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Posts Tagged ‘conversion’

The Most Shared MarketingExperiments Content from 2016

January 5th, 2017

Yes, yes. 2016 was a bad year. We get it.

But it wasn’t all bad. We published some fairly exciting stuff here on MarketingExperiments. It was so exciting that a good portion of our audience found the time to share it with their followers. Just these five pieces from 2016 were shared 1,435 times.

Read on to view what our audience felt were the top five most shareworthy pieces in 2016.

#1: How Does Page Load Time Affect Conversion Rate? New Research Shows Significant Correlation

Most marketers understand that a slow page produces low conversion rates. But how significant is the correlation? How fast do customers expect sites to load? Are customer expectations for page load time changing?

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Homepage Optimization: Tips to ensure site banners maximize clickthrough and conversion

March 23rd, 2016

Banners take up precious space on landing pages and too often don’t do enough to turn prospects into customers. Yet marketers are forced to work within their constraints.

The latest MarketingExperiments Web clinic outlined how to make every banner a conversion-driving opportunity, because even the smallest changes can make an impressive difference. To prove it, Mike Loveridge, Head of Digital Test and Learn, Humana, Inc., a healthcare insurance provider, presented banner tests from his organization. Take a short break and find out what he discovered here: Site Banners Tested: How minor changes led to a 433% increase in clickthrough for Humana.

Here’s the boon and the bane of banners: They’re often the very first thing that people see when they arrive on the landing page. That means if they aren’t optimally presented, you’re going to lose customers immediately. But optimized banners can drive more prospects than ever before, and it doesn’t take much effort.

Consider this banner that was on Humana’s homepage.

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Why Selfishness Is the Key to Successful Marketing

July 9th, 2015

Philosophers [must] become kings … or those now called kings [must] … genuinely and adequately philosophize.” —Plato

Flint McGlaughlin, Managing Director and CEO, MECLABS Institute, remarked about Plato’s quote in The Marketer as Philosopher — “One might substitute the term ‘marketer’ for the term ‘king.'”

In order to best communicate as marketers, we need to sometimes slow down and ask “why” we are doing the “what.” This includes considering the reasons for the various elements of brand collateral, images, calls-to-action and testimonials we insert onto our pages.

I recently came across a test that highlighted for me some of these challenges that marketers often face when balancing the “why” and the “what.”

That’s why in this post I want to show how we can use the MECLABS Conversion Heuristic to really drill down on these specific elements while giving you a process in which you can apply a methodology to creating and optimizing all of your marketing collateral.

 

MECLABS Conversion Heuristic

 

This heuristic is just that — a heuristic. This means it is simply a mental shorthand used to convey an idea or approach. This is not a mathematical equation and you cannot solve it. However, it does work similarly to an equation in the idea that the coefficient preceding the letters indicates that value’s level of importance.

Therefore, motivation, with a coefficient of four, is more important in the conversion than anxiety, which only has a coefficient of two.

With that being said, let’s start by evaluating the customer’s motivation on a page and how each element can cater to that motivation.

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How to Recover from Failed A/B Testing

June 8th, 2015

Back in 2003, a little blue fish taught us to, “just keep swimming.”

Much like Dory, Ryan Hutchings, Director of Marketing, VacationRoost, taught us that even when we aren’t gaining the results we want, just keep testing.

Ryan was one of the presenters at MarketingSherpa MarketingExperiments Web Optimization Summit 2014, where he discussed his marketing experience at VacationRoost — an ecommerce vacation rental wholesaler. During his session, Ryan shared how he and his marketing team were able to:

  • Increase the company’s total conversion 12%
  • Run more than 50 tests in a year

These results were achieved by employing simultaneous tests for large and small projects. The tests Ryan utilized ran on two separate testing methodologies and allowed VacationRoost’s small marketing team to make the most of its resources.

Because VacationRoost is an aggregation of several smaller companies, the company currently has many different websites and Web properties it has to maintain. “For a marketer, it’s ideal because I have this whole entire playground to essentially do whatever I want with,” Ryan said.

However, not every test leads to overwhelmingly positive results. So what do you do when your costly testing is met with failure?

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Measuring Success: The distance between a test and the conversion point

March 9th, 2015

There’s a misconception that I’ve encountered among our research teams lately.

The idea is that the distance between the page being split tested and a specified conversion point may be too great to attribute the conversion rate impact to the change made in the test treatment.

An example of this idea is that, when testing on the homepage, using the sale as the conversion or primary success metric is unreliable because the homepage is too far from the sale and too dependent on the performance of the pages or steps between the test and the conversion point.

This is only partially true, depending on the state of the funnel.

Theoretically, if traffic is randomly sampled between the control and treatment with all remaining aspects of the funnel consistent between the two, we can attribute any significant difference in performance to the changes made to the treatment, regardless of the number of steps between the test and the conversion point.

More often than not, however, practitioners do not take the steps necessary to ensure proper controlling of the experiment. This can lead to other departments launching new promotions and testing other channels or parts of the site simultaneously, leading to unclear, mixed results.

So I wanted to share a few quick tips for controlling your testing:

 

Tip #1. Run one test at a time

Running multiple split tests in a single funnel results in a critical validity threat that prevents us from evaluating test performance because the funnel is uncontrolled and prospects may have entered a combination of split tests.

Employing a unified testing queue or schedule may provide transparency across multiple departments and prevent prospects from entering multiple split tests within the same funnel.

 

Tip #2. Choose the right time to launch a test

 

External factors such as advertising campaigns and market changes can impact the reliability or predictability of your results. Launching a test during a promotion or holiday season, for example, may bias prospects toward a treatment that may not be relevant during “normal” times.

Being aware of upcoming promotions or marketing campaigns as well as having an understanding of yearly seasonality trends may help indicate the ideal times to launch a test.

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Value Proposition: NFL’s Jaguars increase revenue with customer-centric marketing

February 12th, 2015

The Jacksonville Jaguars, located in the home city of MECLABS Institute, have not had a winning season in nearly a decade. By some measures, the team has actually gotten worse in recent years.

Yet, despite a miserable 1-7 home record for the 2013 NFL season, the Jaguars actually enjoyed a significant lift in local revenue in 2014 and increased average game day attendance by over 3,000 fans.

How did they accomplish this feat?

By viewing their product from the perspective of their prospects and answering one simple question: “If I am the ideal customer, why should I purchase from you rather than your competitor?”

 

Background

Jacksonville is the NFL’s smallest true market, and by most metrics, it’s a borderline miracle that a metropolitan statistical area of only 1.35 million people has been able to sustain a franchise in the country’s most expensive sports league for 20 years and counting.

The per-capita ticket buying pressure on the city is astronomical — approximately one in 20 citizens must purchase a ticket to each game to keep the stadium full on Sundays — as is the sponsorship demands on local corporations.

For this reason, the Jaguars do not enjoy the same leverage to arbitrarily raise ticket prices as do teams in much larger cities where season-ticket waiting lists are the norm and NFL tickets are truly a scarce commodity, cities where demand will likely always outstrip supply.

We live in an age when professional sports (particularly in mid-sized markets) have never faced tougher competition for discretionary income and mindshare. Whereas once there was only a handful of entertainment and recreation options available to consumers, major sports now must compete with the likes of Netflix, Hulu, Spotify, YouTube and a rapidly expanding universe of low-cost entertainment options hyper-specific to each customer’s personal tastes.

At the same time, live professional sports also have to compete with the home theater experience.

In the last 10 years years, economies of scale have made it possible for the average family to afford a high-fidelity home theater setup that provides a perfectly suitable alternative to being at the game in person, at a fraction of the cost. No parking hassles. No overpriced concessions. No traffic bottlenecks. And no $85 tickets, on average.

Without the leverage or on-field product to justify a price increase, the Jaguars made a multi-million dollar bet that they could positively impact local revenue at existing prices simply by putting customer-experience first and enhancing the value proposition of their existing game day experience.

Perhaps the best way to visualize this customer-centric approach is via the exchange fulcrum.

 

The exchange fulcrum:

 

Every purchasing decision that a prospect makes is driven by a competing set of forces — value and cost.

“What value am I receiving, and at what expense?” Every time a customer is confronted by a call-to-action, these two elements will wage war in his or her mind until the scale is ultimately tipped in favor of either conversion or rejection.

The exchange fulcrum — with value force and cost force on opposing sides — brings life to this analogy. Taken one step further, the fulcrum can be given predictive powers via the exchange heuristic:

VfAC – CfAC = Nf

Where Vf = Value Force

AC = Acceptance

Cf = Cost Force

Nf = Net Force

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