ClickZ Live -- Chicago 2014: 3 Common Testing Mistakes (and how to avoid them)

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November 3–6, 2014 #CZLCHI | @ClickZLive The Global Conference Series Designed by Digital Marketers, for Digital Marketers 3 Common Mistakes in Online Testing (And How to Avoid Them) Taylor Kennedy MECLABS Senior Manager, Optimization & Strategy

Transcript of ClickZ Live -- Chicago 2014: 3 Common Testing Mistakes (and how to avoid them)

November 3–6, 2014

#CZLCHI | @ClickZLive

The Global Conference Series Designed by Digital Marketers, for Digital Marketers

3 Common Mistakes in Online Testing(And How to Avoid Them)Taylor KennedyMECLABSSenior Manager, Optimization & Strategy

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

30%

16%

Do you understand your results?60

%

12%

43%

8%

62%

6%

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

30%

16%

60%

12%

43%

8%

62%

6%

November 3–6, 2014 | #CZLCHI | @ClickZLive

What does it mean?

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

You’re (probably) testing wrong if you:

• Are stuck optimizing a part of your funnel that lacks significant impact on the bottom line

• Have been blindly following “best practices”

• Are not further establishing customer theory with each test

@OptimizeDude

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Our testing process

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Our testing process

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Case StudyOptimizing the wrong part of the funnel

@OptimizeDude

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Cart Test 1: Control

@OptimizeDude

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Cart Test 1: Treatment

@OptimizeDude

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Cart Test 1: Results

Results were flat.

Shopping Cart Conversion Rate

Rel. Difference

Level of Confidence

Control 14.3% NA ---

Treatment 13.5% - 4.99% 44%

?

@OptimizeDude

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Cart Test 2: Control

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Cart Test 2: Treatment

@OptimizeDude

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Cart Test 2: Results

Results were flat, even trending downward.

Shopping Cart Conversion Rate

Rel. Difference

Level of Confidence

Control 13.7% NA ---

Treatment 11.1% -19.26% 88%

?

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

Why aren’t tests getting results?

5.7% 41%All visitors Add to cart Payment info Convert40%

@OptimizeDude

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Through proper planning you:Identify the highest impact area of your site to test.

Find potential validity threats linked to normal traffic that may impact results.

Discover visitor behavior that helps you create long-term test plans.

@OptimizeDude

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Product Page 1: Control

@OptimizeDude

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Product Page 1: Treatment

@OptimizeDude

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Product Page Test 1: Results

• “Add to Cart” increased by over 15%• Conversion increased by 40%

Shopping Cart Conversion Rate

Rel. Difference

Level of Confidence

Control 1.07% NA ---

Treatment 1.50% 40.05% 98%

!

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

What motivated the cart test?A. Needed improvements were obvious

B. Our client or boss told us to

C. Testing close to the conversion event has the biggest ability to increase revenue

D. The data told us to

November 3–6, 2014 | #CZLCHI | @ClickZLive

You’ve been following “best practices”Case study examples

@OptimizeDude

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How are successful and unsuccessful ecommerce companies approaching testing?

MarketingSherpa asked marketers:

@OptimizeDude

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@OptimizeDude

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@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

@OptimizeDude

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@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

@OptimizeDude

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Your peers are following best practices too.

@OptimizeDude

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How often do you hear the following?

“Keep your call-to-action above the fold”

“Video converts”“Use a compelling image”

“Mobile-friendly is critical”

“Include privacy and security statements to establish trust”

@OptimizeDude

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Security Seal Test: Control

@OptimizeDude

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Security Seal Test: Treatment 1

@OptimizeDude

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Security Seal Test: Treatment 2

@OptimizeDude

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Security Seal Test: Treatment 3

@OptimizeDude

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Security Seal Test: Results

Shopping Cart ClickthroughRate

Rel. Difference

Level of Confidence

Control 66.14% NA ---

Treatment 1 66.95% 1.2% 50%

Treatment 2 65.00% -1.7% 57%

Treatment 3 64.60% -2.3% 54%

Results were flat.?

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Mobile Test: Control

@OptimizeDude

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Mobile Test: Treatment

@OptimizeDude

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Mobile Redesign Test: Results

Results were significantly negative.

Shopping Cart Conversion Rate

Rel. Difference

Level of Confidence

Control 0.5% NA ---

Treatment 0.3% -40.75% 96%

!

November 3–6, 2014 | #CZLCHI | @ClickZLive

Redefine best practice:• There are no shortcuts to customer wisdom.

• Just because a test worked for someone else, doesn’t mean it will work for you.

• Rigorous, methodology-driven, hypothesis testing ensures you are generating real customer insights.

@OptimizeDude

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Framework

©C = 4m + 3v + 2(i-f) - 2a

@OptimizeDude

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Framework

©C = 4m + 3v + 2(i-f) - 2a

Probability of conversion

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Framework

©C = 4m + 3v + 2(i-f) - 2a

Motivation of user

@OptimizeDude

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Framework

©C = 4m + 3v + 2(i-f) - 2a

Clarity of value proposition

@OptimizeDude

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Framework

©C = 4m + 3v + 2(i-f) - 2a

Incentive - Friction

@OptimizeDude

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Framework

©C = 4m + 3v + 2(i-f) - 2a

Anxiety

@OptimizeDude

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A bad hypothesis:“By reducing friction on the page associated

with product selection, we will see an increase in clickthrough.”

• Unclear link to a particular problem• Not related to specific elements on a

particular page or process• Not linked to information or data about the

page

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

A bad hypothesis:“By reducing friction on the page associated

with product selection, we will see an increase in clickthrough.”

• Unclear link to a particular problem• Not related to specific elements on a

particular page or process• Not linked to information or data about the

page

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

A bad hypothesis:“By reducing friction on the page associated

with product selection, we will see an increase in clickthrough.”

• Unclear link to a particular problem• Not related to specific elements on a

particular page or process• Not linked to information or data about the

page

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

A bad hypothesis:“By reducing friction on the page associated

with product selection, we will see an increasein clickthrough.”

• Unclear link to a particular problem• Not related to specific elements on a

particular page or process• Not linked to information or data about the

page

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

A good hypothesis:

CHANGING __________________ INTO__________________

WILL_______________________

What your analysis indicates is the

problem

What change you think will solve the

problem

The effect it will have on your KPI

@OptimizeDude

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A good hypothesis:“Changing the presentation of products from a single column format into a dual column format will increase the number of product

options visible and boost clickthrough to the product details page”

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

A good hypothesis:“Changing the presentation of products from a single column format into a dual column format will increase the number of product

options visible and boost clickthrough to the product details page”

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

A good hypothesis:“Changing the presentation of products from a single column format into a dual column format will increase the number of product

options visible and boost clickthrough to the product details page.”

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

A good hypothesis is:• A proposed statement

• Made on the basis of limited evidence related to a specific problem

• Can be proved or disproved

• Used as a starting point for further investigation

@OptimizeDude

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Motivation Test: Control

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Motivation Test: Control

@OptimizeDude

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Motivation Test: ControlHypothesis:

Changing the right-column form into a call-to-action requiring no personal information will reduce friction and boost clickthrough to the subsequent page.

@OptimizeDude

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Removed form completelyTreatment 1:

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Removed form, added starting priceTreatment 2:

@OptimizeDude

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Kept form, added starting priceTreatment 3:

@OptimizeDude

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Homepage Motivation Test: Treatments

Shopping Cart Rel. CTR Level of Confidence

Control -- ---

Treatment 1 202% 99%

Treatment 2 149% 99%

Treatment 3 - 20% 99%

@OptimizeDude

November 3–6, 2014 | #CZLCHI | @ClickZLive

Remember:• Proper planning allows you to run tests

with clear outcomes predetermined in advance

• Formulate test sequences that generate big-picture customer analysis

!

November 3–6, 2014 | #CZLCHI | @ClickZLive

Key takeawaysFollow a “testing process.” Don’t just “test.”

1. Always perform at least a basic site data analysis (funnel analysis) before beginning testing.

2. Analyze each page through the mind of your prospect to identify areas of opportunity for testing.

3. Formulate hypotheses that enable you to learn from each and every test. That will lead you to a more complete picture of your ideal prospect.

November 3–6, 2014 | #CZLCHI | @ClickZLive

http://bit.ly/OptimizeTKPresentation Link