making the right decisions within a continuously changing digital world - google
TRANSCRIPT
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[email protected] http://savagemarketingtech.com
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Confidential & Proprietary
Source: http://angloafrican.com/facebook-artificial-intelligence-wants-to-get-close-to-you/
CRO: Making the right decisions within a continuously changing digital world
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How do you know you are making the rights decisions?
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A 150 million pound website redesign that lead to a
8,1% decrease in online sales
Source: http://www.digital-tonic.co.uk/digital-tonic-blog/went-wrong-marks-spencer-website-redesign-made-lose-sales/
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Digg redesign - 26% loss of traffic
Source: http://readwrite.com/2010/09/23/digg_redesign_tanks_traffic_down_26/
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1930s
Radio
1990s
Internet
1950s
TV
2010s
Mobile
Change…...
1600s
Printing press
1820s
Photography
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History
(Personal story)
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© 2015 EXACT - ONLINE BUITENKANSEN VOLGENS GOOGLE 12
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And adoption speed increases
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Source: http://www.nydailynews.com/life-style/smartphones-world-article-1.1295927
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per day
At bus stop, listen to new music playlist 8:30am
Buy new tote to take to Coachella 11:15am
Browse festival styles on YouTube 7:15pm
On bus, check email for sales this weekend 5:29pm
At lunch, play Scrabble while waiting in line 1:33pm
Use flashlight app to find dropped earring 11:09pm
Use maps to get directions to Creole food truck 1:13pm
At work, book Coachella tickets 11:36am
Wake up and read news online 6:50am
On the bus, read articles about Coachella 8:42am
150x
Source: http://www.criteo.com/news/press-releases/2016/05/mobile-commerce-at-the-tipping-point-almost-half-of-all-uk-ecommerce-transactions-now-take-place-on-mobile/
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Almost half of UK eCommerce transactions (48.9%) now take place on mobile devices, up 6 percent year-on-year.
Source: http://www.criteo.com/news/press-releases/2016/05/mobile-commerce-at-the-tipping-point-almost-half-of-all-uk-ecommerce-transactions-now-take-place-on-mobile/
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Confidential and Proprietary
50% 60%
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Proprietary + Confidential Proprietary + Confidential
Proprietary + Confidential
In 2016 we expect to see industries where more than 50% of traffic is mobile
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Are you prepared for the mobile tipping point?
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The cost of new technologies is declining fast
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Change is the new constant
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Confidential & Proprietary
Large firms struggle to keep up with digital innovation according to a recent study by KPMG and Harvey Nash
Source: http://www.consultancy.uk/news/2171/large-firms-struggle-to-keep-up-with-digital-innovation
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2 out of 3 digital transformation projects fail
According to a new study from Genpact
Source: http://www.consultancy.uk/news/2656/two-thirds-of-digital-transformation-projects-fail
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“Only 5% of organizations feel that digital gives
them a point of differentiation over their
competitors,”
according to an Accenture study published in October 2015.
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Large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less
value than predicted.
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17 percent of IT projects go so bad that they can threaten the very existence of the company
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Making the right digital decisions is difficult
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1955 vs. 2014;
88% are gone
Only 68 survived…..
Source: http://www.aei.org/publication/fortune-500-firms-in-1955-vs-2014-89-are-gone-and-were-all-better-off-because-of-that-dynamic-creative-destruction/
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Life expectancy of a company in the S&P 500
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Life expectancy of a company in the S&P 500
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Life expectancy of a company in the S&P 500
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Public Internet Company Capitalizations (1995 - 2015)
Source: http://www.slideshare.net/kleinerperkins/internet-trends-v1/6-6Public_Internet_Company_Market_Capitalizations
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Making the wrong decisions can have a big impact
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New possibilities in marketing
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Messages tailored to specific persons
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A dialogue is now possible instead of one way communication
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Right message
Right Time
Right Person
Right location
Right context
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1 on 1 combinations at scale
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Right time Right
message
Know your data Always on Know your
customer
Right Person
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But how do you know if you are making the right decision?
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Test your marketing to make the right decisions
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● Big redesigns are not the way to go ● New technologies are being adopted faster ● The mobile tipping point is coming ● Innovations is happening faster and faster
and large corporations are finding it difficult to adapt
● The impact of making the wrong decisions is getting bigger
● Test your marketing message at scale
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In a world of continuous change companies need to improve continuously…..
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Evolution not revolution
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Confidential & Proprietary
‘It is not the strongest of the species who survive, nor the most intelligent but the ones most
responsive to change’ Charles Darwin
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From Revolution to Evolution
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A 150 million pound website redesign that lead to a
8,1% decrease in online sales
Source: http://www.digital-tonic.co.uk/digital-tonic-blog/went-wrong-marks-spencer-website-redesign-made-lose-sales/
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How do you know you are making the rights decisions?
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Evolve through a framework of continuous a/b testing of incremental changes
Think big and make
incremental changes
A/B test & measure
true impact
Look at your
customer's behaviour
Look at your data
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Look at your
customer's behaviour
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Focus on the User
“There is no substitute for personally watching and listening to real people”
- Larry Page
Look at your
customer's behaviour
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Look at your
customer's behaviour
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Look at your
customer's behaviour
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Look at your
customer's behaviour
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Look at your
customer's behaviour
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Insights: The 25-34 years old mobile users are more likely to not add products to the cart. However,
on desktop, they’re the more likely to do so. Are we dealing with cross devices users?
Look at your data
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Think big and make
incremental changes
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Test and iterate / pilot
Think big and make
incremental changes
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Evolutionary design
Think big and make
incremental changes
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A B
A/B test & measure
true impact
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A/B test & measure
true impact
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Kohl’s hypothesis: The retailer set out to test the hypothesis that opening stores an hour later would not lead to a significant drop in sales
A/B test & measure
true impact
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So how do you know you are making decisions that create an impact?
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Evolve through a framework of continuous a/b testing of incremental changes
Think big and make
incremental changes
A/B test & measure
true impact
Look at your
customer's behaviour
Look at your data
![Page 68: Making the Right Decisions within a Continuously Changing Digital World - Google](https://reader031.vdocuments.mx/reader031/viewer/2022030307/58e863801a28ab007c8b50d7/html5/thumbnails/68.jpg)
30% of A/B tests is successful. This also means that if you do not a/b test, there is a 70% chance that if you implement a change on your website it will have no or a negative impact on your revenue.
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70%
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Appendix
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But……..
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Google confidential | Do not distribute
“If you’re Picasso don’t A/B test,
but for the rest of us it’s humbling
to evaluate our ideas….”
— By Colin McFarland, skyscanner
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Yes, but we’re already agile and using scrum
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Yes, but you cannot jump a 6 meter chasm in 2 10 foot jumps
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Yes, but we can start in 2017 at the earliest
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[email protected] http://savagemarketingtech.com