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LCMC Session: Email and Web Conversion Success
 

LCMC Session: Email and Web Conversion Success

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    LCMC Session: Email and Web Conversion Success LCMC Session: Email and Web Conversion Success Presentation Transcript

    • The Formula for Email and Web Conversion Success Jon Powell MECLABS MarketingSherpa | MarketingExperiments
    • Top Obstacles in Email Staffing, expertise Merging Email Data Creating consistent, relevant content
    • Evaluates performance from: • 1 billion+ sent and tracked email messages • Over 400 unique rules messages rules 1 billion+ email 400 unique
    • Anmessaging effectiveness Experiment Email
    • Test Scenario 1  Experiment ID: (protected) Location: MarketingExperiments Research Library Test Protocol Number: TP2092 Background: Large financial institution offering mortgages to consumers. Goal: To determine which claim of value will generate the most response. Primary research question: Which subject line will produce the greatest open rate and click rate? Approach: A/B/C single-factorial split
    • Test Scenario 1 Test Protocol ID: TP2092 Version A Looking for a lower mortgage rate? You’re not alone. SL Rating 63 Version B Discover the advantages of [Brand Name] mortgages 78 Version C Own your home sooner with free biweekly payments 81
    • Accurate Prediction  Version B & C generated a statistically significant improvement over A Subject Line Tool Rating Open Rate Rel. Diff. A Looking for a lower mortgage rate? You’re not alone. 63/100 18.08% - B Discover the advantages of [Brand Name] mortgages 78/100 19.80% 9.5% C Own your home sooner with free bi-weekly payments 81/100 20.99% 16.0%
    •  Accurate Prediction Mostly Accurate Prediction Version C still generated a statistically significant improvement over A B&C statistically significant improvement over A Subject Line Tool Rating Open Rate Click Rel. Rate Diff. Rel. Diff. A Looking for a lower mortgage rate? You’re not alone. 63/100 18.08% 0.61% - - B Discover the advantages of [Brand Name] mortgages 78/100 19.80% 0.57% 9.5% -7.4% C Own your home sooner with free bi-weekly payments 81/100 20.99% 16.0% 0.68% 11.3%
    • Test Scenario 2  Experiment ID: (protected) Location: MarketingExperiments Research Library Test Protocol Number: TP2078 Background: A well-known news publication Goal: To increase subscriptions from former subscribers who have been absent between one and two years Primary research question: Which subject line will produce the greatest open rate? Approach: A/B/C single-factorial split
    • Test Scenario 2 Test Protocol ID: TP2078 Version A Choose from 2 ways to save big on the NEW [PublicationName].com SL Rating 56 Version B Save 50% on your choice of two new subscription options 59 Version C Home Delivery comes with FREE access to [PublicationName].com 50
    • Inaccurate Prediction While Version A generated a statistically significant response, Version B did not Subject Line Tool Rating Open Rate Rel. Diff. A Choose from 2 ways to save big on the NEW [PublicationName].com 56/100 9.43% 50.2% B Save 50% on your choice of two new subscription options 59/100 7.01% 11.7% C Home Delivery comes with FREE access to [PublicationName].com 50/100 6.28% --
    • Inaccurate Prediction While Version A generated a statistically significant response, Version B did not Subject Line Tool Rating Open Rate Click Rel. Diff. Rate Rel Diff. A Choose from 2 ways to save big on the NEW [PublicationName].com 56/100 9.43% 1.48% 50.2% 86% B Save 50% on your choice of two new subscription options 59/100 7.01% 0.76% 11.7% -5.3% C Home Delivery comes with FREE access to [PublicationName].com 50/100 6.28% -0.80% --
    • Test Scenario 3 Test Protocol ID: TP2076 Version A Target MDs with Surveys and Panels SL Rating 94 Version B Reach 120,000 Physicians through Social Media 76
    • Inaccurate Prediction Version B generated a statistically significant higher response than A Subject Line A Target MDs with Surveys and Panels B Reach 120,000 Physicians through Social Media Tool Rating Open Rate Rel Diff. 94/100 21.30% -- 76/100 22.92% 7.6%
    • Inaccurate Prediction Version B generated a statistically significant higher response than A Subject Line A Target MDs with Surveys and Panels B Reach 120,000 Physicians through Social Media Tool Rating Open Rate Rel Diff. 94/100 21.30% -- 76/100 22.92% 7.6%
    • Experiment: Results After rating hundreds of subject lines from our library of statistically significant experiments… The tool predicts a winner: 31.57% of the time
    • The tool predicts a winner: A coin predicts a winner: 31.57% 50% of the time of the time 25¢ Subject Line Rating Tool Check Yours Now!
    • So what went wrong with the tool? Decisions based on violations: • • • • • • • • • • • Does not contain a sense of urgency Mobile subject line is over 35 characters Length is over 50 characters Contains any word that has more than 8 characters Includes one exclamation mark Use of a word in all caps Includes the word “You” or “Your” Contains comma Starts with Save Use of $ Contains % off
    • So what went wrong with the tool? Decisions based on violations: • • • • Does not contain a sense of urgency Mobile subject line is over 35 characters Length is over 50 characters Contains any word that has more than 8 characters Includes one exclamation mark Use of a word in all caps Includes the word “You” or “Your” Contains comma Starts with Save Use of $ Contains % off Computers are great with • computer logic; • • But not •so great with • • human logic •
    • The computer approach • Computer logic draws conclusions from algorithms, rules, switches and settings • Human logic draws conclusions from context, emotions, desires and belonging.
    • The computer approach In marketing… We tend to rely on rule sets • • • • • • • Emphasize the benefits Avoid long copy, use bullets Always include a call to action Keep it above the fold Emphasize hero shots Minimize compliance text Use tabs for additional info
    • The Research MarketingExperiments was the first Internet-based research lab to conduct experiments in optimizing the conversion rate of sales and marketing processes. 1992 Preliminary Research Begins 1997 Research Program Established 2001 First Research Report Published 2002 Testing of Research Partnership Model Begins 2003 Offer Response Optimization Theory Validated 2006 Patent Filings for Research Findings (10 Heuristics)
    • The Research MarketingExperiments was the first Internet-based research lab to conduct experiments in optimizing the conversion rate of sales and marketing processes. People judge emails, websites in the same way they judge people 1992 Preliminary Research Begins 1997 Research Program Established 2003 Offer Response Optimization Theory Validated 2006 Patent Filings for Research Findings (10 Heuristics) It’s not the change on the page; 2001 First Research Report Published 2002 Testing of Research Partnership Model Begins It’s the change in the mind
    • The Result Email Messaging Optimization Heuristic eme = rv(of + i) – (f + a) © eme = email messaging effectiveness index rv = relevance to the consumer of = offer to act upon i = incentive to take action f = friction elements of process a = anxiety elements of process
    • The Result eme = rv(of+i) – (f+a)
    • The Result eme = rv(of + i) – (f + a) Perceived Value eme = rv(of+i) – (f+a) © Perceived Cost a f i of
    • Relevance (rv) Increasing Perceived Value
    • Relevance eme = rv(of + i) – (f + a) © Relevance -- The compatibility of the email message to the recipient’s motivations.
    • Relevance From This eme = rv(of+i) – (f+a) To This
    • Relevance F Key Principles Internal motivations • • • • • • eme = rv(of+i) – (f+a) Personal interests Demographics Shopping habits Personality Communication styles Level of engagement External events • Environmental changes, realities • Holidays • News events • Competitive initiatives
    • Experiment  eme = rv(of+i) – (f+a) Experiment ID: Pier 1 Imports Location: MarketingSherpa Research Library Test Protocol Number: A-TP1002 Background: B2C home products company with a significant online and retail presence Goal: To increase the click-through rate from the email to the landing page Primary research question: Which email design will generate the most clicks? Approach: A/B/C/D split test (variable cluster)
    • Experiment eme = rv(of+i) – (f+a) Sample
    • Team A
    • Team B
    • Team C
    • Experiment Team A eme = rv(of+i) – (f+a) Team B Team C Sample
    • 18-52% Decrease in Click-through Each design achieved a statistically significant click-rate decrease Email Designs Click Rate Rel. Diff. Sample (client) 36.70% - Team A Design 17.68% -51.83% Team B Design 29.91% -18.50% Team C Design 24.07% -34.41%
    • eme = rv(of+i) – (f+a) Experiment Click-through rate comparison Team A Team C Team B Client 17.68% 24.07% 29.91% 36.70%
    • eme = rv(of+i) – (f+a) Experiment See a progression? Team A Team C Team B Client 17.68% 24.07% 29.91% 36.70%
    • Offer (of) Increasing Perceived Value
    • Offer eme = rv(of + i) – (f + a) © Offer -- The value you promise in exchange for an action (i.e. a click, a transaction)
    • Offer eme = rv(of+i) – (f+a) What really is the offer in email? • You may think that the offer is the product that you want to sell. • In reality it is the additional information they receive in exchange for a click. • What is the most effective way to get a click? Is it to give them an entire product pitch? Or just a part?
    • Offer eme = rv(of+i) – (f+a)
    • Experiment  eme = rv(of+i) – (f+a) Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP2801 Background: A physician-only social network that allows medical product companies to conduct first-hand research on potential purchasers. Goal: To increase the number of leads from a rented trade publication list. Primary research question: Which email design will generate the most opens, clicks? Approach: Multi-factorial sequential test on a trade publication list
    • Experiment eme = rv(of+i) – (f+a) Control PROTECTED Get started with a free 30-minute demo Get started with a free 30-minute demo This email assumes that readers understand the platform’s audience and thus focuses on platform uses It also assumes intent to purchase with multiple “Get Started” calls to action, one as early as the second sentence
    • Treatment This version focuses less on platform and more on its users The primary callto-action was written to synchronize with their state of interest PROTECTED
    • Experiment Control eme = rv(of+i) – (f+a) Treatment
    • 104% Increase in clicks Version B achieved a statistically significant increase in click-rate Email Click Rate Rel. Diff. Control 1.55% -- Treatment 3.16% 104%
    • Offer F eme = rv(of+i) – (f+a) Key Principles • In the body of the email, it is important to distinguish the difference between the product offer and the clickthrough offer.
    • Offer F eme = rv(of+i) – (f+a) Key Principles • In the body of the email, it is important to distinguish the difference between the product offer and the clickthrough offer. • Your communication of value starts with your subject line and should progress, like a conversation, throughout the entire conversion process
    • Offer eme = rv(of+i) – (f+a) Test Protocol ID: TP2076 Not this… Target MDs with Surveys and Panels But this… Reach 120,000 Physicians through Social Media 27.6% Increase in clicks
    • Offer eme = rv(of+i) – (f+a) From This To This
    • Incentive (i) Increasing Perceived Value
    • Incentive eme = rv(of + i) – (f + a) © Incentive – An additional element introduced to achieve a desired action.
    • Incentive F eme = rv(of+i) – (f+a) Key Principles • The purpose of an incentive is to increase the probability of immediate action by tipping the balance of emotional conflict inside the person
    • Incentive eme = rv(of+i) – (f+a) We typically think of… • Discounts (20% off, buy-one-get-one-free) • Order/Delivery (Free shipping, accelerated shipping, instant download • Add-ons (subscription extensions, warrantee extensions) • Content (Whitepapers, books, articles, reports , e-books) • Accompanying product Incentives • Free accessories (carrying case) • Complementary products (memory card)
    • Incentive eme = rv(of+i) – (f+a) Also consider including… • Instilled Deadlines • Standard promotions 24 hours only: Free shipping on… • Implied exclusivity 48-hour member exclusive: new fall styles… • Contests This is the last day to enter for your chance to… • Limited Availability Only 25 seats left to see register for...
    • Incentive F eme = rv(of+i) – (f+a) Key Principles • The purpose of an incentive is to increase the probability of immediate action by tipping the balance of emotional conflict inside the person • In email messaging, it can also include the use of artificial urgency, in which the immediacy associated with the offer is controlled by the marketer.
    • Friction (f) Decreasing Perceived Cost
    • Friction eme = rv(of + i) – (f + a) © Friction – Psychological resistance to a given element anywhere in the email process
    • Friction F eme = rv(of+i) – (f+a) Key Principles • Two common elements that create friction in the process are: • Length • Difficulty • The objective is to minimize, not eliminate friction. If you eliminate all friction, you eliminate “the sale.”
    • Friction eme = rv(of+i) – (f+a) Test Protocol ID: TP2089 1 Length But This Not this 21.2% Increase in clicks
    • Friction eme = rv(of+i) – (f+a) Test Protocol ID: TP2081 1 Length But This Not this 41.4% Increase in clicks 52.5% Increase in app starts
    • Friction eme = rv(of+i) – (f+a) Test Protocol ID: TP2026 2 Difficulty But this (1 Option) Not this (6 Options) 20% Increase in clicks 46% Increase in purchases
    • Friction eme = rv(of+i) – (f+a) Test Protocol ID: TP2026 2 Difficulty Not this But This 10% Increase in clicks
    • Friction eme = rv(of+i) – (f+a) Test Protocol ID: A-TP1002 What else contributed to differences in performance? Not This But This
    • Friction eme = rv(of+i) – (f+a) Test Protocol ID: A-TP1002 What else contributed to differences in performance? Not This But This
    • Anxiety (a) Decreasing Perceived Cost
    • Anxiety eme = rv(of + i) – (f + a) © Anxiety – Psychological concern stimulated by a given (or unaddressed) element in the email process
    • Anxiety eme = rv(of+i) – (f+a) They’re just hard water stains…
    • Anxiety F eme = rv(of+i) – (f+a) Key Principles • Anxiety is just as lethal to conversion as friction. • Try and mitigate anxiety rationally and you are likely to fail… • Though created from legitimate concern, its impact in the mind is often disproportionate to the reality of risk. • While website visitors are skeptical and cautious, the natural level of concern is even greater for email offer recipients.
    • Experiment  eme = rv(of+i) – (f+a) Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP2083 Background: A large event management online software provider. Goal: To increase total lead inquiries (phone calls + form sign-ups) from visitors who abandoned the free trial sign-up process. Primary research question: Which email tone will result in a higher rate of lead inquiries? Approach: A/B single factorial split
    • Experiment Control Subject Line: Your Free RegOnline Access Dear [Name], You’re just one step away from getting FREE access to RegOnline, our award winning Event Registration and Management Software. Quickly make an event website, try our event marketing tools, build a registration form template or even generate custom name badges. Click here to finish your profile and get started. Your personal profile is kept secure and we promise NEVER to sell or misuse your information. Have questions? Call us direct at 1-800-XXX-XXXX -- we can even set up your free access over the phone. Sincerely, Jon Powell Customer Service Representative RegOnline Direct: 1-800-XXX-XXXX ext. XXXX jon.powell@RegOnline.com • The control email uses a typical sales tone of a direct-response email.
    • Treatment Subject Line: Your Free RegOnline Access Hi [First], I noticed that you started the process of getting free access to RegOnline but weren’t able to finish. Are you concerned about giving out your phone number? Are you worried about high pressure sales tactics or mandatory contracts? We believe our product sells itself, so we’re just here to provide you with whatever assistance you need in getting your event up and running - in whatever way works best for you. We promise NEVER to sell or misuse your information. Call me direct at 1-800-XXX-XXXX and I can help get you rolling. If you’d rather just try again online, use this link instead. Thank you in advance for your trust! Sincerely, [Name of Representative] Customer Service Representative RegOnline Direct: 1-800-XXX-XXXX ext. XXXX [name]@RegOnline.com • The treatment directly addresses anxiety, taking on a categorical shift in tone – from a directresponse tone to a customer service tone.
    • Experiment Control Direct Response Tone eme = rv(of+i) – (f+a) Treatment Customer Service Tone
    • 349% Increase in lead inquiry rate The service tone achieved a statistically significant increase in inquiries Email Inquiry Rate Rel. Diff. Control 1.58% -- Treatment 7.08% 349.41%
    • Experiment  eme = rv(of+i) – (f+a) Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP2115 Background: National B2C, B2B financial company with an online and retail presence Goal: To increase account activity, engagement Primary research question: Which subject line will generate the most opens and clicks? Approach: A/B/C/D split test (variable cluster)
    • Experiment # ID1: ID2: ID3: ID4: ID5: ID6: ID7: ID8: ID9: ID10: ID11: ID12: ID13: eme = rv(of+i) – (f+a) Subject Line Tested [Name], Your Account Information is Ready To View Save Time by Paying Your Bills Online Did you forget your [Bank Name] Online username or password? Manage your money more effectively with [Bank Name] Online Your Account Information is Ready to View Check your account balance online, anytime. Sign on now. Sign on to your [Bank Name] checking account It's easy to log-in to your [Bank Name] account online Sign on to your checking account Check your account balance online, anytime Easily manage your accounts in one place with [Bank Name] Online Don't forget to access your [Bank Name] account online Save time managing your money with [Bank Name] Online
    • Experiment # ID1: ID2: ID3: ID4: ID5: ID6: ID7: ID8: ID9: ID10: ID11: ID12: ID13: eme = rv(of+i) – (f+a) Subject Line Tested Open [Name], Your Account Information is Ready To View 30.77% Save Time by Paying Your Bills Online 30.70% Did you forget your [Bank Name] Online username or password? 28.49% Manage your money more effectively with [Bank Name] Online 28.21% Your Account Information is Ready to View 26.97% Check your account balance online, anytime. Sign on now. 25.23% Sign on to your [Bank Name] checking account 25.21% It's easy to log-in to your [Bank Name] account online 24.43% Sign on to your checking account 21.26% Check your account balance online, anytime 20.44% Easily manage your accounts in one place with [Bank Name] Online19.32% Don't forget to access your [Bank Name] account online 19.27% Save time managing your money with [Bank Name] Online 16.53%
    • Experiment # ID1: ID2: ID3: ID4: ID5: ID6: ID7: ID8: ID9: ID10: ID11: ID12: ID13: eme = rv(of+i) – (f+a) Subject Line Tested Open [Name], Your Account Information is Ready To View 30.77% Save Time by Paying Your Bills Online 30.70% Did you forget your [Bank Name] Online username or password? 28.49% Manage your money more effectively with [Bank Name] Online 28.21% Your Account Information is Ready to View 26.97% Check your account balance online, anytime. Sign on now. 25.23% Sign on to your [Bank Name] checking account 25.21% It's easy to log-in to your [Bank Name] account online 24.43% Sign on to your checking account 21.26% Check your account balance online, anytime 20.44% Easily manage your accounts in one place with [Bank Name] Online19.32% Don't forget to access your [Bank Name] account online 19.27% Save time managing your money with [Bank Name] Online 16.53%
    • Experiment # ID3: ID1: ID9: ID5: ID7: ID12: ID10: ID6: ID8: ID11: ID4: ID13: ID2: eme = rv(of+i) – (f+a) Subject Line Tested Click Open Did you forget your [Bank Name] Online username or password? 30.77% 4.59% [Name], Your Account Information is Ready To View 4.44% 30.70% Sign on to your checking account 4.40% 28.49% Your Account Information is Ready to View 4.34% 28.21% Sign on to your [Bank Name] checking account 3.84% 26.97% Don't forget to access your [Bank Name] account online 3.64% 25.23% Check your account balance online, anytime 3.59% 25.21% Check your account balance online, anytime. Sign on now. 3.47% 24.43% 2.90% It's easy to log-in to your [Bank Name] account online 21.26% Easily manage your accounts in one place with [Bank Name] Online20.44% 1.94% Manage your money more effectively with [Bank Name] Online 19.32% 1.70% Save time managing your money with [Bank Name] Online 1.54% 19.27% 1.05% Save Time by Paying Your Bills Online 16.53%
    • Live Optimization Email Messaging Effectiveness
    • Live Optimization  eme = rv(of+i) – (f+a) Partner ID: The New York Times Location: MarketingExperiments Research Library Test Protocol Number: TP2802 Background: Internationally recognized news service known for their journalism. Our Goal: To significantly increase subscriptions. Primary research question: Which email will generate the greatest subscription rate? Approach: A/B split test (variable cluster)
    • Live Optimization eme = rv(of+i) – (f+a) The Subscription Product Offering A subscription to the NY Times • Home delivery of the Print edition • Unlimited, unrestricted access to articles online, in their smartphone and tablet apps • Free digital access for one family member or friend • Subscriber only special offers, discounts, invitations Incentive • 50% off for the first 12 weeks
    • The List
    • THE CONTROL Subject Line: Open this now for Special Savings
    • BEFORE AFTER
    • 62% Increase in Conversions The treatment increased the subscription conversion rate by 62.1% Email + Subject Line Open Rate* % Rel. Change Click Rate* % Rel. Change Conv. Rate* % Rel. Change Control 13.50% -- 0.67% -- .008% -- Treatment 15.60% 15.5% 1.01% 99% 50.7% 99% .013% 62.1% *Note: Absolute data points are anonymized, relative differences are actual 96%
    • Review Email Messaging Effectiveness
    • Review Pay attention to the change in the mind; not the change in the content eme = rv(of + i) – (f + a) © Perceived Value i Perceived Cost a o f f
    • Review F eme = rv(of+i) – (f+a) Key Principles • There’s a story behind everything that’s bought. This occurs on two levels: internal and external • It is important to distinguish the difference between the product offer and the click-through offer. • Consider the use of artificial urgency as an incentive to take action • Aggravation in email messaging can occur on two levels: length and difficulty • The natural level of concern in email is strong; do not try to mitigate it rationally.
    • February 17-20 Aria Las Vegas FLINT MCGLAUGHLIN DAN ARIELY NOAH GOLDSTEIN The longest running research-based email marketing event Plus, brand side marketers and tactical training sessions MECLABS.com/Email