help users convert more often - and faster. It would also help keep users focused on the real estate website since it would avoid them having to visit other websites to seek out location information, which is very tedious and can potentially lead to distractions that will stop them from converting.
Obviously, believing that we create value and proving it are two different things. That’s why we decided to partner up with some of our clients to collect data that backs up our claims. We crunched the numbers, and although we knew we were providing value, we were taken aback by the results. But before we get to our findings, let’s take a quick look at how we got there.
How we did it
The method we used to evaluate the impact of our Location Widget on our clients is called A/B testing, which is commonly used in marketing and product development. It involves showing one version of a product (A) to a group of people, and a slightly modified version of that same product (B) to the other group. In order to establish causality, only one variable must be changed between the two versions.
That’s the crucial part. In our case, here’s what we did:
- We separated users into two groups - those would would see the widget (A) and those who wouldn’t (B)
- We identified buttons that our clients defined as conversion and tracked the number of clicks on any one of those buttons
- We tracked the total time it took for users to convert
What we found out
Overall, users who saw the Local Logic widget were 36% more likely to convert than users who didn’t. We also found that users who saw the widget converted, on average, three times faster than users who didn’t see the widget. This is huge!
Here are our three take-aways:
- Reduced bounce rate: Home buyers have access to the information they need to know, so they don't leave the website and have reduced uncertainties
- Better user experience: Websites provide an enhanced user experience, which increases both the conversion rate and the return visitor rate (RVR)
- Faster sales cycle: Agents receive more and better pre-qualified leads from the website referral system, and this speeds up the sales process and allows agents to close more deals