3 Strategies for Prioritizing A/B Tests for the Highest Impact

Post on 11-Aug-2014

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Which A/B tests you should you focus on in order to maximize revenue on your Ecommerce site? We will show you the most common ways to prioritize your A/B tests as well as ways to identify opportunity and pain points for your site.

transcript

3 Strategies for

Prioritizing A/B Tests

for the Highest Impact

Conversion optimization is one of the key techniques to getting the most out of your traffic.

Even a marginal improvement to conversions can dramatically affect your revenue.

The issues of what to test  and when are critical to developing a strategic approach to A/B testing for Ecommerce marketers.

Every test you run has an opportunity cost.

If your efforts do not target the areas with the highest possible impact

then you are not getting as much out of your tests as you should.

So…!

Where’s the money?

Take your conversion funnel

and turn it upside down.

The upward pointing triangle you’re looking at corresponds to the expected value of each user in the funnel based on their probability of purchasing.

More accurately, the expected value of each user is equal to the probability of converting times the value of the items in the cart.

As they move closer to checkout, they signal their intent to continue with the purchase.

This method of visualization demonstrates the value to be gained by testing the areas closest to the money.

Even a small improvement to the checkout process can make a significant increase to your revenue.

Okay, let’s turn the conversion funnel back around.

Okay, let’s turn the conversion funnel back around.

The top of the funnel can be seen as the persuasive end.

Only the most deliberate of shoppers will focus wholly on purchasing what they came to the site for.

Only the most deliberate of shoppers will focus wholly on purchasing what they came to the site for.

Those who clicked your site at a time when they weren’t ready to begin shopping will bounce.

Only the most deliberate of shoppers will focus wholly on purchasing what they came to the site for.

Those who clicked your site at a time when they weren’t ready to begin shopping will bounce.

The vast majority of users at this point still need to be persuaded to buy from you and move forward with their purchase.

You have their attention, but now you need their interest and desire.

The bottom of the funnel is the action end. This is where the intention to purchase is

put to the test.

The timeliness and fit of the checkout experience with the user’s context is the most important factor here.

The timeliness and fit of the checkout experience with the user’s context is the most important factor here.

Things that they are concerned about will be further deliberated at this stage.

The timeliness and fit of the checkout experience with the user’s context is the most important factor here.

Things that they are concerned about will be further deliberated at this stage.

The users will keep mentally weighing whether the purchase is a good idea based on a multitude of factors.

What methods are most commonly used

for prioritizing A/B tests?

Prioritizing based on perceived

opportunity

Prioritizing based on perceived

opportunity

Test based on the expected impact of the changes on conversion rate and other key metrics.

Prioritizing based on perceived

opportunity

Test based on the expected impact of the changes on conversion rate and other key metrics.

This includes changes to template pages that can have a site-wide impact.

Prioritizing based on

pain points

Prioritizing based on

pain points

Pain points include: Unexpected heatmap activity, lower than normal metrics, or other data uncovered suggesting a problem.

Prioritizing based on

pain points

Pain points include: Unexpected heatmap activity, lower than normal metrics, or other data uncovered suggesting a problem.

See the top “% Exit” pages on Google Analytics for the most obvious areas of improvement.

Prioritizing based on

increases to revenue per

customer

Focus exclusively on increasing order value per customer.

Prioritizing based on

increases to revenue per

customer

This means identifying areas where upselling may occur and facilitating browsing and product discovery.

Prioritizing based on

increases to revenue per

customer

Focus exclusively on increasing order value per customer.

This means identifying areas where upselling may occur and facilitating browsing and product discovery.

Time on site is a key metric for this.

Prioritizing based on

increases to revenue per

customer

Focus exclusively on increasing order value per customer.

What are the best strategies for identifying

opportunity and pain points in your store?

Funnel bottlenecks

Funnel bottlenecks

Map out your conversion funnel and find the bottlenecks (the pages with the lowest micro-conversions).

Funnel bottlenecks

Map out your conversion funnel and find the bottlenecks (the pages with the lowest micro-conversions).

If you’re using a common URL slug for various page types, you can figure this out in Google Analytics.

Funnel bottlenecks

Map out your conversion funnel and find the bottlenecks (the pages with the lowest micro-conversions).

If you’re using a common URL slug for various page types, you can figure this out in Google Analytics.

Otherwise, plot the data in Excel to figure it out manually!

Rank pages by traffic vs. conversion

rate

Rank pages by traffic vs. conversion

rate

Sort your product pages by the highest traffic and lowest converting product pages.

Test closest to the money

Test closest to the money

Testing closest to the money can have the highest impact on your bottom line.

Test closest to the money

Testing closest to the money can have the highest impact on your bottom line.

Start with your checkout and move backwards through the process

Test closest to the money

Testing closest to the money can have the highest impact on your bottom line.

Start with your checkout and move backwards through the process

This will allow you to see the most direct improvement in conversions and revenue.

Although the above strategies will help increase your conversion rates, find out why A/B testing is not

enough.

Download the Free Whitepaper!