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Kath Pay
Co-Founder & Consultant

Using the Aggregation of
Marginal Gains to Test your Way
to Success                        1
Presentation
from Markedu’s
Email Marketing
Day @Your Desk


Get Markedu’s Event Alert to be notified about
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» the free Social Media Marketing Day @Your Desk
» the free Direct Marketing Day @Your Desk
» See webinars here
©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com   3
©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
What’s their Secret?
• They tested things
  • Endings
  • Scenes
  • Looks to camera

       They studied what worked and why it worked




                       ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Testing is so easy online
• Quick wins and big wins
• Great wins
• Most elements are
  really easy to test
• Great technology to
  help
• Results in real time
• Optimisation within
  campaigns



                     ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
So why don’t we do it?
• Don’t know how to
• Misbelief that it is
  expensive
• Misbelief that it is
  time consuming
• Not being aware of
  the available
  technology out
  there




                         ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com   7
• Our opinions are worthless until tested
  • So are your Marketing Director’s
  • And as for your Managing Director’s…




                      ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Testing is a Strategic Issue
•   How can I get more traffic for less money?
•   How can I get more “successful outcomes”?
•   What will drive up average order values?
•   How do I build repeat purchase and loyalty?




                       ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Aggregation of Marginal Gains
The GB cycling team's winning philosophy is "aggregation of
marginal gains”: get a lot of small things right, put them all
together, and they add up to a significant gain.

http://www.guardian.co.uk/sport/2008/aug/14/olympics2008.olympicscycling1



“It means taking the 1%
from everything you do;
finding a 1% margin for
improvement in everything
you do.”

http://www.teamsky.com/article/0,27290,17547
_5792058,00.html



                                    ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com   10
Bad results?
A great learning opportunity




            ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com   11
Thomas Edison
• “I have not failed. I've just
  found 10,000 ways that
  won't work. “




                        ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com   12
Some Basic Rules….
• What you test will depend upon your objectives
• Test functional and technical things in addition to testing to
  optimise the campaign
• Test the strategy and other long term factors such as
  frequency, content strategy, contact strategy, templates,
  triggered responses, the customer journey etc
• Easy wins are to be had in testing Subject lines, From
  Name, Call to actions, Landing Pages etc
• When A/B split testing, only test one facet of the campaign
• Ensure you measure the appropriate metric


                      ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com   13
Measure the appropriate metric




           ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
A few rules to follow…
• Always have a control to base results on
   • A/B Split tests
   • Remember time is a variable
• Understand statistical concepts
   • Could this have happened by chance?
   • Do the maths before betting the farm
• Test the big things first
   • List (segmentation)
   • Offer (call to action)



                      ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Statistical Validity
• Could this have happened by chance?

 http://www.emarketingdynamics.com/email-test-sample-
                   size-calculator.asp




                    ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
So lets get testing…

because everybody should be
doing it
          At all stages of the process




             ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Driving Traffic: 3 extra words -
 10% more traffic
Buy Online – Making it Easier


                  … UK business mailing lists … Download …
                  CTR: 8.6%

   Search:        … Buy UK business mailing lists … Download …
  [business       CTR: 9.2%
 mailing lists]
                  … UK business mailing lists … Buy online and download …
                  CTR: 9.5%




                        ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Email: what can you test?
•   Price points                                •    Segmentation
•   Discount in value                           •    Design
•   Discount in %                               •    Layout
•   Free Gift/access to content                 •    Tone of Voice
•   Bundles                                     •    Long/short Copy
•   From Field                                  •    Personalisation
•   Subject line                                •    Number of links
•   First 6 lines                               •    Landing Page
•   Day of week                                 •    Frequency
•   Time of day                                 •    Follow-up
•   Text/HTML/Flash/Streaming video             •    Phone response
•   Teaser                                      •    Accelerator




                       ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Don’t forget the From Name

          CONTROL                                      TEST
  From : PriceMinister Advice               From : Sophie at PriceMinister




  Click-Through rate: Index100              Click-Through rate : Index 156




                      ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Subject A/B length test
A     Jan 25 webinar: Webcasting High-Profile Events
B     Jan 25 webinar: Enterprise Webcasting for High-Profile Events



• B had 58.9% higher open rate
• B had 279% increase in webinar registrations




                                                       Courtesy of
                                                       www.emailvision.com
                           ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Call to Actions

       A                                                B




     +230%




             ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Simple test




Screwfix.co.uk



                          ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Measuring tests


                                   Measure-        Campaig Resu Campaig ResulCampaigResul                 Recommendatio
     Hypothesis      Test Group             Source                                        Test Conclusion
                                    ment              n     lt 1   n     t2     n    t3                        ns




                                                                                        Buy Now           Even though Buy
Buy Now buttons                                                                                           Now doesn't
                     Half of                Reportin E09W44 TRU                         generates higher
generates more sales           Sales                            E09W46A TRUE                              generate more
                     remainder              g        C       E                          sales than More
than More Info                                                                                            clicks, the call to
                                                                                        Info
                                                                                                          action results in
                                                                                                          more sales and
                      Random                                                            Buy Now' did not so is more
Buy now generates
                      200k v                Email E09W44 FALS         FALS              generate more     effective than
more clicks than More             clicks                      E09W46A
                      Random                software C    E            E                clicks than 'More More Info.
info
                      200k                                                              Info'



 Courtesy of Screwfix.co.uk

                                                ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Abandoned Shopping Cart




          ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Judge the outcome not the clicks
 • Version A: 36% lift in paid orders; + 59% lift in number of products sold per
   order but less clicks than version B

 • Movies Unlimited’s ASCE template was sent to visitors who’d left the site
   before purchasing what was in their shopping carts

 • Everything was identical except the offers but each visitor received a personal
   greeting and saw the products from their shopping cart

 • If the marketers had picked a winner for this test based on clicks Version B
   would have won by 2%

 • This test demonstrates why you should ALWAYS measure as far beyond the
   initial click as possible. Your bottom line is what matters

www.whichtestwon.com

                             ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Don’t forget to optimise
your landing page
      ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com   28
Landing Page: Male or Female




           ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Don’t listen to your colleagues
• Version B, with the female model, convinced 108% more visitors in
  Norway to submit the lead gen form

• Version A had a Caucasian male who looked like one of Norway’s
  local couriers. Version B had an Asian female

• Rolf Inge Holden, Global Digital Marketing Specialist, DHL Express,
  said they conducted this test because marketers in some countries
  claim they can’t show female faces because they have no female
  couriers. He wondered if that was true.




                        ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Combinations of Page Elements
          Multi-variate testing




          ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
The Testing Toolkit
             Great Technology




           ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Split Testing for Google Adwords




            ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Multivariate testing from Google




             ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Split Run Testing from your ESP




            ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Multivariate testing within email
•   If you’re not testing, you’re going backwards
•   Test everything – all the time
•   Banish opinions – they’re worthless
•   Be strategic
•   Use the great tools that are out there
•   Track successful outcomes
•   Have fun!



    8seconds


                        ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
Presentation
from Markedu’s
Email Marketing
Day @Your Desk


Get Markedu’s Event Alert to be notified about
» the free Email Marketing Day @Your Desk
» the free Social Media Marketing Day @Your Desk
» the free Direct Marketing Day @Your Desk
» See webinars here
Download 50 Tips:
www.PlanToEngage.me

Kath Pay
E: kath@PlanToEngage.com
T: @kathpay




          ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com   43

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Email marketing: test your way to success from Kath Pay at Email Marketing Day at Your Desk by Markedu

  • 1. Kath Pay Co-Founder & Consultant Using the Aggregation of Marginal Gains to Test your Way to Success 1
  • 2. Presentation from Markedu’s Email Marketing Day @Your Desk Get Markedu’s Event Alert to be notified about » the free Email Marketing Day @Your Desk » the free Social Media Marketing Day @Your Desk » the free Direct Marketing Day @Your Desk » See webinars here
  • 3. ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com 3
  • 4. ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 5. What’s their Secret? • They tested things • Endings • Scenes • Looks to camera They studied what worked and why it worked ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 6. Testing is so easy online • Quick wins and big wins • Great wins • Most elements are really easy to test • Great technology to help • Results in real time • Optimisation within campaigns ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 7. So why don’t we do it? • Don’t know how to • Misbelief that it is expensive • Misbelief that it is time consuming • Not being aware of the available technology out there ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com 7
  • 8. • Our opinions are worthless until tested • So are your Marketing Director’s • And as for your Managing Director’s… ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 9. Testing is a Strategic Issue • How can I get more traffic for less money? • How can I get more “successful outcomes”? • What will drive up average order values? • How do I build repeat purchase and loyalty? ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 10. Aggregation of Marginal Gains The GB cycling team's winning philosophy is "aggregation of marginal gains”: get a lot of small things right, put them all together, and they add up to a significant gain. http://www.guardian.co.uk/sport/2008/aug/14/olympics2008.olympicscycling1 “It means taking the 1% from everything you do; finding a 1% margin for improvement in everything you do.” http://www.teamsky.com/article/0,27290,17547 _5792058,00.html ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com 10
  • 11. Bad results? A great learning opportunity ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com 11
  • 12. Thomas Edison • “I have not failed. I've just found 10,000 ways that won't work. “ ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com 12
  • 13. Some Basic Rules…. • What you test will depend upon your objectives • Test functional and technical things in addition to testing to optimise the campaign • Test the strategy and other long term factors such as frequency, content strategy, contact strategy, templates, triggered responses, the customer journey etc • Easy wins are to be had in testing Subject lines, From Name, Call to actions, Landing Pages etc • When A/B split testing, only test one facet of the campaign • Ensure you measure the appropriate metric ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com 13
  • 14. Measure the appropriate metric ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 15. A few rules to follow… • Always have a control to base results on • A/B Split tests • Remember time is a variable • Understand statistical concepts • Could this have happened by chance? • Do the maths before betting the farm • Test the big things first • List (segmentation) • Offer (call to action) ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 16. Statistical Validity • Could this have happened by chance? http://www.emarketingdynamics.com/email-test-sample- size-calculator.asp ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 17. ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 18. So lets get testing… because everybody should be doing it At all stages of the process ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 19. Driving Traffic: 3 extra words - 10% more traffic Buy Online – Making it Easier … UK business mailing lists … Download … CTR: 8.6% Search: … Buy UK business mailing lists … Download … [business CTR: 9.2% mailing lists] … UK business mailing lists … Buy online and download … CTR: 9.5% ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 20. Email: what can you test? • Price points • Segmentation • Discount in value • Design • Discount in % • Layout • Free Gift/access to content • Tone of Voice • Bundles • Long/short Copy • From Field • Personalisation • Subject line • Number of links • First 6 lines • Landing Page • Day of week • Frequency • Time of day • Follow-up • Text/HTML/Flash/Streaming video • Phone response • Teaser • Accelerator ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 21. Don’t forget the From Name CONTROL TEST From : PriceMinister Advice From : Sophie at PriceMinister Click-Through rate: Index100 Click-Through rate : Index 156 ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 22. Subject A/B length test A Jan 25 webinar: Webcasting High-Profile Events B Jan 25 webinar: Enterprise Webcasting for High-Profile Events • B had 58.9% higher open rate • B had 279% increase in webinar registrations Courtesy of www.emailvision.com ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 23. Call to Actions A B +230% ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 24. Simple test Screwfix.co.uk ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 25. Measuring tests Measure- Campaig Resu Campaig ResulCampaigResul Recommendatio Hypothesis Test Group Source Test Conclusion ment n lt 1 n t2 n t3 ns Buy Now Even though Buy Buy Now buttons Now doesn't Half of Reportin E09W44 TRU generates higher generates more sales Sales E09W46A TRUE generate more remainder g C E sales than More than More Info clicks, the call to Info action results in more sales and Random Buy Now' did not so is more Buy now generates 200k v Email E09W44 FALS FALS generate more effective than more clicks than More clicks E09W46A Random software C E E clicks than 'More More Info. info 200k Info' Courtesy of Screwfix.co.uk ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 26. Abandoned Shopping Cart ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 27. Judge the outcome not the clicks • Version A: 36% lift in paid orders; + 59% lift in number of products sold per order but less clicks than version B • Movies Unlimited’s ASCE template was sent to visitors who’d left the site before purchasing what was in their shopping carts • Everything was identical except the offers but each visitor received a personal greeting and saw the products from their shopping cart • If the marketers had picked a winner for this test based on clicks Version B would have won by 2% • This test demonstrates why you should ALWAYS measure as far beyond the initial click as possible. Your bottom line is what matters www.whichtestwon.com ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 28. Don’t forget to optimise your landing page ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com 28
  • 29. Landing Page: Male or Female ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 30. Don’t listen to your colleagues • Version B, with the female model, convinced 108% more visitors in Norway to submit the lead gen form • Version A had a Caucasian male who looked like one of Norway’s local couriers. Version B had an Asian female • Rolf Inge Holden, Global Digital Marketing Specialist, DHL Express, said they conducted this test because marketers in some countries claim they can’t show female faces because they have no female couriers. He wondered if that was true. ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 31. Combinations of Page Elements Multi-variate testing ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 32. ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 33. ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 34. ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 35. ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 36. ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 37. The Testing Toolkit Great Technology ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 38. Split Testing for Google Adwords ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 39. Multivariate testing from Google ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 40. Split Run Testing from your ESP ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 41. Multivariate testing within email • If you’re not testing, you’re going backwards • Test everything – all the time • Banish opinions – they’re worthless • Be strategic • Use the great tools that are out there • Track successful outcomes • Have fun! 8seconds ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com
  • 42. Presentation from Markedu’s Email Marketing Day @Your Desk Get Markedu’s Event Alert to be notified about » the free Email Marketing Day @Your Desk » the free Social Media Marketing Day @Your Desk » the free Direct Marketing Day @Your Desk » See webinars here
  • 43. Download 50 Tips: www.PlanToEngage.me Kath Pay E: kath@PlanToEngage.com T: @kathpay ©2011 Plan To Engage – all rights reserved – www.PlanToEngage.com 43