Whats Working in Online Marketing Now:

How understanding the psychology of todays decision makers generates more revenue
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About MECLABS
Chuck Coker
Director of Training
Chuck joined MECLABS Group in January, 2007 in order to drive the growth of the organization through acquisition as well as the recruitment and retention of high-value employees. His organizational development background includes work with AT&T, General Foods, Harris Corporation, Sprint PCS, Tupperware, Verizon and Zurich. Chuck has developed over 50 training programs for personal and career development as well as achieving the title of Senior Professional in Human Resources. He has been guest lecturer at Universities like Auburn, Harvard and Moscow State. Chuck is a former United States Marine Corps First Lieutenant and a 7th degree Grandmaster Black Belt in Tae Kwon Do. His education includes both B.A and Ph.D. degrees.

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About MECLABS
Corey Trent
Research Manager
Corey manages experiments that routinely produce double-digit conversion growth for research partners. Before supervising his own experiments, Corey was part of the teams that helped achieve ROI gains for Car and Driver, The New York Times, and other partners. Prior to joining MarketingExperiments in July 2007, Corey was an analytics and testing consultant for a wide range of organizations and an affiliate marketer for B2C companies. In his spare time, Corey focuses his optimization skills on his car and regularly tests its performance in organized road races.

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About MECLABS
MECLABS Sciences Group

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Over 100 conferences, training sessions and events per year

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About MECLABS
MarketingExperiments was the first Internet-based research lab to conduct experiments in optimizing the conversion rate of sales and marketing processes. 1992 1997 2001 2002 2003 2006 Preliminary Research Begins Research Program Established First Research Report Published Testing of Research Partnership Model Begins Offer Response Optimization Theory Validated Patent Filings for Research Findings (10 Heuristics)

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Whats Working in Online Marketing An Experiment

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Experiment: Background

Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: #TP1092

Research Notes: Background: Company is a publisher of electronic marketing information and offers related services. Goal: Increase registrations for a free email newsletter. Primary research question: Which sign-up page will yield the highest conversion rate? Approach: Single-factorial split test (variable cluster) involving changes in headline, credibility indicators, and images according to optimization best practices.

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Experiment: Original Page

We radically redesigned this page based upon common best practices in landing page optimization.

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Experiment: Treatments
Treatment 1

Treatment 2

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Experiment: Treatment 1
Clearer headline emphasizes the value proposition. Featured Clients list emphasizes value and reduces anxiety. Bolded key terms make body copy easier to read and scan. Form fields are reduced to the bare minimum. Costumer testimonials reduce anxiety. Anti-spam seal reduces anxiety.
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Experiment: Treatment 2
Headline is stronger and more quantitative to emphasize the value proposition. Added more testimonials. Rearranged page to give better site flow. Added personal feel with images and hand-written signature. Tell me where to send language used.

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POLL: Test Your Marketing Intuition

AUDIENCE POLL: Which of these marketing campaigns had the highest conversion rate?
Control Treatment 1 Treatment 2

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Experiment: Results
Original Treatment 1

Vs.

Conversion Rate = 14.26%

53%

Conversion Rate = 6.74%

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Experiment: Results
Original Treatment 2

Vs.

Conversion Rate = 14.26%

51%

Conversion Rate = 6.84%

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2010 Cisco Systems, Inc. All rights reserved.

Experiment: Results
53% Decrease in Conversion

Application of best practices decreased conversion by 53%

Landing Page Original Treatment 1 Treatment 2

CTR
14.26% 6.74% 6.84%

Relative Difference

53%

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Experiment #2: Background

Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: #TP1115

Research Notes: Background: Company is a publisher of electronic marketing information and offers related services. Goal: Increase registrations for a free email newsletter. Primary research question: Which sign-up page will yield the highest conversion rate? Approach: Single-factorial split test (variable cluster) with a minimalist strategy of reducing page elements.

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2010 Cisco Systems, Inc. All rights reserved.

Experiment #2: Original Page

Original Common landing page best practices failed to improve conversion on this original page. Began testing removal of elements from the page to match visitor motivation levels. If adding elements to increase the value proposition decreased conversion, maybe the traffic to this page was already highly motivated?

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Experiment #2: Treatment

Treatment Much of the copy on this page is removed, leaving simple form submission fields. No real selling points are included in this design.

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Experiment #2: Side-by-side

Original Treatment

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Experiment #2: Results

78% Increase in Conversion

Treatment 1 increased conversion by 78%

Landing Page Original Treatment Relative Difference:

CTR 12.09% 21.54% 78%

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What you need to understand

Key Principles

1. It is not enough to grasp a handful of best practice rules and then fling them at a page. (Knowing the what does not mean that you know the why, and if you do not know why, then you may not know when a given rule applies in a given situation.) 2. What we need is a systematic methodology for approaching Web page optimization that encompasses the rules with a holistic understanding.

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Rules or Principles?
Rule-Based Optimization Principle-Based Optimization

I. II.

Thou shalt keep it above the fold Thou shalt avoid much copy

Practice

III. Thou shall not use stock images IV. Thou shall not use Submit buttons V. Thou shalt emphasize all benefits

Methodology

VI. Thou shalt not use reverse text VII. Thou shalt emphasize hero shots VIII. Thou shalt not rely on video IX. Thou shalt use basket recovery X. Thou shalt avoid auto-on audio

Meta-theory

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Whats Working in Online Marketing Conversion Optimization Meta-theory

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Conversion Optimization Meta-theory

PRINCIPLE ONE: People dont buy from websites or emails, people buy from people

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Conversion Optimization Meta-theory

People dont buy from websites, people buy from people
How does this apply to optimization? 1. You must think in terms of relationship. 2. You develop a relationship online much in the same way you would face-to-face. You begin a conversation. 3. Trust is at the heart of relationship. We must develop trust. 4. Post-modern consumers are jaded by the flood of marketing messages received each day and a perceived lack of integrity. They are reluctant to trust.

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Conversion Optimization Meta-theory

PRINCIPLE ONE: People dont buy from websites or emails, people buy from people PRINCIPLE TWO: You dont optimize websites or emails; you optimize thought sequences.

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Conversion Optimization Meta-theory

You dont optimize websites, you optimize thought sequences.
Code Pixels Email Message

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Conversion Optimization Meta-theory

PRINCIPLE ONE: People dont buy from websites or emails, people buy from people PRINCIPLE TWO: You dont optimize websites or emails; you optimize thought sequences. PRINCIPLE THREE: To optimize thought sequences, you must enter into a conversation.

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Conversion Optimization Meta-theory

To optimize thought sequences, you must enter into a conversation.
How does this apply to optimization? 1. In order to guide someone to a particular destination, you must first meet them where they are, and lead them in a conversation to where they want to go. 2. This conversation occurs in steps 3. At each step, there is a decision to be made (Do I still believe that you are capable and trustworthy to get me to my destination?).

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Conversion Optimization Meta-theory

PRINCIPLE ONE: People dont buy from websites or emails, people buy from people PRINCIPLE TWO: You dont optimize websites or emails; you optimize thought sequences. PRINCIPLE THREE: To optimize thought sequences, you must enter into a conversation. PRINCIPLE FOUR: Then you must guide the conversation toward a value exchange

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Conversion Optimization Meta-theory

Then you must guide the conversation toward a value exchange
How does this apply to optimization? 1. The conversion process involves a sequence of calls to action specific things you are asking the prospect to Do. 2. For each step you ask a prospect to take, he will ask himself: Is what I expect to receive from taking this action worth the effort and risk of doing what you are asking me to do? 3. The prospect will weigh the risks against the expected reward and decide whether or not to proceed.

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What is going on in the visitors mind?

Web page The Value Exchange Fulcrum

Cost

Value

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32

Preview of Next Sessions

Cost

Value

Session 2 Opportunity Lost (Reducing the Perceived Cost) Session 3 Opportunity Gained (Improving the Perceived Value)

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33

Whats Working in Online Marketing Recent B2B Experiments

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Experiment #1: Background

Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP1315

Research Notes: Background: Homepage test for a B2B company that offers email marketing solutions Goal: To increase the amount of free trial sign-ups Primary research question: Which homepage will generate the highest free trial sign-up rate? Approach: Single-factorial split test (variable cluster)

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Version A

Version B

In Free Trials

59%

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Experiment #2: Background

Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP1213

Research Notes: Background: Integrated software solutions for businesses and enterprise Goal: The company sought to increase free trial signups for the CRM solutions Primary research question: Which landing page will obtain the most conversions? Approach: Single-factorial split test (variable cluster)

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37

Version A LOGO LOGO

Version B

In Free Trials

78%

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38

Experiment #3: Background

Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP1341

Research Notes: Background: A company offering dedicated business hosting services Goal: To increase the amount of leads Primary research question: Which page design will generate the greatest amount of leads? Approach: Single-factorial split test (variable cluster)

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Version A

Version B

189% Vs.
In Leads

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Experiment #4: Background

Experiment ID: (Protected) Location: MarketingExperiments Research Library

Research Notes: Background: A student from our certification course in landing page optimization tested two different incentive options on a B2B email landing page seeking to promote the download of a specific white paper Goal: To improve landing page conversion rates while generating opt-ins for ongoing communication Primary research question: Which incentive will generate the most conversions? Approach: Single-factorial split test (variable cluster)

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Incentive B

Incentive A

In Opt-ins

31%
a chance to win one of twenty $25 Amazon gift cards...

a chance to win one of ten $50 Amazon gift cards...

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Experiment #5: Background

Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP1214

Research Notes: Background: A leading software provider Goal: To increase the click-through rate Primary research question: Which page will generate the most leads? Approach: Single-factorial split test (variable cluster)

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Version A

Version B

In Clickthrough

54% Vs.

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Experiment #6: Background

Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP1306

Research Notes: Background: Provides end-to-end market solutions for small- and medium-size businesses. Goal: Increase the email capture rate of an online form. Primary research question: Which page will obtain the most form submissions? Approach: Single-factorial split test (variable cluster)

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Version A

Version B

201% Vs.
In Leads

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Whats Working in Online Marketing Live Optimization

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Live Optimization
Landing Page Banner ad

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Live Optimization

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Live Optimization
Landing Page

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Whats Working in Online Marketing Summary

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Conversion Optimization Meta-theory

Conversion Optimization Meta-theory
PRINCIPLE ONE: People dont buy from websites or emails, people buy from people PRINCIPLE TWO: You dont optimize websites or emails; you optimize thought sequences. PRINCIPLE THREE: To optimize thought sequences, you must enter into a conversation. PRINCIPLE FOUR: Then you must guide the conversation toward a value exchange

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Whats Working in Online Marketing Questions?

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New Optimization Programs (Available Q2)

Custom Landing Page Optimization Package Custom Email Response Optimization Package Custom Search Optimization Package
Data/funnel analysis Five point critique of a landing page based on the MarketingExperiments Conversion Index Actionable recommendations Two landing page design mockups One hour call with an optimization expert Price: $4,000.00 Data/funnel analysis Five point critique of a landing page based on the MarketingExperiments Conversion Index Actionable recommendations Email wireframe design One landing page design mockup One hour call with an optimization expert Price: $4,500.00 Search Funnel Analysis from PPC ad to landing page to conversion Five point critique of a landing page based on the MarketingExperiments Conversion Index Actionable recommendations One landing page design mockup One hour call with an optimization expert Price: $4,000.00

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Upcoming Accelerate! Virtual Workshops Optimization

Session #2 November 10, 2010, 9:30am PT Topic: Opportunity Lost: The three most common online marketing pitfalls and how to overcome them Session #3 November 17, 2010, 9:30am PT Topic: Opportunity Gained: Increasing online response through small, but strategic changes

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