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© Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN
Uh Oh.
The Million Dollar
Optimization Strategy
© Andre Morys, Web Arts AG www.web-arts.com3
André Morys
@morys
© Web Arts AG www.web-arts.com
5.8 bn ! Retail / Lead-Volume
4
0
1,5
3
4,5
6
2008 2010 2012
CRO Volumen (Mrd. !)
@morys
© Web Arts AG www.web-arts.com
115 Conversion Experts in 15 Offices worldwide
5
Web Arts is founder of the
worldwide allia...
© Andre Morys, Web Arts AG www.web-arts.com
Agenda today
6
1.Don‘t call it „Conversion Rate Optimization“
2.Optimization i...
© Andre Morys, Web Arts AG www.web-arts.com
Growth of Top 10 e-Commerce Ventures in 5 Years (DE)
15
© Andre Morys, Web Arts AG www.web-arts.com16
Part I:
It‘s about Growth, stupid.
Who has a business plan for CRO?
© Andre Morys, Web Arts AG www.web-arts.com18
Do You Have a Business Plan for Your CRO Strategy?
@morys
© Andre Morys, Web Arts AG www.web-arts.com
Profit Margin
20
Opportunity Cost:
! 500‘ Profit
@morys
© Andre Morys, Web Arts AG www.web-arts.com
Challenge needed?
21
@morys
© Andre Morys, Web Arts AG www.web-arts.com
Compare the effect of two optimization strategies:
22
@morys
© Andre Morys, Web Arts AG www.web-arts.com
Profit Margin
24
Opportunity Cost:
! 2.2mProfit
@morys
© Web Arts AG www.web-arts.com
Now you can re-invest ! 2.2m in
optimization...
25
@morys
© Andre Morys, Web Arts AG www.web-arts.com
More-Growth-Through-Testing-Rule #1
‣It‘s not about conversion rates. It‘s abo...
© Andre Morys, Web Arts AG www.web-arts.com27
„If you
double the number
of experiments
you do per year you're going to
dou...
© Web Arts AG www.web-arts.com
0
300
600
900
1200
2008 2009 2010 2011 2012
The Zalando Effect?
28
@morys
© Web Arts AG www.web-arts.com
So, what‘s the problem?
29
© Andre Morys, Web Arts AG www.web-arts.com
For a 25% Compounded Global CR Increase, You Need...
30
2.5 2.5 2.5 2.5 2.5 2....
© Andre Morys, Web Arts AG www.web-arts.com
Why only 5% average uplift per test?
32
‣In the last case study, they talked a...
© Andre Morys, Web Arts AG www.web-arts.com33
A/B Test Result
Reality
„I can‘t feel the uplift!“
@morys
© Andre Morys, Web Arts AG www.web-arts.com34
Testresults - Significance versus Validity
1 week
500 vs. 550 conversions
+1...
© Andre Morys, Web Arts AG www.web-arts.com43
A/B
Testing
70% don‘t know that there is a Phase 2
20% have no answer
10% ha...
© Andre Morys, Web Arts AG www.web-arts.com
KPI: Average E-Commerce CR Uplift per Template Type
44
0 %
2,5 %
5 %
7,5 %
10 ...
© Andre Morys, Web Arts AG www.web-arts.com
More-Growth-Through-Testing-Rule #2
‣Growth is about effectiveness.
‣ To incre...
© Andre Morys, Web Arts AG www.web-arts.com46
Part II:
Where do good optimization ideas
come from?
@morys
© Andre Morys, Web Arts AG www.web-arts.com47
© Andre Morys, Web Arts AG www.web-arts.com50
where would you buy?
why?
© Andre Morys, Web Arts AG www.web-arts.com51
© Andre Morys, Web Arts AG www.web-arts.com52
quantitative qualitative
How much? Why?
♥︎
© Andre Morys, Web Arts AG www.web-arts.com53
Traffic
Website
Web
Analytics
© Andre Morys, Web Arts AG www.web-arts.com54
Traffic
Website
Web
Analytics
Click
Hand
Motor Control
prefrontal Cortex
Lim...
© Andre Morys, Web Arts AG www.web-arts.com
Test: facebook Acount Deaktivierung
58
@morys
ROI
„I have to buy it.“
Brand, Habits
„I want to buy it.“
Motivation, Emotion
„I can buy it.“
Usability, Accessability,
Vi...
© Web Arts AG www.web-arts.com60
Factors, that influence the chance of conversion, can be
identified with a conversion fra...
You are too dumb to
buy here.
@morys
@morys
@morys
© Web Arts AG www.web-arts.com81
Conversion Optimization means:
„Get a relevant unique value
proposition in the users mind...
© Andre Morys, Web Arts AG www.web-arts.com
More-Growth-Through-Testing-Rule #3
82
‣It is not hard to implement a testing ...
© Andre Morys, Web Arts AG www.web-arts.com
Conversion DMAIC®
Lean Innovation Process by Web Arts AG www.web-arts.com
83
q...
© Andre Morys, Web Arts AG www.web-arts.com84
#1
Is the change bold enough
that it will be perceived by
users?
#2
Does the...
© Andre Morys, Web Arts AG www.web-arts.com
More-Growth-Through-Testing-Rule #4
85
‣Always prioritize your testing hypothe...
© Andre Morys, Web Arts AG www.web-arts.com86
Part III:
Measure The Right Stuff.
@morys
© Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN
Control Template Discount Value Prop.
143 %
114 %...
© Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN
Control Basis Preis QualitätControl Template Disc...
© Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN
Control Basis Preis QualitätControl Basis Preis Q...
© Andre Morys, Web Arts AG www.web-arts.com
More-Growth-Through-Testing-Rule #5
96
‣Measure economical KPIs.
‣ Don‘t try t...
© Andre Morys, Web Arts AG www.web-arts.com
Five Pillars of Growth Strategy:
1. CRO -> Growth.
2. Efficiency -> Effectiven...
„If it doesn‘t sell,
it isn‘t creative.“
David Ogilvy
@morys
© Andre Morys, Web Arts AG www.web-arts.com99
André Morys
CEO
Web Arts AG
andre.morys@web-arts.com
Tel. +49.6172.68097-15
...
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The Million Dollar Optimization Strategy - Andre Morys - ConversionXL Live 2015

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"Conversion Optimization" and "Testing" became the hottest topics on the strategic roadmaps of online marketing managers. But still, a lot of companies suffer from easy to solve problems that probably cost a couple of million dollars.

In this talk, André Morys shows some unkown conversion barriers that are not visible on the website. He shows some practical examples and cases that show how effective optimization programs gain a lot more momentum and drive more optimization ROI than usual testing efforts do.

Published in: Business

The Million Dollar Optimization Strategy - Andre Morys - ConversionXL Live 2015

  1. 1. © Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN Uh Oh. The Million Dollar Optimization Strategy
  2. 2. © Andre Morys, Web Arts AG www.web-arts.com3 André Morys @morys
  3. 3. © Web Arts AG www.web-arts.com 5.8 bn ! Retail / Lead-Volume 4 0 1,5 3 4,5 6 2008 2010 2012 CRO Volumen (Mrd. !) @morys
  4. 4. © Web Arts AG www.web-arts.com 115 Conversion Experts in 15 Offices worldwide 5 Web Arts is founder of the worldwide alliance of leading conversion optimization companies @morys
  5. 5. © Andre Morys, Web Arts AG www.web-arts.com Agenda today 6 1.Don‘t call it „Conversion Rate Optimization“ 2.Optimization is not Testing. 3.Don‘t let the numbers lie to you. (Case Study) @morys
  6. 6. © Andre Morys, Web Arts AG www.web-arts.com Growth of Top 10 e-Commerce Ventures in 5 Years (DE) 15
  7. 7. © Andre Morys, Web Arts AG www.web-arts.com16 Part I: It‘s about Growth, stupid.
  8. 8. Who has a business plan for CRO?
  9. 9. © Andre Morys, Web Arts AG www.web-arts.com18 Do You Have a Business Plan for Your CRO Strategy? @morys
  10. 10. © Andre Morys, Web Arts AG www.web-arts.com Profit Margin 20 Opportunity Cost: ! 500‘ Profit @morys
  11. 11. © Andre Morys, Web Arts AG www.web-arts.com Challenge needed? 21 @morys
  12. 12. © Andre Morys, Web Arts AG www.web-arts.com Compare the effect of two optimization strategies: 22 @morys
  13. 13. © Andre Morys, Web Arts AG www.web-arts.com Profit Margin 24 Opportunity Cost: ! 2.2mProfit @morys
  14. 14. © Web Arts AG www.web-arts.com Now you can re-invest ! 2.2m in optimization... 25 @morys
  15. 15. © Andre Morys, Web Arts AG www.web-arts.com More-Growth-Through-Testing-Rule #1 ‣It‘s not about conversion rates. It‘s about GROWTH. ‣ Set your goals properly. ‣ Measure your optimization efficiency. ‣ Average Uplift per Test ‣ Amount of Tests per Year ‣ Cumulated Uplift per Year ‣ Test Success Rate ‣ ROI per Test (%) 26 @morys
  16. 16. © Andre Morys, Web Arts AG www.web-arts.com27 „If you double the number of experiments you do per year you're going to double your inventiveness“ Jeff Bezos, CEO amazon, 2004
  17. 17. © Web Arts AG www.web-arts.com 0 300 600 900 1200 2008 2009 2010 2011 2012 The Zalando Effect? 28 @morys
  18. 18. © Web Arts AG www.web-arts.com So, what‘s the problem? 29
  19. 19. © Andre Morys, Web Arts AG www.web-arts.com For a 25% Compounded Global CR Increase, You Need... 30 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 10 Tests à 2.5%? 5 5 5 5 5 5 5 5 5 5 10 Tests à 5%? 5 5 5 5 5 20 Tests à 5% and 50% success rate?5 5 5 5 5 Problem #1: Organizations are too lame to execute 20 tests per year. Problem #2: This is really expensive and complex. Organizations hate both. Problem #3: Most CMOs still prefer to buy 25% more traffic. @morys
  20. 20. © Andre Morys, Web Arts AG www.web-arts.com Why only 5% average uplift per test? 32 ‣In the last case study, they talked about 45% Uplift! -> E-Commerce conversion rate is not email subscription or download CR. ‣My last test had 33% Uplift! -> Was it real? Don‘t confuse statistical significance with validity. Tests should run around 4 weeks for a sufficient sample size.
  21. 21. © Andre Morys, Web Arts AG www.web-arts.com33 A/B Test Result Reality „I can‘t feel the uplift!“ @morys
  22. 22. © Andre Morys, Web Arts AG www.web-arts.com34 Testresults - Significance versus Validity 1 week 500 vs. 550 conversions +10% Uplift significant - wohoo! 2 weeks 1000 vs. 1030 conversions +3% Uplift not significant - :-( Run your experiments longer to get valid insights! @morys
  23. 23. © Andre Morys, Web Arts AG www.web-arts.com43 A/B Testing 70% don‘t know that there is a Phase 2 20% have no answer 10% have an idea how to reach Phase 3 @morys
  24. 24. © Andre Morys, Web Arts AG www.web-arts.com KPI: Average E-Commerce CR Uplift per Template Type 44 0 % 2,5 % 5 % 7,5 % 10 % Homepage Category Product Page Cart Checkout Site Wide 9,81 % 7,3 % 6,59 % 9,28 % 6,35 % 3,32 % Average Uplift by Template Type (n= 134) @morys
  25. 25. © Andre Morys, Web Arts AG www.web-arts.com More-Growth-Through-Testing-Rule #2 ‣Growth is about effectiveness. ‣ To increase real CR, you need many really good test results. ‣ Average Uplift per Test influences your growth directly. ‣ So: Do the right things! ‣ Don‘t do it too fast. ‣ Don‘t test everything. It is expensive. 45 @morys
  26. 26. © Andre Morys, Web Arts AG www.web-arts.com46 Part II: Where do good optimization ideas come from? @morys
  27. 27. © Andre Morys, Web Arts AG www.web-arts.com47
  28. 28. © Andre Morys, Web Arts AG www.web-arts.com50 where would you buy? why?
  29. 29. © Andre Morys, Web Arts AG www.web-arts.com51
  30. 30. © Andre Morys, Web Arts AG www.web-arts.com52 quantitative qualitative How much? Why? ♥︎
  31. 31. © Andre Morys, Web Arts AG www.web-arts.com53 Traffic Website Web Analytics
  32. 32. © Andre Morys, Web Arts AG www.web-arts.com54 Traffic Website Web Analytics Click Hand Motor Control prefrontal Cortex Limbic System Perception
  33. 33. © Andre Morys, Web Arts AG www.web-arts.com Test: facebook Acount Deaktivierung 58 @morys
  34. 34. ROI „I have to buy it.“ Brand, Habits „I want to buy it.“ Motivation, Emotion „I can buy it.“ Usability, Accessability, Visibility Focus on Consumer Behavior @morys
  35. 35. © Web Arts AG www.web-arts.com60 Factors, that influence the chance of conversion, can be identified with a conversion framework 7E Framework @morys
  36. 36. You are too dumb to buy here.
  37. 37. @morys
  38. 38. @morys
  39. 39. @morys
  40. 40. © Web Arts AG www.web-arts.com81 Conversion Optimization means: „Get a relevant unique value proposition in the users mind.“ good feeling @morys
  41. 41. © Andre Morys, Web Arts AG www.web-arts.com More-Growth-Through-Testing-Rule #3 82 ‣It is not hard to implement a testing tool. It‘s hard to find the right things to optimize. ‣ Find out, what really motivates users. ‣ Use different qualitative methods, like user research, personas, etc. @morys
  42. 42. © Andre Morys, Web Arts AG www.web-arts.com Conversion DMAIC® Lean Innovation Process by Web Arts AG www.web-arts.com 83 quantitative qualtitative LEARN BACKLOG CONTROL IMPROVE ANALYSE DEFINE MEASURE @morys
  43. 43. © Andre Morys, Web Arts AG www.web-arts.com84 #1 Is the change bold enough that it will be perceived by users? #2 Does the variation have enough contrast to change the behavior of users? #3 Does it use psychological / social principles? #4 Is it situated on the primary path of conversion? @morys
  44. 44. © Andre Morys, Web Arts AG www.web-arts.com More-Growth-Through-Testing-Rule #4 85 ‣Always prioritize your testing hypothesis! ‣ Optimization is not trial and error. @morys
  45. 45. © Andre Morys, Web Arts AG www.web-arts.com86 Part III: Measure The Right Stuff. @morys
  46. 46. © Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN Control Template Discount Value Prop. 143 % 114 %113 % 100 % Visitor - Order Conversion (relative)
  47. 47. © Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN Control Basis Preis QualitätControl Template Discount Value Prop. 291 % 204 % 243 % 100 % Return rate (relative)
  48. 48. © Andre Morys, Web Arts AG www.web-arts.comFRANKFURT - HAMBURG - MÜNCHEN Control Basis Preis QualitätControl Basis Preis QualitätControl Template Discount Value Prop. 122,2 % 87,1 % 102,3 % 100 % Profit Contribution (relative)
  49. 49. © Andre Morys, Web Arts AG www.web-arts.com More-Growth-Through-Testing-Rule #5 96 ‣Measure economical KPIs. ‣ Don‘t try to get them statistical significant. ‣ Conversion goal = organisations goal @morys
  50. 50. © Andre Morys, Web Arts AG www.web-arts.com Five Pillars of Growth Strategy: 1. CRO -> Growth. 2. Efficiency -> Effectiveness. 3. Prioritize Hypotheses. 4. Motivate users. 5. Measure the right stuff. It makes a difference. 97 @morys
  51. 51. „If it doesn‘t sell, it isn‘t creative.“ David Ogilvy @morys
  52. 52. © Andre Morys, Web Arts AG www.web-arts.com99 André Morys CEO Web Arts AG andre.morys@web-arts.com Tel. +49.6172.68097-15 www.web-arts.com Thank You!

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