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Conversion
Optimization
Drive More Sales from Existing Traffic
and Increase Marketing ROI
Presented by Zac Aghion for Barcamp Shanghai
March 23, 2013
Some Basic Web Analytics
 Visitors  Number of people that visit your
website
 Conversions  Number of visitors that complete a
goal (purchase, sign up, download, click, etc.)
 Conversion Rate = Conversions 歎 Visitors
 Example:
 200 Visitors and 5 Purchases
 Conversion Rate = 5 歎 200 = 2.5%
A/B Testing Overview
Test two versions of your website to see which converts at a
higher rate.
Which Version Won?
Source: WhichTestWon.com
Marketers Surprise: FREE Loses
Source: WhichTestWon.com
Version B led to a +13.48% increase in conversion rate.
What to Test?
Source: TechWyse.com
Red Distraction & Clutter
Source: TechWyse.com
Remove Clutter, Promote Signup
Source: TechWyse.com
Red Truck & Logos Distraction
Source: TechWyse.com
Remove Logos, Yellow Button
Source: TechWyse.com
Thats Much Better!
Source: TechWyse.com
Multivariate Testing Overview
 Every landing page has X elements (MMs hair)
 For each element, we test Y variations (Neon)
 In total, we have (Y1 Y2  Yx) LP combinations
How Obama Raised +$60 MM
Source: Optimizely Blog
Four Button Variations
Six Media Variations
24 Landing Page Combinations!
And the Winner 庄壊
+40.6% CR = +$60 MM
 Original CR  8.26%
 New CR  11.6% (+40.6%)
 10 million signups from New (would be closer to
7,120,000 signups with Original)
 +2,880,000 additional signups
 $21 average donation / signup
 +$60,000,000 in additional donations
Testing With Confidence
Source: Optimizely Blog
Confidence Intervals
 Confidence intervals indicate the statistical
significance of an observed conversion rate
 95% CI = Observed CR +/- (1.96  Standard Error)
Standard Error =  (p  (1-p) 歎 n)
 Common Pitfalls
 Low # trials = non-significant results
 High # trials = significant results
 General balance between speed and reliability
 My website has less traffic than Obama
 But I still want +40% CR
 How??
Enter Genichi Taguchi
 Japanese statistician
(1924  2012)
 Taguchi Methods  fractional
factorial experimental designs
 Basic Concept  data collected
for a specific subset of
combinations can be
extrapolated to determine the
best performer of a full factorial
set
Orthogonal Arrays
 Taguchi arrays are used to determine what
subset of combinations need to be tested to
extrapolate results
 Most Basic Taguchi Array, L4:
L8 Array: Testing Efficiency +32x
 7 page elements, 2 variations for each
 2  2  2  2  2  2  2 = 256 LP combinations
 Data extrapolated from specific subset of 8
combinations determines best of 256
In-House or Agency?
In-House Agency
Pros
Lower initial costs
More control over the
testing process
More relevant
advanced goal tests
No need for internal resources
Faster results as agency
provides specialized expertise
Learn best practices and gain
experience
Cons
Long time to build
expertise from scratch
Longer time to start
achieving great test
results
Higher initial costs
Less understanding of
complex details of your
business goals and industry
Less control over testing
Thank You!
For More Information:
Zac Aghion
Email: zac.aghion@hotmail.com
China: +86 15921631924 | US: +1 6177506684
Twitter: @zacaghion | Skype: zac.aghion | Blog: www.ChinaAppMarketing.com

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Conversion Optimization: Drive More Sales from Existing Traffic and Increase Marketing ROI

  • 1. Conversion Optimization Drive More Sales from Existing Traffic and Increase Marketing ROI Presented by Zac Aghion for Barcamp Shanghai March 23, 2013
  • 2. Some Basic Web Analytics Visitors Number of people that visit your website Conversions Number of visitors that complete a goal (purchase, sign up, download, click, etc.) Conversion Rate = Conversions 歎 Visitors Example: 200 Visitors and 5 Purchases Conversion Rate = 5 歎 200 = 2.5%
  • 3. A/B Testing Overview Test two versions of your website to see which converts at a higher rate.
  • 4. Which Version Won? Source: WhichTestWon.com
  • 5. Marketers Surprise: FREE Loses Source: WhichTestWon.com Version B led to a +13.48% increase in conversion rate.
  • 6. What to Test? Source: TechWyse.com
  • 7. Red Distraction & Clutter Source: TechWyse.com
  • 8. Remove Clutter, Promote Signup Source: TechWyse.com
  • 9. Red Truck & Logos Distraction Source: TechWyse.com
  • 10. Remove Logos, Yellow Button Source: TechWyse.com
  • 12. Multivariate Testing Overview Every landing page has X elements (MMs hair) For each element, we test Y variations (Neon) In total, we have (Y1 Y2 Yx) LP combinations
  • 13. How Obama Raised +$60 MM Source: Optimizely Blog
  • 16. 24 Landing Page Combinations!
  • 17. And the Winner 庄壊
  • 18. +40.6% CR = +$60 MM Original CR 8.26% New CR 11.6% (+40.6%) 10 million signups from New (would be closer to 7,120,000 signups with Original) +2,880,000 additional signups $21 average donation / signup +$60,000,000 in additional donations
  • 20. Confidence Intervals Confidence intervals indicate the statistical significance of an observed conversion rate 95% CI = Observed CR +/- (1.96 Standard Error) Standard Error = (p (1-p) 歎 n) Common Pitfalls Low # trials = non-significant results High # trials = significant results General balance between speed and reliability My website has less traffic than Obama But I still want +40% CR How??
  • 21. Enter Genichi Taguchi Japanese statistician (1924 2012) Taguchi Methods fractional factorial experimental designs Basic Concept data collected for a specific subset of combinations can be extrapolated to determine the best performer of a full factorial set
  • 22. Orthogonal Arrays Taguchi arrays are used to determine what subset of combinations need to be tested to extrapolate results Most Basic Taguchi Array, L4:
  • 23. L8 Array: Testing Efficiency +32x 7 page elements, 2 variations for each 2 2 2 2 2 2 2 = 256 LP combinations Data extrapolated from specific subset of 8 combinations determines best of 256
  • 24. In-House or Agency? In-House Agency Pros Lower initial costs More control over the testing process More relevant advanced goal tests No need for internal resources Faster results as agency provides specialized expertise Learn best practices and gain experience Cons Long time to build expertise from scratch Longer time to start achieving great test results Higher initial costs Less understanding of complex details of your business goals and industry Less control over testing
  • 25. Thank You! For More Information: Zac Aghion Email: zac.aghion@hotmail.com China: +86 15921631924 | US: +1 6177506684 Twitter: @zacaghion | Skype: zac.aghion | Blog: www.ChinaAppMarketing.com