The Web as Living Laboratory

Transcription

1 The Web as Living Laboratory The Three Most Important Discoveries from over a Decade of Experimentation Flint McGlaughlin Managing Director MECLABS

2 Experiment #1: Background Experiment ID: REGOnline Homepage Test Location: MarketingExperiments Research Library Test Protocol Number: TP1427 Research Notes: Background: REGOnline is event management software that lets users create online registration forms and event websites to manage their events. Goal: To increase number of completed leads on home page. Primary research question: Which page will achieve the greatest addressable lead rate? Approach: A/B multifactor split test 2

3 Experiment #1: Control Control - Homepage Our researchers hypothesized that we could increase the appeal associated with the value proposition of this offer by focusing more on the product and its specific features and benefits. 3

4 Experiment #1: Treatment Treatment - Homepage Headline was written to focus more on the product. Specific features and benefits are utilized to express the value. The page emphasizes Free Access. Also, ensured that this value was being communicated in subsequent steps. 4

5 Experiment #1: Side-by-side Control Treatment 5

6 Experiment #1: Results 24.5% Decrease in Conversion The Treatment generated 24.5% less completed leads Versions Conversion Rate Rel. diff Control Two-step homepage 2.3% - Treatment Three-step homepage 1.7% -24.5% What you need to understand: In spite of having clearer value and reducing the amount of form fields in the first step, the control still outperformed the treatment. 6

7 HOW can we improve this page? Control - Homepage 7

8 What you need to understand F Key Principles 1. Asking how leads to information; asking why leads to wisdom. Yet marketers are all too busy asking how. 8

9 Key Why Questions WHY did the treatment decrease conversion by 25%? WHY did the more people say yes to the control 9

10 The Problem: Few View the Internet as a Lab Which of the following ways does your organization use the Internet? Marketing Channel 64% Informational Resource 37% Marketing Hub 30% Customer Research Lab 10% Brand Research Lab 6% Source: 2012 MarketingSherpa Website Optimization Benchmark Survey Methodology: Fielded April 2012, N=2,677 10

11 Experiment #2: Background and Test Design Experiment ID: REGonline SEO landing page test Location: MarketingExperiments Research Library Test Protocol Number: TP3055 Research Notes: Background: A technology and media company specializing in online registration and event management software. Goal: To increase the amount of leads generated online. Primary research question: Which online capture process will generate the highest addressable lead rate? Approach: A/B multifactor split test 11

12 Experiment #2: Background Homepage from Previous Test 24.5% Decrease in Conversion Before we could get a lift, we needed to learn more about the prospects coming to this site. We decided to use one of their SEO pages as a research window into the cognitive psychology of the customer s motivation. u = 2q + t + m + 2v + i 12

13 Experiment #2: Control SEO Landing Page This landing page was offering the same product as the home page but dealt with a smaller subset of visitors that matched the profile of those coming to the homepage. Our researchers could test here without the negative consequences of hurting conversion on the homepage. 13

14 Experiment #2: Treatment Treatment SEO Landing Page For our first test on this page, we tested focusing on how this product enabled creating registration forms easier and could cut their time in half and yet it still had a robust functionality. 14

15 Experiment #2: Side-by-side Control Treatment Do you think the new emphasis will out perform the control? If so, by how much? 15

16 Experiment #2: Results 548% Increase in Complete Leads The new page s conversion rate increased by % Design Conversion Rate (%) Relative Difference Statistical Level of Confidence Original Page 0.7% - - Treatment 4.8% 548% 99% What you need to understand: By applying key optimization methodologies to the lead capture process, the treatment was able to improve step-level clickthrough rates by 1,312%, and completed leads captured by 548%. 16

17 Experiment #2: Learning Applied SEO Page Test Original Homepage New Home Page Test 548% Learning Learning 90% We were able to take what we learned about the motivations of their customers from testing on the SEO landing page and apply it to the homepage, which generated a 90% increase in leads captured. 17

18 What you need to understand F Key Principles 1. Asking how leads to information; asking why leads to wisdom. Yet marketers are all too busy asking how. 2. Sometimes we need to slow down in order to go fast. Action is overrated; action should be grounded in contemplation. Admittedly, contemplation without action is anemic, but then action without contemplation is dangerous. 18

19 What you need to understand F Key Principles 1. Asking how leads to information; asking why leads to wisdom. Yet marketers are all too busy asking how. 2. Sometimes we need to slow down in order to go fast. Action is overrated; action should be grounded in contemplation. Admittedly, contemplation without action is anemic, but then action without contemplation is dangerous. 3. Indeed, the marketer should be the philosopher of the organization -- for the vigorous action of sales needs to be grounded in the rigorous contemplation of marketing. 19

20 Receive Advance Notice of Dr. McGlaughlin's New Book The Marketer as Philosopher By Dr. Flint McGlaughlin To receive advance notice of the publication of Dr. McGlaughlin s upcoming book, The Marketer as Philosopher. and To get a key excerpt that explains the Inversion of the Funnel with the Micro-Yes Map. Visit the following webpage:

21 OBSERVATION #1: The Marketer Does not Optimize Ads or Pages; But Rather Thoughts and Conclusions 21

22 OBSERVATION #1: Optimizing Thought-Sequences 22

23 OBSERVATION #1: Marketing Dangers THE DANGER OF COMPANY LOGIC Beware of substituting company logic for customer logic 23

24 OBSERVATION #1: Experiment: Background Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP1341 Research Notes: Background: A company offering dedicated business hosting services Goal: To increase the amount of leads Primary research question: Which page design will generate the greatest amount of leads? Approach: A/B multi-factor split test (radical redesign) 24

25 OBSERVATION #1: Experiment: Original 25

26 OBSERVATION #1: Experiment: Original The banner is the first thing that people see when arriving at this page, but what does it mean? It might mean something to the company, but it conveys little value to the prospect. 26

27 OBSERVATION #1: Experiment: Original This company only truly needs 4 fields in order to obtain a qualified lead, and yet 20 different fields must be completed on this page. Call to action Request a Quote is impersonal and implies commitment and cost. 27

28 OBSERVATION #1: Experiment: Original vs. Treatment 28

29 OBSERVATION #1: Experiment: Treatment Immediately lets the visitor know where the are and what they can do on this page. Provides organized content that the prospect could navigate through based on their own needs Uses images with easily understandable meaning Uses the more personal/ lower commitment call-to-action language of Call to Discuss Your Needs Moves all unnecessary forms fields to a secondary step. 29

30 OBSERVATION #1: Experiment: Original vs. Treatment 30

31 OBSERVATION #1: Experiment: Result 189% Increase in Overall Conversion The new page s conversion rate increased by % Design Conversion Rate (%) Relative Difference Statistical Level of Confidence Original Page 2.00% - - Treatment 5.77% % 95% 31

32 OBSERVATION #2: The Goal of the Marketer is to Move the Prospect Up, Not Down, the Funnel 32

33 OBSERVATION #2: The Inverted Funnel 1. The funnel is often presented as one potentially useful analogy for marketing. It is in fact, the primary analogy. All marketing should influence a decision. 2. The funnel analogy distorts reality. People are not falling into your funnel, they are falling out. The funnel must be inverted. g = 9.81 m/s 2 3. People don t travel down the center of the funnel. People are climbing up the sides. 33

34 The Message OBSERVATION #2: The Inverted Funnel (Ma)YES Y Sales Call Landing Page Business Software Suite #1 On-Demand World Clients Award-Winning Solution. Free Trial PPC Ad 34

35 OBSERVATION #2: Marketing Dangers THE DANGER OF CONFLATED OBJECTIVES Beware of mitigating your conversion rate with too many, conflicting objectives 35

36 OBSERVATION #2: Experiment: Background Experiment ID: Messaging Test Location: MarketingExperiments Research Library Research Notes: Background: Largest physician-only social network which offers its knowledge base to pharmaceutical companies. Goal: To increase clickthrough from rented list to landing page. Primary research question: Which will generate the highest clickthrough rate? Approach: Multifactor sequential (year-to-year) test. 36

37 OBSERVATION #2: Experiment: control This page, though above average in many respects, still has conflated the objective of the with the objective of the landing page. This is selling and asking for too much at this stage in the conversion process. 37

38 OBSERVATION #2: Experiment: treatment Optimized Each section of the page guides the reader through a logical series of micro-conversions. Call to action asks for just the right amount of commitment at this stage of the conversion process. 38

39 OBSERVATION #2: Experiment: Side-by-side Original Optimized 39

40 OBSERVATION #2: Experiment: Results 104% Increase in conversion The treatment generated a 104% higher clickthrough rate. Versions Clickthrough Rate Relative difference Control 1.55% - Treatment 3.16% 104% What you need to understand: By changing the messaging to better guide the reader through a logical series of micro-conversions, the marketers at Sermo were able to generate a 104% lift in clickthrough rate. 40

41 OBSERVATION #2: Experiment: control Subject Line Landing Page Headline Headline First Two Inches First Two Inches Body Body CTA CTA 41

42 OBSERVATION #3: The Value Proposition is the Force Which Compels the Prospect Up the Funnel 42

43 The Message Value Proposition OBSERVATION #3: The Force of the Value Proposition (Ma)YES Value Proposition Y 1. The answer to the question, What is your value proposition? can only be discovered by answering yet another question: If I am your ideal prospect, why should I buy from you rather than any of your competitors? 43

44 OBSERVATION #3: The Force of the Value Proposition Value Proposition Question: If I am your ideal prospect, why should I buy from you rather than your competitors? 1. You are fundamentally answering a first-person question posed in the mind of your customers. It always implies a because answer. 2. A value proposition focuses on a specific customer segment. This requires you to consider who you are not going to serve and the associated tradeoffs. 3. A value proposition is an ultimate reason the reason why; it is the culmination of a careful argument supported by evidentials 4. A value proposition must differentiate you from your competitors. In at least one way, you must have an only factor. 44

45 OBSERVATION #3: The Force of the Value Proposition Cost Force Value Force Vf Ac Cf Ac = Nf 45

46 OBSERVATION #3: The Force of the Value Proposition Value Proposition Heuristic Vf Ac - Cf Ac = Nf Rc[Vf Cf] = Nf Vf = (Ap Ex) Ac = (Cl Cr) Cf = (Mt Mn) Main Elements: Nf = Net Force of the Value Proposition Vf = Gross Force Of the Value Cf = Gross Force of the Cost Ac = Acceptance Sub Elements: Vf Ac Cf Ap = Appeal Ex = Exclusivity Cl = Clarity Cr = Credibility Mt = Material Mn = Mental 46

47 OBSERVATION #3: The Force of the Value Proposition The Message Value Proposition (Ma)YES Y Value Force Cost Force For the Primary, Product, Prospect, and Process- Level Value Propositions, the objective is to tip the perceived value (Pv) to be greater than the perceived cost (Pc). Value Proposition 47

48 OBSERVATION #3: The Force of the Value Proposition The Message Value Proposition (Ma)YES Y Value Force Cost Force For the Primary, Product, Prospect, and Process- Level Value Propositions, the objective is to tip the perceived value (Pv) to be greater than the perceived cost (Pc). Value Proposition 48

49 OBSERVATION #3: The Force of the Value Proposition Vf Cf Vf Cf The force of a value proposition can be measured by four essential elements of the offer: Appeal I want it. Exclusivity I can't get it anywhere else. Clarity I understand it/you. Credibility I believe in it/you. 49

50 OBSERVATION #3: Marketing Dangers THE DANGER OF ASSUMED VALUE Beware of assuming your value proposition has been sufficiently communicated at the beginning of the process 50

51 OBSERVATION #3: Experiment: Background Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: 1214 Research Notes: Background: A leading software provider. Goal: To increase total leads. Primary research question: Which process will generate the most leads? Approach: Radical redesign of the complete lead-generation process. 51

52 OBSERVATION #3: Experiment: Original PPC ad The Message Value Proposition Original PPC Ad {Keyword XXXXXXXXX Software} Award-Winning XXXXXXXX Software. Fully Integrated. Free Trial (Ma)YES Y Vf Cf X {Keyword XXXXXXXXX Software} Award-Winning XXXXXXXX Software. Fully Integrated. Free Trial Value Proposition 52

53 OBSERVATION #3: Experiment: PPC Ads Side-by-Side Original {Keyword XXXXXXXXX Software} Award-Winning XXXXXXXX Software. Fully Integrated. Free Trial Original ad uses only vague qualitative statements like Award Winning and Fully integrated Optimized XXXXXXXXX Software Suite #1 On-Demand World Clients Award-Winning Solution. Free Trial The optimized uses specific quantitative statements like #1 On Demand and World Clients to communicate the value. 53

54 The Message Value Proposition OBSERVATION #3: Experiment: Optimize PPC Ad Optimized PPC Ad XXXXXXXXX Software Suite #1 On-Demand World Clients Award-Winning Solution. Free Trial (Ma)YES Y Vf Cf {Keyword XXXXXXXXX Software} Award-Winning XXXXXXXX Software. Fully Integrated. Free Trial Value Proposition 54

55 OBSERVATION #3: Experiment: Results 21% Increase in Overall Conversion The optimized PPC Ad conversion rate increased by 20.9% PPC Ad CR Rel. Diff. Control 0.89% - Treatment 1.08% 20.9% 55

56 The Message Value Proposition OBSERVATION #3: Experiment: Original Landing Page Original Landing Page (Ma)YES Y Vf Cf X Value Proposition 56

57 OBSERVATION #3: Experiment: Original Landing Page Original Landing Page Again, the original landing page from the ad is using vague language to communicate the value. Also, there is a significant disconnect between the value communicated in the PPC ad and the value in landing page. Where is the Award winning? Where is the Fully Integrated? 57

58 OBSERVATION #3: Experiment: Optimized Landing Page Optimized Landing Page The optimized version immediately connects the PPC ad to the landing page maintaining strong continuity. As in the PPC ad, clear quantitative language is used. Awards are shown prominently. Testimonials and CTA both add value. 58

59 The Message Value Proposition OBSERVATION #3: Experiment: Optimized Landing Page Optimized Landing Page (Ma)YES Y Value Proposition Vf Cf 59

60 OBSERVATION #3: Experiment: Results 54% Increase in Overall Conversion The optimized Landing Page conversion rate increased by 54.26% Landing Page CR Rel. Diff. Control 7.17% - Treatment 11.06% 54.26% 60

61 OBSERVATION #3: Experiment: Original Form Page The Message Value Proposition (Ma)YES Y Vf Cf X Value Proposition 61

62 OBSERVATION #3: Experiment: Original Form Page Original Form Page This form page is not really communicating any value. They have stopped trying to sell and assume that the customer is convinced to complete the form. Also, there is little connection that this page has to either the landing page or PPC ad. 62

63 OBSERVATION #3: Experiment: Optimized Form Page Optimized Form Page The optimized page continues to communicate the value of the offer even on the registration page. The message is directly connected to both the landing page and the PPC campaign. 63

64 The Message Value Proposition OBSERVATION #3: Experiment: Optimized Form Page Optimized Form Page (Ma)YES Y Value Proposition Vf Cf 64

65 OBSERVATION #3: Experiment: Overall Results 272% Increase in Overall Conversion The optimized path s conversion rate increased by 272.2% Metric Control Treatment Relative Difference PPC Advertisement 0.89% % Landing Page Clickthrough 7.17% 11.06% 54.26% Form Completion 15.84% 31.25% 97.27% Impression-to-lead Conversion.009%.033% 272.2% What you need to understand: In this experiment, a 272% increase in conversion led to 268% more projected revenue and, when combined with the corresponding 66% reduction in cost-per-acquisition, the optimized path produced more than 4 times the monthly profit (302% increase). 65

66 OBSERVATION #3: Experiment: Results 97% Increase in Overall Conversion The optimized Landing Page conversion rate increased by 54.26% Landing Page CR Rel. Diff. Control 15.84% - Treatment 31.25% 97.27% 66

67 Receive a Free Research Brief of this Presentation The Web as a Living Laboratory has been translated into a short 20-page booklet. You can receive a free copy by visiting the MECLABS booth. ** Limited quantity available **

68 The Web as Living Laboratory How two marketers drove $100 million in revenue with a single test. Flint McGlaughlin Managing Director MECLABS