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Home arrow Marketing Optimization arrow The Compounding ROI of Sequential Conversion Increases
The Compounding ROI of Sequential Conversion Increases
Thursday, 08 July 2010
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Topic: The Compounding ROI of Sequential Conversion Increases: How one company took a small gain and multiplied it tenfold

As a marketer, the impact of a single successful test can be very fulfilling. But how valuable is it to run one triumphant test? Or even several tests that are not connected to each other in any meaningful way?

Serious ROI gains can only be found by using the testing-optimization cycle. Running a valid test with a hypothesis, learning from that test, optimizing based on that new knowledge, testing again, and then continuously repeating.

But how do you create a strategy to ensure that you not only learn from each test, but run tests that will build on and benefit each other? In other words, how do you get the most out of each test?

The impact of a single test is even greater when it is part of a holistic testing strategy. Properly applied, the compounding effect of individual but strategically connected conversion gains creates a significant ROI potential.

There are three key considerations to holistic experimentation:

  • Consider the entire conversion path
  • View your metrics as a tool to detect hidden leaks
  • Determine what tests to run and in what order

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About This Brief

Credits:

Editor-in-Chief — Dr. Flint McGlaughlin

Writer(s) — Daniel Burstein
Pamela Markey
Austin McCraw

Contributor(s) — Jimmy Ellis
       Flint McGlaughlin
       Jon Powell

Production — Austin McCraw
                  Jessica McGraw
                  Cliff Rainer

Graphic and Web Designer — Nicole Evans

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