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Taking Your Site Performance to the
           Next Level with Optimization Testing

                           Presented by Linda Bustos,
                           Director of Ecommerce Research, Elastic Path Software
                           June 25, 2010



           Listen to audio using your computer’s microphone & speakers (VoIP) or dial in:
           United States: + 1 323 417 4600
           United Kingdom: + 44 (0) 121 368 0265
           Access Code: 646-797-773


Elastic Path™
Introducing
  Elastic Path Software
      • Enterprise ecommerce solutions for software, media,
        telco, online services, and digital reseller markets
      • Trusted ecommerce experts
      • #1 ecommerce blog www.getelastic.com
      • For more on-demand ecommerce resources:
        www.elasticpath.com/resources




Elastic Path™
Agenda

  • What is optimization testing?
        – A/B split testing vs. MVT (multivariate testing)
  •   What to optimize
  •   Designing your test
  •   Testing “gotchas”
  •   Understanding tools (free vs. paid)




Elastic Path™
What is optimization testing?




Elastic Path™
What is optimization testing?

  • Not user testing
        – Qualitative data
        – Goal is to identify usability issues




Elastic Path™
What is optimization testing?

  • A/B split and multivariate testing (MVT)
        – Quantitative data
        – Goal is to improve the performance of a KPI (key
          performance indicator, metric of success)
        – Hypothesis testing (user testing may help form
          your hypothesis)




Elastic Path™
What is optimization testing?

  • Why test?
        – The only way to truly know what works and what
          doesn’t for your industry, customers and products
                •   No “gut feel” or opinions
                •   No “best practices”
                •   No “blind redesign”
                •   No missed opportunities




Elastic Path™
A/B




                A   B



Elastic Path™
A/B




          A     B   C   D



Elastic Path™
A/B




                A   B

Elastic Path™
MVT




          A     B     C     D
        V1a     V1b   V2a   V2b

Elastic Path™
A/B or MVT?

  • A/B                           • MVT
        – Broad decisions           – Tweaking a “winner”
        – Just getting feet wet     – Large traffic/conversions
        – Limited                   – Need to test >10 recipes
          traffic/conversions         at one time
        – Tool restrictions            • More accurate
                                       • Faster




Elastic Path™
What to optimize




Elastic Path™
What to optimize

  • Processes/workflows




Elastic Path™
What to optimize

  • Processes/workflows
  • “Landing pages”
        – Any individual page,
          even if it’s not a landing
          page




Elastic Path™
What to optimize

  • Processes/workflows
  • “Landing pages”
        – Any individual page,
          even if it’s not a landing
          page
  • Campaigns
        – Email
        – Affiliate
        – Pay Per Click



Elastic Path™
What to optimize

  • Processes/workflows
        – Checkout/sales funnels
        – Account registration
        – Product finder
        – Product configurator




Elastic Path™
Control checkout




Elastic Path™
Treatment checkout


                     + 257.26% Checkout
                         Completion




                      + 8.54% Average
                        Order Value




                     + 0.54% Overall Site
                          Conversion




Elastic Path™
What to optimize

  • Landing pages
        – Top content
        – Top landing pages (may not be home page!)
        – Highest bounce rates
                • Segment!
        – Top exit pages
        – Flagship products
        – Underperforming products/categories



Elastic Path™
Design

  •   Colors
  •   Navigation
  •   Tabbed information
  •   Search
  •   Placement (what’s above fold, etc)
  •   Imagery
  •   Banners
  •   Content spaces
  •   Calls to action

Elastic Path™
Content

  • Images (zoom, 360 rotate,
    color swatch, multiple views)
  • Headlines
  • Descriptions / Copy
  • Call to action text
    (button labels, links)
  • Review feature
  • Video
  • Interactive tools
  • Interstitials




Elastic Path™
Merchandising /Promotions

  •   Banners
  •   Cross-sell, up-sell
  •   Bundles
  •   Pricing
  •   Offers (% off, $ off, free gift, free shipping etc)
  •   Products on promotion




Elastic Path™
Designing your test




Elastic Path™
Start with web analytics

  • Look for areas to improve
       • Funnel abandonment
       • Top landing pages, bounce rate
       • Top content, call to action
  • Identify your conversion goal/KPIs
  • Make sure you’ve segmented your data




Elastic Path™
Elastic Path™
Elastic Path™
Analyze your [page]




Elastic Path™
Elastic Path™
Select variables that influence each other




Elastic Path™
When to stop




                http://tinyurl.com/gwo-calculator



Elastic Path™
Statistical significance




Elastic Path™
Testing “gotchas”




Elastic Path™
Testing “gotchas”
  • Can’t measure the “why,” only the “what”
        – (Supplement with user testing)
  • “Half-life”
        – Results may move back to baseline over time (traffic
          mix changes, economy (offers), etc.)
  • Can’t tell you if you should build a feature
        – User testing
                • Your application
                • A competitor
                • A site with a similar feature
  • Problem might be product related
        – Inventory, assortment

Elastic Path™
Comparing the tools




Elastic Path™
Which MVT?

  http://www.whichmvt.com/




Elastic Path™
Major players
  • Google
        –   Free
        –   95% CI only
        –   “Full factorial” only
        –   Can’t handle segmentation or personalization
        –   Limits on variables/branching factors, recipes
        –   Can’t use on email campaigns
        –   Can’t use offline data
        –   Can’t self-host (but less reliance on IT)
        –   No customer support (unless you have Google rep)
        –   Requires a web developer to help set up

Elastic Path™
Major players

  • Omniture Test&Target
        – Plays nicely with other products in Omniture suite
        – “Predictive learning” accepts offline data (e.g.
          product holdings, credit score, time on file)
        – Design tests right on the site
        – Usually a four-figure monthly fee




Elastic Path™
Should you buy a tool?
  • If you bought your tool, don’t change
        – Omniture Test&Target plays nicely with other products
          in Omniture suite
  • If you haven’t bought, use Google (“Get good at
    free”)
  • Who owns testing? Is IT-free important?
  • Do you need to test email? (most email platforms
    have at least A/B testing)
  • Who owns the data? Could budget constraints
    force you to cancel the tool?
  • Some tools have API to port into other tools
    (analytics, spreadsheets)

Elastic Path™
Thank you!

                http://www.getelastic.com/

   For more on-demand ecommerce resources:
        www.elasticpath.com/resources

                         Questions?
                linda.bustos@elasticpath.com


Elastic Path™

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Taking Your Site Performance to the Next Level with Optimization Testing

  • 1. Taking Your Site Performance to the Next Level with Optimization Testing Presented by Linda Bustos, Director of Ecommerce Research, Elastic Path Software June 25, 2010 Listen to audio using your computer’s microphone & speakers (VoIP) or dial in: United States: + 1 323 417 4600 United Kingdom: + 44 (0) 121 368 0265 Access Code: 646-797-773 Elastic Path™
  • 2. Introducing Elastic Path Software • Enterprise ecommerce solutions for software, media, telco, online services, and digital reseller markets • Trusted ecommerce experts • #1 ecommerce blog www.getelastic.com • For more on-demand ecommerce resources: www.elasticpath.com/resources Elastic Path™
  • 3. Agenda • What is optimization testing? – A/B split testing vs. MVT (multivariate testing) • What to optimize • Designing your test • Testing “gotchas” • Understanding tools (free vs. paid) Elastic Path™
  • 4. What is optimization testing? Elastic Path™
  • 5. What is optimization testing? • Not user testing – Qualitative data – Goal is to identify usability issues Elastic Path™
  • 6. What is optimization testing? • A/B split and multivariate testing (MVT) – Quantitative data – Goal is to improve the performance of a KPI (key performance indicator, metric of success) – Hypothesis testing (user testing may help form your hypothesis) Elastic Path™
  • 7. What is optimization testing? • Why test? – The only way to truly know what works and what doesn’t for your industry, customers and products • No “gut feel” or opinions • No “best practices” • No “blind redesign” • No missed opportunities Elastic Path™
  • 8. A/B A B Elastic Path™
  • 9. A/B A B C D Elastic Path™
  • 10. A/B A B Elastic Path™
  • 11. MVT A B C D V1a V1b V2a V2b Elastic Path™
  • 12. A/B or MVT? • A/B • MVT – Broad decisions – Tweaking a “winner” – Just getting feet wet – Large traffic/conversions – Limited – Need to test >10 recipes traffic/conversions at one time – Tool restrictions • More accurate • Faster Elastic Path™
  • 14. What to optimize • Processes/workflows Elastic Path™
  • 15. What to optimize • Processes/workflows • “Landing pages” – Any individual page, even if it’s not a landing page Elastic Path™
  • 16. What to optimize • Processes/workflows • “Landing pages” – Any individual page, even if it’s not a landing page • Campaigns – Email – Affiliate – Pay Per Click Elastic Path™
  • 17. What to optimize • Processes/workflows – Checkout/sales funnels – Account registration – Product finder – Product configurator Elastic Path™
  • 19. Treatment checkout + 257.26% Checkout Completion + 8.54% Average Order Value + 0.54% Overall Site Conversion Elastic Path™
  • 20. What to optimize • Landing pages – Top content – Top landing pages (may not be home page!) – Highest bounce rates • Segment! – Top exit pages – Flagship products – Underperforming products/categories Elastic Path™
  • 21. Design • Colors • Navigation • Tabbed information • Search • Placement (what’s above fold, etc) • Imagery • Banners • Content spaces • Calls to action Elastic Path™
  • 22. Content • Images (zoom, 360 rotate, color swatch, multiple views) • Headlines • Descriptions / Copy • Call to action text (button labels, links) • Review feature • Video • Interactive tools • Interstitials Elastic Path™
  • 23. Merchandising /Promotions • Banners • Cross-sell, up-sell • Bundles • Pricing • Offers (% off, $ off, free gift, free shipping etc) • Products on promotion Elastic Path™
  • 25. Start with web analytics • Look for areas to improve • Funnel abandonment • Top landing pages, bounce rate • Top content, call to action • Identify your conversion goal/KPIs • Make sure you’ve segmented your data Elastic Path™
  • 30. Select variables that influence each other Elastic Path™
  • 31. When to stop http://tinyurl.com/gwo-calculator Elastic Path™
  • 34. Testing “gotchas” • Can’t measure the “why,” only the “what” – (Supplement with user testing) • “Half-life” – Results may move back to baseline over time (traffic mix changes, economy (offers), etc.) • Can’t tell you if you should build a feature – User testing • Your application • A competitor • A site with a similar feature • Problem might be product related – Inventory, assortment Elastic Path™
  • 36. Which MVT? http://www.whichmvt.com/ Elastic Path™
  • 37. Major players • Google – Free – 95% CI only – “Full factorial” only – Can’t handle segmentation or personalization – Limits on variables/branching factors, recipes – Can’t use on email campaigns – Can’t use offline data – Can’t self-host (but less reliance on IT) – No customer support (unless you have Google rep) – Requires a web developer to help set up Elastic Path™
  • 38. Major players • Omniture Test&Target – Plays nicely with other products in Omniture suite – “Predictive learning” accepts offline data (e.g. product holdings, credit score, time on file) – Design tests right on the site – Usually a four-figure monthly fee Elastic Path™
  • 39. Should you buy a tool? • If you bought your tool, don’t change – Omniture Test&Target plays nicely with other products in Omniture suite • If you haven’t bought, use Google (“Get good at free”) • Who owns testing? Is IT-free important? • Do you need to test email? (most email platforms have at least A/B testing) • Who owns the data? Could budget constraints force you to cancel the tool? • Some tools have API to port into other tools (analytics, spreadsheets) Elastic Path™
  • 40. Thank you! http://www.getelastic.com/ For more on-demand ecommerce resources: www.elasticpath.com/resources Questions? linda.bustos@elasticpath.com Elastic Path™