change  August 4, 2011

  • Website Optimization: A/B and Multivariate Testing 101

    Joel Lockwood, Partner and Chief Marketing Officer

    A/B and multivariate testing is a lot like going to the gym.

    You know you should be doing it. You understand the benefits of doing it. Your friends who do it swear by it.

    But getting started is, well, painful. So it’s much easier just to keep procrastinating.

    Keep in mind, though, that when you put off testing, you’re really just putting off getting better results from your website or online marketing campaign.

    The best way to get started is to learn the ins and outs of A/B and multivariate testing, and when to use each. Here’s a basic overview.

    A/B Testing
    In A/B testing, you test a change in a single website element against the original (control) version. For example, you might tweak the headline on a landing page, or change the size of the product image on a product page.

    A/B testing is a quick way to determine whether one idea works better than another. For best results, test new ideas that are drastically different from your control. Got a dull, gray “Buy” button? Test canary yellow, or fire engine red.

    Here are some tips on executing an A/B test:

    • Test a change to only one element. If you change your headline copy, while also bumping up the font size and changing it to red text, you won’t be able to tell which change caused the increase (or decrease) in your conversions. And that would defeat the purpose of testing.
    • Split your traffic 50/50, so that equal numbers of visitors will see option A and option B.
    • Test enough for statistical relevance – but strike a balance. Too many marketers either pull a test too early, or let it run beyond the point when it is yielding useful results.

    Multivariate Testing
    A/B testing is clear, crisp, and to the point. There’s no arguing with the results. But if you have a variety of elements to test and want to speed up the process, consider multivariate testing.

    In multivariate testing, you test multiple elements simultaneously. For example, on a product page, you might want to test two new headlines, two new product images, and two new order buttons. Assuming you use your current headline, image, and button as the control, that means you’ll have 27 different combinations of elements to test (3 x 3 x 3).

    One of the goals here is to determine which combination of elements results in the most conversions. It’s all well and good to know that headline A beats headlines B and C, but multivariate testing also helps you determine that headline A works best with image B and button C.

    Another goal is to find out which individual elements influence visitor behavior – and which don’t. Using your control as the baseline, you can then determine what change you caused by swapping in different headlines, versus different images or buttons. You might find, for example, that neither of your new headlines caused much of a change, whereas your new order buttons both caused significant spikes in conversions.

    Because multivariate testing involves many variants, you’ll need more traffic to gather a significant sample size. This may mean you’ll need to run your test for a longer period of time. But because you’ll be testing multiple elements at once, you’ll probably still find that multivariate testing yields faster results than running a series of A/B tests.

    Building a Testing Strategy
    If you’re just getting started with testing, we recommend a simple, five-step approach:

    1. Figure out where you’re at.
    Determine your current conversion rates for the pages on your site that seek to drive conversions. Keep in mind that a conversion doesn’t necessarily involve a sale – it can also be someone signing up for your email list, filling out your form to request more information, or downloading your white paper.

    Next, you’ll need to assign a value to each conversion. When a visitor downloads a free white paper, you don’t make any money up front. But if 2% of white paper downloaders typically go on to become customers, and the average lifetime value of your customers is $1,000, then you can say the long-term value of a white paper download is $20.

    2. Decide where you want to be.
    Identify your most important conversion goal for a section of your site – or for the entire site. Whether you want to collect more email addresses, convince more people to friend your company on Facebook, or persuade more people to actually buy a product, focus your testing efforts on this one goal. Also, make sure you know exactly which metrics you’ll use to track your results.

    3. Get buy-in.
    When you start trying to make changes on a website, you’re going to step on some toes. One of your executives may love the headers you’re using on your landing pages. Another colleague may insist that large product images are a waste of space.

    You’re going to have to manage these expectations – and be prepared to slay some sacred cows – before you start testing. Before you dive in, have a meeting in which you clearly articulate the goals of your testing project and give everyone a chance to discuss. Take comments and suggestions – but avoid letting “committee-think” clutter up your testing program with secondary and tertiary objectives that distract you from your true focus.

    4. Determine a testing order.
    You can’t test all pages at once – but whatever you do, don’t start “safe.” Start your testing on the pages that have the most potential to deliver greater revenue. You’ll find them close to the end of your conversion funnel – your lead-gen forms, opt-in pages, and shopping cart pages.

    Your next testing priority? We’ve all heard the expression, “You only get one chance to make a first impression.” Open Google Analytics (or a similar program) to determine which pages are your most popular entry pages. Are there any with high bounce rates? Focus on turning that around by pulling people deeper into your site.

    Next, optimize any pages that have high abandon rates. By tweaking specific elements, can you prevent more visitors from jumping ship?

    5. Identify which elements to test.
    On the pages you’ve decided to optimize, give some thought to which elements may be driving visitors away, rather than compelling them to take the action you want them to take. Test some better alternatives.

    Focus on eliminating clutter and distractions, making calls-to-action more visible, rewording copy to increase urgency, and reassuring the prospect about their decision to convert.

    Testing Tools
    Check out some of these testing tools to help you in your optimization process:

    Parting Thoughts
    Testing isn’t just about confirming what you already know – it’s about taking chances and being willing to fail in pursuit of the Next Big Breakthrough. You’ll make greater progress if you “fail faster.” That means you should run your tests on high-volume pages, and, if possible, use multivariate testing to execute multiple experiments at once.

    Once you’ve learned what you can from your high-volume pages, apply those lessons to lower-volume pages. And don’t forget to share what you’ve learned with your email marketers and web designers.

    After all, just like going to the gym, testing and optimizing your online marketing is much easier to do in a group.

     

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    Joel Lockwood Joel Lockwood, Partner, President
    Joel brings over 20 years of marketing experience to Ozone Online. He has held executive marketing positions at large corporations such as Computer Associates, Sun Microsystems, Netscape and America Online, as well as several successful start-up companies. Joel excels at helping Ozone’s clients sync their online campaigns with their corporate marketing objectives.
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  • In Case You Missed It: "Power of eMarketing Conference" Recap

    Sean Shoffstall, VP Innovation and Technology

    Did you catch the Power of eMarketing Conference in San Francisco?

    On April 19 and 20, I had the privilege of speaking on three panels at the conference. Naturally, social media and SEO were the hot topics of the day. But the conversation also trended toward lead nurturing and how to drive conversions from your social conversations.

    Here are a few quick thoughts on the three panels I participated in.

    Don’t Stop at CAN-SPAM Compliance
    On the morning of April 19, I was on a panel with a Director of Compliance for a large corporation. The conversation focused on best practices in subject lines and email formatting, and how they apply to spam traps. These three ideas really resonated with the audience:

    1. CAN-SPAM compliance is the bare minimum. If you want to avoid spam filters and get your message delivered, you need to go much further.
    2. Keep subject lines short and sweet, yet descriptive and honest. Remember that if your subject line is longer than, say, 70 characters, it will only be partially visible in a preview pane or mobile device.
    3. Image-only emails not only provide a bad user experience (most of your clients probably set “images off” as a default), but are also a spam filter trigger.


     “You Can’t Handle the Truth” About Email Content
    For my second session on April 19, I shared the stage with Loren T. McDonald from Silverpop. The conversation was much more detailed. In fact, I felt like we were two old war buddies sitting up on stage reminiscing about battle scars and answering questions. We covered deliverability, content creation and relevancy, frequency, and, of course, CAN-SPAM.

    We even had a “You can’t handle the truth!” moment when an audience member complained that he didn’t have any content. We spent the next 5 minutes covering all the different ways you can generate content.

    If you face a similar problem, look at these simple facts:

    1. If you sell products or services, you have content. Go to your people who know the product best. Interview them and create a top 10 list.
    2. If you have customers, you have content. See point #1.
    3. You can repurpose existing content to create new content. If you’ve captured a video, do a write-up about it for your newsletter. If you’ve published a popular blog post, make a web clip summarizing the top points. If your CEO is giving a presentation, have him or her write an article about the subject.


    Protecting Your Online Reputation

    Our session on email and branding covered everything from tone and voice to email and newsletter design. Across the board, everyone agreed that having a consistent tone and communicating and fulfilling on your customer’s expectations is key. There was some disagreement about using comical versus professional tone, and about how often to send communications. But much of that hinges on whether you’re writing B2B or B2C emails.

    Here are some of the high points, which may seem obvious but are easy to overlook:

    1. Naming your constant communications helps boost deliverability and open rates. So, name your newsletters, webcast series, and any regular postings (especially your blog).
    2. The fastest way to lose the branding battle is to do a bait and switch. Be consistent, and deliver what you promised.
    3. Protect your online reputation. Don’t spam, don’t incite flame wars, and keep the conversation on topic.

     If you were at the Power of eMarketing Conference, I’m glad you could join us.

    If not, there will be another conference coming up in October in Rhode Island. Ozone Online’s Joel Lockwood and I plan to participate. It’s always good to get out of our bubble and swap best practices with others who are in the trenches.

    See you there?

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    Sean Shoffstall Sean Shoffstall, VP of Innovation and Technology
    Social media, search and metrics are the driving force behind today's online marketing. Sean specializes in driving the best results for clients in all aspects of their business. He gives them a solid platform to build key learnings in all online media through proven metrics and testing strategies, and by leveraging years of best practice learnings from the top companies online.
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  • Ozone Online Completes New Website to Help Diabetes Patients

    Vanessa Bianco, Account Coordinator

    Copywriter, Keven Smith

    We’re pleased to announce the launch of InsulinForward.com

    Changing Lives, Online
    It’s not every day that Ozone Online gets to work on a website that changes lives. But when Medtronic Diabetes engaged us to create the brand vision and develop the website for its Insulin Education Program, that’s exactly what happened.

    Medtronic’s objective was to provide top-notch insulin and pre-pump education, and ultimately, to drive patient awareness and engagement. Ozone Online has a long track record of delivering on these types of goals. We dove into the project with a real sense of purpose, knowing that as a result of our efforts, diabetes patients would get educational information that would better their lives.

    Providing a Hopeful Vision
    Our first priority was to develop a program name, brand positioning, and associated visuals. These elements needed to provide diabetes patients and their healthcare providers with a hopeful vision that a better quality of life is possible with the Medtronic Diabetes/LifeScan personal insulin education plan.

    Nailing the Message
    With our branding foundation solidified, we then focused on designing and building the website using our agency’s proven best practices. During the discovery and information architecture project that preceded our creative work, Ozone Online defined the functional requirements for the Insulin Education Program website, as well as the optimal information architecture and user experience for each target audience segment based on their needs and the project goals.

    Doing this groundwork made it much easier for us to provide on-target creative. We designed the website, rewrote web copy provided by Medtronic Diabetes, and produced all necessary website assets for handoff to a Medtronic Diabetes technical partner for development on the Force.com platform. In addition, we created a questionnaire that encourages users to define their optimal online educational experience, helping Medtronic to improve their content.

    Measuring the Impact
    How do we know the website is working? At Ozone Online, we’re big believers in gathering metrics and applying this knowledge to enhance current and future projects. We are tracking the number of healthcare providers nationwide who enroll to become participating Insulin Forward education centers, and the number of patient referrals generated by both the education centers and the website itself.

    Of course, the greatest benefits of this project will be the ones that are hardest to quantify. As Insulin Forward classes go into full swing, we won’t be able to measure the exact value of helping diabetes patients live their lives to the fullest – but that’s OK. It’s just good to know that, thanks to our collaboration with Medtronic Diabetes, millions of people now have a new ray of hope.

    Visit www.insulinforward.com now and let us know what you think!

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    Vanessa Bianco Vanessa Bianco, Account Coordinator and Social Media Analyst
    Vanessa is an Account Coordinator at Ozone and assists in the day-to-day management of Ozone Online's clients, ensuring projects and campaigns are developed and executed flawlessly. Along with her account coordinator responsibilities, Vanessa is also responsible for managing Ozone's Social Media strategy and tactics.
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  • Why Most Online Advertisers Are Still Socially Awkward

    Elodie Bouneau, Marketing Intern


    Is it just me, or are Americans spending more time than ever on social networks?

    As it turns out, it’s not just me. In June 2009, Americans were spending 16% of their total online time on social networks. By June 2010, that number had risen to 23%. (For reference, Americans spend just 8% of their online time reading and writing emails.)

    Advertisers are gradually waking up to this rapid growth. Between 2009 and 2010, they increased their social advertising spend by 20%.

    But even their current budget of $1.68 billion represents only 6.7% of their total online advertising spend.

    In other words, online advertisers are still, well, socially awkward.

    Why?

    The Challenges of Breaking Into Social Networks
    It’s not that advertisers don’t want to socialize. It’s not that they don’t realize people are spending more and more time on Facebook, MySpace, and Twitter.

    It’s just that breaking into these networks is more difficult than making a splash in other types of online advertising.

    When you want to run a banner ad, for example, you create your ad, pay your fee, and voila’ – you’re getting your message in front of people.

    But to break into a social network, you must figure out how to become part of the conversations people are having within that network.

    As I said, this can be difficult – but it’s not impossible. To guide your efforts, try using what I call the Three T’s.

    The Three T’s of Social Advertising
    If you really want your products and services to become part of the conversations people are having online, just remember: Target, Test, Tweak.

    1. Target. Social networks are all about communities and groups. This can play in your favor – if you’re willing to do the up-front work.

    You can target your ads to a very specific audience that’s defined by gender, age, locality, and interests. But beware: social networkers have become spoiled by an environment that’s tailored to their precise wants and needs. If you’re not ultra-specific about how your product or service is relevant to this audience, they’ll ignore your messages.

    2. Test. As soon as you begin investing in social media advertising, be sure to set reasonable daily budgets for testing your ads.

    When placing your social media ads, make sure you put tracking tags on your ads to measure your important metrics. Depending on your Key Performance Indicators (KPIs), you will be interested in testing and optimizing for different metrics. For example, if your KPI is to drive registrations for a newsletter, you want to track the click through rate from your social media ad to your sign up landing page, and your registration conversion rate for newsletter signups. You can then look at your cost/registration for each of your ad placements as a measure of performance. If your KPI is brand awareness, you can optimize your banner cost/click, since you want as many people clicking to your website as possible.

    3. Tweak. Once your ads have been up for a while and you’ve gathered data in the form of metrics related to your key performance indicators, analyze and adjust your overall campaign to trim the fat and maximize your results. Bring your best-performing creative to the forefront, find the social media placements that give the best results, and always continue to test new approaches.

    As you can see, there’s no shortcut to social advertising success. But by taking the time to craft messages that appeal to specific groups and continuing to optimize, you can dramatically boost your results.

    Categories:
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    Elodie Bouneau Elodie Bouneau, Ozone Marketing Intern
    Elodie is excited to join the Ozone Online Marketing Team for a year long internship as part of her curriculum at Sciences Po (IEP Paris, France) where she is majoring in Marketing. Elodie seeks to learn more about branding and web-based advertising campaigns.
    Email Elodie.

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