Triangle AMA September Luncheon:
Converting Prospects to Customers Through
Online Marketing




Brooks Bell
President,
Brooks Bell Interactive
You’re going to learn:

    How can I convert more customers?
    Why should I test?
    What are ways that I can make my creative more effective?
    What are some steps to get started?
Converting Prospects to Customers: Point #1


IF THERE’S NO COMPETITION, THERE’S
NO WINNER
A story about how XM
   Radio created a
     competition
The competition: Three alternative email versions
             SHORT                          LETTER                             HYBRID
    Short Copy. FREE. Simple.   Long copy. Official. Educational.   Medium Copy. Lifestyle. Hero shot.
Which won?
Let’s VOTE!
Then, after analyzing the data, XM
declared “Hybrid” the winner!




          Hybrid
       Outperformed
         others by

         21%!
However, XM learned found a curious fact digging into the data further




  ZERO out of
  33,345 clicked
  on this button
So there was another                         “The Control”
competition: the follow-
up element test

  (An element test is when you change ONLY
  ONE ELEMENT to isolate the variables)
“The Control”
                       19% increase in response!




fold
Converting Prospects to Customers : Point #2


NEVER, EVER LEAVE OUT THE VALUE
PROPOSITION
FACT:
The effectiveness of the
user experience is crucial
to converting prospects
to customers.
How do I know if I have an effective message for
converting prospects to customers?
LIKLIHOOD OF
CONVERSION
                       It’s VERY simple:

             C = 4m + 3v + 2(i – f) – 2a

Customer           Clarity of      Incentive     Friction      Anxiety
Motivation     Value Proposition




                                               Source: MarketingExperiments.com
What does a clear
value proposition
look like?
Let’s play a game. Find the value proposition!
Converting Prospects to Customers : Point #3


THE EYE PATH IS REALLY IMPORTANT
(What’s an EYE-PATH?)


Your EYE-PATH is the path that your
eyes take when you look at a
creative.

It’s measured with a HEATMAP.

Heat mapping is where an
EYETRACKER detects where your
eyes are looking and creates a
heat map of where they have been.
A story about how WSJ
learned from the eye-path
WSJ converted their winning DM letter into an email to
try to convert prospects to customers.




                          “The Control”
Heat-mapping to follow the user’s eye-path
New Email Design




     22
New Email Design




     23
“The Control”   25% increase in response!
Converting Prospects to Customers : Point #4


IF YOU CAN TEST, YOU WILL WIN
Only your users can tell
you if the experience is
effective.

The only way to get them
to tell you is to test.
The Four ‘T’s of Testing


1.    Time
2.    Traffic
3.    Technology
4.    Trust
Time
Time

•    Time is not FREE, so neither is
     testing
•    Plan for:
       –  Baselines
       –  Test design
       –  Additional creative
          development time

•    Iteration is key
•    You could test forever!!
Traffic
Traffic should help you create a test plan.

•    You need fresh, recurring traffic

•    Know some basic statistics
      –  Confidence level
           •  “Statistical Significance”
           •  95% is common
      –  Margin of error
•    150 successes is a good rule of thumb




                                               The Normal Curve

                                             “Is it Significant?”
Technology
Technology

MINIMUM:
•  Split Traffic into separate groups
•  Track click-through separately for each group   BEST:

•  Test your groups at the same time
                                                   Start
with
what’s

                                                   meaningful
and
ac4onable

EVEN BETTER:                                       and
build
your
technology

•  Use a database of some sort                     and
test
design
to
support

    –    Email Service Provider                    that

    –    Can you segment?
    –    What can you track?
    –    Can you personalize, and how?
Trust
Trust that you will WIN!

What and Who you need to trust:
•  The Data
•  The Process
•  The Customer
•  The Designer



Just relax. It will be OKAY. 
A story about how AARP
    tested and won
The AARP “Webletter” Newsletter

 •    Time: Tested WEEKLY for over a year
 •    Traffic: List is in the millions
 •    Technology: Worked closely with
      AARP’s ESP
       –  Segmented by usage
            •  Active
            •  Passive
            •  Inactive
 •    Trust: AARP was focused on results,
      and had the political leverage
      internally to test almost anything
Testing = Success!

•    Webletter became the #1 traffic
     driver to AARP.org
•    Active segment up by 59%
•    Inactive segment down by 38%
•    Open Rate up by 39%

•  Click-through rate is up
   by 180%!!!
Introducing
2 Beautiful New          igns




                                  ‐25%

                                  ‐2 %





      Control,
April
 008
      Test
Cr 4ve

OMG, Does Ugly Work?




                                             Lots
of
copy

                                            above
the
fold


 Simple
Eye‐
    path
                                   Ads
are
small,

                                             unobtrusive



Image‐blocking
is

  not
an
issue

OMG, Does Ugly Work?


                                             Only
1
feature

Complicated
                                above
the
fold
+

 Eye‐path
                                  confusing
image





                                              Ads
are
wide,

                                             Blocking
content

Image
blocking
is

    an
issue

8 WEEKS OF TESTING GOES BY….




   Simple
Eye
                   More
above
the

      path
                           fold




                                    Ads
are

 Smaller
images
                  consolidated

AND
System
text
                and
aligned
with

                                    images

Finally, a break!




                             +11%





      Control,
April
2008

So, Does Ugly Work?
That’s the wrong question.
•    Beauty is one of several factors that drives performance
      –  Can you name two?

•    Your audience probably doesn’t care how good the creative looks.

•    Your audience cares about 4 things no matter what the decision is…
The four things that your customer cares about when
they are in decision mode:


1.  What is it?
                                  VALUE
                                  PROPOSITION!
2.  What’s in it for me?

3.  What are you asking of me in return?

4.  Why should I trust you?
Converting Prospects to Customers: Point #5


TESTING JUST TAKES A LITTLE
PLANNING
Six Steps to Test Planning

1.  Set a control and/or baseline
2.  Establish a goal
                                                      Do these steps before
                                                      you call your designer
3.  Design a test based on the 4 T’s




4.  Think like your customer (4 Questions)
5.  Create a hypothesis
                                                      Do these steps with your
                                                             designers
6.  Design the creative(s) according to test design
Tip:
Create a worksheet to help you organize your
thoughts
See Test Planning In Action!
Established a control/baseline




                “The Control”
Established a goal and designed the test based on 4 T’s
Think like a customer!

 Our hypothesis was that control creative did not address the top
 value propositions.

 But, we didn’t know which value proposition was the best

 Four initial value propositions to test:

 1.    General/Offer
 2.    Leadership
 3.    Convenience
 4.    Life Change
Designed the Creative Versions
Run the test. Then, analyze and declare a winner!
Established the continuous testing rhythm to
optimize response
Focused on actionable
  learnings in our test

Then identified the next
  hypothesis, and are
  testing again!
Final takeaways on how to convert prospects to
customers through online marketing
1.  Your user experience is crucial to converting more customers
2.  Testing is the only way you can systematically improve your user experience
3.  You can make your creative more effective if you start by focusing on your value
    proposition and eye-path (and then, motivation, incentive and anxiety)
4.  Test as soon as you have the 4 T’s in your organization
     -  Time
     -  Traffic
     -  Technology
     -  Trust
5.  Think like your customers, and make sure you’re answering all the questions
    they will ask
6.  Testing can be as easy as planning ahead and following a disciplined process
Thank you!
Questions?
Brooks Bell
President, Brooks Bell Interactive
brooks@brooks-bell.com
919-836-0504

Brooks Bell Interactive Tama Presentation

  • 1.
    Triangle AMA SeptemberLuncheon: Converting Prospects to Customers Through Online Marketing Brooks Bell President, Brooks Bell Interactive
  • 2.
    You’re going tolearn:   How can I convert more customers?   Why should I test?   What are ways that I can make my creative more effective?   What are some steps to get started?
  • 3.
    Converting Prospects toCustomers: Point #1 IF THERE’S NO COMPETITION, THERE’S NO WINNER
  • 4.
    A story abouthow XM Radio created a competition
  • 5.
    The competition: Threealternative email versions SHORT LETTER HYBRID Short Copy. FREE. Simple. Long copy. Official. Educational. Medium Copy. Lifestyle. Hero shot.
  • 6.
  • 7.
    Then, after analyzingthe data, XM declared “Hybrid” the winner! Hybrid Outperformed others by 21%!
  • 8.
    However, XM learnedfound a curious fact digging into the data further ZERO out of 33,345 clicked on this button
  • 9.
    So there wasanother “The Control” competition: the follow- up element test (An element test is when you change ONLY ONE ELEMENT to isolate the variables)
  • 10.
    “The Control” 19% increase in response! fold
  • 11.
    Converting Prospects toCustomers : Point #2 NEVER, EVER LEAVE OUT THE VALUE PROPOSITION
  • 12.
    FACT: The effectiveness ofthe user experience is crucial to converting prospects to customers.
  • 13.
    How do Iknow if I have an effective message for converting prospects to customers?
  • 14.
    LIKLIHOOD OF CONVERSION It’s VERY simple: C = 4m + 3v + 2(i – f) – 2a Customer Clarity of Incentive Friction Anxiety Motivation Value Proposition Source: MarketingExperiments.com
  • 15.
    What does aclear value proposition look like?
  • 16.
    Let’s play agame. Find the value proposition!
  • 17.
    Converting Prospects toCustomers : Point #3 THE EYE PATH IS REALLY IMPORTANT
  • 18.
    (What’s an EYE-PATH?) YourEYE-PATH is the path that your eyes take when you look at a creative. It’s measured with a HEATMAP. Heat mapping is where an EYETRACKER detects where your eyes are looking and creates a heat map of where they have been.
  • 19.
    A story abouthow WSJ learned from the eye-path
  • 20.
    WSJ converted theirwinning DM letter into an email to try to convert prospects to customers. “The Control”
  • 21.
    Heat-mapping to followthe user’s eye-path
  • 22.
  • 23.
  • 24.
    “The Control” 25% increase in response!
  • 25.
    Converting Prospects toCustomers : Point #4 IF YOU CAN TEST, YOU WILL WIN
  • 26.
    Only your userscan tell you if the experience is effective. The only way to get them to tell you is to test.
  • 27.
    The Four ‘T’sof Testing 1.  Time 2.  Traffic 3.  Technology 4.  Trust
  • 28.
  • 29.
    Time •  Time is not FREE, so neither is testing •  Plan for: –  Baselines –  Test design –  Additional creative development time •  Iteration is key •  You could test forever!!
  • 30.
  • 31.
    Traffic should helpyou create a test plan. •  You need fresh, recurring traffic •  Know some basic statistics –  Confidence level •  “Statistical Significance” •  95% is common –  Margin of error •  150 successes is a good rule of thumb The Normal Curve “Is it Significant?”
  • 32.
  • 33.
    Technology MINIMUM: •  Split Trafficinto separate groups •  Track click-through separately for each group BEST:
 •  Test your groups at the same time Start
with
what’s
 meaningful
and
ac4onable
 EVEN BETTER: and
build
your
technology
 •  Use a database of some sort and
test
design
to
support
 –  Email Service Provider that
 –  Can you segment? –  What can you track? –  Can you personalize, and how?
  • 34.
  • 35.
    Trust that youwill WIN! What and Who you need to trust: •  The Data •  The Process •  The Customer •  The Designer Just relax. It will be OKAY. 
  • 36.
    A story abouthow AARP tested and won
  • 37.
    The AARP “Webletter”Newsletter •  Time: Tested WEEKLY for over a year •  Traffic: List is in the millions •  Technology: Worked closely with AARP’s ESP –  Segmented by usage •  Active •  Passive •  Inactive •  Trust: AARP was focused on results, and had the political leverage internally to test almost anything
  • 38.
    Testing = Success! •  Webletter became the #1 traffic driver to AARP.org •  Active segment up by 59% •  Inactive segment down by 38% •  Open Rate up by 39% •  Click-through rate is up by 180%!!!
  • 39.
    Introducing 2 Beautiful New igns ‐25%
 ‐2 %
 Control,
April
 008
 Test
Cr 4ve

  • 40.
    OMG, Does UglyWork? Lots
of
copy
 above
the
fold
 Simple
Eye‐ path
 Ads
are
small,
 unobtrusive
 Image‐blocking
is
 not
an
issue

  • 41.
    OMG, Does UglyWork? Only
1
feature
 Complicated
 above
the
fold
+
 Eye‐path
 confusing
image
 Ads
are
wide,
 Blocking
content
 Image
blocking
is
 an
issue

  • 42.
    8 WEEKS OFTESTING GOES BY…. Simple
Eye
 More
above
the
 path
 fold
 Ads
are
 Smaller
images
 consolidated
 AND
System
text
 and
aligned
with
 images

  • 43.
    Finally, a break! +11%
 Control,
April
2008

  • 44.
    So, Does UglyWork? That’s the wrong question. •  Beauty is one of several factors that drives performance –  Can you name two? •  Your audience probably doesn’t care how good the creative looks. •  Your audience cares about 4 things no matter what the decision is…
  • 45.
    The four thingsthat your customer cares about when they are in decision mode: 1.  What is it? VALUE PROPOSITION! 2.  What’s in it for me? 3.  What are you asking of me in return? 4.  Why should I trust you?
  • 46.
    Converting Prospects toCustomers: Point #5 TESTING JUST TAKES A LITTLE PLANNING
  • 47.
    Six Steps toTest Planning 1.  Set a control and/or baseline 2.  Establish a goal Do these steps before you call your designer 3.  Design a test based on the 4 T’s 4.  Think like your customer (4 Questions) 5.  Create a hypothesis Do these steps with your designers 6.  Design the creative(s) according to test design
  • 48.
    Tip: Create a worksheetto help you organize your thoughts
  • 49.
  • 50.
  • 51.
    Established a goaland designed the test based on 4 T’s
  • 52.
    Think like acustomer! Our hypothesis was that control creative did not address the top value propositions. But, we didn’t know which value proposition was the best Four initial value propositions to test: 1.  General/Offer 2.  Leadership 3.  Convenience 4.  Life Change
  • 53.
  • 54.
    Run the test.Then, analyze and declare a winner!
  • 55.
    Established the continuoustesting rhythm to optimize response Focused on actionable learnings in our test Then identified the next hypothesis, and are testing again!
  • 56.
    Final takeaways onhow to convert prospects to customers through online marketing 1.  Your user experience is crucial to converting more customers 2.  Testing is the only way you can systematically improve your user experience 3.  You can make your creative more effective if you start by focusing on your value proposition and eye-path (and then, motivation, incentive and anxiety) 4.  Test as soon as you have the 4 T’s in your organization -  Time -  Traffic -  Technology -  Trust 5.  Think like your customers, and make sure you’re answering all the questions they will ask 6.  Testing can be as easy as planning ahead and following a disciplined process
  • 57.
    Thank you! Questions? Brooks Bell President,Brooks Bell Interactive brooks@brooks-bell.com 919-836-0504