e-commerce testing: the coming of age
DESCRIPTION
In this SlideShare, you'll learn how to scope and execute an online testing strategy geared towards building sustainable revenue growth.TRANSCRIPT
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© 2013 Forrester Research, Inc. Reproduction Prohibited 1
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the world of e-Commerce
testing and personalization is changing
Zee Aganovic, Ph.D. Founder & CEO, HiConversion
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2000 2014
Site Analytics
Personalization A/B Split and Multivariate
Testing
Sust
aina
ble
val
ue
EVOLUTION OF e-COMMERCE OPTIMIZATION
2006 2009
e-Commerce Revenue
Performance Management
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eRPM is a disruptive technology framework for sustainable online revenue growth !!
eRPM!
EVERYTHING!INTERACTS!
WITH!EVERYTHING
multi- everything
E-COMMERCE!TECHNOLOGY IS!VERY COMPLEX !
virtualization (no IT needed)
CUSTOMER!PREFERENCES!ARE ALWAYS!CHANGING
real-time
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e-commerce technology is very complex
OVERCOMING SUSTAINABLE REVENUE GROWTH BARRIERS
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traditional optimization requires IT resources
1. Custom tagging of pages 2. Custom scripting of
optimization variables 3. Implementing your
optimization results
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solution. virtualization US PATENTS: 7779161 and 8499237
<HEAD> HICONVERSION HEAD TAG </HEAD>
<BODY> HICONVERSION BODY TAG </BODY>
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US PATENTS 7779161 and 8499237
solution. virtualization STEP 1: Select an element to add to the campaign.
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solution. virtualization
US PATENTS 7779161 and 8499237
STEP 2: Click on ‘move’ to relocate the element.
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solution. virtualization STEP 3: View the new variable you just created.
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everything interacts with everything else
OVERCOMING SUSTAINABLE REVENUE GROWTH BARRIERS
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optimization requirements are escalating; finding what works is getting more di!cult
MULTI-DEVICE
MULTI-PAGE
MULTI-VARIATE
MULTI-SEGMENT
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combining A/B test results doesn’t work.
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full-funnel, multi-segment, multi-variate, multi-targeting, and more
solution. multi-everything optimization
$$$
SINGLE CAMPAIGN. END-TO-END RESULTS.
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customer preferences are constantly changing
OVERCOMING SUSTAINABLE REVENUE GROWTH BARRIERS
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case study. free shipping experiment
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week one. strong performance with $50 min.
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week two. can significant results change?
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e-Commerce surprise: the magnitude of visitor time varying behavior
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figure 1. REVENUE PER VISITOR (RPV) OVER TIME – ONE PAGE
visitors reactions to the same experience can fluctuate significantly over time.
POINT 1 RPV = $1.82 POINT 2 RPV = $4.09
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solution. real time optimization
VERSION A VERSION B
15% 88%
figure 2. CAMPAIGN VS. BASELINE RPV PERFORMANCE
85% 12%
s $95.00 $95.00
US PATENT 8321359
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benefit. sustainable revenue growth
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ready, set, launch
operating in a world of
Kristopher Jean e-Commerce Content Manager, L’Orèal USA
multi-everything
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MULTIPLE!STAKEHOLDERS
MULTIPLE!PHASES
MULTIPLE!PAGES
MULTIPLE!TECH RESOURCES
MULTIPLE!VARIABLES
MULTIPLE!SEGMENTS
MULTIPLE!DEVICES
MULTIPLE!TARGETS
we live in the age of multi-everything e-Commerce
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each of these tenets can fit together under the umbrella of one multi-everything optimization strategy
… but how are these moving parts orchestrated to work seamlessly?
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GETTING STARTED WITH ERPM
build your very own optimization roadmap.
four key aspects of any roadmap: 1. Brainstorming ideas 2. Setting expectations 3. Aligning tactical resources 4. Managing expectations
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part 1. brainstorming ideas
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PERSONALIZATION A: ANTI-AGING
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part 1. brainstorming ideas
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PERSONALIZATION B: MALE
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part 2. setting expectations what do we want to accomplish and how does this campaign look?
A
PERSONALIZATION PERSONALIZATION
B
SEGMENT: SEO SEGMENT: PES SEGMENT: SEO SEGMENT: PES
• ANTI-AGING KEYWORDS
• 5-PAGE FUNNEL
• 5 BANNERS
• 6 POSSIBLE PES SCORES
• 5-PAGE FUNNEL
• 5 BANNERS
• 3 POSSIBLE PES SCORES
• 5-PAGE FUNNEL
• 2 BANNERS
• MALE KEYWORDS
• 5-PAGE FUNNEL
• 2 BANNERS
ANTI-AGING MALE
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part 2. setting expectations what do we want to accomplish and how does this campaign look?
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part 3. aligning resources what tactical resources are necessary to get this strategy o! the ground?
DEVELOPMENT RESOURCES
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part 4. managing expectations
PRELIMINARY NET RESULTS – CAMPAIGN-WIDE
+59.76% RPV, +127% CONVERSION RATE
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RPV CONVERSION RATE AOV
+3.86% +2.08% +1.74%
TOP
PERFORMER
+230.77% RPV, +148% CONVERSION RATE
ANTI AGE
TOP
PERFORMER
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