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The A/B Testing Myth: How to Really Get More Conversions Brought to you by: www.wordstream.com/learn #ABdelusion
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WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Jun 26, 2015

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Marketing

In this webinar with WordStream's own Larry Kim and SiteTuners' Tim Ash, you'll learn the secrets of optimizing your conversion rates. They'll reveal:

>Why settling for small A/B testing victories actually hinders your success
>When to throw out your landing page altogether
>How to radically replace your CTA and 5x your conversion rate!

You’ll walk away with 6 counterintuitive but insanely powerful strategies to milk more conversions out of your landing pages. Check it out!

For more information on WordStream, visit www.wordstream.com
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Transcript
Page 1: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 2: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Want to get smart in paid search?

www.wordstream.com/learn

Page 3: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

Today’s Speakers

Larry KimFounder & CTO, WordStream

@LarryKim

Tim AshCEO, SiteTuners

@Tim_Ash

Page 4: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 5: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 6: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

I Love Split Testing

Page 7: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

We have used testing to make our

clients over $1,200,000,000

Page 8: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

But I Don’t Have a Dog In The Race

Page 9: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

The Big Myth

CRO = TESTINGA/B Testing Is The Answer To Everything

Page 10: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

More & faster testing is the best measure of CRO!

Page 11: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Climbing in the blizzard – making progress…

Page 12: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

… 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

Page 13: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Other Circumstances When Testing Is Not Appropriate

Page 14: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ashCopyright © 2013, SiteTuners - All Rights Reserved. @tim_ash

When problems are obvious - just fix them

Page 15: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ashCopyright © 2013, SiteTuners - All Rights Reserved. @tim_ash

When problems are sitewide (not isolated)

Page 16: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ashCopyright © 2013, SiteTuners - All Rights Reserved. @tim_ash

When there is not enough traffic

Page 17: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ashCopyright © 2013, SiteTuners - All Rights Reserved. @tim_ash

When traffic is changing, seasonal, or spiky

Page 18: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ashCopyright © 2013, SiteTuners - All Rights Reserved. @tim_ash

When you are ignorant of basic math

Page 19: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Keep Testing In Proper Perspective

Page 20: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Page 21: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 22: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 23: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Sorry if you don’t like my conclusions…

Page 24: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

… feel free to get some of your owndirect experience.

Page 25: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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)

Page 26: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 27: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Epiphany #1:The Classic A/B Test

is a Fairy Tale

Page 28: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

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

Page 29: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 30: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 31: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Rearranging Deck Chairs on the Titanic

#ABdelusion @larrykim

Page 32: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Epiphany #2:So What is a Good Conversion Rate?

Page 33: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

Forest vs. Trees

Page 34: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

What is a Good Conversion Rate?

Page 35: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

Survey Methodology

Page 36: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

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

Page 37: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 38: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Aim for 3-5x Increases, NOT 3-5%!

#ABdelusion @larrykim

Page 39: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Landing Page Unicorns?(3-5x Avg. Conversion Rate!)

Page 40: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Epiphany #3:What Do Landing Page Unicorns Look Like?

Page 41: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Hunting Landing Page Unicorns

Page 42: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Change the Offer

#ABdelusion @larrykim

Page 43: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

Change the Offer

Version A. Version B.

Page 44: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

How to Know if Your Offer Stinks

• Average or below average conversion rate

• Ask your customer!

#ABdelusion @larrykim

Page 45: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

Change the Flow

Page 46: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Change the Flow

New flow: Registration at the end

#ABdelusion @larrykim

Page 47: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

New Flow: Quality vs. Quantity

#ABdelusion @larrykim

Page 48: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

New Flow: Another Example

#ABdelusion @larrykim

Page 49: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

New Flow: Let Them Choose

#ABdelusion @larrykim

Page 50: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Epiphany #4:Finding Unicorns

Requires Effort

Page 51: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

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

Page 52: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

But I Have 10 Landing Pages!

#ABdelusion @larrykim

Page 53: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

This is the Same Landing Page with Different Spacing…

#ABdelusion @larrykim

Page 54: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

80% of Traffic Goes to 10% of Landing Pages

#ABdelusion @larrykim

Page 55: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

The Bar for Landing Page Excellence is VERY Low

Page 56: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

You Don’t Need Dozens of Landing Pages*

Page 57: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

More Landing Pages Doesn’t Inherently Help

Page 58: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Epiphany #5:Consider Ditching Your Landing Page

Page 59: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

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

Page 60: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 61: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Forget Landing Pages: Force People to Call

#ABdelusion @larrykim

Page 62: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Epiphany #6:F%@# Conversion Rates*

Page 63: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Eh? What?!

#ABdelusion @larrykim

Page 64: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 65: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Epiphany #7:Use Remarketing as a Conversion Rate Optimization Tool**

Page 66: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 67: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 68: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Remarketing on Facebook

#ABdelusion @larrykim

Page 69: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

Remarketing on Twitter

Page 70: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Remarketing on the Google Display Network

#ABdelusion @larrykim

Page 71: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Be Super Aggressive:Conversion Rates Increase Over Time!

Conversion Rates Increase With More Ad Impressions

#ABdelusion @larrykim

Page 72: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

Page 73: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

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

#ABdelusion @larrykim

Page 74: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

SAVE $300• increase your revenue and profit

• generate more leads

• land more customers

• boost sales and paid memberships

• maximize your marketing ROI

Rio All-suites Hotel & Casino

Las Vegas - May 13-14, 2015

Page 75: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash

Get a Free 15-minute Conversion Review

• Interactive review of your key conversion paths

• Conducted by SiteTuners conversion staff

• Identify key segments and opportunities for customization

• Video transcript recorded via GoToMeeting

• Offer good only for companies generating at least $1 million annually in online revenue. New customers only please.

Limited Availability – first 5 to sign up

To take advantage of this FREE offeryou must schedule by Nov 15, 2014

Bit.ly/CROreview

Page 76: WordStream & SiteTuners: The A/B Testing Myth [Webinar]

Copyright © 2014, SiteTuners – All Rights Reserved. #ABDelusion #CRO @tim_ash#ABdelusion

Larry KimFounder & CTO, [email protected]@[email protected]

Let’s Stay in Touch!

Tim AshCEO, SIteTuners

[email protected]@Tim_Ash

800.521.5066