The A/B Testing Myth: How to Really Get More Conversions Brought to you by: www.wordstream.com/learn #ABdelusion
Jun 26, 2015
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
The A/B Testing Myth:How to Really Get More Conversions
Brought to you by:
www.wordstream.com/learn
#ABdelusion
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
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Today’s Speakers
Larry KimFounder & CTO, WordStream
@LarryKim
Tim AshCEO, SiteTuners
@Tim_Ash
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
About SiteTuners
• San Diego based conversion rate optimization agency
• Large and small company clients worldwide in all industries
Practice areas:
– Conversion-focused website blueprints (full redesigns & quick facelifts)
– Landing page test plans & testing strategy development
– Ongoing conversion management, internal team mentoring & training
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
M O R E T H A N
s i n c e 2 0 0 2
1200CLIENTS
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I Love Split Testing
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We have used testing to make our
clients over $1,200,000,000
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But I Don’t Have a Dog In The Race
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The Big Myth
CRO = TESTINGA/B Testing Is The Answer To Everything
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More & faster testing is the best measure of CRO!
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Climbing in the blizzard – making progress…
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… The next morning – you can’t get there from here
You wanted to be here
You ended up here
You started here
The Valleys of Tears
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Other Circumstances When Testing Is Not Appropriate
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When problems are obvious - just fix them
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When problems are sitewide (not isolated)
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When there is not enough traffic
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When traffic is changing, seasonal, or spiky
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When you are ignorant of basic math
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Keep Testing In Proper Perspective
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Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Common problems when testing is overemphasized
• Testing velocity becomes an end onto itself
• Testing trivial stuff is a crutch – reduced to settling bar bets
• Diminishing results as page improves and game-changing ideas are scarcer
• Undervalues & often preempts or compromises large-scale redesigns
• Is largely incompatible with business model changes, or major technology platform integrations
• Focus on customer and valuable qualitative insights are diminished
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
What you should think about…
• Pick flexible testing tools that allow you to test non-trivial ideas
• Understand when testing is not appropriate
• Focus on profit improvements and not testing velocity (effectiveness vs efficiency)
• Have a tactical and strategic testing tracks going side by side
• Stop testing during major projects to gain the best long-term outcomes
• Understand all of the qualitative tools at your disposal
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Sorry if you don’t like my conclusions…
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… feel free to get some of your owndirect experience.
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion @larrykim
A quick introduction to Larry
• Founder & CTO of WordStream (@larrykim)
• Provider of the 20 Minute PPC Work Week, the AdWords Performance Grader, and the Landing Page Grader
• #1 PPC Expert 2 years running according to PPC Hero & 3Q Digital
• Had first kid 6 months ago (#PPCkid)
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Our Agenda
• Why conventional wisdom around A/B testing is silly
• What is a good conversion rate?
• Review: The top 10% of landing pages
• What makes them tick?
• How can I replicate them?
• What does it all mean?
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Epiphany #1:The Classic A/B Test
is a Fairy Tale
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The Great Landing Page Optimization Fairy Tale
We changed the:• Font type
• Spacing
• Button color
• Image
• Etc.
We got a 5% increase in conversions!!
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Typical Conversion Rate Optimization Test
The early lead disappears!
We want to believe our hard work paid off, but we are usually
deluding ourselves…
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Typical A/B Test is Overrated
• Small changes result in small changes
• The X% increase you think you go probably isn’t significant!
#ABdelusion @larrykim
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Rearranging Deck Chairs on the Titanic
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Epiphany #2:So What is a Good Conversion Rate?
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Forest vs. Trees
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What is a Good Conversion Rate?
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Survey Methodology
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Donkeys vs. Unicorns
Distribution Point Conversion Rate Vs. Average Comments
Average 2.35% Donkeys
Top 25% 5.31% 2x Awesome
Top 10% 11.45% 5x Unicorns
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
“Top 10% of Accounts Have a CVR 3x Average” Rule
Distribution Point All accounts Ecommerce Legal B2B Finance
Median CVR 2.35% 1.84% 2.07% 2.23% 5.01%
Top 25% CVR 5.31% 3.71% 4.12% 4.31% 11.19%
Top 10% CVR 11.45% 6.25% 6.46% 11.70% 24.48%
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Aim for 3-5x Increases, NOT 3-5%!
#ABdelusion @larrykim
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Landing Page Unicorns?(3-5x Avg. Conversion Rate!)
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Epiphany #3:What Do Landing Page Unicorns Look Like?
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Hunting Landing Page Unicorns
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Change the Offer
#ABdelusion @larrykim
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Change the Offer
Version A. Version B.
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How to Know if Your Offer Stinks
• Average or below average conversion rate
• Ask your customer!
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Change the Flow
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Change the Flow
New flow: Registration at the end
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New Flow: Quality vs. Quantity
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New Flow: Another Example
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New Flow: Let Them Choose
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Epiphany #4:Finding Unicorns
Requires Effort
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Relative Abundance
Name Percentile Relative AbundanceVs. Expected
Conversion Rate
Awesome Landing Pages
Top 25% 1:4 2x Higher
Unicorns Top 10% 1:10 3-5x Higher!!
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
But I Have 10 Landing Pages!
#ABdelusion @larrykim
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This is the Same Landing Page with Different Spacing…
#ABdelusion @larrykim
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80% of Traffic Goes to 10% of Landing Pages
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The Bar for Landing Page Excellence is VERY Low
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You Don’t Need Dozens of Landing Pages*
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More Landing Pages Doesn’t Inherently Help
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Epiphany #5:Consider Ditching Your Landing Page
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Calls Radically Change the Flow!
• Calls bypass the landing page altogether (a very leaky step!)
• The intent behind a call is much stronger than a click
• Calls convert 3x higher than clicks
Click-to-Call = Insane Landing Page Optimization
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
4. Lead Captured
2. Calls Business
2. Clicks On Ad
3% Avg. Conversion Rate
1. Sees Ad
3. Visits Website Landing Page
Desktop Search Conversion Funnel
Mobile Search Conversion Funnel
Calls to Businesses Worth 3x More than Clicks on Average!
Mobile Conversion Funnel is Very Different
3. Lead Captured
1. Sees Ad
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Forget Landing Pages: Force People to Call
#ABdelusion @larrykim
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Epiphany #6:F%@# Conversion Rates*
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Eh? What?!
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Note Definition of Conversion Rate**
Conversion Rate = # of Completed Actions / Total Visits to a Page
• Beware of A/B tests that merely exchange quantity for quality
• Generating more, lower quality leads could hurt, not help your business!
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Epiphany #7:Use Remarketing as a Conversion Rate Optimization Tool**
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Use Remarketing as a CRO Tool
96%Of people who visit a website leave without completing the actions marketers want them to take
70%Of people abandon their shopping cart without completing a purchase Your Ad
Your Site
X-
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion
Why I View Remarketing as CRO**
It’s an opportunity to…• Turn abandoners into leads
• Increase branded searches
• Increase repeat visitor rates and engagement
• Increase effectiveness of landing pages?
Users who have visited your website
Bring them back to your website
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Remarketing on Facebook
#ABdelusion @larrykim
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Remarketing on Twitter
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Remarketing on the Google Display Network
#ABdelusion @larrykim
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Be Super Aggressive:Conversion Rates Increase Over Time!
Conversion Rates Increase With More Ad Impressions
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
Summary: Be a Unicorn among a Sea of Donkeys
• Most A/B tests = Rearranging deck chairs, small % changes, and are often insignificant, or not long lasting
• Big landing page optimization = 2-5x changes AND improved lead quality.
• Big changes = Changing your offer or changing the flow, eliminating the stages where people get stuck, etc.
• Mobile changes everything. Consider deleting your landing pages!
• Remarketing = Conversion Rate Optimization!**
#ABdelusion @larrykim
Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash
www.wordstream.com/google-adwords www.wordstream.com/landing-page
Grade Your AdWords Account Grade Your AdWords Landing Pages
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Larry KimFounder & CTO, [email protected]@[email protected]
Let’s Stay in Touch!
Tim AshCEO, SIteTuners
[email protected]@Tim_Ash
800.521.5066