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Landing Page Optimization: What a 4% drop in conversion can reveal about offering discounts

December 18th, 2014 No comments

Discounts can be tempting to use as a tool to increase your sales volume.

There are plenty of cases where incentives have been successful; however, one caveat to consider is they also come with their own set of consequences.

When the dust settles and the results are in, every marketing team has to determine one thing:

Are discounted product offers always the optimal choice for a price point strategy?

That’s a question one large media company recently posed in their testing efforts that I wanted to share in today’s post to help you learn more about the potential impact of discounts on the bottom line.

Before we dive in any further, let’s look at the background on this experiment:

Background: A large media company offering various subscription products.

Goal: To determine the optimal pricing point after the introductory rate.

Research Question: Which price point will generate the greatest return?

Test Design: A/B split test

Control 

 

In the control, customers are presented with an offer of “50% off Home Delivery for 12 Weeks with free digital access.”

 

Treatment 

 

In the treatment, a triggered lightbox was added and designed to pop-up, offering an incentive for an additional four week discount of 50% if the order was not completed within a certain time frame.

 

Results 

 

The treatment saw a 4% drop in conversion rate that validated at a 94% statistical level of confidence.

 

What you need to know

Discounting can dramatically decrease the perceived value of an offer. Marketers definitely want to be careful not to damage the long-term value of an offer with gains earned via a short-term discount.

This is why I also refer to discounts as the hindsight incentive — their true impact is often assured only after the dust has settled and the damage to your brand is already done.

If you’re interested in learning more about incentives impact price, you can check out the newly released Web clinic, “Maximizing Subscription Revenue.”

 

You might also like

Why Subtle Changes in Button Copy Can Significantly Influence Clicks [More from the blogs]

Website Testing: IBM’s navigation elements test leads to 128% increase in clickthroughs [MarketingSherpa case Study]

Hero Unit Testing: 72% lift from simple changes you can implement today [More from the blogs]

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Customer Response: The surprising reason why color matters

October 30th, 2014 4 comments

Can something as simple as a change in color have an impact on whether a customer will use a search tool on a page?

Intuitively, we thought it did, but we really couldn’t be sure until we tested. This led us question this particular page for a large media brand:

 

The Variable Tested:  “I want to … ” search box

 

The page was a normal page layout with a white background. However,  we wanted to test the impact of color on the search box.

 

The Treatments: “I want to…” search box color variants

 

Read more…

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Perception vs Reality in the Eyes of a Decision Maker

October 20th, 2014 4 comments

Every company struggles with finding ways to convey the value of their product or service in an impactful way. The reasons for subpar value proposition can range anywhere from the value of the product being presented in a convoluted or confusing way to not reaching the customer when they are motivated to buy.

In some cases, the mindset or pre-existing biases can cloud the value proposition in a potential customer’s mind. The ability to overcome that destructive perception is key to guiding a potential customer through any sales funnel.

 

Clarity trumps persuasion — and a wrong perception

Anyone who has seen a webinar or attended a summit featuring MECLABS’ Managing Director, Flint McGlaughlin, has most likely heard him say, “Clarity trumps persuasion.” I want to take that one step further and say that there is a great feat in providing enough clarity to trump a wrong perception.

Earlier in my career at MECLABS, I spent time as the Lead Generation Specialist. In that role, our task was to generate sales-ready leads for our partners.

During that time, I was assigned to one of our more difficult partners — a global provider of outsourced investment management services.

My job was to speak with C-level decision makers of non-profit organizations and schedule meetings with one of our partner’s regional directors.

These meetings had one purpose: Communicate the distinguishable benefits of the firm and its outsourcing model to these decision makers. The problem was these DM’s didn’t want to talk to me.

The decision makers were well aware, as was our partner, that switching an investment management provider was an extremely long and involved process, and more often than not, the organization I was speaking with was happy with the status-quo and did not want to consider an alternative approach.

Their perception was that we were looking to force the organization to switch their investment model after the meeting. This wasn’t the case. Finally, after many rebuttals that weren’t resonating, we started to change our approach and messaging.

Read more…

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Landing Page Optimization: Leveraging perception to tip the value scale (Part 2)

October 13th, 2014 No comments

Last week, I wrote about the importance of considering the value exchange scale in your marketing campaigns. I explained how increasing the perceived value of a product to your consumer can transform something as simple as a rock found in your backyard into the must-have toy sensation of the season — the Pet Rock.

This week, I’m going to share some more tactics to use this scale to impact your marketing efforts, but I must warn you, things are going to get a little deeper. I recommend reading last week’s article before you proceed.

Just to recap, Value Force is what your consumer thinks your product is worth, while Cost Force is the price that you, the marketer, salesperson or company, are charging for the same product.

When, in the mind of your consumer, Cost weighs more than Value, the prospect will say “no” to your offer. However, when the Value of your product weighs more than its Cost, you may receive the coveted “yes.”

Sounds simple, right? Let’s take another look at the value exchange scale: 

 

We’re going to assume that for this hypothetical marketing case, both Value and Cost are weighted equally. Given this scenario, how can we affect the scale without directly adding to or subtracting from the Value Force or the Cost Force? It may help to think a little bit out of the box for this one. Let’s ask some “what if” questions:

What if the triangle moves to the left, like in the picture below?

 

Read more…

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Landing Page Optimization: Leveraging perception to tip the value scale (Part 1)

October 9th, 2014 3 comments

In an experiment with a B2B company, we split tested two landing pages against each other. Let me give you a brief background on the test, and then, I invite you to guess which landing page produced the most leads.

 

Background

This B2B company wanted to promote one of its thermal imaging cameras by creating a downloadable guide where people can enter personal information on a landing page registration form and then get access to a product guide download that will help them choose which thermal imaging camera to purchase.

Which landing page do you think generated the most leads in this experiment?

Once you do choose one, try and think why one performed better than the other. I will share the results with you after the creative samples below:

 

The control

 

The treatment

 

Which landing page do you think won?

Read more…

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Why Subtle Changes in Button Copy Can Significantly Influence Clicks

September 29th, 2014 2 comments

Earlier this year, a team of analysts approached me about a closed case that was reopened for additional interpretation. It was about button copy, and the results were initially baffling.

Here are three of the prominent treatments and their respective clickthrough rates, each with a statistically significant difference in comparison:

 

Does this look familiar? While Daniel Burstein did a great job covering the “what” of this test earlier this year in this MarketingExperiments Blog post, he did not have opportunity to go into the why:

  • Why didn’t “Start Free Trial” win?
  • Isn’t there more value by highlighting the word “Free?”
  • Why is it that the word “Now” in “Get Started” was the difference between underperforming or outperforming “Start Free Trial?”

Everyone in digital marketing is convinced that a call-to-action is a button or a link — something that people can click, or touch, and it will take them off the current view and into another. Because of this preconception, they often create and improve their calls-to-action with the same kind of tunneled focus.

Unfortunately, that’s not how the customer looks at it.

 

To the customer, the clickable thing has no meaning outside of its surrounding context

Take this classic example of context from Leonard Mlodinow’s book Subliminal.

 

Read this sentence:

“The cooking teacher said the children made good snacks.”

 

Now read this one:

“The cannibal said the children made good snacks.”

 

The meaning of the word “made” has significantly changed hasn’t it? In fact, the meaning of that one word is dependant on the context in which it is placed.1

Read more…

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