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

Your customers may be flat out ignoring your latest news, offers, and ads. Don’t blame them. It’s simple human nature.

Take a quick look at your surroundings – your cubicle, your office, your solarium – wherever you’re reading this. How much do you notice what’s around you? I mean…really notice?

Not as much as you think you do, I’m guessing. Take a recent experiment run here in the labs. And by “experiment” I mean “practical joke run by our Associate Director of Optimization, Adam Lapp.”

Adam Photoshopped a picture of one of our Research Analysts, Ashley, posing with a friend. It’s the picture in this blog post. Perhaps it looks normal at first glance, but if you take a closer look, you can see that the blonde woman on the right looks a little, well, masculine.

That’s because Adam Photoshopped the face of a male Research Analyst over the face of Ashley’s female friend. He then replaced the photo she had hanging in her cubicle with this photo.

And, Ashley didn’t even notice her friend’s metamorphosis until someone pointed it out to her. Even though it was right in front of her face all day. Why?

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People don’t notice subtle changes in familiar environments

Now I don’t want to throw Ashley under the bus. I fully admit, I’m no better (and neither are you…or our customers).

For example, we recently moved the official offices of MarketingSherpa from Rhode Island to right here in Jacksonville Beach, Florida. I’ve been very cognizant of the need to look for where changes of that address need to be made on our many Web properties.

But I didn’t notice that the change wasn’t made on the MarketingSherpa Twitter page – even though I look at it at least five times a day.

However, when I was interviewing Ryan Amirault, Digital Marketing Manager, Whole Foods Market, for his case study at Email Summit 2012, he instantly noticed the location and started talking about Rhode Island.

So while being new to, say, a landing page, makes the customer more likely to notice the discreet marketing message, even novelty may not help…

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Invisible Gorilla Test

What we’re really talking about when we say “banner blindness” is a phenomenon scientists refer to as “inattentional blindness” or “selective attention.” The typical person is overloaded with visual stimuli and inputs of all sorts, making it simply impossible to focus on everything. So, people often overlook things that are right in front of their face.

One of the most famous examples of this is the Invisible Gorilla Test…

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Now, I may have already primed you to see the gorilla in the above video. However, when Daniel Simons of the University of Illinois at Urbana-Champaign, and Christopher Chabris of Harvard University ran this test, they found that, in most test subject groups, 50% of the subjects did not report seeing the gorilla.

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How can you get your customers to see your ads?

So if a gorilla doesn’t work, you might be thinking , “I need to go one step further. From now on, every ad I run will have a tap dancing chimpanzee with a neon tracksuit.”

Easy, big fella. You need not become a carnival barker to grab your audience’s attention. All I want to draw your attention to is the fact that what is obvious to you (since you likely eat, sleep, and breathe your marketing message) is not always readily apparent to your audience. And don’t take for granted that your message got across just because you put it at the top of your homepage.

Here are a few common sense thoughts to keep in mind as you seek to overcome banner blindness:

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Contrast: The more an object can stick out, due to bright colors, crazy patterns, or motion, the more people are likely to notice it. (Keep in mind, if you are running a pay-per-click ad, you want more than attention and curiosity clicks … you want quality clicks.)

Here is an example from the MarketingSherpa site. There is a clear contrast between the ad and its surroundings, thanks to the different color, the bright visual, and even in how “Reserve Your Seat” interrupts the “Limited seating still available” rectangle (please note, it comes out a little brighter on the screen than it does on the screen capture below).

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Click to enlarge

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A Multichannel Approach: Don’t think that just placing a message at the top of your homepage, smack dab in the middle (especially in a similar font as its surroundings), is enough to get your message across. I’ve made this mistake myself before. “What do you mean we didn’t tell people? It’s right there at the top of the homepage.”Most people won’t even see it. Especially if they visit your site often.

That doesn’t mean you can’t put your message there, it just means to reach your potential customers in as many way as possible with the message – email, social media, dedicated landing pages, offline communications – and not take for granted that the message was received just by placing it on your homepage.

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Get in the Middle: There are certain areas of webpages that most people usually relegate to background noise – the top and bottom headers, the right and left columns. When placing an ad, or putting information on your own site, try to get right into the middle of the content.

If you aren’t able to, try to make sure your information is at least at a natural stopping point for the content – for example, just to the right of or below the end of a blog post or article.

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Break out of the Box: Many marketers place information in a box on their homepages or landing pages that doesn’t necessarily need to be in that box…and therefore their audience is overlooking it.

From a headline on a homepage that is placed in a box (and therefore ignored) to testimonials that look like text-based ads, this mistake is all too common. When you’re on your own website, make sure you are not inadvertently making important information look like a banner ad that will be — you guessed it — totally overlooked by your visitors.

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Related Resources:

The Ultimate Click: How to get what you pay for with pay-per-click advertising

Banner Blindness: Optimize your online display advertising to stick out (or blend in)

Online Advertising: The 3 obstacles you must overcome to create an effective banner ad

Banner Ad Design: The 3 key banner objectives that drove a 285% lift

Banner Design Tested: How a 35% decrease in clicks caused an 88% increase in conversion

What do you get when you divide Jacksonville Beach, Fla. by Arden Hills, MN? I’m sure there’s a punch line in there somewhere. However, if you were tracking your customers’ ZIP codes in a database you would have 32250/55112, or 0.585.

Never mind that it doesn’t make any sense to you and me to divide one ZIP code by another, but a statistical software package is happy to do exactly that for us. Most software just isn’t smart enough to realize that each ZIP code holds a discrete meaning from the next. It sees them as numbers: values which can be sorted in order and used in any type of calculation.

That is why researchers and statistical software packages classify variables into four main types: Nominal, Ordinal, Interval and Ratio.

In this post, I’m going to describe each type of variable to help you understand how they should be used, let you know how this can help improve your data collection…and, while we’re at it, help you sound sharp the next time you’re chatting with your data analyst at the water cooler.

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Nominal Variables: Used to describe categories

Variables are classified by the structure of what they represent. For example, ZIP codes are an example of a Nominal variable, a categorical name which simply allows us to differentiate between groups.

Gender and Ethnic group are other common examples of this type. Only a limited number of statistical analyses are valid for this type of variable. We can count how many customers have each ZIP code, and compare the counts to see what is most common (Statisticians call this most frequent value the Mode).

We cannot “average” their ZIP codes to determine a population center, or calculate correlations between ZIP code and a customer satisfaction index because there is no real meaning to a “higher” or “lower” numerical ZIP code.

If we wanted to know about geographic patterns in customer satisfaction, we would have to take the average satisfaction index for each ZIP code and compare those averages to one another. Browser type and operating system are two other common Nominal variables.

Word of Caution – This first one seems obvious, but keep in mind it is an easy oversight to have a number in a spreadsheet or database inadvertently become part of a calculation.

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Ordinal Variables: Used to rank preference

The next level of complexity is represented by the Ordinal variable. Ordinal variables are sequential; they advance in a direction but the increments on the scale are unknown or uneven.

For example, the organizational chart of a company might show that the mailroom attendant is below the marketing analyst, and he in turn is below the vice president, who is below the president. There is a clear direction, but the relationship between ranks is not consistent.

In marketing research, consumers sometimes rank new products in order of preference. They do not necessarily like product 1 twice as much as product 2, or 3 twice as much as 4. So when analyzing the data from the test, a researcher can find the Mode, or calculate the middle ranked item (the Median), but it is not valid to calculate the “average rating” given to an item. Because the distance between items on the scale is unknown it is not possible to really tell an average value.

Calculations such as addition and multiplication can be done with ordinal data, however any calculation made on one must be consistently made on all items in the data set, in order to maintain the proportions and order of all members of the data set.

Word of caution – One common survey scale is the Likert scale, which allows respondents to rate their agreement with statements on a 5- or 7-point scale from “Strongly Agree” to “Strongly Disagree.” Because there is no way to know the difference between “Strongly Agree” and “Agree” in the mind of each respondent, or to ensure that each respondent is consistent in their judgments, these results are Ordinal data.

Many research studies treat Ordinal data as Interval data (more on that next), making a basic and sometimes flawed assumption that the scale represents a consistent interval between one ranking and the next. While each individual will be relatively consistent in their ratings, there is no consistency between individuals. This creates a limitation on the generalization of the results of the calculations, but this type of analysis may still offer significant insights into your data. It is important to understand that the results from such an analysis are imprecise and should only be interpreted generally, rather than by comparisons of small differences.

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Interval and Ratio Data: Now we can get into the valuable number crunching

Both Interval and Ratio variables possess not only a sequence, but an even interval. Here’s where it gets tricky: the difference between the two types is zero. Yes, 0.

Interval variables may have a point which we designate “zero,” however negative numbers are theoretically possible.

A Ratio variable has a real zero point, a point which nothing can be below.

For example, an item’s price can be zero, or “free,” but price is not a Ratio value. Why? Because -$1.99, or a negative price, is conceptually possible. Take German government bonds. In a recent auction, the bonds yielded negative 0.0122%.

We try never to pay our customers to purchase our products, but theoretically, negative price has meaning. Therefore, price is an Interval variable.

Many true Ratio variables are found in marketing research. “Number of Page Visits” and “Time on Page” are common Ratio variables. The good news is that almost all statistical techniques used in marketing research can be applied to both Interval and Ratio data. Mean, Median, Mode, Correlation, Standard Deviation and ANOVA are all equally valid with both types of data.

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So what does this mean for you?

When you design your experiments, think about the type of variables you will be collecting data for. Interval and Ratio variables allow the most flexibility in statistical analysis, so whenever possible try to use them rather than Ordinal or Nominal data. A survey question could ask “which of the following tasks have you undertaken in the last 24 hours?” which produces a multiple choice, Nominal, answer.

It could also ask, “Please rank these tasks from most to least recently undertaken,” which produces Ordinal data and allows some additional analysis.

Finally, the survey could ask, “At what time and date did you last undertake these tasks?” producing concrete Interval data which will allow you to compare between respondents and run in depth statistical functions.

In the design phase of your marketing tests, think about the statistical data you would like to produce, and what variable types are required to calculate the results you need in order to answer your research questions. When you enter your data into a statistical software package, be careful to designate the correct variable type in the software so that the program can prevent you from dividing Florida by Minnesota.

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Related Resources:

Marketing Optimization: You can’t find the true answer without the right question

Research Update: The state of email marketing testing and optimization

Marketing Optimization: What your peers learned this year about Adwords, the inbox, and telling the truth

Evidence-based Marketing: How your peers protect against bad marketing data

Let’s take a quick look at the typical marketing funnel in 2011 to see how you can improve your results. If you’re like the average marketer, you spend a lot of money on media, such as:

-          Broadcast TV ads

-          Newspaper ads

-          Magazine ads

-          Outdoor advertising, such as billboards and transit advertising

-          Radio ads

-          Internet advertising, such as banner ads and pay-per-click ads

In fact, marketers spent $238 billion in just the first six months of 2010, according to Nielsen.

Why do companies spend so much on advertising?

That’s a lot of loot. And, of course, marketers are spending that money to sell a product. However, they aren’t truly selling a product or service at all … they’re actually spending that money to drive customers to a landing page. In fact, according to Econsultancy, 65% of all UK print and television advertising now includes a Web address.

Even when the ad don’t specifically include a URL, ad-inspired branded searches drive many customers to a website as the next logical point of contact.

In other words, you’re spending a lot of dough to funnel traffic to your landing pages.

If you’re a long-time reader of the MarketingExperiments blog, you already know about the power of LPO and you might as well stop reading now because I’m not going to share anything new today (although, feel free to forward this post to your boss, colleagues, and mother to show the value of what you do every day).

However, if you are looking to improve the performance of your marketing campaign and are not yet familiar with landing page optimization, I hope you’re starting to see why this practice can have such an impressive ROI.

Essentially, if you’re spending all of this money to drive potential customers to a website, investing just a little in increasing conversion on that site (more sales, more leads, etc.) can have an outsize impact, as you can see in this research from the MarketingSherpa 2011 Landing Page Optimization Benchmark Report:

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After all, the deeper into the funnel you improve performance, the bigger an impact it has.

  Read more…

As I prepare to wade through hundreds of submissions for the MarketingSherpa 2012 Marketing Wisdom Report, (sponsored by HubSpot) I was compelled to take a final glance at the 2011 edition.

While combing through the pages, many of last year’s submissions evoked some forward-thinking thoughts for 2012. Here are just a few of the standouts…

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What marketing errors are easiest to avoid? And how do we avoid making them?

My answer would be…those related to overconfidence. And, as to the second question, I’ll take the rest of this blog post to attempt to answer that.

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Are you too confident?

In the business world, as in marketing, we usually look at confidence as a good thing. But the “overconfidence bias” can seriously harm your performance.

Here’s how Jonah Lehrer, an American journalist who writes on the topics of psychology and neuroscience, describes this overconfidence bias in The Science of Irrationality: A Nobelist explains our fondness for not thinking…

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Consider the overconfidence bias, which drives many of our mistakes in decision-making. The best demonstration of the bias comes from the world of investing. Although many fund managers charge high fees to oversee stock portfolios, they routinely fail a basic test of skill: persistent achievement. As Mr. [Nobel Laureate, and professor of psychology at Princeton] Kahneman notes, the year-to-year correlation between the performance of the vast majority of funds is barely above zero, which suggests that most successful managers are banking on luck, not talent.

This shouldn’t be too surprising. The stock market is a case study in randomness, a system so complex that it’s impossible to predict. Nevertheless, professional investors routinely believe that they can see what others can’t. The end result is that they make far too many trades, with costly consequences.

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Sound familiar? Is marketing a product any less complex than trading on the stock market?

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How to bank on talent, not luck

I disagree with one aspect of Lehrer’s article. Not to put words into his mouth, but he seems to imply that there is no way to overcome the overconfidence bias. In marketing, I believe there is a way to do so (of course, perhaps that’s just me being …ahem … overconfident).

Let me explain what I mean, and let you be the judge… Read more…

For most of my life, I’ve held the opinion that marketing is bad.

I remember meeting someone in college who said they were majoring in marketing and advertising. I don’t remember my exact response, but I do remember saying something along the lines of:

“Oh … so you’re going to college to learn how to lie?”

I was so cynical about the way marketing usually gets done that I couldn’t help but respond with self-righteous disdain.

Luckily for me (and the people I come in contact each day), I’ve changed a little since college. In fact, if you ask me today whether I think marketing is good or not, I would probably argue that it’s one of the most honorable career disciplines a person could enter.

That’s because marketing, in its highest and most noble form, is fundamentally transparent marketing.

Transparent marketing is the kind of marketing that flows directly out of a value proposition. As long as a company can truthfully answer the question “If I am the ideal customer, why should I purchase from you rather than your competitors?” then marketing is merely a means of getting the truth out to people who need what the company offers. No exaggeration, no hype, and no outright lies necessary.

Of course, marketing has such a bad reputation these days because very few companies offer genuine value propositions. And as such, marketers are forced to inflate and hype their messaging to trick people into buying a sub-par product.

So what can you do if you’re a transparent marketer by nature who is stuck in a company without a value proposition? You have basically three options:

1. Discover your value proposition
2. Convince your CEO to deliver true value
3. Get a new job

Read more…