© Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN
Uh Oh.The Million Dollar
Optimization Strategy
© Andre Morys, Web Arts AG www.web-arts.com3
André Morys
@morys
© Web Arts AG www.web-arts.com
5.8 bn ! Retail / Lead-Volume
4
0
1,5
3
4,5
6
2008 2010 2012
CRO Volumen (Mrd. !)
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© Web Arts AG www.web-arts.com
115 Conversion Experts in 15 Offices worldwide
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Web Arts is founder of theworldwide alliance of leading
conversion optimizationcompanies
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© Andre Morys, Web Arts AG www.web-arts.com
Agenda today
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1. Don‘t call it „Conversion Rate Optimization“
2. Optimization is not Testing.
3. Don‘t let the numbers lie to you. (Case Study)
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Growth of Top 10 e-Commerce Ventures in 5 Years (DE)
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Part I: It‘s about Growth, stupid.
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Do You Have a Business Plan for Your CRO Strategy?
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Profit Margin
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Opportunity Cost: ! 500‘ Profit
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Challenge needed?
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Compare the effect of two optimization strategies:
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Profit Margin
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Opportunity Cost:
! 2.2m Profit
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Now you can re-invest ! 2.2m in optimization...
25@morys
© Andre Morys, Web Arts AG www.web-arts.com
More-Growth-Through-Testing-Rule #1
‣It‘s not about conversion rates. It‘s about GROWTH.
‣ Set your goals properly.
‣ Measure your optimization efficiency.
‣ Average Uplift per Test
‣ Amount of Tests per Year
‣ Cumulated Uplift per Year
‣ Test Success Rate
‣ ROI per Test (%)
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„If you
double the number
of experiments
you do per year you're going to
double your
inventiveness“
Jeff Bezos, CEO amazon, 2004
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0
300
600
900
1200
2008 2009 2010 2011 2012
The Zalando Effect?
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So, what‘s the problem?
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© Andre Morys, Web Arts AG www.web-arts.com
For a 25% Compounded Global CR Increase, You Need...
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2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 10 Tests à 2.5%?
5 5 5 5 5 5 5 5 5 5 10 Tests à 5%?
5 5 5 5 5
20 Tests à 5%and 50%
success rate?5 5 5 5 5
Problem #1:Organizations are too lame to execute 20 tests per year.
Problem #2:This is really expensive and
complex. Organizations hate both.
Problem #3:Most CMOs still prefer to
buy 25% more traffic.
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Why only 5% average uplift per test?
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‣In the last case study, they talked about 45% Uplift!-> E-Commerce conversion rate is not email subscription or download CR.
‣My last test had 33% Uplift!-> Was it real? Don‘t confuse statistical significance with validity. Tests should run around 4 weeks for a sufficient sample size.
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A/B Test Result
Reality
„I can‘t feel the uplift!“
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Testresults - Significance versus Validity
1 week500 vs. 550 conversions
+10% Upliftsignificant - wohoo!
2 weeks1000 vs. 1030 conversions
+3% Upliftnot significant - :-(
Run your experiments longer to get valid insights!
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A/BTesting
70% don‘t know that there is a Phase 220% have no answer
10% have an idea how to reach Phase 3
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KPI: Average E-Commerce CR Uplift per Template Type
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0 %
2,5 %
5 %
7,5 %
10 %
Homepage Category Product Page Cart Checkout Site Wide
9,81 %
7,3 %6,59 %
9,28 %
6,35 %
3,32 %
Average Uplift by Template Type (n= 134)
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More-Growth-Through-Testing-Rule #2
‣Growth is about effectiveness. ‣ To increase real CR, you need many really good test results.
‣ Average Uplift per Test influences your growth directly.
‣ So: Do the right things!
‣ Don‘t do it too fast.
‣ Don‘t test everything. It is expensive.
45@morys
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Part II: Where do good optimization ideas
come from?
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quantitative qualitative
How much? Why?
♥︎
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Traffic
Website
Web Analytics
Click
Hand
Motor Control
prefrontal Cortex
Limbic System
Perception
ROI
„I have to buy it.“
Brand, Habits
„I want to buy it.“
Motivation, Emotion
„I can buy it.“
Usability, Accessability, Visibility
Focus on Consumer Behavior
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Factors, that influence the chance of conversion, can be
identified with a conversion framework
7E Framework
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Conversion Optimization means:„Get a relevant unique value
proposition in the users mind.“good feeling
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More-Growth-Through-Testing-Rule #3
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‣It is not hard to implement a testing tool. It‘s hard to find the right things to optimize.
‣ Find out, what really motivates users.
‣ Use different qualitative methods, like user research, personas, etc.
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Conversion DMAIC® Lean Innovation Process by Web Arts AG www.web-arts.com
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quantitative
qualtitative
LEARN
BACKLOG
CONTROL
IMPROVE ANALYSE
DEFINE
MEASURE
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#1Is the change bold enough that it will be perceived by
users?
#2Does the variation have
enough contrast to change the behavior of users?
#3Does it use psychological /
social principles?
#4Is it situated on the primary
path of conversion?
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More-Growth-Through-Testing-Rule #4
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‣Always prioritize your testing hypothesis!‣ Optimization is not trial and error.
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© Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN
Control Template Discount Value Prop.
143 %
114 %113 %100 %
Visitor - Order Conversion (relative)
© Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN
Control Basis Preis QualitätControl Template Discount Value Prop.
291 %
204 %
243 %
100 %
Return rate (relative)
© Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN
Control Basis Preis QualitätControl Basis Preis QualitätControl Template Discount Value Prop.
122,2 %
87,1 %
102,3 %100 %
Profit Contribution (relative)
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More-Growth-Through-Testing-Rule #5
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‣Measure economical KPIs.‣ Don‘t try to get them statistical significant.
‣ Conversion goal = organisations goal
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© Andre Morys, Web Arts AG www.web-arts.com
Five Pillars of Growth Strategy:
1. CRO -> Growth.
2. Efficiency -> Effectiveness.
3. Prioritize Hypotheses.
4. Motivate users.
5. Measure the right stuff.
It makes a difference.
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André Morys
CEO
Web Arts AG
Tel. +49.6172.68097-15
www.web-arts.com
Thank You!