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What you’re missing in
A/B email testing
@jonathanpay | @HolisticEmail | #LitmusLive
Jonathan Pay
Consultant
Holistic Email Marketing
@jonathanpay
jonathan@holisticemail.com
@jonathanpay | @HolisticEmail | #LitmusLive
Testing in email
@jonathanpay | @HolisticEmail | #LitmusLive
@jonathanpay | @HolisticEmail | #LitmusLive
US Interactive Marketing Spend 2016 Orders by Marketing Channel
Forrester
Custora
@jonathanpay | @HolisticEmail | #LitmusLive
@jonathanpay | @HolisticEmail | #LitmusLive
Spend vs Orders by Email Channel
Spend Orders
3% spend 18% orders
@jonathanpay | @HolisticEmail | #LitmusLive
-5%
15%
-35%
-2%
-40%
-30%
-20%
-10%
0%
10%
20%
Comparison
Social
Email
Display
Search
@jonathanpay | @HolisticEmail | #LitmusLive
And that’s with the
attribution being
inaccurate!
57% save the email for
later
48% bear the information
in mind for later.
47% go to the website via
another route
DMA UK
@jonathanpay | @HolisticEmail | #LitmusLive
@jonathanpay | @HolisticEmail | #LitmusLive
The 2017 Email Benchmarking Report produced by Digital Doughnut & Dotmailer
Results
Resources
Recognition
@jonathanpay | @HolisticEmail | #LitmusLive
Why test?
You want to find out what resonates with your
prospects and customers, so they’re more likely to
action your objective. Simple!
@jonathanpay | @HolisticEmail | #LitmusLive
A/B testing
Multivariate testing
@jonathanpay | @HolisticEmail | #LitmusLive
A/B Example
A/B Control SL: Our sale is on now! Get 15% off today!
A/B Variant SL: Our sale is on today! Get 15% off now!
@jonathanpay | @HolisticEmail | #LitmusLive
Multivariate Example
M/V Control SL: Our sale is on now! Get 15% off
today!
M/V Variant SL: Our sale is on today! Get 15% off
now!
M/V Control CTA: Blue
M/V Variant CTA: Red
@jonathanpay | @HolisticEmail | #LitmusLive
M/V Control Image 1
M/V Variant Image 2
@jonathanpay | @HolisticEmail | #LitmusLive
A
B
A
B
A
B
A definition of Holistic testing
This is a regularly-performed test based on a
hypothesis, with the two-fold aim of not only finding
out which version delivers the best result, but also
aims to discover insights about the audience.
@jonathanpay | @HolisticEmail | #LitmusLive
It needs to center around 3 main
things
1. Presumed problem
2. Proposed solution
3. Anticipated result (and reason why)
@jonathanpay | @HolisticEmail | #LitmusLive
A hypothesis can be
proved or disproved
@jonathanpay | @HolisticEmail | #LitmusLive
Holistic testing example
Hypothesis: Loss aversion copy is a stronger
motivator towards conversions than benefit-led copy
because people hate losing out more than they enjoy
benefiting.
Control SL: Our sale is on now! Get 15% off today!
Control CTA: Shop now
Variant SL: 15% off today only. Don’t miss out!
Variant CTA: Don’t miss out – shop now
@jonathanpay | @HolisticEmail | #LitmusLive
Most commonly tested design
factors on websites
colour (changing the colour of elements on a website)
+0.0% uplift
buttons (modifying website buttons) -0.2% uplift
calls to action (changing the wording on a website to
be more suggestive) -0.3% uplift
@jonathanpay | @HolisticEmail | #LitmusLive
The	meta-analysis	of	6,700	ecommerce	experiments
qubit.com/research/what-works-in-ecommerce
For greater scope and results, test
motivations
scarcity (stock pointers) +2.9% uplift
social proof (informing users of others’ behaviour)
+2.3% uplift
urgency (countdown timers) +1.5% uplift
@jonathanpay | @HolisticEmail | #LitmusLive
The	meta-analysis	of	6,700	ecommerce	experiments
qubit.com/research/what-works-in-ecommerce
Who makes up your email
database?
Your target market
@jonathanpay | @HolisticEmail | #LitmusLive
1.
Identify your objective
@jonathanpay | @HolisticEmail | #LitmusLive
2.
Have a desire to learn about
your audience
@jonathanpay | @HolisticEmail | #LitmusLive
3.
Identify the question you’re
trying to answer
@jonathanpay | @HolisticEmail | #LitmusLive
4.
Create a hypothesis
@jonathanpay | @HolisticEmail | #LitmusLive
Let’s look at some hypotheses used
in email
@jonathanpay | @HolisticEmail | #LitmusLive
Hypothesis:
Emotional question will generate more sales than a directive statement.
“Double Loyalty points” will generate more sales than “2X loyalty points”.
Emotive image of person smiling & wearing outfit will generate more sales than
displaying outfit laid out.
5.
Select the factors to test
@jonathanpay | @HolisticEmail | #LitmusLive
Let’s look at some factors to test
your hypotheses
@jonathanpay | @HolisticEmail | #LitmusLive
Hypothesis: Factors tested:
Emotional question will generate more sales than a
directive statement.
Subject line, CTA, title, copy
“Double Loyalty points” will generate more sales than
“2X loyalty points”.
Subject line, CTA, title, copy
Emotive image of person smiling & wearing outfit will
generate more sales than displaying outfit laid out.
Image
6.
Identify your success
metric
@jonathanpay | @HolisticEmail | #LitmusLive
Focus on & measure the correct
metric!
A: Increased total orders by 21%
And revenue by 35%, even though A had a 10.5%
lower open rate than B.
Sent 50/50 split test over 4 weeks to abandoners
@jonathanpay | @HolisticEmail | #LitmusLive
A Reminder: Items Saved in Your Cart – Shop Now for an
Extra 10% off
B Come back and Save an Extra 10%
Native Remedies
7.
Analyse and learn
@jonathanpay | @HolisticEmail | #LitmusLive
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 together, and they add up to a
significant gain. “It means taking the 1% from
everything you do; finding a 1% margin for
improvement in everything you do.”
@jonathanpay | @HolisticEmail | #LitmusLive
Create a test plan
@jonathanpay | @HolisticEmail | #LitmusLive
Metrics & Fields to include
Total Sent
Open Rate
Click to Open Rate
Products purchased
Conversion Rate
AOV
Statistical Confidence
Conclusion
Recommendation
@jonathanpay | @HolisticEmail | #LitmusLive
@jonathanpay | @HolisticEmail | #LitmusLive
Test the hypothesis multiple times
To ensure it wasn’t an anomaly. Because you’re
performing hypothesis-led tests you can:
• Use different wording
• Potentially use multiple factors
As long as it supports the hypothesis
@jonathanpay | @HolisticEmail | #LitmusLive
Statistical Validity
@jonathanpay | @HolisticEmail | #LitmusLive
abtestguide.com/calc/
Results
Resources
Recognition
@jonathanpay | @HolisticEmail | #LitmusLive
8.
Roll results out to other
channels
@jonathanpay | @HolisticEmail | #LitmusLive
Let’s look at some channels to share
your insights with
@jonathanpay | @HolisticEmail | #LitmusLive
Hypothesis: Factors tested: Can share with:
Emotional question will generate more
sales than a directive statement.
Subject line, CTA, title,
copy
Website, landing
pages, banner ads,
PPC ads, social media,
retargeting ads
“Double Loyalty points” will generate
more sales than “2X loyalty points”.
Subject line, CTA, title,
copy
Website, landing
pages, retargeting
ads, social media
Emotive image of person smiling &
wearing outfit will generate more sales
than displaying outfit laid out.
Image
Website, landing
pages, banner ads,
social media,
retargeting ads
Perform tests in email
@jonathanpay | @HolisticEmail | #LitmusLive
Roll these insights out to
other channels &
continually optimise
@jonathanpay | @HolisticEmail | #LitmusLive
@jonathanpay | @HolisticEmail | #LitmusLive
A A
B
?
Website
Landing pages
PPC
Social
Banner ads
Retargeting
B
A
B
9.
Bring more ££ & value into
email marketing!
@jonathanpay | @HolisticEmail | #LitmusLive
@jonathanpay | @HolisticEmail | #LitmusLive
www.holisticemail.com
hello@holisticemail.com
@holisticemail
@jonathanpay | @HolisticEmail | #LitmusLive

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What you're missing in A/B email testing

  • 1. What you’re missing in A/B email testing @jonathanpay | @HolisticEmail | #LitmusLive
  • 2. Jonathan Pay Consultant Holistic Email Marketing @jonathanpay jonathan@holisticemail.com @jonathanpay | @HolisticEmail | #LitmusLive
  • 3. Testing in email @jonathanpay | @HolisticEmail | #LitmusLive
  • 5. US Interactive Marketing Spend 2016 Orders by Marketing Channel Forrester Custora @jonathanpay | @HolisticEmail | #LitmusLive
  • 7. Spend vs Orders by Email Channel Spend Orders 3% spend 18% orders @jonathanpay | @HolisticEmail | #LitmusLive
  • 9. And that’s with the attribution being inaccurate! 57% save the email for later 48% bear the information in mind for later. 47% go to the website via another route DMA UK @jonathanpay | @HolisticEmail | #LitmusLive
  • 10. @jonathanpay | @HolisticEmail | #LitmusLive The 2017 Email Benchmarking Report produced by Digital Doughnut & Dotmailer
  • 12. Why test? You want to find out what resonates with your prospects and customers, so they’re more likely to action your objective. Simple! @jonathanpay | @HolisticEmail | #LitmusLive
  • 13. A/B testing Multivariate testing @jonathanpay | @HolisticEmail | #LitmusLive
  • 14. A/B Example A/B Control SL: Our sale is on now! Get 15% off today! A/B Variant SL: Our sale is on today! Get 15% off now! @jonathanpay | @HolisticEmail | #LitmusLive
  • 15. Multivariate Example M/V Control SL: Our sale is on now! Get 15% off today! M/V Variant SL: Our sale is on today! Get 15% off now! M/V Control CTA: Blue M/V Variant CTA: Red @jonathanpay | @HolisticEmail | #LitmusLive M/V Control Image 1 M/V Variant Image 2
  • 16. @jonathanpay | @HolisticEmail | #LitmusLive A B A B A B
  • 17. A definition of Holistic testing This is a regularly-performed test based on a hypothesis, with the two-fold aim of not only finding out which version delivers the best result, but also aims to discover insights about the audience. @jonathanpay | @HolisticEmail | #LitmusLive
  • 18. It needs to center around 3 main things 1. Presumed problem 2. Proposed solution 3. Anticipated result (and reason why) @jonathanpay | @HolisticEmail | #LitmusLive
  • 19. A hypothesis can be proved or disproved @jonathanpay | @HolisticEmail | #LitmusLive
  • 20. Holistic testing example Hypothesis: Loss aversion copy is a stronger motivator towards conversions than benefit-led copy because people hate losing out more than they enjoy benefiting. Control SL: Our sale is on now! Get 15% off today! Control CTA: Shop now Variant SL: 15% off today only. Don’t miss out! Variant CTA: Don’t miss out – shop now @jonathanpay | @HolisticEmail | #LitmusLive
  • 21. Most commonly tested design factors on websites colour (changing the colour of elements on a website) +0.0% uplift buttons (modifying website buttons) -0.2% uplift calls to action (changing the wording on a website to be more suggestive) -0.3% uplift @jonathanpay | @HolisticEmail | #LitmusLive The meta-analysis of 6,700 ecommerce experiments qubit.com/research/what-works-in-ecommerce
  • 22. For greater scope and results, test motivations scarcity (stock pointers) +2.9% uplift social proof (informing users of others’ behaviour) +2.3% uplift urgency (countdown timers) +1.5% uplift @jonathanpay | @HolisticEmail | #LitmusLive The meta-analysis of 6,700 ecommerce experiments qubit.com/research/what-works-in-ecommerce
  • 23. Who makes up your email database? Your target market @jonathanpay | @HolisticEmail | #LitmusLive
  • 24. 1. Identify your objective @jonathanpay | @HolisticEmail | #LitmusLive
  • 25. 2. Have a desire to learn about your audience @jonathanpay | @HolisticEmail | #LitmusLive
  • 26. 3. Identify the question you’re trying to answer @jonathanpay | @HolisticEmail | #LitmusLive
  • 27. 4. Create a hypothesis @jonathanpay | @HolisticEmail | #LitmusLive
  • 28. Let’s look at some hypotheses used in email @jonathanpay | @HolisticEmail | #LitmusLive Hypothesis: Emotional question will generate more sales than a directive statement. “Double Loyalty points” will generate more sales than “2X loyalty points”. Emotive image of person smiling & wearing outfit will generate more sales than displaying outfit laid out.
  • 29. 5. Select the factors to test @jonathanpay | @HolisticEmail | #LitmusLive
  • 30. Let’s look at some factors to test your hypotheses @jonathanpay | @HolisticEmail | #LitmusLive Hypothesis: Factors tested: Emotional question will generate more sales than a directive statement. Subject line, CTA, title, copy “Double Loyalty points” will generate more sales than “2X loyalty points”. Subject line, CTA, title, copy Emotive image of person smiling & wearing outfit will generate more sales than displaying outfit laid out. Image
  • 31. 6. Identify your success metric @jonathanpay | @HolisticEmail | #LitmusLive
  • 32. Focus on & measure the correct metric! A: Increased total orders by 21% And revenue by 35%, even though A had a 10.5% lower open rate than B. Sent 50/50 split test over 4 weeks to abandoners @jonathanpay | @HolisticEmail | #LitmusLive A Reminder: Items Saved in Your Cart – Shop Now for an Extra 10% off B Come back and Save an Extra 10% Native Remedies
  • 33. 7. Analyse and learn @jonathanpay | @HolisticEmail | #LitmusLive
  • 34. 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 together, and they add up to a significant gain. “It means taking the 1% from everything you do; finding a 1% margin for improvement in everything you do.” @jonathanpay | @HolisticEmail | #LitmusLive
  • 35. Create a test plan @jonathanpay | @HolisticEmail | #LitmusLive
  • 36. Metrics & Fields to include Total Sent Open Rate Click to Open Rate Products purchased Conversion Rate AOV Statistical Confidence Conclusion Recommendation @jonathanpay | @HolisticEmail | #LitmusLive
  • 38. Test the hypothesis multiple times To ensure it wasn’t an anomaly. Because you’re performing hypothesis-led tests you can: • Use different wording • Potentially use multiple factors As long as it supports the hypothesis @jonathanpay | @HolisticEmail | #LitmusLive
  • 39. Statistical Validity @jonathanpay | @HolisticEmail | #LitmusLive abtestguide.com/calc/
  • 41. 8. Roll results out to other channels @jonathanpay | @HolisticEmail | #LitmusLive
  • 42. Let’s look at some channels to share your insights with @jonathanpay | @HolisticEmail | #LitmusLive Hypothesis: Factors tested: Can share with: Emotional question will generate more sales than a directive statement. Subject line, CTA, title, copy Website, landing pages, banner ads, PPC ads, social media, retargeting ads “Double Loyalty points” will generate more sales than “2X loyalty points”. Subject line, CTA, title, copy Website, landing pages, retargeting ads, social media Emotive image of person smiling & wearing outfit will generate more sales than displaying outfit laid out. Image Website, landing pages, banner ads, social media, retargeting ads
  • 43. Perform tests in email @jonathanpay | @HolisticEmail | #LitmusLive
  • 44. Roll these insights out to other channels & continually optimise @jonathanpay | @HolisticEmail | #LitmusLive
  • 45. @jonathanpay | @HolisticEmail | #LitmusLive A A B ? Website Landing pages PPC Social Banner ads Retargeting B A B
  • 46. 9. Bring more ££ & value into email marketing! @jonathanpay | @HolisticEmail | #LitmusLive