a/b tests for 6 stages of your company's growth
TRANSCRIPT
Brendan O’Rourke, Optimizely Dan McGaw, KISSmetrics
A/B Tests for 6 Stages of Your Company’s Growth May 1, 2014
Dan McGaw - KISSmetrics - @danielmcgaw !Dan is the Director of Marketing at KISSmetrics, where he get’s the opportunity to help the best marketers in the world measure their marketing and business efforts. Prior to KISSmetrics, Dan was VP of growth at Code School, where he helped the company grow to over 500k users and $400k+ in monthly revenue.
Brendan O’Rourke - Optimizely - @optimizely !Brendan is an Enterprise Solutions Engineer at Optimizely. He joined Optimizely two years ago, a"er realizing his dream of becoming an actuary was very... dry. He now spends his time helping enterprises like Microso", NBC Universal, and Yelp turn data into action through testing and conversion rate optimization.
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Why A/B Tests Ma#er for Growth
… it’s all about the customers
1 Product Development
2 Early Revenue
3 Online Expansion
Six Stages
4 First Overhaul
5 Defining Audiences
6 Optimizing for Market Changes
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Product Development
1
“Just run an experiment.”
Stage 1: Testing Through Product Development
• Experimental mindset
• Quantitative > Qualitative
• Start with what won’t scale
• User testing
• Customer interviews
• Always create variations
• Practice documenting
hypothesesWireframing Optimizely.com
Early Stages:
Early Customers
2
Stage 2: Optimizing for Early Customers
• Where is your most important conversion?
• Pricing page
• Checkout experience
• Product pages
• What keeps your soon-to-be customer from converting?
• Prime area for impactful A/B tests
What does your pricing page look like?
Where do you acquire users/customers?
Stage 2: Optimizing for Early Customers
An Optimizely experiment:
Pricing page circa 2012
Stage 2: Optimizing for Early Customers
Variation
An Optimizely experiment:
Stage 2: Optimizing for Early Customers
• High-impact test
• Understand audience triggers
• Social proof
• Recommendations
• Promotional offers
• Increase visibility of the page
Variation = 40% increase in Gold subscriptions
An Optimizely experiment:
Online Expansion
3
Where are my customers?
Stage 3: Click Paths and Online Expansion
Analytics can help to determine where visitors are
clicking and when they are dropping off
What is my bounce rate?
Stage 3: Click Paths and Online Expansion
• Why do visitors come to my site?
• What content is being added to my site? At what rate?
• How do you expect visitors will navigate to the final conversion?
Website Navigation:
Stage 3: Click Paths and Online Expansion
Original
An Optimizely Experiment:
Stage 3: Click Paths and Online Expansion
An Optimizely Experiment:
Variation
Stage 3: Click Paths and Online Expansion
Variation = +20% traffic to blog
+25% traffic to help center 3X increase in demo requests
An Optimizely Experiment:
• Maximize inbound traffic and interest on your site
• Choose your conversion goals based on business objectives:
• Educate and inform
• Solicit signups or orders
• Engage and socialize
• Keep funnels and click paths short
Pivotal Redesign
4
Stage 4: A Pivotal Redesign
Stage 4: A Pivotal Redesign
Optimizely website circa 2012
An Optimizely Experiment:
Stage 4: A Pivotal Redesign
Original Redesign
An Optimizely Experiment:
Stage 4: A Pivotal Redesign
Redesign = +28.3% engagement with editor
+4.6% accounts created
• Choose key metrics before redesign process starts
• Measure new design against the current one
• Validates a major investment
• Even a draw can be a win
An Optimizely Experiment:
Segmenting Audiences
5
Stage 5: Segmenting Audiences
• Do you have a marketing program with many channels?
• What types of traffic does your site receive?
• New vs. Returning
• Customers vs. Non-Customers
• Paid vs. Organic
• How do you communicate with your audiences at scale?
Engaging Audiences
Stage 5: Segmenting Audiences
Example: Li"opia
Original SEM Landing Page
Breadcrumb
navigation
Search fields
Suggestions for
similar resorts
Stage 5: Segmenting Audiences
Example: Li"opia
Variation SEM Landing Page
No breadcrumb
navigation
Removed
search fields
No recommended
resorts
Stage 5: Segmenting Audiences
Example: Li"opia
Variation = +23.7% Li" ticket purchases
• Match your visitor’s expectation and intent
• Use analytics tools to follow a click path and identify meaningful audiences
• Use A/B testing to determine your strategy for engaging different audiences
• Messaging and imagery
• Custom landing page experience
New Markets
5
Stage 5: New Markets
• What big initiatives are you tackling this year?
• New marketing campaigns
• Product launch
• Mobile experience
• Personalization
• Internationalization
• What role does your online marketing play?
Optimization and Expansion
Step 6: New Markets
Step 6: New Markets
Product page Cart page
Example: Veggie Tales
Step 6: New Markets
Product page Cart page
Example: Veggie Tales
Step 6: New Markets
Variation = +28.1% Revenue per visitor
• Use information from previous tests to inform your next initiative • Create strong hypotheses
• Use qualitative information to determine what to test and optimize • User testing
• Survey feedback
• Reapply Explore-Refine strategy
Optimization and Expansion
1 Product Development
2 Early Revenue
3 Online Expansion
Today, we’ve covered:
4 First Overhaul
5 Defining Audiences
6 Optimizing for Market Changes
But Wait, There Is More!
Measure All The Results Of Your Test
KISSmetrics A/B Test Report
Measuring the first conversion is just part of the equation
KISSmetrics Funnel Report
Make sure to evaluate the entire funnel when running and A/B Test
KISSmetrics Cohort Report
All A/B tests affect your retention rates
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Optimize for your customers
… and always be testing
Questions?
Brendan O’Rourke Enterprise Solutions Engineer
Optimizely @optimizely
Dan McGaw Director of Marketing
KISSmetrics @danielmcgaw
THANK YOU