MarketingExperiments Blog: Research-driven optimization, testing, and marketing ideas

It’s the time of year when I’m preparing the annual sojourn to Salt Lake City to gather with my fellow digital marketers at the Omniture Summit, and it makes me a bit nostalgic. No, not because I grew up in Utah, or because I miss the cold mountain air (as a former Montana-resident-turned-Florida resident, nothing could be further from my mind), but for my navy days. Years ago, when I was just out of high school, I joined the navy and the first boat I served on was USS SALT LAKE CITY (SSN-716). It’s tough to make a visit to SLC without thinking about these days.

I remember being a scrawny high school kid, band geek, 97 lbs, and hearing over and over that I would never make it through boot camp. By the time I got there, I actually started to believe it myself. But, nine weeks later, I had finished all the trials, gained 25 lbs, and was marching with the rest of my class in the pass-in-review ceremony. I had done it, and (to borrow a popular phrase from that year) thought I was the king of the world.

What does being in boot camp have to do with online marketing?

Well, let me say that when you first get to boot camp, your mind does wander to thoughts of quitting and getting back home to a comfortable life where all you really had to worry about was next Friday’s math test. However, you can’t just quit when you get to boot camp; no, they make you persevere. And by the time it’s done, you’re very glad you stuck through the tough times and accomplished something remarkable.

I think that my experience at boot camp can be a lot like the experience we marketers go through when starting to test online, except it’s MUCH easier to quit testing than it is boot camp. There is a large temptation to think that it will just be too much work – first figuring out what to test, designing alternative creative, selecting a testing tool, getting your boss to sign off, then moving mountains to get the IT work prioritized. It’s easy for a marketer to just stick to the status quo and quit the fight before it’s even begun.

Why the mountains are worth moving

I’m not going to deny that testing, like boot camp, has challenges we must persevere through and overcome. But just like boot camp, testing also has significant rewards that we might miss out on if we are jumping ship in fear. Rewards like the incredible feeling of accomplishment when you actually get that first test done, and one of your treatments won! Rewards like knowing you’ve discovered how to stop the leaks in your funnel and contribute directly to your company’s bottom line.

At MarketingExperiments we’re lucky because we get to feel this all the time with our research partners. We get to see our partners grow and establish the culture of testing in their own organizations, which really breathes new life into the old marketing routine that many of us know all too well – “Hey guys, St. Patrick’s day is coming up, let’s trot out all our old shamrock creative and talk about finding a pot of savings at the end of the rainbow.” You won’t ever have that conversation again.

So my message to you is this: don’t give up

The good news is that if a 97lb band geek can experience the reward of surviving boot camp, then there is much hope for the marketer out there starting to online test. You can survive; you can make it.  Just hang in there, don’t give up, and know that the rewards will far outweigh the struggles.

If you are like me and are going to be at the Omniture Summit this year (currently sold-out), consider spending a day with the MarketingExperiments team learning how to optimize your online marketing campaigns. We will be teaching our Landing Page Optimization Workshop during the Omniture University training day in Salt Lake City this year. I’ll be there with the MarketingExperiments team helping your fellow peers learn how they can apply a decade of marketing discoveries to their own campaigns.

Photo provided by: http://www.flickr.com/photos/78428166@N00/ / CC BY 2.0

Analytics & Testing, Internet Marketing News, Internet Marketing Strategy boot camp, digital marketing, omniture, omniture summit, online marketing, online testing, overcoming testing challenges, testing, testing challenges

When we asked for your 2010 Internet marketing predictions, you told us that local is going to be huge this year. And I wholeheartedly agree. I can’t wait for the day I can simply search for a product on one site and find the best price of an in-stock item at a small business or major chain store near me.

But in our fervor for the new opportunities cropping up at a micro level in our own hometown, let’s not overlook the macro possibilities. So today I’d like to take our focus off of local and discuss, well, the entire world.

After all, you are reading the MarketingExperiments Blog International Edition. Sounds fancy, and I loved seeing the International Edition of American publications when I was in Montréal (très chic!). But, of course, everything on the Internet is essentially an International Edition. After all, our readers include Stephanie from Canada, Meraj from Singapore, Inna from Germany, Gabriela from Argentina, and Gavin from the UK.

How well do you know your audience? For Americans at least, sometimes I worry we have a view of the world similar to Saul Steinberg’s famous cover for The New Yorker. But let’s not forget that this is the World Wide Web. Your customers are, or at least have the potential to come from, anywhere in the world.

So here are some thoughts to consider and ideas to test when appealing to an international audience:

Where in the world?

Now that the world is your oyster, where should you begin? Most analytics software, such as Google Analytics, will break down your traffic by country of origin (and drill down even deeper than that). Understanding where your current audience comes from can help you shape your message.

But don’t just limit yourself to where your audience is coming from today, consider where they could be coming from and think about how you can target content to that potential audience. In addition, if you have an ecommerce or even lead generation site, look at how your traffic compares to actual orders and leads. If you get a big chunk of traffic from a certain nation, yet they very rarely order or become a lead, what in your conversion process is stopping them?

Understand when it pays to habla Español

While you don’t necessarily need an entire website for every possible language, it is always a good idea to delve into proper segmentation of your current and possible audience. And if you find a big enough potential market, that commonality of language may significantly help your conversion rate.
You don’t even necessarily need to look beyond your borders to find that opportunity. For example, according to the U.S. Census, the buying power of Americans of Hispanic origin is projected to exceed $1.2 trillion by 2014. If that segment could generate a significant amount of business for you, you should probably consider testing custom Spanish-language landing pages to see if they are worth the investment.

Shalom means hello…and goodbye

If you do choose to test custom foreign-language pages, keep the word custom in mind. Don’t just settle for poor translations of your current pages, but truly put the time and investment into understanding that segment and its motivations…as you would with any other segment.

Marketing history is littered with funny (and costly) cross-cultural blunders – such as the introduction of the Chevy Nova in Central and South America. It doesn’t take a major blunder. Even simple bad translations can turn away potential customers. I probably would not shop in the “Exciting Dressy Fashion zone” or want to eat “Desktop bacteria rice.”

It’s easy to laugh at these snafus, but if we do not truly understand the cultures of global and bilingual markets we seek to enter, we may be making these same mistakes. We can’t be transparent marketers if our audience doesn’t understand what we’re talking about. And far from welcoming new customers, we may be turning them off to our message.

You can still spreek het English…

While custom foreign-language landing pages are worth testing if the segmentation is right for your organization, don’t feel like you necessarily need to invest resources to customize your site for every possible language. As French is la langue de l’amour, English is currently the international language of business and the Web (after all, ICANN is still an American organization).

Also, services like Google Translate and Babel Fish enable your non-English-speaking visitors to instantly translate your page into almost any language for free. So here are a few other ideas to test in your native language…

Ciao bello world!

As I said above, there is an entire world out there. Just make a right at the Atlantic or a left at the Pacific and you’ll likely find untapped markets. So acknowledge it…as I did in the intro to this post when I mentioned our readers from across the globe or as Boris Grinkot did in a recent post where he simply mentioned regulations to consider in India.

The first step to profiting from an international audience is recognizing that you have one. Test how often to mention different cultures and which cultures to mention and see how that affects your traffic.

6,809 ways to say “customer service”

Even better than acknowledging the existence of other cultures, show them that you truly cater to their needs. If you’re looking for some good examples, Israeli websites tend cater to a global audience well (a combination of state subsidies that makes international shipping cheap and the global interest of a nation that holds importance to three major religions).

One good example from that country is TheGreatShofar.com. This site clearly illustrates how it serves other parts of the world by, for example, having an American phone number and a testimonial from someone in America right on its homepage (leading us to believe that either America is one of its most important, sought after segments or this is a landing page optimized for Americans).

Also, the site clearly spells out in its FAQ that it ships around the world:

I live in Timbuktu.  Will you ship to me?

Yes.  We ship to Timbuktu as well as Australia, New Zealand, South Africa, China and pretty much anywhere that has a postal service.

To find out how much it will cost to ship to your location, just add your desired products to the shopping cart and our shipping estimator will display your shipping costs.

One way we try to cater to our international audience is through live training and speaking engagements around the world. Dr. Flint McGlaughlin will next be teaching and speaking about email response optimization at Email Marketing Germany 2010 in Munich from March 8-9, 2010. Register (in English) today. Or, if you prefer, register (in German) today.

General, Internet Marketing Strategy cultural marketing, marketing, online marketing

You can hear Senior Manager of Research Partnerships Andy Mott answer the question How Can You Make Your Web Site Smarter? on the replay of Omniture’s latest webinar. But in my experience with these events, there is usually an interesting back story. So I cornered Andy in his office at a vulnerable time (his beloved Gators had recently lost the SEC Championship game) and found out what he really wanted to say…

Q: You discussed the 2009 Omniture Online Conversion Survey on a recent Omniture webinar. What surprised you the most?

Well I won’t say this surprised me. Maybe saddened is a better word. The survey asked “How frequently is online marketing testing employed in your company?” About half of the respondents said infrequently or never.

Q: Wow! That is pretty shocking, especially considering that these people are already familiar with testing through Omniture or MarketingExperiments. Maybe I could understand if this were the general population of marketers. But why have testing tools in place and not test? Why do you think half of them are flying blind?

Well people know they need to test. They probably know their competitors are testing and getting results. But the idea of executing a test is such a paradigm shift in the way that they’ve always done things.

Those that are higher in an organization tend to be more experienced. And if they are more experienced, they may be locked into the advertising agency way of doing things from 30 years ago, just like the doctor who overlooks recent findings and does what worked best for him when he went to medical school.

Q: Change is difficult. But still, thirty years ago these same people were also wearing polyester and doing the hustle. I’m a little skeptical that they would still try to shoehorn old media principles into new media.

It’s not intentional. If something has always worked for you, why change?

But what we really have is the tyranny of best practices. I’ll give you a great example. Many marketers still believe that they must have the call to action “above the fold” on a web page. Yet testing has shown this to be an utter myth.

Q: And nothing disproves a best practice better than a test that shows what actually works for their specific situation.

That’s the thing. Once companies start testing and see the ROI they are absolutely hooked.

Q: How do you take that first step? For, say, an email marketing manager reading this, how do you create a culture of testing in an organization?

Business-level executives don’t care about optimization or testing or even online marketing really. What they care about is results. So you need to talk to them in their language.

At MarketingExperiments, we publish all of our research and it is available for free. So go to the research archive and pull some experiments so you can show example results and make the business case for testing. At this point, all you are looking for is a small budget to begin testing.

Those first tests will help you establish a beachhead that you can use to further penetrate the organization. Because once businesses see the results they can gain from testing, it can get addictive. It’s like eating chips while watching a football game, you just can’t stop.

Q: The challenge is to just get the ball rolling. This sounds great in theory. Do you have any real-world examples?

I have countless examples. Since we started this conversion by talking about my recent webinar with Omniture, let me tell you about a Research Partner that first got interested in testing by attending an Omniture webinar that featured Dr. Flint McGlaughlin.

Companies that test usually like to stay anonymous because they view this process as such a competitive advantage. So I’ll just say they are a very large financial institution.

So this marketing manager attended Flint’s webinar and was totally sold. He was convinced that they should begin testing. But he’s only responsible for a very small patch in this giant company. It took him six months to get the approval to begin testing, doing the things I previously mentioned.

Q: Six months? It’s easy to get discouraged in that time. I’m not sure how many people would see it through.

But here’s the kicker. That marketing manager and his boss are now charged with trumpeting this win across the entire organization. He is now in front of his boss’s boss’s boss presenting his test results. In fact, in a few days he will be presenting in front of the SVP committee that advises the CEO.

Q: Well then he must have achieved some really out-of-this-world test results. What did he get…three digits…four digits? I mean, how common is that?

They got a 38% revenue boost over what the agency was doing.

Q: Well, that sounds decent, but a committee of SVPs really cares about 38% in one test?

You say that because you are so used to the power of testing, so you just want to see huge numbers. Let me put this another way – by not testing they would have been leaving 38% more money on the table since the cost of testing was infinitesimal compared to their massive marketing budget.

And that’s the thing. This company has a huge marketing budget. They sponsor the Olympics. They name stadiums. They purchase a ton of media. And since they don’t have space to sell in most of these executions, they’re driving everyone to the website. So if they find they could make more 38% more money without having to increase any of these huge marketing spends, the increase in ROI is humongous. Even a one or two percent increase could make or break a quarter.

Q: I see. I didn’t make the connection to that old media marketing spend. But I would think it goes beyond just old media driving people to a website. Online marketing is growing by leaps and bounds. I would think companies want to make sure they are getting a return on that investment as well. According to Forrester Research, digital spending will nearly double over the next five years at the expense of traditional marketing.

Forget five years from now, even today companies spend more than $25 billion on interactive marketing – things like mobile marketing, social media, email marketing, display advertising, and search marketing. That is 12% of all advertising spending. So when enterprises, like that financial institution I discussed, learn that they can take just a tiny fraction of the spend on this growing segment and invest it in a way that ensures the effectiveness of everything else they do – with real-world, statistically valid data – they get very excited.

Q: And I would think, for the employees that can tell management “I know how to get the best ROI from this” – not think or have an opinion, but know with real numbers – that’s quite a smart career move.

If other people are discussing so-called “best practices” and you’re showing real results, then you become the go-to person. The one who knows how this stuff really works. Because nothing defeats the tyranny of best practices as well as the audacity of testing.

And if you’re the guy that knows the right things to do in an explosively growing field like Internet marketing, while marketing budgets on everything else are falling, you’re in a good place no matter what the economy is doing.

How did you get the ball rolling on testing in your organization? What are your biggest challenges to create a culture of testing in your organization? Share your triumphs and challenges in the comments section below or post them to our MarketingExperiments Optimization group.

Internet Marketing News, Internet Marketing Strategy, Marketing Insights, Marketing Q&A, Practical Application advertising, Internet marketing, resources, webinar

During the Optimize your Email in Three Steps web clinic, I covered several measurement strategies to help you measure and prove the real value of your email campaigns. I was inundated with questions. Marketers are constantly in search of new “tricks” to find the perfect numbers that help them understand and tell the real story of their Internet marketing efforts.

While I was able to answer a few of these questions on Web Clinic Extra, I wanted to dive a little deeper today with some links and walkthroughs showing how to implement some of the metric items discussed. And please note, while these examples use Google Analytics, Omniture and many other companies have excellent tools with similar capabilities.

Tagging links within emails so you can measure email clicks within your Google Analytics

Requirements:

• Links tagged in email with Google Analytics tracking variables
• Destination Pages from the email with Google Analytics tracking code installed

Walkthrough:
First, with your emails, identify what links you want to track. For some people, just tracking CTA is enough, for others looking at additional navigational links (for example a supplied news article link or a support link) is also valuable data as well. Once you have compiled a list of links that you want to track, visit Google’s URL Builder Tool and start building your links. Please note that campaign source, medium, and name are minimum input requirements for this sort of tracking to work. You also have some remaining variables (name and content) you can use to insert segmentation data. In the example below, you will note that we inputted some demographic and business data:

Once you have built your links, insert them in the appropriate places in your email and hit the red button.

Please note, that using this tool is not necessary to build these links. Once you learn what variables are used, you can build a script that will automate this for you. You can then use internal databases of customer information to create dynamic and automated email tracking.

Also, once these emails go out, you can then create segments on these parameters and get targeted and segmented metrics for your email efforts:

As a final note, make sure you install Google Analytics on the page your audience will visit. This will be required to measure the clicks. Google Analytics tracking code is not required to be in the email, just the landing or website page they are landing on. The tracking script will read the URL variables that you put in your links in the email and recognize the data.

You can also apply these metrics to ecommerce and other reporting data within Google Analytics, giving you a further layer that attributes efforts to the bottom line.

How to incorporate form fields in goal reporting

Requirements:

• Adding the “onClick” markup JavaScript function in the form field you want to track
• Page must have Google Analytics tracking code installed

Walkthrough:
When I reviewed an example goal setup in the Optimize your Email in Three Steps web clinic, one of the steps I mentioned was a form field click as a goal step. In reviewing the clinic comments, I was stunned by the number of people that wanted to know how to do this and for me to explain further, so here we go.

First, as part of looking at email performance, many of us are sending users to pages that have form captures. For me, a great user experience or path to look at is users that click from the email, land on the target page, actually click into the form, and then submit/convert. So let’s look at a typical form code example, and how Google Analytics (GA) ties in:

Standard form input code example:

We can insert an onClick function to the form to capture when a user clicks into the field and complete the information. With this function we will be making a call to the GA tracking function: _trackPageview. What this function will do in our case is when a user clicks into the form field a page will be created in Google Analytics that we specify/create. For example purposes, with the page tracker function we will create the page /dec-email/form-field-email1.html.

After users have interacted with the form field, the /dec-email/form-field-email1.html will start to appear. Just to clarify, this page does not exist, but we have told GA to record clicks and interactions to the tagged form field to this mythological page we have made up. Also, if you are doing email testing, you could create a script that recognizes which email people are coming (e.g. URL variable) from and change this page dynamically as well. So instead of posting clicks to /dec-email/form-field-email1.html page, we use email2.html. Here is an example of Google Analytics markup on the form field:

Also, users tend to be quite “click happy” on forms, so make sure you look at unique visit data on these “pages,” rather than pageviews. Pageviews tend to be inflated because of this user behavior.

Lastly, once these “pages” are created in Google Analytics, you can insert them in goal funnels, just like other real pages. Your metrics will not skip a beat. Here is an example goal funnel that you could create in Google Analytics with the items we have covered:

**Make sure, if applicable, that you select the required step in your goal setup.

Leave a comment below and let me know the next measurement tricks you would like me to pull back the curtains on in future installments of the Magical Metrics Tour. Also, let me know if you find posts about custom or deeper metrics helpful.

For a more in-depth look at making email and social media deliver for your bottom line, check out Email Summit ‘10 in Miami from January 20-22. PLUS, Dr. Flint McGlaughlin will teach a Pre-Summit Live Email Optimization Workshop to help you maximize your email capture rate and quality. Register by January 8 to receive an early bird discount of $200.

Analytics & Testing, Clinic Notes, Email Marketing, Internet Marketing Strategy, Marketing Q&A, Research Topics analytics, clinic, email, Email Marketing, email optimization, marketing, online marketing

This has not been a banner year for marketing budgets by any estimation. So you might be surprised that two tactics actually garnered increased budgets in 2009 – email and social media. Your peers consider email a highly cost-effective tactic and see social media as a way to extend that content to new markets. This research comes from MarketingSherpa’s 2010 Email Marketing Benchmark Report, which contains practical data to improve your budgeting and grow your overall business.

We’ve found email marketing to be a hot topic as well, with near-record attendance at Wednesday’s web clinic (If you couldn’t attend, please subscribe to the free MarketingExperiments Journal to be notified when the replay and research brief are available). To build on that clinic, which explored ways to maximize revenue from your house list, here is a cost-effective way to grow your list:

In the past year, low-cost has become the most popular modifier of the word “campaigns” for most marketers. Of course, you never want to sacrifice results simply for the sake of cost. According to the 2010 Email Marketing Benchmark Report, blog contests are an inexpensive way to quickly gain motivated subscribers. Here are the seven key steps to making the most of blog contests to rapidly grow your list:

Bullseye

There are highly relevant audiences for blogs on almost every interest under the sun, including Sun (Microsystems, that is) and, likely, an audience with interests very similar to your best customers. But, contrary to popular belief, these audiences aren’t all micro. According to the web-traffic analysts at Compete, some so-called “mommy blogs” get well over 100,000 unique visitors a month. For an example, see Dooce (if you’re a parent, you know what she’s referring to).

Lay down the law

Make sure you clearly define a set of rules to keep everything running smoothly. For example, you could give extra entries to readers who refer friends. Or even host a second, private contest for the blogger who generates the most entries. And remember, the more compelling the prize, the more motivated your audience will be.

…and he told two friends…and she told two friends

After you set up a landing page to explain the contest and capture entrant’s information and referrals, email referred prospects automatically and invite them to join the contest as well. With luck (and a compelling contest), you may reach the Holy Grail of cost-effective online promotion – going viral.

Seek the source

To understand which channels deliver best, create coded links to track traffic originating from blogs (with unique links for each blog), referrals, newsletter emails to current subscribers, social networks, etc. If you hold a separate blogger contest as well, you could create an anonymized tracking page to show bloggers how many entries they’ve generated compared to competitors, which may encourage them to step up efforts.

Release the hounds

Once you have the mechanics of the contest in place, finding the right bloggers will take a bit of hunting on your part. Here’s one simple strategy. Use basic Web searches to find applicable blogs. When you spot a likely target, use its “blog roll,” or links section, to find similar sites. Look at the sites’ number of RSS subscribers (if publicized) as well as the freshness of its content. Then, you can reach out to the bloggers (using info found on the site or a “Contact Us” form) with an email that includes a description of the contest, a coded link to the landing page, a link to the stats page, and a link to a promo ad.

Remember your members

While these bloggers will hopefully drive new subscribers, don’t forget to let the current members of your virtual fan club enter as well. The contest deserves at least a mention in your email newsletter, Twitter feed, Facebook group, social networks, weekly coffee klatch, Pinochle tournaments, and any other place you regularly communicate with your most loyal customers. Not only are you deepening your relationship with existing customers, making it easy for them to pass the contest on to friends is another cost-effective, viral way to grow your list.

Rinse, wash, repeat

If you do not prevent multiple signups, you will have to scrub your list of duplicates. You may also want to remind new subscribers why they are receiving your email newsletter (“Thank you for entering our contest and signing up for…”). Include an easy way to unsubscribe, a must for the CAN-SPAM Act, since some may have focused more on your prize than the fact that they were also signing up for an email newsletter. This is also a way for your least motivated list members to self-select and get removed before too many of them hit the “SPAM” button and hinder your deliverability.

After you’ve counted all your new subscribers, look at your metrics to see what you could have done better. And then, start another contest with your newfound knowledge pushing you to even greater success.

For a real-world example of a marketer that used these tactics to grow a small email list to 20 times its previous size, turn to page 129 of the 2010 Email Marketing Benchmark Report. MarketingExperiments blog readers can receive a $100 discount.

And for a more in-depth look at making email and social media deliver for your bottom line, check out Email Summit ’10 in Miami from January 20-22. PLUS, Dr. Flint McGlaughlin will teach a Pre-Summit Live Email Optimization Workshop to help you maximize your email capture rate and quality. Register by January 8 to receive an early bird discount of $200.

Photo attribution: http://www.flickr.com/photos/idogcow/ / CC BY 2.0

Email Marketing, Internet Marketing Strategy, Marketing Insights, Research Topics clinic, email, Email Marketing, MarketingSherpa, viral marketing, webinar

In Part 2 of our series on bounce rates, we examined how to ensure consistency between your site and the links and ads that drive users there. But once they understand the connection between where they came from and where they are, is there a clear path for what they need to do next?

Sometimes we get so caught up in creating great-looking pages, killer headlines, and excellent copy that we neglect making sure there is a clearly understood goal for what the user needs to do next. It is our job to make the next step in the flow logical and clear so we help them make the intended decision.

Some people arrive at pages and find everything attractive and desirable but there is no clear next step, so they leave. Think of it as having a great infomercial about a knife set. After watching for a few minutes, I’m convinced I need knife that can cut pennies. To top it off, if I act now I can receive a second knife for free. Score, I’m in! However, the infomercial ends there. No phone number or website. I’m excited, I want these amazing knives, but don’t know what to do next. Due diligence with graphics, copy, headlines and other aspects of web pages accomplishes nothing if you are leaving your visitors hanging.

Every marketer I’ve worked with thinks this is pretty basic and they’re doing it already. If you’re nodding your head in agreement, here is my Thanksgiving challenge to you. After the turkey has been devoured, let Uncle Saul and your niece with the pink hair sit down and try to navigate your pages. The results, and their hang-ups, might surprise you.

Now, to address a couple of excellent questions I received about the first two posts in this series…

How do I look at bounce rate for specific blog post pages that have descriptive links that direct traffic directly to the post? – @SquidleyRidley

On social media and other channels, there are many links to single posts on a blog. For example, tweets with a link to a blog post. This can cause, as Squid points out (can I call you Squid?), a situation where people might be more likely to bounce because of the very targeted nature of the visit.

However, as markers and content managers, it is our job to create an engaging experience. A good related post section at the end of each post, and perhaps in the navigation as well, can greatly improve engagement. Here is an example from GetElastic, a blog by Linda Bustos. Note how she engages users with related links at the end of her blog posts:

Just installing a plug-in to generate these related post links might return poor results, so this may require some manual work on your end. Automated systems have come a long way, but sometimes a human mind is needed in building a useful list.

Google is the most fantastic software on the planet. How else can we use Google Analytics to arrive at more intelligent bounce rate reporting? – Sergey, Larry and Eric

For the sake of space, I edited several questions I commonly hear about metrics into the above question and attributed it to three random people from Mountain View, California.

Avinash Kaushik and other metrics evangelists believe that a true measure of bounce rate is not the relationship with navigation, but rather time. While the exact number is different depending on the source, most believe that after a visitor is on the site longer than six to ten seconds they are no longer a bounce even if they never click to another page.

According to the Padicode blog, you can use event tracking in Google Analytics to generate a report that shows visitors that stay for less than ten seconds (or whatever time period you designate). The following code line should be added under the pageTracker._trackPageview(); line:

setTimeout(’pageTracker._trackEvent(\’NoBounce\’, \’NoBounce\’, \’Over 10 seconds\’)',10000);

In the code, please note the 10000. This number is in milliseconds, so it equals ten seconds. Your report now shows an appended bounce rate of users that meet these criteria. This is not retroactive, so data will take a while.

Corey, you speak in generalities. We want something specific. What number should we be looking for? – Sergey, Larry, and Eric

It depends.

Thanks for reading this series on bounce rates. I hope all my American readers have a great Thanksgiving, and readers in the rest of the world enjoy a fantastic Thursday.

OK, I’m back. I can’t leave you hanging like that. I know you want a number, but I just can’t give it to you. I received many questions about this (and thanks to Sergey, Larry, and Eric for serving as a concrete representation of all those questioners), but there is no one right answer.

For certain pages/process, you have a tighter leash on traffic and should have a lower bounce rate than others. For example, homepages receive traffic from a vast array of sources, thus something in the 40-60% range would be acceptable. If you are using the above analytics tip and are thus measuring time spent, a much lower bounce rate should be the threshold.

For PPC landing pages, that number should be lower – in the 30-40% range. And ideally lower than that if you have a tight rein on your keywords and a healthy account structure with negative keywords. Again, if you’re using the above altered bounce rate reporting to measure time spent, even lower numbers should be expected.

Now that I’ve got you excited about bounce rates…

There is a point of diminishing returns with bounce rate, as there is with focusing too much on any one metric. In an attempt to squeeze incremental bounce rate improvements, you have to ask if your time spent is better spent elsewhere. For example, improving your product or offer, formulating strategic partnerships, observing changes in your competitive landscape, and so on. It is very easy to become a tad obsessive (I am currently recovering and a member of Web Analytics Anonymous as well) and we end up robbing precious brainpower that we can devote to other items.

I hope this three-part series on bounce rates proved useful and helps you gain a greater return from your pages. Make sure you perform due diligence to accurately measure bounce rates, understand why bounces happen, and test to lower that number by providing more engaging pages/process. Then let things cool for a bit and return at a later time with a fresh set of eyes.

What metric would you like us to address next? Leave a comment below about your measurement challenges and we will try to address them on future blog posts or in upcoming web clinics.

Analytics & Testing, Internet Marketing Strategy analytics, bounce rate, marketing, online marketing, optimization

In Part 1 of our series on bounce rates, we explored how to drill down into your metrics to find the numbers that really matter. But that left us with an unsettling question. For the users that do bounce but shouldn’t…what is missing that would pull them into your site?

Look at where your traffic is coming from and where it is landing
Many people think that a high bounce rate means there is a problem strictly with the content on the page. While that can be the case in part, you should take a step back and look at where people are coming from and the messages they see before arriving to your site to fully diagnosis a high bounce rate. For example, let’s look at the following user interaction…I’ll be the guinea pig.

I’m thinking of buying a new turbocharger for the Subaru WRX I race on the weekends. So I search for turbochargers.

Then I click on a PPC ad that mentions the following items:

• Unbeatable prices
• Turbochargers in stock
• Free shipping

I think to myself, “Great! This is exactly that I am looking for.” I initiate a click and this is the page I am greeted with:

Where is free shipping?
Where are the in-stock items?
And most importantly… WHERE ARE THE TURBOCHARGERS?!

If you just looked at the content of the site in a vacuum, you would find it acceptable. But users being directed to this site from that PPC ad have expectations that this page isn’t fulfilling.

I have seen many people in this situation look at their site metrics and when they see the high-bounce rate, just keep radically changing the page without any real regard to the user’s thought sequence. They get frustrated when the page continues to underperform.

And remember, I am just using my quest to break the local time trial record in my tuned-up WRX as an example. These principles do not only apply to landing pages or companies running paid traffic.

Text links (on other sites directing traffic to your pages), emails, and newsletters set just as much expectation as paid search banners. For external links, use a research tool like Yahoo Site Explorer to investigate the links to your pages along with the messages being communicated. Then evaluate if your page connects with those messages (If you’re uncomfortable with how your page is presented, contact the owner of the page to edit the links. You will be surprised how willing people are to make those edits if you ask nicely.)

Of course, giving customers the information they need is only the beginning. If we really want to address the bounce rates of key segments we are concerned about, we must get them to act…

On Wednesday, Part 3 will examine how you get visitors to act by giving them a clear path for what to do next.

Have additional questions? Other metrics you’d like to look at? Use the comments section below or shoot me a tweet me at: @ctrentmarketing

Analytics & Testing, Internet Marketing Strategy, Paid Search Marketing (PPC), Research Topics analytics, bounce rate, marketing, online marketing, optimization, pay-per-click, PPC

Bounce rate is the metric that makes many marketers wake up in a cold sweat. Many Research Partners are consumed (dare I say haunted?) by this metric.

I don’t want to water down the power of bounce rates. But as with most metrics, it isn’t as simple as following a rule of thumb like “keep the number of bounces low.”

So in this series of posts, I’ll take a closer look at what your bounce rates are really telling you… and what is just an imaginary monster under the bed. Let’s look past the anxiety and hone in on what we can learn from these numbers. And, perhaps in the process, help you sleep a little better at night.

Analyze the action that a “typical” user will take on your page

Why does the visitor come to your site and what are they planning on doing there? Answering this question can help you determine if they’re leaving because the site isn’t delivering on some level, or if they simply got what they were looking for and moved on. To show you an example of what I’m talking about, let’s take a look at what may be happening on your blog.

I hear marketers worry about blog bounce rates quite often, so let’s think about how a typical reader views one. You probably post the most recent information right at the top where it is easily accessible – quite convenient for your readers. So the typical returning reader likely reads that fresh content and then heads elsewhere. This would be counted as a bounce since the user has not engaged in any navigation.

Also, readers who already like your blog and have added it to their feed aggregator tend to get in a click-happy mode and just read snippets of news. They might see your new post pop up, read it for a little bit, then move to the next article in their queue. These news reader programs allow users to sift through posts, find an interesting one, arrive at that page, and then leave. Again, if that is the only interaction they have with your site, it will be counted as a bounce.

If you are running a web program that lets you segment your visitors, and look at metrics like bounce rate, break up different sources of traffic into new users and returning users. Only then can you really learn from your bounce rates.

Here is a segment created in Google Analytics to look at new visitors and help us splice the data more deeply:

Now that you have segmented your visitors, what are they really telling you? I wouldn’t be too concerned if older users are bouncing. As we learned from getting in the mind of the typical return visitor, they likely just want to see your most recent post.

But if new users are bouncing, then you have more cause for alarm. Why aren’t your posts pulling them in to a deeper engagement with your blog? If you’re looking at a homepage, what is missing that would pull them into your site?

On Monday, Part 2 will take a closer look at where your traffic is coming from and where it is landing on your site to help you answer these questions.

Have additional questions? Other metrics you’d like to look at? Use the comments section below or shoot me a tweet me at: @ctrentmarketing

Analytics & Testing, Internet Marketing Strategy analytics, blogs, bounce rate, marketing, online marketing, optimization

Senior Manager Boris Grinkot recently attended the Eloqua Experience 2009 Global User Conference in San Francisco. He sat down to answer a few questions about his key takeaways for online marketers…

Q: You were the only non-Eloqua employee to have a booth in the Marketing Effectiveness Zone. Users from around the world sought your advice about conversion rate optimization. Was there any pattern to the challenges marketers brought you?

Most websites are not really having a conversation with the customer. They are not guiding the customer through the page. And, most importantly, they are not testing their pages. They may test an email message or a form with Eloqua, but they don’t test the whole page.

There is massive room for improvement to optimize landing pages to ensure they are customer-focused, and then continually improve the results generated by those pages through testing.

Q: Measuring those results was also a major topic of conversation at Eloqua Experience?

Yes. Eloqua is seeking to standardize key performance indicators, or KPIs, that CxOs use to measure results in much the same way financial accounting uses key ratios and cash flow statements, income statements, and balance sheets. Today, most measurements in web analytics – like visitors per month, for example – do not directly translate to a standard accounting metric, such as net revenue.

Q: Based on past statements we’ve received from web clinics and here on the blog, KPIs are a little misunderstood by some marketers. How can readers choose and use KPIs effectively?

In our research, we find marketers most frequently tend to look at numbers like conversion rate, bounce rate or number of visitors. While these numbers can be meaningful within the context of page or process functional performance, they don’t necessarily do a good job of measuring the financial performance.

Revenue per visitor is usually an essential KPI that connects online customer behavior to a financial outcome. While this is a more straightforward KPI to calculate for ecommerce sites, even if you have a lead-generation site, you should understand the value of each lead to determine your revenue per visitor.

Average order size can also be a meaningful KPI that helps you distinguish customer segments (e.g., collectors vs. gift shoppers) or test functional changes like in-cart upsells. Choosing the right KPIs is a big topic, but the short of it is that you need to distinguish between behavioral, demographic, and financial metrics and use them appropriately.

Q: So the important thing to remember is, that while some metrics might be useful in an intermediate step, the overall goal should be a revenue-based number?

Absolutely. For testing and optimization, you need those intermediate numbers.

For example, if you’re optimizing just one step of a shopping cart, conversion rate or clickthrough are important testing metrics. But you don’t want to lose sight of the big picture – which would be overall revenue or revenue per visitor. Let’s say you’ve optimized a step and more visitors are clicking through, but they are less motivated and in the end are buying less. If you don’t have that overall revenue KPI, and you just looked at conversion rate, you would erroneously assume that you have definitively improved your shopping cart.

Q: What are some other caveats when choosing a KPI?

Even if you choose the right KPI, you can still get bad information by not looking at individual channels. You may have good revenue per visitor, but that number is just an average. What if one channel is delivering ten times the revenue per visitor of another channel? That is important information to have, especially if you’re paying for traffic, because you need to understand how that spend converts to revenue.

Q: What is the overall benefit of choosing the right KPI for C-level reporting?

By focusing on dollars instead of traffic, business leaders gain a deep understanding about how the investments they make impact revenue generated through the website. If you invest more in a site, what ROI are you getting?

Clickthroughs and conversion rates only muddy the answer to this question. You need numbers directly related to the spend of each campaign. And not in the aggregate, but specific to a channel – so you know that investing X in PPC, email, TV, or even print will lead to a return of Y.

The other upside, which I’m glad Eloqua is pushing, is that numbers like overall revenue, revenue per visitor, or cost per acquisition bring web metrics much closer to standard accounting. These numbers give CxOs the best indicators of their site’s performance in a format they are used to seeing.

Use the comments section below or post your questions to our MarketingExperiments Optimization group.

Analytics & Testing, Internet Marketing Strategy, Marketing Q&A, Practical Application analytics, KPI, marketing, online marketing, ROI

If you’ve got a B2B website, you’re always looking for ways to generate more leads online. But while recent research shows 71% of B2B marketers view their site as one of the most important marketing tools, only 31% said their site is “highly effective” at generating leads.

That leaves a lot of room for testing and improving business results. However, optimizing for lead generation is not as straightforward as optimizing for conversion rate.

Conversion rate is the final metric that decides whether or not your online process/funnel is working. In contrast, lead generation only tells you a portion of the story. The leads you generate are really the start of a long process of qualification steps, both online and offline. If you don’t pay attention to each step, you will never be able to get the best out of this process.

How to use friction to your advantage

Think of the process of optimizing for lead generation as two interconnected dials. Each dial represents a step in your online process. One dial increases volume of leads by reducing friction. The second dial increases quality of the lead by increasing friction.

You can increase friction in several ways, such as adding more form fields or steps in the funnel process. Or, you can reduce it by subtracting various page elements or process steps. To adjust your lead flow, turn the dials: more friction will yield higher lead quality; less friction will increase lead volume.

Too much friction can make your visitors quit, but not enough friction will fill your pipeline with leads of a lower quality. So you need to test different approaches to determine what balance works best for your lead generation process.

Before you turn that dial …

Three keys to keep in mind when testing your lead generation process:

1. Choose the right time to add more friction. Think of your lead generation process as a personal introduction to someone. The moment you meet someone you don’t ask for a lot of personal information. If you do, you scare people away. The same concept applies here. For example, in a recent experiment, we tested moving the phone number field from the first step to the second step. Lead generation rate increased by 68% and the conversion rate remained stable.
2. Prioritize your requests properly. Think carefully about what information you ask first, second, and so on. It is important to keep a natural flow as you add and subtract friction elements. A good way to check for this with your pages and processes is to review every step and consider two questions: 1) Do we need this information? 2) Do we need it at this stage?
3. Pay close attention to your final conversion rate. We tested a three-step process against a four-step process. As expected, the three-step process had a higher lead generation rate. However, once the sales team got the leads and started following up on them, they found that leads from the four-step process were more qualified and easier to close. Bottom line: the four-step process had a lower lead generation rate, but ultimately a higher final conversion rate (sales).

To learn more about applying this concept, see our recent research brief, What’s working now in optimization or join our team at our optimization workshop at MarketingSherpa’s B2B Summit.

Internet Marketing Strategy, Lead Generation, Practical Application friction, Lead Generation Rate, quality leads, two dials analogy