Convert More Site Visitors Into Buyers with the Laws of CRO
. . . Plus tips from the best-selling book, "Opting In To Optimization."
As you know if you’ve tried to do any CRO yourself – there are a lot of ways you can get lost on the way to a good strategy. A LOT.
But, after over a decade of working with industry-leading brands to improve their conversion rates, I have some solid tips for how to get started.
In this article, I will first cover what conversion rate optimization actually is, because a lot of folks get this muddled.
Then, I’ll tackle two laws of CRO. The first one will be a bit more conceptual and really geared toward re-focusing how you think about CRO. And the other will give you a bit more tactical information to work with.
Now, all this will, of course, only take you on part of your journey. We can’t arrive at great CRO in just a short blog.
So, I will also share a discount for my book, Opting In To Optimization, to help you continue on your journey. Hopefully, you walk away with three important pieces for the rest of your CRO journey: new thinking, new approaches, and my book as a guide.
Let’s dig into the new way of thinking, starting with what CRO really is.
What is CRO (conversion rate optimization)?
True CRO can deliver amazing results. Some of the results our team has generated include 132% year-over-year growth, 659% mobile revenue growth, and an 86.7% increase in return visitors.
Here’s how we define that kind of CRO.
Real CRO is a data-backed system for increasing the percentage of website visitors that convert into customers, or more generally take any desired action.
Let’s focus on the first piece. Data-backed.
CRO isn’t about trying random tactics or best practices. It’s about using data, both quantitative and qualitative, specific to your brand.
Which is why our first law is this.
Law #1 Best practices are for beginners.
Best practices are a bit like training wheels. They can add a lot of value when you’re a beginner (And there’s nothing wrong with being a beginner!).
But the problem is most brands keep best-practice training wheels on for far too long. And that can have some negative effects.
Interestingly enough, wine actually shows us a pretty good picture of this.
After spending over 15 years analyzing business and wine, a professor of strategy and management at ESSEC Business School in Paris came to this conclusion. Adopting best practices is a good way to achieve average results. Worse, if you apply a practice that isn’t suited for your business, you can actually destroy value.
So, what does this look like in ecommerce?
Brand collaborations were a best practice that really took off in 2020. It took off, in part, because it worked for really well some brands. When Justin Bieber merely mentioned a Croc collab, he sent their stocks soaring 13%.
Now, it’d be easy to attribute causation there if you’re a footwear store. And say, “okay, then, collabs with cool names drive sales, let’s do that.”
But then you get something like the Slack and Cole Haan footwear collaboration.
In theory, this was a good application of best practice. The laid-back sneaker was going to appeal to casual at-home workers, which was most of us in 2020. It was also supposed to tap into the twelve million professionals using Slack. That’s a lot of people.
But just because best practices show a correlation between a certain action and a certain result in some brands, like Bieber and Croc, doesn’t mean it’ll cause the same result in others.
In fact, the Cole Haan and Slack collab didn’t at all do what it set out to do. Why? Partly because this was a big audience miss. Slack is a big, cool brand. But folks who use Slack aren’t the same as a Slack community.
The Slack audience doesn’t function like a celebrity audience.
Ultimately, reviews were brutal, and Haan only managed to sell out after slashing prices by 50%.
A total audience miss like this is just one inherent danger of best practices. They’re generic, so they rarely fit YOUR brand, cultural moment, or even, in some cases, geography.
To zoom out a bit, part of what we’re talking about here are two different cycles you can live by. And this framework has been particularly helpful for me.
Applying best practices and trends is like prescribing before you diagnose. It’s like going to the doctor and, instead of hearing out your symptoms and history, the doctor immediately prescribes the top three most popular medications for you to try.
You hear that and cringe, right? It’s dangerous malpractice.
The same approach is just as foolish in CRO.
The alternative approach, the one effective CRO takes, is diagnosing and then prescribing. In this scenario, the doctor hears you out. If necessary, she runs some tests. She gathers the context and information she needs, then she makes a diagnosis. She diagnoses THEN prescribes.
This is an effective approach to CRO, too.
So, to bring home the big idea of this first law…CRO isn’t a one-and-done guessing game. And it’s not based on trends or best practices. It’s a scientific process based on iteration.
Which brings us back to our CRO definition.
We know we need data-backed inputs, not best practices or trends.
And then, according to our definition, we also need to put those inputs into a system.
What system?
That takes us to our next law.
Law #2 - Scientific method, not silver bullets.
The scientific method is the system you use for making sense of your data:
- Contextual baselines instead of generic benchmarks.
- Exploratory testing instead of sweeping redesigns.
- Continuous improvement over massive tests.
Let’s quickly look at each of these in turn.
Contextual baselines instead of generic benchmarks.
Benchmarking, in theory, tells you where your website stands compared to industry-wide averages.
And it’s something I discourage our clients from looking at.
First, these averages are faulty. Most brands don’t share their true conversion rate. Those that do rarely know how to accurately calculate it. Or use bad data to do it. Or use totally different methods to get their final numbers. (We see this all the time when we get “inside” a client’s data.) Plus, there’s no way to confirm the accuracy of whatever number they share.
For the sake of argument, though, let’s say the numbers are remotely accurate. Even in that scenario, lumping together “like” brands for a shared benchmark rarely makes sense.
For example, we’ve worked with three glasses companies at various points in The Good’s history.
One catered to heavy computer users. The second to older adults and stylish readers. And the third to sports enthusiasts. All three of these were “glasses companies” but they had totally different audiences, advertising strategies, channel mix, and seasonality.
Yes, they all sold glasses, but comparing their conversion rates would’ve been like comparing apples to pineapples to papaya — it wouldn’t have made sense or helped any of them.
That’s why you don’t start with benchmarks. You start with your baselines and aim for a conversion rate that’s always improving.
Exploratory testing instead of sweeping redesigns.
Next, you’ve probably experienced or seen this cycle: a website frustrates users, traffic stops converting into revenue, and someone starts a redesign.
The problem is, this is a bit like burning down an apartment building when you stop selling units. A redesign torches the building to the ground and starts again on the ashes. You wind up with new units — but there are no guarantee families in the area will want the style or layout you’ve chosen (even if YOU like it). In fact, there’s no guarantee you’ve solved the original problem at all.
The other option is a slower, more measured approach. A scientific approach. With this method, you remodel room by room. You revamp one unit and gather feedback about what appliances, color schemes, and types of windows your buyers want. Then you take what you learn and apply that to the next unit — and the next, and the next — until you’ve remodeled every unit in the building.
In both cases, you wind up renovating the building.
But in the first approach, you make a lot of risky guesses. In the second approach, you run small experiments, gather data, and learn as you go. You rebuild around what your buyers want and are guaranteed to move more units because of it.
The same is true of your website.
Don’t throw the whole thing in the trash and start from scratch. Work piece by piece.
Continuous improvement over massive tests.
And third, the misconception that the size of the test is proportional to the size of the results.
We’ve changed one word and improved conversions by 200%. Ad we’ve run giant tests that improve conversions very little.
In fact, we now have a 1-10 rating system for the tests we run. 1 is a small test you can run immediately, and 10 is a full-page redesign kind of test that will take days or weeks to build. We were curious which size test has the biggest impact. So, we looked at our data – over a decade of it – and we discovered level 10 tests weren’t more fruitful than small, compounding tests.
So, to sum up the law of scientific method, not silver bullets.
CRO isn’t a “one and done” guessing game based on faulty data like best practices or benchmarks; it’s a scientific process based on iteration and data.
For More On The Laws Of CRO: A Special Discount On Opting In To Optimization For Tydo Readers
As I mentioned at the start of the article I want to help you arrive at a place of great conversion rate optimization. And we can’t do that in a short blog post.
While you now hopefully have some tools for thinking about CRO, I have a special offer for Tydo readers to continue your journey.
My book, Opting In To Optimization, condenses over a decade of optimizing for industry-leading brands, into a handful of immutable laws.
Get your copy at 50% off with the code TYDOXTG by visiting: Opting In To Optimization.
Happy optimizing!
- What to pledge
- How to improve
- Which tools will set you up for success
Dale Wilson
Resolution
I think the most important thing brands can do in 2023 is to better manage their customer data—both ethically and effectively. There’s an opportunity for brands to know their customers better than ever before—a clear benefit for both the customer and the brand. When you manage your data correctly, you’ll create stronger and more personalized ads, creative, site experiences, and so much more.
Tip
This is a classic: Let the data guide you. Go where the buyers for your products are and communicate with them on a personal level (i.e. by persona and funnel position) and nurture those relationships (past, present, and future customers). It’s possible—all through data.
Shawn Khemsurov
Resolution
We recommend that Shopify brands analyze and update their websites using data-driven decisions. Using analytics tools such as heatmaps and scrollmaps can help brands better understand how customers are interacting with their store.
Tip
Store owners tend to make assumptions about the way customers interact with their website. Most never go back and analyze their design choices to find pain points or areas of opportunity. By using heatmaps and scrollmaps, they can see where real customers are clicking and concentrating their attention. Leveraging this data, brands can start to iterate on design and make their online store experience streamlined and intuitive.
Tool
Hotjar provides a simple way to implement heatmaps, scrollmaps, and recorded user sessions on your site, helping you acquire incredibly informative user data. Additionally, it gives you the ability to create on-site surveys, which allows you to obtain direct and often critical feedback from users about their experience.
Katelyn Glass
Resolution
Test various attribution models and analyze the impact on your business. At Fifty Six, we are always here to help our clients identify and optimize their approach—a critical step in any successful marketing strategy.
Tip
If I’ve said it once, I’ve said it a million times–Customer Lifetime Value. And even more importantly, Future Lifetime Value (FLTV). With the ever-growing importance of first-party data, it is crucial that brands take a good look at their CRM and FLTV metrics.
Tool
OrderlyEmails is our go-to tool for transactional emails. It helps us level up our brands’ email aesthetics with customizable, quick-to-implement Shopify templates.
Lately, I’ve been really interested in Smile.io’s loyalty platform. Their UX is fantastic for teams with low bandwidth!
Tom Rees
Resolution
Stop allocating budgets to low-hanging fruit that doesn’t move the needle on conversion. Think about what’s really going to improve your CX and the return of undertaking different initiatives—not just on what’s top on your list of bugbears on the site!
Tip
One of the best ways to understand your customer behavior is by using HotJar. Their heat-mapping and screen recording tools shine a light on where customers are navigating to and from on your site, where they're rage clicking and experiencing frustration, and where conversion is dropping off within real life customer journeys and flows!
Understanding your customers’ pain points via data and analytics , will allow you to work with your CRO/CX Agency to solve customer frustrations and improve conversion.
Tool
Rewind backs up all product, customer, and order data for Shopify sites—essential since Shopify itself doesn’t provide this solution. It's saved so many of our clients time and money from administrative accidents.
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Jimmy Aristizabal
Resolution
33% of customer service inquiries are pre-sale questions. What does this mean? If you’re not investing in customer service, you’re missing out on revenue-generating opportunities.
Tip
The benefits of elevating your customer experience:
- 10% to 25% increase in AOV for customers who engage with live chat pre-purchase
- 21x higher conversion rate for customers who reach out via Live Chat or SMS compared to other site visitors
- 87% of customers who have a great customer experience will make another purchase
- 72% of customers share positive experiences with 6 or more individuals
Tool
Gorgias is our favorite Helpdesk platform. They can reduce costs by 35%, primarily by decreasing the average ticket handle time. Their machine learning algorithms are trained on millions of ecommerce-related interactions across Gorgias’ customer base and provide accurate, automated replies for the most common ecommerce inquiries. This helps our agents resolve tickets faster, which provides the customer a seamless experience.
Jessica Grossman
Resolution
Trust your agency! Agencies do the same things across multiple brands and niches, so we see the trends and have the practice and experience!
Tip
Don't be afraid of data and insights. If customers aren't clicking on your emails, try a new CTA. If your ads are driving good metrics at a small spend, start scaling. If your customers are complaining about a product, look into QA! If the data tells you something isn't working, let it go and try something else!
Tool
I'm supposed to say Tydo, right? 😉
Rikin Diwan
Resolution
Double down on differentiation. There will be a lot of headwinds this year and standing out from the crowd will set you apart.
Tip
A picture is worth 1,000 words. A video? Probably millions. In ecommerce that value translates into engagement, acquisition, and retention—everything you need to impact your bottom line.
At soona, we've seen the we've seen the impact of creative and the continuous split testing of it yield results. Our resolution is to challenge ourselves and double down on innovation and creative optionality so that each brand we work with can distinguish themselves in a crowded sea of D2C ecomm. We'd love to see our brands share this resolution and keep pushing the creative limits.
Tool
Klaviyo. We're using it to power our email and newsletter at soona too!
Shayna Silvers
Resolution
Optimize your returns strategy! This can lead to valuable customer insights, enhanced user experiences, and increased revenue and customer loyalty.
Tip
Brands need to dive deeper into understanding their customers to set themselves up for success. Conduct research to gain insights into customer needs, preferences, and behaviors. By doing so, you can develop targeted strategies that will enhance customer experience and boost overall retention.
Tool
Right now I would say Gorgias. Having a good customer service tool is crucial to building strong customer relationships.
Wes Buckwalter
Resolution
Start paying heavy attention to data, specifically around retention. We see a lot of effort put towards acquisition with the assumption that once someone buys, they are your customer forever. Instead, get to know your customer, understand their needs, and analyze their behaviors once they are on-site and judge their sentiment after they have visited. Work with a retention focused and data-driven agency to implement tools that contribute to repeat business and customer delight. It will pay dividends.
Tip
When surveyed, about 80% of ecommerce merchants think that they are delivering a great experience to their customers. However, when the same customers are surveyed, only 8% of those customers think that they are getting a great experience from the merchant. Now, more than ever, retaining loyal customers is an essential part of any online business and you should spend time with your customers to judge their experience with your website and products and offer improvements based on that feedback.
Tool
Tydo's report cards are an essential tool, along with Klaviyo for email and SMS, Recharge for subscriptions and memberships, Okendo for reviews and surveys, Rebuy for AI driven collections and upsells, Loop for self service returns... each tool is great on their own, but their strength as the ultimate tool comes from when they are used together!
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Report Cards is a customized glimpse into your business, delivered to your inbox for free.
Report Cards consolidates all your key metrics across platforms for an at-a-glance pulse of your business.
Discover metrics for every team member so they can stay updated with the right data on a daily, weekly and monthly basis.
It's free because we believe everyone should have access to the basics.
Portfolio
Portfolio is a hub for analytics across multiple Shopify stores. The perfect tool for agencies.
See an aggregate view of all your data for all your stores in one place.
Make real time assessments on marketing initiatives across every storefront you manage.
Analyze the performance of one store versus another in seconds.
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Dee Charlemagne
BOOK PICK
Hi, my name is Dee, and I'm the cofounder of AVEC Drinks. We make a premium better-for-you mixer. So, think of a yuzu lime or jalapeño blood orange instead of that typical club soda or margarita mix. But everything we make is low sugar, low calorie, made with real juice, botanicals and agave. The book I've selected is Shoe Dog by Phil Knight, which is kind of famous in the entrepreneurial world. So, I hope no one else picked it. I've kind of read it three different times pre-entrepreneurship, post-entrepreneurship, during entrepreneurship and restarting again. And I think three big takeaways from the book are hire wisely. He had a crazy employee that was you know selling Nike shoes and sending him POs and orders on his own volition. So, find people who are really passionate. The second thing I would say is, you know, honor your personal life. He talks about his story with his wife and that personal journey. And then three, I would just say, you know, really keeping at it and try again. It wasn't a rockstar success to start out with Nike, even though we look at it today. It's a really, really long journey. And sometimes it's not your first idea, but it's your second idea. And so I love rereading Shoe Dog and kind of hearing the story of a brand that we couldn't imagine the world living without, which is Nike.
Cristina Ros Blankfein
BOOK PICK
Hi, I’m Cristina Ros Blankfein. I’m one of the cofounders of Swoon, which is a line of zero-sugar beverages. We make the drinks that you loved growing up better with high-quality ingredients and have cleaned them up to really have that great nostalgic, carefree taste now without the sugar. A book that inspired me was Shoe Dog by Phil Knight. I loved just how engaging it was, in large part it read like a novel because he so seamlessly interwove the passion and drive that he had for his hobby running and turned that into a business. One of the things I was just remarked by was how he relentlessly cared about the product and how he shopped it around by just dropping it off at meets, bringing it places, and knowing that if people tried it, they would fall in love with it and buy it. And, obviously, Nike is such an iconic brand now and a case study in excellent marketing, but I think that relentless focus on a high-quality product and again, meshing something that he cared passionately about that he did day in, day out—running—and turning that into a business idea was really fascinating. He just has this incredible, innate sense of moving forward with his business and not taking no at any point and being at the brink but believing so much in his idea and in himself that he just kept going on, and on, and on. The sort of early days, MVP stories were very inspiring to me and again that focus on product, that focus on translating a daily life passion and turning it into a business and that just relentless belief that it must exist, this product must exist and that he was going to be able to create it I found very inspiring.
Peiman Raf
BOOK PICK
Hey everyone, this is Peiman. I started a brand called Madhappy in 2017. And, you know, one book that really helped pave the way for me and that I read at least once a year is Shoe Dog by Phil Knight. For those that don't know it, it's the story of Nike and all the ups and downs that they went through. And I think in any startup, you're going to deal with so many challenges and reading something from someone that's had a lot of success like Nike has and like Phil has is super inspiring and also just being able to put yourself in the positions that he was in and feeling some of those same feelings that I'm now feeling in a startup I think really, really just have helped me a lot and and so that's really one that I always say. You know, I hope everyone who hasn't read it because I know it's probably a common suggestion does check it out because I think whether you're in apparel or not, it's super helpful as a startup journey and really, really hits home on on all the feelings that we all share on this road to creating something long lasting and meaningful.
Libie Motchan
BOOK PICK
My name is Libie Motchan, and I'm one of the founders of Fulton, which is a modern brand of insoles. We offer cork insoles that mold to the shape of your foot. And we want to show that our support isn't just for old people. It should be part of everyone's daily footwear routine. The book I want to talk about is called Burn Rate by Andy Dunn. Andy is the father of the direct to consumer movement. And he's also the founder of Bonobos. But the book is actually not really about Bonobos. It's about something that's not often discussed when it comes to entrepreneurship. And that's mental health and mental health issues. It's really common to have mental health issues, but people don't really talk about it. Being a founder is wrought with challenges and ups and downs. Andy shines light on the dark sides of being a founder and the dark sides of success, highlighting that things aren't always what they seem from the outside. And often there are challenges and hardships and demons that people can't see. But without talking about them, no one knows they exist. And he shares his story about founding Bonobos but also about his diagnosis of bipolar disorder and the way it impacted his company, but also how he kept it a secret for years and how it was perceived by his family and those around him. By opening up about his story, Andy destigmatizes some of the shame associated with mental health issues and also helps to create a dialogue around it and encourage other people to open up and seek treatment and get rid of some of the shame around it. The book was incredibly enlightening, and it really reminded me to prioritize my mental health and seek ways to find balance in life. It also helped me realize that mental health concerns shouldn't be something that I'm ashamed of or anyone else is ashamed of. They're normal and without talking about them, it's impossible to really seek help and find closure.
Chris Meade
BOOK PICK
Hey, what's up guys. It’s Chris over at CROSSNET, the world's first four-way volleyball game. So I'm the cofounder of a bootstrapped brand that I started about five years ago, in my mom's basement. We've taken this four-way volleyball game up to $25 million in revenue. There's been a lot of hard and tough lessons that I've learned along the way. But, one book that has been super inspiring and helpful as of late, is a small paperback called Double Your Profits by Bob Fifer. And essentially what it does, it's about a 100 page quick read, but it gives you a quick and honest gut check on all the areas that you are spending and overspending money on. I'm talking about stupid stuff, like having 18 Dropbox licenses when you only need three, paying for freelance workers that aren't working 20 hours a week and really are only taking four hours of time. It is an exceptionally helpful book and I should probably even reread it given the current economic situation. It just gives you a gut check on what's working, what's not working, where you're overspending, see all the fluff, and get to profitability, which is needed for a bootstrapped company. And yeah, it's just super insightful. It’s been extremely helpful for me along my journey, and I could not recommend any more. So yeah, Double Your Profits by Bob Fifer. I picked it up when I was kind of at a dark time where the business wasn't looking healthy. I needed to cut down on costs and cut down on marketing. And in the last six months, we've been able to lower acquisition costs by over 50, not saying it's all because of this book but it's definitely helped me look at things with a new perspective and angle that I wish I would have had much sooner. So hope you enjoy.
Maggy Nyamumbo
BOOK PICK
Hi, my name is Margaret Nyamumbo, and I’m the founder of Kahawa 1893 Coffee. We're a specialty coffee company with a mission to empower women producers. And we've created a new way to tip farmers directly. The book that I found very fascinating was a small audiobook, less than two hours long, that explores this concept of brand marketing. The book is called The Big Brand Lie, and the premise of the book is the idea that you can't just create a brand. Brands are created through categories. When you look at successful brands that are in the market today, they exist because they created a new category that they became synonymous with. An example of this is Kleenex which created the tissue category and now any brand in that category is essentially referred to as Kleenex by default.
David Phan
BOOK PICK
Hi, my name is David, and I'm the founder of Huppy. Huppy is a sustainable oral care brand that makes these amazing toothpaste habits that's way better than conventional toothpaste that comes in a plastic tube. When we reimagined toothpaste, we did it with clean ingredients and sustainable packaging. To us, all you have to do is chew a tablet, brush with a wet toothbrush, and rinse. The book that I've selected is called The Slight Edge by Jeff Olson. I picked this book because it's so applicable for all things business and life. It's taught me that in order to get really good at your craft, it's all about just getting a little bit better day by day. And overtime, getting a little bit better each day compounds into something significant and great. When I'm having a bad day, I think about this book and reframe the bad day into an opportunity for me to show up. Here's my favorite quote from the book: “Showing up is essential. Showing up consistently is powerful. Showing up consistently with a positive outlook is even more powerful.” When I think about this quote, I'm reminded that building an awesome company takes time and passion.
Cole Pearsall
BOOK PICK
Hey folks, this is Cole, cofounder of Acid League and Proxies. The book that I have chosen is Business Stripped Bare by Richard Branson, and the reason why it is significant to me was because it was gifted to me by my grandmother, who had found it in her condo library. It did not have a front cover on it. They had pages highlighted, and it's a perfect representation of a kind of book that has moved around and been handed from person to person which is a testament to you know, how many people have consumed it and brought value from it. And where I drew the most value is because this book was written in the perspective of a series of journal articles. He dissects lessons that he learned and notes that he took. Richard Branson notoriously carries around a notepad with him and refines his craft by understanding the lessons that he's learned and reflecting on past situations, scenarios in business, to give himself insight for the future, and what to improve on. And to me, this resonates with me because for about seven years, I've had a daily practice of writing down my thoughts in a journal and asking myself questions about the day. And I'm able to specify any date that I choose and be able to know what mind frame, what motions I was thinking through or working through that day. And when you come to tough times in your business, those are the times that are the most important to reflect on and understand what could I have improved on and how can I use these lessons to improve my business in the future. So, again, my book is Business Stripped Bare by Richard Branson.
David Fudge
BOOK PICK
Hey, guys. David Fudge here, co founder and CEO of Aplos. We are a modern spirits brand, reimagining the cocktail occasion, and we create functional non alcohol spirits for those of us who want to enjoy a great craft cocktail, but we don't want the hangover the next day. And my recommendation is a book called The Big Leap by Gay Hendrix, who's a psychologist and a coach. And, it's a really simple and inspiring read that really challenges you to look inward, sort of understand the limiting beliefs that are holding you back and really reframe your mindset so that you can achieve your goals and be a great leader.
I think the experience of entrepreneurship is never as linear and sort of pretty as it appears in media and TV. And some days you can feel like you're getting punched in the face five times. The next day it can feel like the best day of your life. And so it can be pretty emotionally exhausting and challenging. You have to be the cheerleader for your business externally and with your team and inspire people constantly and stay inspired yourself. And so I think if you don't take the time to really get your own mindset right and really make sure you're looking at your own mental health, it becomes a much more challenging, if not impossible, journey and experience. And so I highly, really recommend this book. It's pretty simple, and you can read it over a couple of days or even a long flight cross country, and I hope you enjoy it.
More about the project
Here at Tydo, we try to highlight DTC founders who run their business in various ways. And, that's because there's no "right" way to run a DTC brand.
This project illustrates exactly that. Whether it's how a founder supports their team or how they talk about mental health in the workplace, every founder has a different approach. How do they discover these different approaches? One way: reading. Discover the greatest books that have changed the way 15+ founders think about or operate their business.
You can also listen to these book picks on Spotify or Anchor.fm.