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Conversion Optimization Framework to Build Sustainable and Repeat Growth


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The goal of the this presentation on Conversion optimization Framework is to remove the guesswork from the conversion optimization process. It provides comprehensive analysis to anyone interested in optimization with a specific methodology to produce consistent results.

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Conversion Optimization Framework to Build Sustainable and Repeat Growth

  1. 1. ADVANT Multipurpose Presentation 2017 CONVERSION OPTIMIZATION FRAMEWORK
  2. 2. Index 1.Conversion Optimization Process 2.Why Conversion Optimization & How? 3.Targeting Options 4.Targeting Methodology 5.Conversion Optimization Framework i. Conversion Research ii. Hypothesis Idea iii. Architect idea iv. Measuring A/B test v. Global Rollout vi. Sharing Results with wider groups
  3. 3. Tushar Purohit Conversion Specialist Hi, I’m Tushar. I co-founded As Innovation happens at the edges & at the intersections of product/marketing. I live at the intersection. On this premise, I founded Growthvalleys in 2016, with the aim of building and executing conversion optimization strategies, creating better user journeys and online experiences using emotional targeting, qualitative & Quant ITive analysis I’ve over 10+ years of experience in AB- testing from companies like, and Capillary Tech where creating high volume conversion optimization teams.
  4. 4. Conversion Optimization Process @tushargp Optimization is the ongoing, data driven process of continually discovering and quantifying the most effective experience for your customers. Testing and testing platforms coupled with processes, enable organizations to adopt a culture of optimization.
  5. 5. Why Conversion Optimization & How? • Checkout • Homepages • Brand pages • Product Detail Page • Shopping Cart • Registration Pages • My Account • Brand Pages WHERE ? PERSONALIZATIONWHY:- • Improve Visitor Experience • Optimize the layout • Experiment • Identify Opportunity Areas • Reduce Bounce / Exit Rates • Define right content • Personas targeting • Personalized Homepage • High Value customers • Abandoned cart basket • Target users interested in specific SKU’s or categories • Target users based on referral channel @tushargp
  6. 6. Targeting Options Geo Country State City Zip Code Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Network ISP Domain Name Connection Speed Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Mobile Device Name Device Model Device vendor in Mobile Device Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. OS Linux Macintosh Windows Visitor New Visitor Returning Visitor In other test First Page of Session Not in other test Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Browser Type Language Version Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Site Pages Current Page Previous Page Landing Page HTTP Header Vestibulum congue tempus Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Traffic Source Baidu Google Facebook Youtube @tushargp Time Frame Flexibility to choose a time range and or apply week and day parting Start Date End Date
  7. 7. Targeting Methodology Customer/prospect New/return visitor Previous visit patterns Previous Product interests Searches Previous online purchases Previous Campaign exposure Previous Campaign responses Site Behaviour Variables IP address Country of origin Time zone Operating system Browser type Screen resolution Environment Variables Temporal Variables Time of day Day of week Recency Frequency Referring domain Campaign ID Affiliate PPC Natural search Direct/bookmark Referrer Variables @tushargp
  8. 8. ADVANT Multipurpose Presentation 2017 CONVERSION OPTIMIZATION FRAMEWORK
  9. 9. Why We Need Framework There is a problem with conversion rate optimization: It looks easy. Most of us with some experience working online can take a look at a website and quickly find problems that may prevent someone from converting into a customer. There are a MANY such problems that are quite common. @tushargp
  10. 10. Why We Need Framework (continue..) A/B testing can impact major customer journey, therefor it is important to have the framework for the following reasons :- • To protect the overall customer experience • Need to test/measure everything • Testing can take time • Not every test is a winner – Failing fast is a good thing • There is no fail or pass but it’s a process to move temporary tests onto your website product plan as its a continuous process of data collection • Analytics should be fully integrated into the process • Need lots of ideas – based on research and data • Process should be developed and integrated in a agile & quick, and also balances in place • Customers hate popups • What are the rules for certain design patterns? Overlays; Toaster; Alerts etc • Define espots and pages that marketing can update • Promotions may conflict and overlap • Ensure all ideas are well thought through with ROI @tushargp
  11. 11. ADVANT Multipurpose Presentation 2017 Step 1 CONVERSION RESEARCH
  12. 12. Conversion Research In the next steps we’ll look at each step individually (first 2 process + big picture) Conversion research is a strategic approach focused on identifying and interpreting Quantitative/Qualitative data to find possible points of friction in a sales funnel – and ultimately, to increase the overall conversion rate. Primarily there are 2 steps of data gathering and analysis, followed by creating a master sheet of all found issues that then turn into action items.
  13. 13. Qualitative Research – Listen your Customers What do users like or dislike about your web site, mobile site, app? How easy is it for users to perform core tasks? Would they recommend your site to others? What are their recommendations for improving it? Get survey responses, information architecture research, clickstream, heatmaps from your users and keep your finger on the pulse of your audience. @tushargp
  14. 14. Methodologies for Qualitative Research • Surveys:- Helps companies to listen voice of customers and make informed objective decisions based on what you know your users want. • Information Architecture:- Leverage different research methods within the same study for greater confidence in taxonomy like navigation structure • Heatmaps :- Helps you to understand what users want, care about and interact with on your site by visually representing their clicks, taps and scrolling behavior. @tushargp
  15. 15. Surveys Run better surveys by :- • Logic, Conditions & Piping :- Allow you to screen participants, show or hide questions, and dynamically carry responses through to subsequent questions, based on their responses. • Live Intercepts :- Create targeted intercepts to get the right people, at the right time, for projects or for your private panel. • User Feedback Monitoring for CX & VOC Programs Continuously capture insights and track behavior to provide the most valuable experience for your users. Use NPS, ease of use, brand perception and other survey types to add attitudinal data to your behavioral insights to monitor overall user and customer satisfaction. @tushargp
  16. 16. Information Architecture Research Information architecture:- help you test your navigation and validate that taxonomy is intuitive in the following way • Design your IA Run open and closed card sort studies for your users to intuitively group items together so you can optimize your site for findability. • Test Your Navigation Minimize risk and validate your IA by running screenshot click tests, timeout tests and tree tests • Combine Multiple Methods Leverage different research methods within the same study for greater confidence in your taxonomy View and analyze what path participants are taking through your site to complete their tasks and what percentage of them are successful, where they complete, and where they abandon. @tushargp
  17. 17. Heatmaps & UX Metrics Heatmaps See exactly how your users are behaving and where they’re clicking on a page. Analyst firms report as much as nine-fold revenue improvements from the application of behavioral data. UX Metrics Don’t guess – measure, but gather quantitative UX metrics such as success rates, time on task, page views and number of clicks with UX metrics @tushargp
  18. 18. Centralization all Feedback & Findings UX Feedback Issue Issue Insight/Problem Status How can we fix it Latest update Homepage Natural Search Traffic (SEO) Richer dypages deemed more relevant by search engines. The more customized dynamic pages built, the greater the impact. Reviewed We need to review how customers can add new shipping / billing addresses independantly Redesigning checkout! investigate options to manage this situation if the 20 min period cannot be extended can we make this stand out more on the cart? Sitewide Checkout Search PDP PDP Search Login / Register PDP Checkout Search Paid Search Traffic (SEM) More mid-tail traffic will come from natural search, reducing the amount of clicks / traffic from paid search terms Under Progress We need to review how customers can add new shipping / billing addresses independantly Redesigning checkout! investigate options to manage this situation if the 20 min period cannot be extended can we make this stand out more on the cart? Sitewide Checkout Search PDP PDP Search Login / Register PDP Checkout Search Shopping Cart Add to shopping cart rate Merchants can build customized dynamic pages to boost conversion on lowest performing areas of site, or highest value areas. Merchants can also introduce richer content such as reviews, customer profile information, videos, buyer guides, etc. through pre- built cartridges and CAS integration, which increases conversion rate. Size of impact relative to number of customized pages Cant test We need to review how customers can add new shipping / billing addresses independantly Redesigning checkout! investigate options to manage this situation if the 20 min period cannot be extended can we make this stand out more on the cart? Sitewide Checkout Search PDP PDP Search Login / Register PDP Checkout Search Cart to purchase rate / increase orders Merchants can introduce content that builds confidence, such as buyer guides, expert reviews, or peer reviews. For example, if someone was able to isolate a product that is the top selling and top rates among "people like me", they are more likely to feel confident that it's the right one, they don't need to keep looking, and make the purchase. Reviewed We need to review how customers can add new shipping / billing addresses independantly Redesigning checkout! investigate options to manage this situation if the 20 min period cannot be extended can we make this stand out more on the cart? Search Average order size (AOV) Merchants can use Experience Manager to deploy dynamic merchandising zones to those areas with good cross sell and up sell opportunities. Merchants can also introduce review and expert opinions that help justify spending more on certain brands and items. Under process Sitewide Checkout Search PDP PDP Search Login / Register PDP Checkout Search Product detail pages Marketing capacity Business user control and faster development of websites and new pages Centralize all your feedback in one place in order to respond them quicker and efficient way:- Give each feedback as priority score :- • So that the most important issues bubble to the top. • Priority is based on Frequency Raised and the impact to the customer experience. Launch Customer usability sessions Dedicated session to understand customers in focused groups Launch Monthly session Monthly session to be set up to review feedback with all key stakeholder @tushargp
  19. 19. Data & Analytics You have a strategy? Great, measure it. Build a your site and then complete picture. Gain deeper insights into how users from your Ads campaigns engage with identify leaks to create custom site experiences using the audiences you’ve already created in Analytics. @tushargp
  20. 20. Metrics to consider for ? • Where are we leaking sales • Conversion funnels • Deep dives – Laser focus on topics/trends • Segmentation – Slicing the data • Check the Funnel Performance • Conversions per browser version • Check conversions and bounce rate per device • Identify high traffic & high bounce / high exit rate pages • High traffic/High bounce/Low Conversion Landing • Which screen resolution boosts bounce rates? • High traffic / Low speed Pages • Check user flows • Analyze new vs returning Analytics Funnel Reports Overall Website Revenue FY17 FY18 Cumulative $2,772,132 $4,631,676 $7,587,500 Details Traffic to Site Visits from Natural Search FY17 FY18 Cumulative 24,159 48,318 72,477 On Site Conversion Visits from Shopping Sessions FY17 FY18 Cumulative 16,723 31,600 44,626 Overall Orders FY17 FY18 Cumulative 4,905 9,524 13,855 Average Order Value FY17 FY18 Cumulative $0.68 $1.72 $4.30 Revenue Impact FY17 FY18 Cumulative $1,645,074 $3,495,541 $6,437,749 Supplier Advertising Revenue Impact FY17 FY18 Cumulative $1,122,520 $1,622,520 $3,140,000 Paid Search Cost Reduction Next Steps is to identify the best practices for Idea Generation
  21. 21. Best Practices for Idea Generation • Browse to the page as a customer:- Ask the below questions yourself and you will get the ideas. • Content / Message - Am I seeing what I wanted to see in the first 10 seconds? • Information / Additional Specs - Are the supporting details enough to let me decide on the product / services? • CTA - Is there any button which allows me to move ahead for further details? • Design – Is the website design / motion banners appealing to my eyes to act? • Time – Am I spending too much time to do what I wanted (form fill, buy, login)? • Trust – Does the page have enough information to trust the site? • Reach – Is there any contact us information available on the page? • Standards – Are there standard links like ‘About Us’, ‘Social Media’, ‘Terms’ on the page? • Headlines – Simple, Clear and Action Driven • CTAs and Navigation Bars – Prominent Buttons, Breadcrumbs, Menu Items. • Search Functionalist and Placement – Always on the top right section of the page • Action driven content (Know More, View Details) – Cut short the content and give CTAs • Easy Access to Login / Cart/ Forms / Downloads – One click to access the collaterals • Layout based on Page Type – Standard templates for Home, Product Detailed, Cart and Payment Pages • Everything (almost) above the fold – Main CTA should be accessible above the fold • Balanced use of white space and colors – Optimal use of white space and background colors to CTA buttons @tushargp
  22. 22. ADVANT Multipurpose Presentation 2017 Step 2 PRIORTIZE & HYPOTHESIS
  23. 23. Step 2 :- Hypothesis Idea & Prioritization @tushargp
  24. 24. Hypothesis Idea A hypothesis is a prediction you create prior to running an experiment. It states clearly what is being changed, what you believe the outcome will be, and why you think that’s the case. Running the experiment will either prove or disprove your hypothesis. @tushargp
  25. 25. Hypothesis Idea • Identify goals and key metrics • Create Hypothesis • Estimate test duration with a sample size • Prioritize experiments with projected ROI • QA the experiment • Set test live • Record and share results Company Metric Business Unit Optimization Goals Experiment Goals 4. Company Metric- Optimizing full customer lifecycle value 3.Business Unit – Strategies for enhancing average order value 2.Optimization Goal – Increase revenue engagement per visitor 1. Experiment – Increase Engagement on site (for example with Community) @tushargp
  26. 26. Prioritization @Tushargp • A strong prioritization process arms a conversion optimization research with the answer: “here’s what we’ll test, in what order, and here’s why.” • How big a difference:- that we can expect to see with the proposed change compared to the status quo? • Product :- Different areas of your product perform? • Funnel :- How each part of your funnel converts which will helps you decide of an effect you’d need to see for the new change to be worth it. • Technical :- How much development work is required to graduate the test? • How strategically important is it? • Does this feature support future plans? • What is the size of audience or action are we optimizing for? • Consider a retest?
  27. 27. Uplift Modelling Uplift modeling, also known as incremental modeling, true lift modeling, or net-lift modeling is a predictive modeling technique that directly models the incremental impact of a treatment (such as a direct marketing action) on an individual’s behavior. @Tushargp
  28. 28. Uplift Modelling Once we have estimated an effect size for our test and know the statistical standards we are going to use in planning :- • Power Calculation:- We can do a power calculation to find out how big of a sample size we need for our test. The point of power calculations like these is to find out what sample size we need for our A/B test. • Statistical Confidence :- How many views or users or form submissions or other interactions we need in each group to achieve the necessary power for our test. Then we can finally start our test! Time to wait for those events to roll in. @Tushargp
  29. 29. Uplift Modelling Example @Tushargp Below is the example demonstrating the uplift calculation. We have taken comparison features analysis that allows users to compare and buy the product. The metrics that we have considered while calculating the KPI is for:- • Penetration on comparison feature (Percentage of visits this feature have compared to the Overall visit) • Monthly visit (Aggregated average based on past 6 months) • Average conversion rate (based on last 6 months) • Estimated improved CR (based on forecast) • Estimated improved Orders (Improved CR * No. of visit) • Incremental Improved Revenue (Incremented order- Actual Orders * AOV)
  30. 30. Idea list and scoring • On the basis of test idea hypothesis, uplift modelling and scoring model –we built a scoring model based on the impact on each of its one. • Also each item goes through a scoring approach to understand the potential impact of executing this activity. • Further it will allows you to ‘edge case’ ideas and instead focus on high potential activities backed by data. • Develop dedicated meetings each month with Key stakeholders to review all of these ideas @Tushargp
  31. 31. ADVANT Multipurpose Presentation 2017 Step 3 ARCHITECT, DESIGN & BUILD
  32. 32. Step 3 :- Architect, Design & Build Idea
  33. 33. Architect design and build idea •Customer Journey Mapping :- The concept behind journey mapping is to apply maximum data insights. •Customer journey analysis :- Each step of customer with a process flow which helps to understand the visualization in a better way. •Functional document :- A functional document is nothing but a process document which defines what is the problem statement, @Tushargp Since conversion optimization is a continuous process of data collection and learn more about the customers, that’s the reason the success of ab test activity should not be measure based on pass or fail. But to architect the test in such a way that each step of customer journey should be optimized
  34. 34. Customer Journey Mapping • Successful journey mapping means mastering the moment, and maintaining the attention of your customers at every step in their buying journey. • “With journey mapping and natural language processing, automated systems can evaluate the factors contributing to whether people are getting through the process you outlined for them and then determine the reasons why people are not continuing on with that journey,” • But before you can start developing an effective customer journey map based on insights from your data, you have to be able to access your data in an integrated fashion. Information Architecture Site Maps eSpot mapping Naming conventions Form design Journey mapping UI Style Guides Pattern Libraries Page Templates/Wireframes Prototypes CSS Regular sessions set up UX and Content teams to align on UI guidelines. @Tushargp
  35. 35. Customer Journey Map of Community Signup (Join the community) Signup with credentials 1St interaction Point Profile Field* Blue Box- Existing Red Box- Proposed Signup (Join the community) Signup with credentials 1St interaction Point Profile Field* Profile Field* Signup (Join the community) Signup with credentials 1St interaction Point Profile Field* Profile Field* Signup (Join the community) Signup with credentials 1St interaction Point Profile Field* Profile Field* Signup (Join the community) Signup with credentials 1St interaction Point Profile Field* Profile Field* Signup (Join the community) Signup with credentials 1St interaction Point Profile Field* Profile Field* @Tushargp
  36. 36. Conversion Research Do start with critical problems you want to solve for your customers, mapped to the measureable goals that define success Do not sneak solution into your goal or problem statement • Customer service data • Video sessions recording • Drop off analysis • Web analytics • Customer services feedback • Customer survey data • And more • Effort to test • Potential impact • Likelihood belief is true • Ability to adopt • UX • Product • Merchandizing • Marketing Goals & Problems Establish Hypothesis Generation Hypothesis Prioritization Investment
  37. 37. ADVANT Multipurpose Presentation 2017 Step 4 MEASURE A/B TEST
  38. 38. Measuring AB Test You have an A/B testing tool, a well-researched hypothesis and a winning test with 95% confidence. The next step is to declare the winner and push it live, right? Not so fast. There are factors which you need to consider in order validate your test and if you not put focus on these are there is a risk making decision based on the bad data… Factors needs to consider while evaluating A/B test results • Significance level • Validity threat • Data segmentation @Tushargp
  39. 39. Significance level What percentage of the time users are willing to be fooled into seeing an effect by random chance – this is called significance level (& more precisely null hypothesis) @Tushargp Here are a the great significance calculator tools you can use • Use this A/B Significance Test :- To compare two ads or landing pages and determine which performed better based on conversion rate,. • This PCC Ad Testing Tool allows you to input more variables for a more concise analysis of click-through rate and conversion rate. • If you want to stick to Excel, I recommend checking out this video, which gives you more data surrounding I2C metrics for your campaigns!
  40. 40. Post-Test Segmentation Post-test segmentation is vital to gain insights and maximizing revenue because statistical significance will only tell us the difference between variations and control but not with the users, as users are different and what resonates with one person, doesn’t work with another one. Types of Segmentation Strategy you need to consider • ‘What segments have true value to our business?’ (Returning visitor or new users) • ‘What segments are actionable?’ (Desktop v/s Mobile) • ‘Which are most likely to be impacted by the test we are running?’ (Category X v/s Category Y) • ‘What type of correction must I do to account for multiple observations of the treatment?’” (chrome v/s IE) @Tushargp
  41. 41. Validity Threat @Tushargp • Always integrate your testing tool with Analytics to see if the revenue numbers (mostly) match up. • Always conduct quality assurance for every device and every operating system. • Run tests separately for each type of device. • Stop your test only when you have sampled the correct sample size. • Take data fishing into account and adjust your significance level to compensate for the number of tests you’re running. • Run tests for as long as necessary (i.e. until your sample size is reached) and not a moment longer. • When testing, use a representative sample and don’t acquire traffic from “unusual” sources. • Run tests for full week increments so that you include data from every day of the week and every time of day. • If you run a test during a holiday season, know that the data you collect is only relevant to that season. • Look at your annual data and identify anomalies (in traffic and conversions). Account for this when running your tests. • Be aware of pop culture and the media. Document major news stories as they happen. There are factors threatening the validity of your test (internal validity, external validity, and ecological validity.)
  42. 42. ADVANT Multipurpose Presentation 2017 Step 4 PLANNED ROLLOUT & SCALE
  43. 43. Rollout Strategy A large scale successful ab test global rollout strategy for a website can be daunting, but the real payoff putting the effort for successful rollout is the one that should engages and serves your customers better, has room to grow, and holds the power to streamline your processes. The payoff of getting goodly is not only a successful rollout, but a successful website too :- OWN YOUR ROLLOUT STRATEGY :- by making the site with zero content mistakes, solving technical issues and be more efficient. COLLABORATE WITH LOCAL SITE TEAMS:- Mitigate the risk of overruns and additional costs by appointing a central project manager on your side, who will be the central point of contact for the whole rollout – running regular calls with the vendor and local country teams in order to make sure vital deadlines are met and any issues are dealt with..
  44. 44. ADVANT Multipurpose Presentation 2017 Step 6 SHARE RESULTS
  45. 45. Sharing Results with Wider Groups Analytics has always been a challenge for most digital marketers. It can be confusing, overwhelming and, quite frankly, difficult for the ordinary human to understand and decipher. In most of the cases, marketers don’t even report back their clients’ analytics because they’re just not sure where to start — partly because of information overload and difficult-to- understand data. Here are few example which helps you to get started sharing results with Wider Groups • ‘Getting a complete view:- ‘What are the results that seems to be impacted with the test we perform?’ (Internal Search X v/s Internal Search Y) • ROI Framework Overview :- What type of KPI’s achieved apart from the revenue (Incremental uplift for customers already using Internal Search ) • Data visualization :- The representation of information in the form of a chart, diagram, picture, etc. @Tushargp
  46. 46. Getting a Complete View Incremental uplift for customers already using Internal Search Incremental uplift of 1% This is the example of data visualization demonstrating Incremental Uplift by Enhancing Internal Search Experience
  47. 47. Rationale SEO + Experience Manager • Expanded site footprint • Site map generation • URL beautification • Richer landing pages in long-tail Rationale • Increasing site stickiness and engagement • Spotlighting related content in user context • Boosting confidence with relevant content and data Rationale • Quicker time-to-market for advertising offers / landing pages • Better monetize search experience (ie boosting featured brands) Rationale Mid-tail keywords boosted with SEO and Experience Manager richer pages and URL beautification – less paid clicks ROI Framework Overview
  48. 48. Summary: 1 and 3 Year Revenue Impact ROI Year 1 – ALL REGIONS Revenue Impact Summary Conservative Pragmatic Aggressive $2,772,132 $4,631,676 $7,587,500 Details Traffic to Site Add'l Visits from Natural Search Conservative IMPACT Aggressive 24,159 48,318 72,477 On Site Conversion Add'l Shopping Sessions Conservative Pragmatic Aggressive 16,723 31,600 44,626 Add'l Orders Conservative Pragmatic Aggressive 4,905 9,524 13,855 Add'l AOV Conservative Pragmatic Aggressive $0.68 $1.72 $4.30 Revenue Impact Conservative Pragmatic Aggressive $1,645,074 $3,495,541 $6,437,749 Supplier Advertising Revenue Impact Conservative Pragmatic Aggressive $1,122,520 $1,622,520 $3,140,000 Paid Search Cost Reduction Add'l Paid Search Clicks Conservative Pragmatic Aggressive 9,175 27,526 55,053 Cost Savings Conservative Pragmatic Aggressive $4,539 $13,616 $27,231 YOY Incremental Impact prediction after enhancing internal search results experience.
  49. 49. Data Visualization (Summary of the above data) 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 Conversion Engagement Performance Summary Increase conversion on Product detail page by 45% Engaging content with over 23.8% more time spent by users Global Sales uplift by 1.5% ROI Summary 45% 24% 1.5% 98%
  50. 50. ADVANT Multipurpose Presentation 2017 About Growthavlleys Growth Driven Conversion Optimization Optimization through research, fixing leaks in funnel & Increase conversions with a meaningful conversion optimization process. Get in touch
  51. 51. Healthcare IT Projects B2B conversion Optimization B2B Business Growth Hacking/CRO Projects E-Commerce Project Growthavlleys Worldwide Footprints
  52. 52. ADVANT Multipurpose Presentation 2017 Thank You