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
© 2013 Forrester Research, Inc. Reproduction Prohibited 1
the world of e-Commerce
testing and personalization is changing
Zee Aganovic, Ph.D. Founder & CEO, HiConversion
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
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
e-commerce technology is very complex
OVERCOMING SUSTAINABLE REVENUE GROWTH BARRIERS
traditional optimization requires IT resources
1. Custom tagging of pages 2. Custom scripting of
optimization variables 3. Implementing your
optimization results
solution. virtualization US PATENTS: 7779161 and 8499237
<HEAD> HICONVERSION HEAD TAG </HEAD>
<BODY> HICONVERSION BODY TAG </BODY>
US PATENTS 7779161 and 8499237
solution. virtualization STEP 1: Select an element to add to the campaign.
solution. virtualization
US PATENTS 7779161 and 8499237
STEP 2: Click on ‘move’ to relocate the element.
solution. virtualization STEP 3: View the new variable you just created.
everything interacts with everything else
OVERCOMING SUSTAINABLE REVENUE GROWTH BARRIERS
optimization requirements are escalating; finding what works is getting more di!cult
MULTI-DEVICE
MULTI-PAGE
MULTI-VARIATE
MULTI-SEGMENT
combining A/B test results doesn’t work.
full-funnel, multi-segment, multi-variate, multi-targeting, and more
solution. multi-everything optimization
$$$
SINGLE CAMPAIGN. END-TO-END RESULTS.
customer preferences are constantly changing
OVERCOMING SUSTAINABLE REVENUE GROWTH BARRIERS
case study. free shipping experiment
week one. strong performance with $50 min.
week two. can significant results change?
e-Commerce surprise: the magnitude of visitor time varying behavior
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
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
benefit. sustainable revenue growth
ready, set, launch
operating in a world of
Kristopher Jean e-Commerce Content Manager, L’Orèal USA
multi-everything
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
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?
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
part 1. brainstorming ideas
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PERSONALIZATION A: ANTI-AGING
part 1. brainstorming ideas
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PERSONALIZATION B: MALE
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
part 2. setting expectations what do we want to accomplish and how does this campaign look?
part 3. aligning resources what tactical resources are necessary to get this strategy o! the ground?
DEVELOPMENT RESOURCES
part 4. managing expectations
PRELIMINARY NET RESULTS – CAMPAIGN-WIDE
+59.76% RPV, +127% CONVERSION RATE
The Ultimate Man 3-step routine: Cleanse, Shave, and Moisturize! Learn More MALE
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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