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How one company implements an entire testing methodology every day The Nuts and Bolts Ryan Hutchings Director of Marketing VacationRoost Daniel Burstein Director of Editorial Content MECLABS
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The Nuts and Bolts: How one company implements an entire testing methodology every day

May 13, 2015

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Page 1: The Nuts and Bolts: How one company implements an entire testing methodology every day

How one company implements an entire testing methodology every day

The Nuts and Bolts

Ryan HutchingsDirector of MarketingVacationRoost

Daniel BursteinDirector of Editorial ContentMECLABS

Page 2: The Nuts and Bolts: How one company implements an entire testing methodology every day

Session speaker

2

Ryan Hutchings

Director of Marketing

VacationRoost

Hutchings has more than 10 years of online marketing experience. He leads the marketing team for VacationRoost, a $120 million private company in the travel industry. From advertising to analytics, he organizes a comprehensive and robust online marketing strategy focused on tracking and optimization. His specialties include SEO, PPC, testing, conversion rate optimization, advanced data modeling, analytics and every technical aspect related to online marketing.

Hutchings is a Google AdWords certified professional, SEOmoz Pro member, nationally recognized industry speaker and participant of top online marketing communities. He also help found the SLCSEM organization, which is Utah’s largest

nonprofit group of online marketing professionals.

@HutchSEO

Page 3: The Nuts and Bolts: How one company implements an entire testing methodology every day

About VacationRoost

Page 4: The Nuts and Bolts: How one company implements an entire testing methodology every day

About VacationRoost

• 25 websites • Always running 2 to 3 tests • 100+ tests run across landing pages, homepages,

lead forms and shopping carts• Goal of 10% incremental lift in total revenue

generated by testing

Page 5: The Nuts and Bolts: How one company implements an entire testing methodology every day
Page 6: The Nuts and Bolts: How one company implements an entire testing methodology every day

Fundamental Question:

How can marketers systematically run tests to achieve consistent lifts?

and hundreds of other tests….

Page 7: The Nuts and Bolts: How one company implements an entire testing methodology every day

An overall testing process …

Build

Page 8: The Nuts and Bolts: How one company implements an entire testing methodology every day

… to support an iterative optimization cycle

Collecting data

Planning experiments

Preparing treatments

Conducting tests

Analyzing results

Page 9: The Nuts and Bolts: How one company implements an entire testing methodology every day

The dual testing track

A/B split test• Internal system with server-side

splitting, custom variables• Full manual reporting –

spreadsheets and database reports

Larg

e te

st

Search results

Cart

Products

Test

ing

Landing page optimization• Third-party software• Internal analysis determines

what to testSmal

l tes

t PPC and SEO landing pages

Headlines/CTAs

Images

Page 10: The Nuts and Bolts: How one company implements an entire testing methodology every day

The dual testing track

A/B split test• Internal system with server-side

splitting, custom variables• Full manual reporting –

spreadsheets and database reports

Larg

e te

st

Search results

Cart

Products

Test

ing

Landing page optimization• Third-party software• Internal analysis determines

what to testSmal

l tes

t PPC and SEO landing pages

Headlines/CTAs

Images

Page 11: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test small

Decide Identify Hypothesize Design Analyze

Decide what to test

Page 12: The Nuts and Bolts: How one company implements an entire testing methodology every day

90%Replace “our recommendations” section with content snippet for value proposition banner usage

Restyle “most popular destinations” change hierarchy 40%

Page 13: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test small

Decide Identify Hypothesize Design Analyze

Identify the target conversion goal

Page 14: The Nuts and Bolts: How one company implements an entire testing methodology every day

What’s a good goal for bounce rates?

> 50%

40%-50% 30%-40%

< 30%

Page 15: The Nuts and Bolts: How one company implements an entire testing methodology every day

What’s a good goal for CTR to the next page or step?

> 60%

50%-60%30%-50%

< 30%

Page 16: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test small

Decide Identify Hypothesize Design Analyze

Create a hypothesis

Page 17: The Nuts and Bolts: How one company implements an entire testing methodology every day

Small Test: PPC landing pages

17

Page 18: The Nuts and Bolts: How one company implements an entire testing methodology every day

Small Test: PPC landing pages

18

Page 19: The Nuts and Bolts: How one company implements an entire testing methodology every day

Small Test: PPC landing pages

19

How can we reduce friction and

anxiety on this page?

Page 20: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test small

Decide Identify Hypothesize Design Analyze

Wireframe, design and launch treatment

Page 21: The Nuts and Bolts: How one company implements an entire testing methodology every day

Small Test: PPC landing pages

21

Page 22: The Nuts and Bolts: How one company implements an entire testing methodology every day

Small Test: PPC landing pages

22

Page 23: The Nuts and Bolts: How one company implements an entire testing methodology every day

Small Test: PPC landing pages

23

Page 24: The Nuts and Bolts: How one company implements an entire testing methodology every day

Small Test: PPC landing pages

24

Page 25: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test small

Decide Identify Hypothesize Design Analyze

Analyze results and calculate ROI

Page 26: The Nuts and Bolts: How one company implements an entire testing methodology every day

Small Test: PPC landing pages

26

427% increase in CTR

Page 27: The Nuts and Bolts: How one company implements an entire testing methodology every day

Small test validation tool

95.2%

Page 28: The Nuts and Bolts: How one company implements an entire testing methodology every day

ROI template

Let’s take a closer look…

Page 29: The Nuts and Bolts: How one company implements an entire testing methodology every day

ROI templateAverage ticket

JanFebMar.AprMayJunJul.AugSeptOctNov.Dec

Close rate

JanFebMar.AprMayJunJul.AugSeptOctNov.Dec

Lead conversion

JanFebMar.AprMayJunJul.AugSeptOctNov.Dec

Contribution% of sales

Page 30: The Nuts and Bolts: How one company implements an entire testing methodology every day

ROI template

Incremental IncreasesNew Bounce RateLeads Sales $ Contribution $

53$ 40,307$ 3,225

Incremental IncreasesNew Bounce RateLeads Sales $ Contribution $

20%7

5,246 $420 $

At 10%

At 30%

158$ 119,256$ 9,541

25 %2 d

1,749 $140 $

Page 31: The Nuts and Bolts: How one company implements an entire testing methodology every day

How do you get the resources to run large tests?

Page 32: The Nuts and Bolts: How one company implements an entire testing methodology every day

The dual testing track

A/B split test• Internal system with server-side

splitting, custom variables• Full manual reporting –

spreadsheets and database reports

Larg

e te

st

Search results

Cart

Products

Test

ing

Landing page optimization• Third-party software• Internal analysis determines

what to testSmal

l tes

t PPC and SEO landing pages

Headlines/CTAs

Images

Page 33: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test big

Decide Collaborate Identify Create Design Analyze

Decide on an element to optimize

Page 34: The Nuts and Bolts: How one company implements an entire testing methodology every day

Looking at the same elements as the small

tests.

Page 35: The Nuts and Bolts: How one company implements an entire testing methodology every day

The basic funnel

Landing Pages

Search Results

Property

Cart

Billing

Purchase

3.5%

1.7%

“Rising tide”A/B

(large test)

Single page LPO(small test)

40%

1.7%

Purchase

Page 36: The Nuts and Bolts: How one company implements an entire testing methodology every day

Determining a “good” conversion rate

Source: MarketingSherpa.com/ecommerce

Page 37: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test big

Decide Collaborate Identify Create Design Analyze

Work with IT to define variables or events

Page 38: The Nuts and Bolts: How one company implements an entire testing methodology every day

Large Testing: Variables are the key

38

ConditionsSegment your users and/or their visits to single or multi-visit conditions.

inlineLeadForm1mrSearchPage1NotestsimpleModalLeadFormsimpleModalLeadForm4

controltest

Page 39: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test big

Decide Collaborate Identify Create Design Analyze

Identify target conversion goal for control

Page 40: The Nuts and Bolts: How one company implements an entire testing methodology every day

The basic funnel

Landing Pages

Search Results

Property

Cart

Billing

Book now, Web lead, interactions/events

Checkout, add “cross sell”

Book, fill out info

Bounce rates, CTR

Purchase

“Rising tide”A/B

(large test)

Single page LPO(small test)

Page 41: The Nuts and Bolts: How one company implements an entire testing methodology every day

The basic funnel

Landing Pages

Search Results

Property

Cart

Billing

Book Now, web lead, interactions/events

Checkout, add “cross sell”

Book, fill out info

Bounce rates, CTR

Purchase

Book Now, web lead, interactions/events

“Rising tide”A/B

(large test)

Single page LPO(small test)

10% - 30% minimum targeted gains

Page 42: The Nuts and Bolts: How one company implements an entire testing methodology every day

Conversion goal results

Page 43: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test big

Decide Collaborate Identify Create Design Analyze

Create hypothesis and set up validation sheet

Page 44: The Nuts and Bolts: How one company implements an entire testing methodology every day

Manual testing database

Number of Days

40

Page 45: The Nuts and Bolts: How one company implements an entire testing methodology every day

Control Treatment

Large Test: Lead forms 1

Security seals

Page 46: The Nuts and Bolts: How one company implements an entire testing methodology every day

Control

Fail – no lift.

Large Test: Lead forms 1

Treatment

Page 47: The Nuts and Bolts: How one company implements an entire testing methodology every day

Control Treatment

Large Test: Lead forms 2

Shorter form

Page 48: The Nuts and Bolts: How one company implements an entire testing methodology every day

Control

Fail – no lift.

Large Test: Lead forms 2

Treatment

Page 49: The Nuts and Bolts: How one company implements an entire testing methodology every day

Control Treatment

Large Test: Lead forms 3

Option to call

Page 50: The Nuts and Bolts: How one company implements an entire testing methodology every day

Control Treatment

Fail – no lift.

Large Test: Lead forms 3

Page 51: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test big

Decide Collaborate Identify Create Design Analyze

Wireframe, design and launch treatment

Page 52: The Nuts and Bolts: How one company implements an entire testing methodology every day

Large Test: Lead forms

Page 53: The Nuts and Bolts: How one company implements an entire testing methodology every day

Large Test: Lead forms

Page 54: The Nuts and Bolts: How one company implements an entire testing methodology every day

Large Test: Lead forms

19% Lift

Page 55: The Nuts and Bolts: How one company implements an entire testing methodology every day

How to test big

Decide Collaborate Identify Create Design Analyze

Analyze results and calculate ROI

Page 56: The Nuts and Bolts: How one company implements an entire testing methodology every day
Page 57: The Nuts and Bolts: How one company implements an entire testing methodology every day

Manual testing database

Page 58: The Nuts and Bolts: How one company implements an entire testing methodology every day

Testing roadmap – it’s really:

Search Results

Property Details

Cart

Billing info

Booking

Page 59: The Nuts and Bolts: How one company implements an entire testing methodology every day

ROI template

Same as a small test.

Page 60: The Nuts and Bolts: How one company implements an entire testing methodology every day

Setting up your own programmatic testing

1

2

3

4

5

Custom variable tracking system, spreadsheet templates are vital building blocks

Dedicate a person and tie performance to testing

“Top of the funnel” to the “bottom conversion” may have too much noise in

between – keep it simple and isolated

Build a reporting system that ties front end and back end together

Get buy-in from the management team

Page 61: The Nuts and Bolts: How one company implements an entire testing methodology every day

Questions?

Page 62: The Nuts and Bolts: How one company implements an entire testing methodology every day

Thank you

Ryan Hutchings

Marketing Director

VacationRoost

@HutchSEO

Daniel Burstein

Director of Editorial Content

MECLABS

@DanielBurstein

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