transforming one small step at a time: optimisation & testing

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Building Blocks Transforming One Small Step At A Time Building Blocks www.building-blocks.com

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Digital transformation isn't a project - it's continuous: small experiments which lead to a culture of improvement through learning. In the presentation, Principle Consultant Jonathan Whiteside and UX & Site Optimisation Consultant Kyle Cassidy discuss how to plan and test for continual user experience improvements, to ensure your optimisation goals are aligned with your organisation's overall annual objectives. They also share practical measuring and reporting tips. First presented at the Figaro Digital Conference on 27 November 2014.

TRANSCRIPT

Page 1: Transforming One Small Step At A Time: Optimisation & Testing

Building Blocks

Transforming One

Small Step At A Time

Building Blocks www.building-blocks.com

Page 2: Transforming One Small Step At A Time: Optimisation & Testing

Building Blocks

A talk about testing?!?

Jonathan WhitesidePrincipal Consultant

Kyle CassidyUX & Optimisation Consultant

Page 3: Transforming One Small Step At A Time: Optimisation & Testing

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It’s much cheaper to servethan acquire

Companies that embrace optimisation to make decisions increase conversion by 100%

Source: Adobe

Page 4: Transforming One Small Step At A Time: Optimisation & Testing

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A talk about testing?!?“Insanity: doing the

same thing over and over again and expecting

different results”- Albert Einstein

Page 5: Transforming One Small Step At A Time: Optimisation & Testing

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Supports improvement

Organisational Digital Maturity

Confidence

Business case justification

De-risk projects

Maximise campaign effectiveness

Incremental conversion increases

Support business-wide commercial decisions

Page 6: Transforming One Small Step At A Time: Optimisation & Testing

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What we’re going to talk about

1. What?

2. Why?

3. Examples

4. How?

Page 7: Transforming One Small Step At A Time: Optimisation & Testing

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So, what is site optimisation?

Page 8: Transforming One Small Step At A Time: Optimisation & Testing

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Optimisation includes:

• A/B & MVT testing• Analytics• CRO• User journeys• Usability• Information architecture• Traffic sources• Segmentation• User experience design• Personalisation

Page 9: Transforming One Small Step At A Time: Optimisation & Testing

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Optimisation is for everyone

Marketing Commercial

Web Operations/

IT

Optimisation

Page 10: Transforming One Small Step At A Time: Optimisation & Testing

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It’s much cheaper to servethan acquire

It’s much cheaper to serve, than acquire…

Page 11: Transforming One Small Step At A Time: Optimisation & Testing

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Clicks

PPC Cost per click

Total PPC spend

Conversion rate

Customers won

Cost per acquisition

Average profit per customer

Total profit generated

ROI

Simple numbers…

Non Optimised website Optimised website

100

£0.06

£66

1%

1

£66

£40

£40

-40%

100

£0.06

£66

5%

5

£13

£40

£200

200%

Page 12: Transforming One Small Step At A Time: Optimisation & Testing

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Experiments

Page 13: Transforming One Small Step At A Time: Optimisation & Testing

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A/B MVT

Examples

Page 14: Transforming One Small Step At A Time: Optimisation & Testing

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• 1 element on the page

• Multiple variants

• Tested against a ‘control’

• Evenly distributed traffic

• Measured over time

What is A/B Testing?

Page 15: Transforming One Small Step At A Time: Optimisation & Testing

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Examples of things to test

• Buttons• Form placement• Images• Copy changes• Icons• Video• Navigation• Banners

Page 16: Transforming One Small Step At A Time: Optimisation & Testing

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Page 17: Transforming One Small Step At A Time: Optimisation & Testing

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A/B testing: upgrades page

Conversion

20.47%

Page 18: Transforming One Small Step At A Time: Optimisation & Testing

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Testing variantsL

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Page 19: Transforming One Small Step At A Time: Optimisation & Testing

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The results

ExperimentSubmitted form Conversion Rate

Lift Chance to beat control

Control20.47%

+/- 0.84%

Level 234.31%

+/- 0.98%+67.59%

100% chance to beat control

Level 334.94%

+/- 0.98%+70.64%

100% chance to beat control

Level 434.89%

+/- 1.00%+70.40%

100% chance to beat control

Level 534.21%

+/- 0.98%+67.07%

100% chance to beat control

Conversion

34.94%

Page 20: Transforming One Small Step At A Time: Optimisation & Testing

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20.47% 34.94% 70.69%

Additional RecordsCaptured each month

Controlconversion rate

Winnerconversion rate

Conversion rate uplift

17,800

The impact of the conversion uplift

(£20 per lead) Per month in upgrade leads£356,000

Page 21: Transforming One Small Step At A Time: Optimisation & Testing

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• Multiple elements

• Multiple variants

• Tested at the same time

• Tested against a ‘control’

• Traffic is distributed evenly

• Measured over time

What is MVT Testing? Opt. A

Opt. B

Opt. C

Opt. D

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Co

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Lev

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Testing variants

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ExperimentSubmitted form Conversion Rate

Lift Chance to beat control

Desktops

Control27.55%

+/- 0.69%-

Level 229.931%

+/- 0.71%+8.63%

High significance

Level 329.99%

+/- 0.71%+8.85%

High significance

Level 430.93%

+/- 0.72%+12.25%

High significance

iPads

Control 22.91% +/- 1.43%

-

Level 2 24.80%+/- 1.46%

+8.58%High significance

Level 3 25.63%+/- 1.48%

+12.36%High significance

Level 4 26.73%+/- 1.52%

+17.36%High significance

Desktops

30.93%iPads

26.73%

Results

Page 24: Transforming One Small Step At A Time: Optimisation & Testing

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Controlconversion rate

Winnerconversion rate

Conversion rate uplift

The impact of the conversion uplift

27.55%22.91%

30.93%26.73%

+12.25%+17.36%

4,920

Additional RecordsCaptured each month

(£20 per lead) Per month in upgrade leads£98,000

Page 25: Transforming One Small Step At A Time: Optimisation & Testing

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A/B vs. MVT

A/B MVTBest for Large scale re-designs Incremental tests

Complexity Low High

Variants Known (usually 2-4) Multiple (+25)

Served 1 at a time Random order

Output Result of the test Result of the elements

Time to execute Low High

Time to run (traffic/variant dependent)

Shorter Longer

Page 26: Transforming One Small Step At A Time: Optimisation & Testing

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Not always successful…

Page 27: Transforming One Small Step At A Time: Optimisation & Testing

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That all sounds great, where do I start?

Page 28: Transforming One Small Step At A Time: Optimisation & Testing

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A talk about testing?!?

Common excuses to ignore optimisation

52%

36%

28%

26%

25%

23%

22%

21%

10%

9%

3%

0% 15% 30% 45% 60%

Lack of resources

Lack of budget

Conflict of interest between departments

Lack of strategy

Poor technology

Poor intergration between systems

Siloed Organisation

Company culture

Lack of ownership

Reliance on third parties

Other

Source: eConsultancy

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It’s much cheaper to servethan acquire90:10

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90% 10% PlanningProcessesPeoplePresentation

Technology

Time investment

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http://chiefmartec.com/

There are lots of tools…

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Objectives

Campaignsupport

Mitigating risk

Developing a testing strategy

Justifying business cases

Improving site usability

Page 33: Transforming One Small Step At A Time: Optimisation & Testing

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Test Ideation & Prioritisation

Writing Test Plan and

performing QA

Test Live -Monitoring

Results

3 parallel tracks

Page 34: Transforming One Small Step At A Time: Optimisation & Testing

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What skills do I need?

10%

40% 40%

Presentation skills Technical

10%

Analytically minded

UX/Creative/Copywriting

Page 35: Transforming One Small Step At A Time: Optimisation & Testing

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How to secure buy-in

• Make sure data is clean, consistent and trusted.

• Use data to identify where to prioritise your optimisation roadmap.

• Define your main optimisation conversion event and how you will use it to calculate ROI.

• Ensure that it aligns to your organisation’s KPIs.

• Invite stakeholder sign-off to communicate that testing will help them reach their goals.

Page 36: Transforming One Small Step At A Time: Optimisation & Testing

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It’s much cheaper to servethan acquire

Companies with significant increases in sales are completing 6.45 A/B & MVT tests per month

Source: eConsultancy

Page 37: Transforming One Small Step At A Time: Optimisation & Testing

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• Valuable at every stage

• Test small, test often

• Build business/change cases based on known value

• Lean, agile with little waste

• Try new things, experiment and measure

• Use results as leverage to be bold

Transforming with optimisation

Page 38: Transforming One Small Step At A Time: Optimisation & Testing

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Page 39: Transforming One Small Step At A Time: Optimisation & Testing

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Thank you!

building-blocks.com