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

Editor’s Note: The MarketingExperiments community is an interactive group with a great deal of questions and answers between marketers and their peers as well as with the MarketingExperiments staff. Occasionally we publish these interactions on the blog when we think there is a particularly good question that our readers can benefit from…

QUESTION:

I recently watched The Five Best Ways to Optimise Email Response seminar by Dr Flint McGlaughlin. I found it extremely enlightening and it provided a lot of food for thought. However, I have a quick question with regards to slide no. 22.

I appreciate your time and I’m sure you receive plenty of mailings of this nature; therefore I will get straight to the point.

In this slide, the recommendation is to change the subject line of the mailing from “Thank You For Making Us Your Florist Of Choice” to “15% Off – Our Way Of Saying Thank You!”

I understand why the wording would be changed to make it more endearing to the receiver but I wondered if the symbols added would increase the risk of the mailing being filtered and more inclined to be highlighted as spam – therefore reducing the success of the mailing.

In my experience I steer clear of any symbols in the subject line when sending large mail shots, especially %, ! and £. Am I being too cautious?

Kind regards,

Chris, BA(hons) Business & Marketing
Marketing
London

ANSWER:

Hi, Chris. Thanks for your question.

If I might broaden the question slightly to interpret its essence as a transferrable principle, could I restate it as…

How much validity is there to the conventional wisdom that, in the Subject Line of an offer email message, numbers, certain symbols (especially £/€/$, %, and !) and “SPAM words” such as “Free” and “discount” will cause a dramatic reduction in deliverability, and consequently effectiveness?

… if so, then it’s surely an important one.

In the case of the particular company and study referred to on Slide 22 – that was precisely one of the questions we set out to answer.

What you couldn’t see in the context of Dr. McGlaughlin’s presentation at the MarketingSherpa Email Summit in Miami is that this particular two-treatment comparative vignette was just a tiny part of a much larger and broader study. We intended to test the specific, widely accepted presumption you mentioned.

We were also exploring a host of other best practices to see how valid they remained through the evolution of regulations as well technical filter changes by email service providers (ESPs) since the time they were first introduced and anecdotally adopted (around 2003-2005).

This was important because we know from our foundational Offer/Response-Optimization principles of “clarity trumps persuasion” and “specificity converts,” that the clearer and more specific subject line – i.e., the one with the “15% Off…” copy – should convert better.

What we found was that there was, in fact, a small but significant difference in deliverability – interestingly, it was more pronounced among the smaller ESPs. In addition, as we had predicted based on the “eme” heuristic, the Open Rate actually declined (…by more than 25%).

In the end, though, the central research question was “Which email subject line will result in the greatest projected net revenue?” As revealed in Dr. McGlaughlin’s presentation, despite the slight dip in Delivery Rate, and the (what would otherwise have been alarming) drop in Open Rate, the Click-through Rate (CTR) to the landing page was 60.3% higher.

What he may not have mentioned is that, in direct answer to the research question, the Treatment subject line yielded a 56% increase in projected net revenue vs. the Control.

So, while it appears there is still at least some validity to the commonly held belief that special characters in the email Subject Line reduces deliverability, our research (this experiment plus two others conducted with different products and industries) suggests that when they serve to do so, these negative factors are dwarfed by the power of clarity.

I hope that’s helpful, Chris.

All the best,

Bob Kemper
Director of Sciences
MECLABS Group, LLC

Dr. McGlaughlin will next be teaching and speaking about email marketing at MarketingSherpa Email Marketing Germany 2010 in Munich on March 8^th and 9^th.

Dr. McGlaughlin’s four-hour workshop and keynote presentation will cover email capture rate and quality, open rates, conversion, and building customer trust and loyalty with email. He will also be conducting live optimization of audience submissions – a lively and always-popular segment.

Email Marketing, Research Topics

To wrap up our email response optimization trilogy, today’s free web clinic will focus on live optimization of audience-submitted emails.

Our roundtable of research analysts will use your peers’ email messages to share transferable principles that you can use to improve the ROI of your email sends. To give you a firm understanding about what the MarketingExperiments methodologies are based on, we’ll begin the clinic with the below experiment.

As always on web clinic day, we’re giving you an opportunity to use your experience and intuition to see if you can guess which treatment won…

Background: An established financial institution offering online savings accounts

Test Design: This was an A/B/C/D multi-factorial test that pitted three treatments against the control. While we also split traffic between different landing pages to test which combination produced the highest conversion rate, today we’ll focus on which email increased click-through rate. Here are the email versions (out of courtesy to the Research Partner, we have anonymized these email messages):

(click to zoom in)

Control

Treatment 1

Treatment 2

Treatment 3

Results: Before we reveal the results, here’s a chance to test your own marketing intuition and be regarded as an online marketing leader! Use the comments section to let us know which email message you think delivered the highest click-through rate.

Which email generated the highest click-through?

* Control
* Treatment 1
* Treatment 2
* Treatment 3

We’ll post the name of the marketer who guessed the winning email and came closest to the click-through rate gain, so make sure to include your name, title, company, Twitter handle or any other info you would like to include.

The winner and results for this experiment will also be announced live this afternoon at 4 p.m. EST during our free web clinic – The Five Best Ways to Optimize Email Response (Part 3): Special live optimization web clinic.

Congratulations to Stefanie Kelly of Pathway Medical Staffing, the only marketer with the intuition to guess what our tests have confirmed – Treatment 1 delivered the highest click-through rate.

This copy-rich email outperformed the control by 42% by synchronizing to the decision patterns of the recipient through a commonality of language. This email carries a very personal feel and is crafted to capture the recipients’ attention and convince them to click through to the landing page.

Analytics & Testing, Clinic Notes, Email Marketing, Research Topics

This weekend I was paying for the 10 gallons I had just put into my old 1997 Honda Civic, when I decided that I’d purchase a nice cold soda for the road. I pointed out the pump where my fueled-up car was located and then slid the cold beverage to the convenience store clerk. He informed me that my total came to $25.89 and then he stopped.

Looking me dead in the eyes, he asked me what my name was. “Austin,” I replied a little hesitantly. “Austin, are you sure you want to spend $25.89 for 10 gallons of gas and a cold soda?” he asked. I nodded and attempted to hand him my Visa credit card.

He denied my overture and informed me that he could only help me if I were a member of his store. So not wanting to cause a scene with the five people who were now behind me, I conceded.

Can I just buy a soda?

He asked for my name again, and then moved on to more personal information. He informed me that my phone number, home address, and email address were all required for membership, but then gave me the option of telling him my age, date of birth, marital status, and household income level.

I, of course, declined. After all the information had been gathered, the clerk then passed me about 60 pages of the legal terms which I needed to sign to become a member.

Finally he took my card. However, in the middle of processing it, another clerk approached me saying that he noticed I was purchasing a can of soda. The coworker then made some suggestions concerning what I might like to buy along with my soda based upon previous customer patterns.

Once I had assured his coworker that I just wanted a soda, the clerk then again reminded me that my total came to $25.89 and again stopped, looked me dead in the eyes and asked, “Austin, are you sure you want to spend $25.89 for 10 gallons of gas and a cold soda?”

This might be how customers see our shopping carts

Ok, so this story is a bit of a stretch for a convenience store, but is an accurate reenactment of the experience at many ecommerce sites. This is exactly what we see across the Web with shopping cart experiences everywhere. In fact, we recently ran a test with one of our Research Partners and here is what the original checkout process looked like:

1)     Product page (click to purchase)

2)     Cart page (confirm you are ready to order)

3)     User account page (if you are new you must choose to create a new account)

4)     Create a user account page #1 (enter name, email and account password)

5)     Create a user account page #2 (enter shipping information)

6)     Create a user account page #3 (enter payment information)

7)     Order confirmation page (confirm order and account information again)

8)     Receipt page

To go from the product page to the receipt page took eight different steps. A customer has to register before being able to place the order, as well as confirm that order twice. After reorganizing and removing unnecessary steps, we were able to optimize this process to a single basic step. The increase in order completions was over 68%.

Is your shopping cart trying to do too much?

What this experiment illustrates is something we see over and over in the shopping cart process. Most shopping carts that companies use are bulky and have more features than needed (i.e. cart registration, order confirmations, cross-promotional offerings, etc.). Sometimes this means a shopping cart looks less like a basic transaction facilitator, and more like a boot camp obstacle training course with high walls and flaming hoops.

For instance, how many times have you had to join a web site before actually buying a product? How many “if you like this product, you might like this product” offers have you endured while checking out? Have you ever counted how many times you actually have to confirm your order before it goes through?

None of these features are bad per se, and some might even be helpful in the overall customer-client relationship. The only problem is when they get in the way of the natural thought sequence of a customer looking to purchase something at a specific moment in time.

Please, just let me out of here!

If I come to a web site, place an order in my cart, and hit “check out,” then please just let me check out. We must make sure our cart processes is sticking to the main objective – namely, closing the sale.

All these customer retention features and cross-promotional options can be strategically accomplished after the initial sale has already been completed. For instance, you can ask for the customer to create an account for future purchases or send them to a thank-you page that has cross-promotional offers.

Overall, this experiment leaves us with one key question: How many people might we be losing in the process by interrupting their order process? For this company, simplifying the checkout process meant 68% more orders. What is your potential?

Want to learn more?

For more information on how to optimize your shopping cart process, listen to our good friend Joel Book, the Director of eMarketing Education at ExactTarget and Charles Nicholls, the Founder of SeeWhy, in the free webinar entitled The 7 Secrets To Recovering Abandoned Shopping Carts.

Photo: http://www.flickr.com/photos/rickharris/ / CC BY-SA 2.0

Ecommerce, Order Process, Research Topics

Do you shout, brag, or sell in the typical conversations you have in an average day?

If you’re not a professional wrestler, you will likely answer “no” to the above question. Yet, as Dr. Flint McGlaughlin showed in our live web clinic on February 3, many marketing email messages fall into the above traps because they don’t think of email marketing as just a conversation…

And like any good conversation, a few elements are key – clarity, proper timing, a common language, and a focus on how the person you’re talking to hears what you’re saying. Combine these elements with a methodology that allows you to optimize each part in a real-world, feedback-intensive setting, and you’ve mastered the basics of email marketing.

And do it all in a radically honest way – talk to your customers like a person, not like the typical marketer. In the end, being direct is the best way to earn the trust of a skeptical customer.

Dr. McGlaughlin ended this web clinic with live optimization of audience-submitted email messages. This last segment was so popular that we’ve decided to add a part three to our series on email response optimization that focuses exclusively on live optimization.

Dr. McGlaughlin will next be teaching live during a free webinar with our sister company InTouch – Online Lead Generation: How to optimize forms to convert “window shoppers” into leads – on Wednesday, February 17, 2010 at 2pm EST.

Clinic Notes, Email Marketing, Marketing Insights, Research Topics

How much will companies spend on email marketing this year? According to Forrester, that number is well over one billion dollars. And still email designs are being sent out without any clue as to how well they perform. It is not uncommon to see the “most beautiful” email messages that follow all the “best-practice” guidelines and have a committee of “design experts” backing them underperform – as if spending more than a billion dollars wasn’t enough!

So we want to see if you can tell the difference. We ran an experiment with three top-of-the-line agency-designed email messages. We want to know if you can spot the email design that performed best. (A prize for all the winners this time)

Background: This email test ran for Pier 1 Imports, which I will assume most of you know is a large B2C company selling home products. This email in particular was a seasonal promotion going to a segment of their house list. There are three agency-designed email messages (Treatments 1-3) being tested against Pier 1’s baseline version (Control).

Test Design: This was a simple A/B/C/D multi-factorial test. While we also measured open rate and conversion rate, the objective was to increase the clickthrough rate. Here are the page versions (click to zoom in):

Control                                              Treatment 1

Treatment 2                                      Treatment 3

Results: So now that you understand the experiment background and have seen the treatments, can you spot which email performed the best? Before we reveal the results, here’s a chance to test your own marketing intuition and be regarded as a world-renowned marketing leader!

1. Which email generated the highest clickthrough?

• Control
• Treatment 1
• Treatment 2
• Treatment 3

UPDATE: Surprise! The Control was the winner. Each of the agency-designed treatments underperformed the original (one of which decreased clickthrough by 52%). Congratulations to Ben, the only correct response we received before we announced the results on yesterday’s web clinic. You can follow Ben on twitter at @findingforrest. Also, subscribe to the MarketingExperiments Journal to be notified when the web clinic replay and research brief are available so you can see the correct answer, the results of the control and treatments, and how these experiments can help you shape your own marketing campaigns.

Clinic Notes, Email Marketing, General, Research Topics

“Be sincere, be brief, be seated.” While some experts have dutifully penned entire tomes about this subject, the famous advice Franklin Roosevelt gave to his son about public speaking still resonates today for its stark honesty.

If Franklin Roosevelt 2.0 was giving advice about Internet marketing, he would probably change “brief” to “clear” (and perhaps “seated” to “testing”). While marketers invest the majority of their time and budgets on complex areas deeper down in the funnel, MarketingExperiments research has found that most of the gain from optimizing a website occurs in clarifying the first seven seconds of users’ experience.

Much of the complex analysis and formulaic methodologies used by our scientists to create optimized pages with triple-digit conversion improvements can be summed up in this truism…

Clarity Trumps Persuasion

The first seven seconds, and perhaps just those first three, are vital to clearly guiding your visitor into an inevitable conclusion to engage in a transaction with you. Below is a quick excerpt from a recent live web clinic in which Dr. Flint McGlaughlin, the Director of MECLABS (our parent organization), discusses how your visitors interact with your website in those first few moments they land on your page…

Yet Difficulty Trumps Clarity?

Of course, so many websites produced by experienced, professional marketers don’t follow this simple principle because, in reality, it can be quite difficult to truly be clear. Put another way, what is clear to an insider (a marketer that lives, breathes, and eats his product every day) can be meaningless and confusing to your visitor. And even when you have every intention to be clear, how many monkeywrenches get thrown your way (Sales wants one thing, Operations another, and don’t even get me started on Legal)?

To help you on your journey along the road to clarity and prosperity, you can view a replay of the clinic or read the latest issue of MarketingExperiments Journal. Our next live web clinic, Maximizing your Agency ROI: How adding science to the creative process reveals a 26% gain, will be taught on January 13th from 4 to 5 p.m. EST.

Clinic Notes, General, Landing Page Optimization, Marketing Insights, Research Topics