HowToTurnMoundsofDataintoRevenueGenerating CampaignsinFiveSimpleSteps

Flint McGlaughlin
Director, MECLABS

GettingtheMostFromMetrics g INTRODUCTION

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AboutMarketingExperiments

Weconductexperimentstooptimizemarketing communicationsandsalesprocesses p MarketingExperimentsisamemberoftheMECLABS Group,alongwithMarketingSherpa andInTouch MarketingExperimentshaspioneeredextensive breakthroughs(andhasmultiplependingpatents)inthe fieldofmarketingcommunication fi ld f k ti i ti

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AboutMarketingExperiments
KeyfindingsarefeaturedintheMarketingExperiments Journalandinlivewebclinics Journal and in live web clinics Contributedmorethan$10milliondollarsofresearchfor freeaccessatwww.MarketingExperiments.com free access at www.MarketingExperiments.com Theorganizationgeneratesrevenueintwoways:
ProfessionalCertificationCoursessuchasLandingPage Professional Certification Courses such as Landing Page Optimization,EmailMessagingOptimization,andThe FundamentalsofOnlineTesting ResearchPartnershipswithgroupssuchastheNewYorkTimes, TheRoyalBankofCanada,andJohnson&Johnson

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TodaysPresenter FlintMcGlaughlin
Director,MECLABSGroup , p
FlintMcGlaughlinistheDirectorofMECLABSGroup.The organizationhaspartneredwithkeymarketleadersincluding,The NewYorkTimes,MicrosoftCorporation,andReutersGroup.Dr. New York Times Microsoft Corporation and Reuters Group Dr McGlaughlinalsoservesastheDirectorofEnterpriseResearchat theTransformingBusinessInstitute,UniversityofCambridge(UK), astheChairmanoftheBoardofGovernorsforSt.Stephens University,andasaTrusteeforWestminsterTheologicalCentre.Dr. McGlaughlinoriginallystudiedPhilosophyandTheologyatthe UniversityofLondonsSpecialistJesuitCollege.Today,hisprimary researchisfocusedonenterpriseastransformativeagent.Hiswork research is focused on enterprise as transformative agent His work haswonmultipleawardsandhasbeenquotedinmorethan13,000 onlineandofflinesources.

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Experiment:Background
EXPERIMENTID: (Protected) EXPERIMENT ID (P d) LOCATION:MarketingExperimentsResearchLibrary TESTPROTOCOL:#TP1092 RESEARCHNOTES: BACKGROUND:Companyisapublisherofelectronic BACKGROUND: Company is a publisher of electronic marketinginformationandoffersrelatedservices. GOAL:Increaseregistrationsforafreeemailnewsletter. GOAL: Increase registrations for a free email newsletter RESEARCHQUESTION:Whichsignuppagewillyieldthe highestconversionrate? highest conversion rate? TESTDESIGN:A/B/CMultivariatetestinvolvingchangesin headline,credibilityindicators,andimagesaccordingto headline, credibility indicators, and images according to optimizationbestpractices.
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Experiment:OriginalPage
Original

Weradically redesignedthis redesigned this pagebasedupon commonbest practices inlanding pageoptimization. Theresultingpages gp g werethefollowing:

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Experiment:Treatment1
Treatment2 Treatment 2 Treatment1

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Experiment:Treatment1
Treatment1 Cl Clearerheadline,emphasizing h dli h ii thevalueproposition FeatureClientlistaddedto emphasizethevalueand reduceanxiety. Easy to read and scan body Easytoreadandscanbody copy Formfieldsreducedtothe bareminimum CostumerTestimonialsto reduceanxiety reduce anxiety Antispamsealtoreduce anxiety

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Experiment:Treatment2
Treatment2 Treatment 2 Headline is stronger and more quantitative to emphasize the value proposition. Added more testimonials Rearranged page to give better site flow. Add d personal f l with Added l feel i h images and hand-written signature. Tell me where to send language used.

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Experiment:Results
Original Treatment1 Treatment 1

Vs.

Conversion=14.26%

Conversion=6.74%

53%
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Experiment:Results
Original Treatment2 T t t2

Vs.

Conversion=14.26%

Conversion=6.84%

52%
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Experiment:Results

53%DecreaseinConversion
Treatment1decreasedconversionby53% d d b

LandingPage g Original Treatment 1 Treatment2 RelativeDifference

CTR
14.26% 6.74% 6.84%

53%

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Experiment:Background
EXPERIMENTID: (Protected) LOCATION:MarketingExperimentsResearchLibrary TESTPROTOCOL:#TP1115 TEST PROTOCOL: #TP1115 RESEARCHNOTES: BACKGROUND:Companyisapublisherofelectronic marketinginformationandoffersrelatedservices. GOAL:Increaseregistrationsforafreeemailnewsletter. GO i i f f il l RESEARCHQUESTION:Whichsignuppagewillyieldthe highestconversionrate? hi h t i t ? TESTDESIGN:A/Bmultifactorialtestwithaminimalist strategyofreducingpageelements. t t f d i l t
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Experiment:Control
Original

Afteraseriesoftestsin Aft i ft t i whichcommonlanding pagebestpracticesfailedto improveconversiononthis improve conversion on this originalpage. Ouranalystsbegantesting Our analysts began testing theremovalofelements fromthepagetotestvisitor motivationlevels. Ifaddingelementsto increasethevalue propositionhurt conversion,thetrafficto thispagemightalreadybe highlymotivated hi hl ti t d
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Experiment:Treatment
Treatment

Muchofthecopy onthispageis removed,leaving d l i simpleform submissionfields. Norealselling pointsareincluded inthisdesign. in this design.

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Experiment:Control&Treatment
Original Treatment

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Experiment:Results

78%IncreaseinConversion
Thenewtreatmentincreasedconversionby78% h b

LandingPage Original Oi i l Treatment RelativeDifference

CR
12.09% 21.54%

78%

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Experiment:Results

WHATYOUNEEDTOUNDERSTAND:Itisnotenoughto WHAT YOU NEED TO UNDERSTAND: It is not enough to graspahandfulofbestpracticerulesandthenfling thematapage.Wemustunderstandthemotivations ofthevisitorscomingtoourpagesandcraftour f th i it i t d ft messagestomatchthosemotivations. Thekeytounderstandingmotivationisunderstanding metrics.

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GettingtheMostFromMetrics g Whataremetrics?

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CommonQuestions
Wefrequentlyhearthefollowingmetricquestionsfromthe W f l h h f ll i i i f h MarketingExperimentscommunityofmarketers: 1. Isourconversionrate goodenough? 2. Howcanwegetour marketingdepartmentsto testandmeasure test and measure everything? 3. Howcanweaddmore reportingcapabilitiesto ourmetrics?

Butarewereallyaskingtherightquestions?
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GettingtheMostFromMetrics g Experiment

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Experiment:Background
EXPERIMENTID: (Protected) LOCATION:MarketingExperimentsResearchLibrary TESTPROTOCOL:TP1214 TEST PROTOCOL: TP1214 RESEARCHNOTES: BACKGROUND:Aleadingbusinesssolutionsoftwareprovider g p GOAL:Toincreasetotalleadsgeneratedfromsearchengine campaigns p g RESEARCHQUESTION:Whichprocesswillgeneratethemost leads? TESTDESIGN:Radicalredesignofthecompletelead generationprocessfromthePPC aditselftothefinalpageof theleadform.
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Experiment:OriginalPage
Original

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Experiment:MoundsofData Sales Data

AdGroup Data

WebsiteData

Andmuchmore

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Experiment:Developingadatadrivencampaign

Throughaprocesswe callChannel Mapping we can look Mappingwecanlook atdatainsuchaway astoclearthroughthe clutteranddiscover l tt d di thewaystocreate effectiveonline marketingcampaigns.

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Experiment:Results

54%IncreaseinClickthrough
Theoptimizedlandingpageincreasedclickthroughby54% LandingPage Original Optimized p CTR
7.17% 11.06% 06%

RelativeDifference

54.26%

WHATYOUNEEDTOUNDERSTAND:byanalyzingthedata andcreatingacampaignbasedonunderstandingfromour metrics,wewereabletoincreaseclickthroughbyover54%. metrics we were able to increase clickthrough by over 54%
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Understandingmetrics

Sohowdowegofrommoundsofdatatoeffective campaigns? W ill l k Wewilllookspecificallyattheprocessmentioned ifi ll h i d inthepreviousexperimentcalledChannel Mapping which will be the key method for taking Mapping,whichwillbethekeymethodfortaking dataandproducingresults.

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GettingtheMostFromMetrics g ChannelMapping

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ChannelMapping
Useaprinted(ordigital)copyoftheMarketingExperiments ChannelMappingspreadsheetaswewalkthroughtherestofthis session

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ChannelMapping

Step1:Determinetherightobjective

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Step1:Determinetherightobjective

Design

Whatisyour What is your objective?

Traffic

Branding

RESULTS
Usability SocialMedia

Video

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Step1:Determinetherightobjective
Top Directories - Companyname (within /portal/ directory)

1 2 3 4 5 6 7 8 9 10 11 12 13 14

homepage /products/ /resource/ /industries/ [otherrootportalpages] /services/ /customers/ [otherdirectories] /press/ /partners/ /developers/ /investors/ /landing/ /security/

PVs 1,786,086 1,596,918 446,431 401,004 332,328 249,275 249 275 211,505 198,386 177,454 157,209 152,606 59,293 45,119 6,092

UPVs 1,520,578 1,131,961 370,528 293,057 235,785 185,865 185 865 170,434 162,696 147,026 113,354 116,092 46,702 37,613 4,056

%ofAll 33.5% 25.0% 8.2% 6.5% 5.2% 4.1% 4 1% 3.8% 3.6% 3.2% 2.5% 2.6% 1.0% 0.8% 0.1% 100.0%

Totals: 5,819,706 4,535,747

Inourcurrenteconomic situation,resultsmustbe quantifiableandofreal valuewhendetermining ROI.(ormarketing s ROI (or marketings contributiontopipeline, revenue,etc.) Nothingjustifiesyour marketingexpendituresor budgetrequestsmore effectivelythanrealresults.

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ChannelMapping

Step1:Determinetherightobjective Step2:Simplifyyourmetrics

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Understandingmetrics

Iwouldntgiveafigforsimplicityonthisside ofcomplexity,butIwouldgivemylifefor of complexity but I would give my life for simplicityontheothersideofcomplexity Oli OliverWendellHolmes,Jr. W d ll H l J

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Step2:Simplifyyourmetrics
Yourcompany'stimeandenergyisatapremium.Youneedtogetthe "most"forthe"least."Thisrigorousfocusnotonlyconcentratesyour resources;italsoclarifiesyourobjectives. resources; it also clarifies your objectives Whenyoucutthroughalltheconfusion,therearereallyonlyfour elementsyoucanmeasurefortheactivityon yourwebsite:
THEAMOUNT(pageviews,visitorsessions,returningvisitors,etc.) THESOURCE(referrers,searchterms,languages,countries,organizations, ( , , g g , , g , etc.) THENATURE(entrypages,exitpages,browsers,platforms,screen resolutions,pagerefreshes,pageloaderrors,averagetimeperpage,etc.) resolutions page refreshes page load errors average time per page etc ) THERESULTS(clicktrails,mostrequestedpages,numberofpageviews, signups,orders,etc.)

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Step2:Simplifyyourmetrics
Whatmetricsyouchoosetofocusonwilldependgreatlyonyour objectiveinthefirststep.However,theprovidedChannel Mappingspreadsheetlaysoutthebasicminimummetricsyouwill Mapping spreadsheet lays out the basic minimum metrics you will wanttotrackforanyonlinecampaign.

Youcanusealmostanymetricsprogramandshoppingcart programtoextractyourdataforthefollowinginformation. t t t d t f th f ll i i f ti
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Step2:Simplifyyourmetrics
Onceyouhave determinedwhat youaretracking,it you are tracking it isnowtimetolist themetricsforyour channels.

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Step2:Simplifyyourmetrics
Youmayhaveto trackthefollowing information internallywithyour ownfinancial department.

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Step2:Simplifyyourmetrics Notes: Ifyoudonothaveallthedata,justfillout whatisavailable. Thetwomostimportantvaluesarethecost ofthetrafficandtherevenuegenerated g fromthattraffic.Otherfieldswillprovide theinformationforsubsequentsteps.

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ChannelMapping

Step1:Determinetherightobjective Step2:Simplifyyourmetrics Step3:Profileyourkeychannels

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Step3:Profileyourkeychannels

Profilingchannelsrequiresthatyouprofilethe Profiling channels requires that you profile the following: 1. The MAGNITUDE ofDemand 2. TheNATURE ofDemand 2 The NATURE of Demand

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Step3:Profileyourkeychannels
The MAGNITUDE ofDemand(RankingChannels)
Whenlookingatmagnitude,wefirstrankchannelsbydescending performance.(Formostbusinesses,thiswillmeanrankingthemby performance. (For most businesses, this will mean ranking them by descendingprofitordescendingrevenue.) Rankingyourchannelsinorderofdescendingperformancehelpsto identifypatternsandtoprioritizeyourchannelprofilingefforts. identify patterns and to prioritize your channel profiling efforts

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Step3:Profileyourkeychannels
The MAGNITUDE ofDemand
Next,wefocusonanalyzingatourtopperformingchannels(inthis case,wewilllookatourtop4channels) , p )

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Step3:Profileyourkeychannels

Profilingchannelsrequiresthatyouprofilethe Profiling channels requires that you profile the following: 1. The MAGNITUDE ofDemand 2. TheNATURE ofDemand 2 The NATURE of Demand

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Step3:Profileyourkeychannels
The Th NATURE ofDemand fD d
Whenlookingatnature,firstwelookforanyimmediatelynoticeable corecommonalitiesamongthetop performingchannels. core commonalities among the topperforming channels.

Let snowexplorethenature ofthecommonalitiesinchannelprofiles. Lets now explore the nature of the commonalities in channel profiles

Inthisexample,wecanquicklyidentifyfromthedatathatthetop3 arefromourPPC campaignswherepeoplearelookingforaspecific businesssolutions.

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Step3:Profileyourkeychannels
The Th NATURE ofDemand fD d
Next,throughconductingdeeperresearchandanalysisofeachchannel (keyphrase data, segment demographics, surveys, etc.), we begin to data,segmentdemographics,surveys,etc.),webeginto identifyadditionalsimilarmotivationsamongthetopperforming channels.

NatureofDemandfor businesssoftware keyword Nature of Demand for business softwarekeyword

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Step3:Profileyourkeychannels
The Th NATURE ofDemand fD d
Finally,weusethesekeyinsightstodevelopheadlinesandkeyphrases thataddressthesecoremotivations.

NatureofDemandforbusinesssoftwarekeyword

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Step3:Profileyourkeychannels
The Th NATURE ofDemand fD d
Also,notethatpropensitytobuy(P2B)modelscanbeahelpfulwayto calculatethemotivationlevelsofyourchannels. AP2Bisastatisticalmodelthatcalculatestheprobabilityofacertain companytobuyacertainproductinagiventimeframeinthefuture. YoucanfindmoreaboutP2Binyourresources. You can find more about P2B in your resources. Statistical Model
ProbabilitytoBuy Technologyinthe Technology in the next2quarters

Firmographics PastPurchaseBehavior

pastpurchasebehavior
Q4 Q1 Q2 Q3 Q4

firmographics

predicted purchase window

Q1

Q2

(mostrecent closedquarter)
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ChannelMapping

Step1:Determinetherightobjective Step2:Simplifyyourmetrics Step3:Profileyourkeychannels Step4:Optimizeaselectcampaign

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Step4:Optimizeaselectcampaign
Atthispoint,youintegratewhatyourchannelspecific profilesintochannelspecificmarketingmessages.
Whytheypurchase: CEOs Likecompanywide moduleinteraction, impressedwithdashboard i d i h d hb d capabilities,seepotential tosignificantlyreduce technologyandoperations costs,likethefactthatso manyotherlarge companiesareusingit,like theexpandabilityofthe system. CFOlikeabilityofmodules tointeractdirectlywith accounting,like automationcapabilities, impressedwithreporting features

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Step4:Optimizeaselectcampaign

Tomorrow,wewillspenda2hourslookingmorein ll d h l k depthathowtooptimizingonlinemarketingcampaigns. Thisisacrucialpartoftheprocessandwarrantsmore teaching.Fornow,justmakenoteoftheprocessandbe preparedtolookfurtheratthisinournextsession prepared to look further at this in our next session together.

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ChannelMapping Step1:Determinetherightobjective Step2:Simplifyyourmetrics Step3:Profileyourkeychannels Step4:Optimizeaselectcampaign l Step5:Refinewithtesting Step 5: Refine with testing

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Step5:Refinewithtesting
EXPERIMENTID: NewYorkTimes LOCATION MarketingExperiments Research Library MarketingExperimentsResearchLibrary RESEARCHNOTES: BACKGROUND: TheNewYorkTimescametouswitha subscriptionproductthattheywerehavingdifficulty marketingcalledtheElectronicEdition. g GOAL:Toincreasethenumberofsubscriptionsforthe ElectronicEdition. RESEARCHQUESTION:Whichpagedesignwillgeneratethe mostsubscriptions? TESTDESIGN:A/Bmultifactorialsplittest
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Step5:Refinewithtesting
Original Page Test Campaign #1

Lets look closer at the differences

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Step5:Refinewithtesting
Original

Theoriginal containsthree optionsand i d threeseparate, equally weightedcalls weighted calls toaction.

Test Campaign #1

Theoptimized pagehasfour optionsbut p onlyonecallto action.

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Step5:Refinewithtesting

64%IncreaseinConversions
Theoptimizedversionincreasedtotalconversionsby64%.
Original Page Test Campaign #1

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Step5:Refinewithtesting

WHATYOUNEEDTOUNDERSTAND:Wedidnotstop WHAT YOU NEED TO UNDERSTAND: We did not stop there,afterreceivinganinitialresultsof64%,our teamstudiedthedataagainandcreatedournext roundoftestsforthiscampaign.

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Step5:Refinewithtesting
(New) Original Test Campaign #2

Lets look closer at the differences

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Step5:Refinewithtesting
(New) Original

This version shows paid Thisversionshowspaid offerswithpricinganda freeoffer

Test Campaign #2

Thisversiondisplay mainlyfreeoffers deemphasizing subscriptionpricing

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Step5:Refinewithtesting

541%IncreaseinConversions
Theoptimizedversionincreasedtotalconversionsby541.6%.
(New) Original Page Optimized Page #2

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Step5:Refinewithtesting

WHATYOUNEEDTOUNDERSTAND:Againourdid WHAT YOU NEED TO UNDERSTAND: Again our did notstopthere,afterreceivingadditionalresultsof 541%,ourteamagainstudiedthedataandput togetherplansforournextroundsoftests.

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Step5:Refinewithtesting
Test Campaign #3

At this point we Atthispoint,we testedthisradical redesignofthe landingpage.

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Step5:Refinewithtesting

47%IncreaseinConversions
Theoptimizedversionincreasedtotalconversionsby47%.
(New) Original Test Campaign #3

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Step5:Refinewithtesting
(New) Original

Wethentested changingafewwords intheoffercopy.Can youspotthem?

Test Campaign #4

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Step5:Refinewithtesting

12%IncreaseinConversions
Bychangingafewwordsweincreasedtotalconversionby12% By changing a few words we increased total conversion by 12%
(New) Original Test Campaign #4

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Step5:Refinewithtesting

Test Campaign #5

We then looked at the Wethenlookedatthe dataonelasttimeand puttogethera campaignthattesteda i th t t t d longcopyversionofthe page.

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Step5:Refinewithtesting

88%IncreaseinConversions
Thisis88%higherconversionontopofallthepreviousgains This is 88% higher conversion on top of all the previous gains
(New) Original Optimized Page #5

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Step5:Refinewithtesting
CumulativeOptimizationGain: 1052%

64%
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541%

47%

12%

88%

Step5:Refinewithtesting
Itisnotenoughtojustsetupcampaignsbasedonmetrics.That wouldbeanadequatewaytocreateeffectivecampaigns.But adequacy is the enemy of excellenceanditiskeymakesurethat adequacyistheenemyofexcellence and it is key make sure that wearetestingourcampaigns,measuringtheresults,andthen startingthecyclealloveragain.
Testand refine Determine Objective

Results
Optimize Campaign Simplify Metrics

Profile Channels
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GettingtheMostFromMetrics g Summary

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Summary
Sohowdosimplygofrommoundsofdatatoeffectivecampaigns?
Welookedspecificallyataprocesscalled ChannelMapping ,whichisakey We looked specifically at a process called Channel Mapping, which is a key methodfortakingdataandproducingresults.

Step1:Determinetherightobjective Step2:Simplifyyourmetrics Step3:Profileyourkeychannels Step 3: Profile your key channels Step4:Optimizeaselectcampaign Step5:Refinewithtesting **Nowthatwehavethisfoundationandstructure,tomorrowwewill drilldownonactuallyoptimizingthecampaign**
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GettingtheMostFromMetrics g Questions

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GettingtheMostFromMetrics g End

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