The Evolution of A/B Testing - NMHC Optech 2016

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THE EVOLUTION

OF A/B TESTING

@Nicole_Mintiens

Data Analysis & Insights Manager @GetG5

41 Shades of Blue

The Evolution of A/B Testing

@Nicole_Mintiens

$200 MILLION

The Evolution of A/B Testing

@Nicole_Mintiens

The Evolution of A/B Testing

@Nicole_Mintiens

Advertising and Marketing• Improved ROI = Good

The Evolution of A/B Testing

@Nicole_Mintiens

Advertising and Marketing• Improved ROI = Good• Wasted Resources = Bad

The Evolution of A/B Testing

@Nicole_Mintiens

Advertising and Marketing• Improved ROI = Good• Wasted Resources = Bad• Marketing = Complex

The Evolution of A/B Testing

@Nicole_Mintiens

Advertising and Marketing• Improved ROI = Good• Wasted Resources = Bad• Marketing = Complex• Facts > Opinion

The Evolution of A/B Testing

@Nicole_Mintiens

WHY SPEND TIME TESTING?• $92 traffic /$1 optimization

Source: Econsultancy & Redeye Conversion Rate Optimization Report 2014

The Evolution of A/B Testing

@Nicole_Mintiens

WHY SPEND TIME TESTING?• $92 traffic /$1 optimization• 87% run 1-5 tests/month

Source: Econsultancy & Redeye Conversion Rate Optimization Report 2014

The Evolution of A/B Testing

@Nicole_Mintiens

WHY SPEND TIME TESTING?• $92 traffic /$1 optimization• 87% run 1-5 tests/month

– Best brands run hundreds per month

Source: Econsultancy & Redeye Conversion Rate Optimization Report 2014

The Evolution of A/B Testing

@Nicole_Mintiens

A/B TESTING FACTS• Improves conversion rate

The Evolution of A/B Testing

@Nicole_Mintiens

A/B TESTING FACTS• Improves conversion rate• Enhances effectiveness

The Evolution of A/B Testing

@Nicole_Mintiens

A/B TESTING FACTS• Improves conversion rate• Enhances effectiveness• Optimizes ROI

The Evolution of A/B Testing

@Nicole_Mintiens

A/B TESTING FACTS• Improves conversion rate• Enhances effectiveness• Optimizes ROI

So… YOU should test!

The Evolution of A/B Testing

@Nicole_Mintiens

The Evolution of A/B Testing

@Nicole_Mintiens

MISCONCEPTIONS• Hurt conversion rate

The Evolution of A/B Testing

@Nicole_Mintiens

MISCONCEPTIONS• Hurt conversion rate• Reduce effectiveness

The Evolution of A/B Testing

@Nicole_Mintiens

MISCONCEPTIONS• Hurt conversion rate• Reduce effectiveness• Waste resources

The Evolution of A/B Testing

@Nicole_Mintiens

MISCONCEPTIONS• Hurt conversion rate• Reduce effectiveness• Waste resources• Damage ROI

The Evolution of A/B Testing

@Nicole_Mintiens

TESTING IS NOT

OPTIMIZATION

The Evolution of A/B Testing

@Nicole_Mintiens

TESTING IS NOT

OPTIMIZATION…but it plays a role.

The Evolution of A/B Testing

@Nicole_Mintiens

DON’T JUST TEST, OPTIMIZE.• Avoid mistakes

The Evolution of A/B Testing

@Nicole_Mintiens

DON’T JUST TEST, OPTIMIZE.• Avoid mistakes• Increase effectiveness

The Evolution of A/B Testing

@Nicole_Mintiens

DON’T JUST TEST, OPTIMIZE.• Avoid mistakes• Increase effectiveness• Improve ROI

The Evolution of A/B Testing

@Nicole_Mintiens

I’LL BE YOUR GUIDE• 7+ years optimizing multifamily

– PPC, SMM, SEO & CRO

The Evolution of A/B Testing

@Nicole_Mintiens

A/B TESTING BASICS• Statistical hypothesis-based

experimentation between variations of a control.

The Evolution of A/B Testing

@Nicole_Mintiens

A/B TESTING BASICS• Statistical hypothesis-based

experimentation between variations of a control.

• Goal: – Isolate differences that

maximize an outcome • i.e. conversion

The Evolution of A/B Testing

@Nicole_Mintiens

CONVERSION DEFINITIONAction YOU want the user to take.

The Evolution of A/B Testing

@Nicole_Mintiens

A/B/N TESTING

The Evolution of A/B Testing

@Nicole_Mintiens

A/B/N TESTING

The Evolution of A/B Testing

@Nicole_Mintiens

A/B/N TESTING

The Evolution of A/B Testing

@Nicole_Mintiens

• 2000 – Google runs first test to find optimum number of SERP

results.

A/B TESTING HISTORY

The Evolution of A/B Testing

@Nicole_Mintiens

• 2000 – Google runs first test to find optimum number of SERP

results.

• 2008 – A/B tests raise additional $60 million for Obama campaign.

A/B TESTING HISTORY

The Evolution of A/B Testing

@Nicole_Mintiens

• 2000 – Google runs first test to find optimum number of SERP

results.

• 2008 – A/B tests raise additional $60 million for Obama campaign.

• 2010– Obama campaign’s Director of Analytics founds Optimizely.

A/B TESTING HISTORY

The Evolution of A/B Testing

@Nicole_Mintiens

• 2000 – Google runs first test to find optimum number of SERP

results.

• 2008 – A/B tests raise additional $60 million for Obama campaign.

• 2010– Obama campaign’s Director of Analytics founds Optimizely.

• 2011 – Google has run over 7,000 A/B tests

A/B TESTING HISTORY

The Evolution of A/B Testing

@Nicole_Mintiens

MULTIFAMILY AVG CONVERSION RATE

Source: 2016 G5 Multifamily Google Analytics Data

The Evolution of A/B Testing

@Nicole_Mintiens

MULTIFAMILY AVG CONVERSION RATE

Source: 2016 G5 Multifamily Google Analytics Data

~2%The Evolution of A/B Testing

@Nicole_Mintiens

ECOMMERCE AVG CONVERSION RATE

~3%The Evolution of A/B Testing

@Nicole_Mintiens

AMAZON PRIME’S CONVERSION RATE

Source: https://www.internetretailer.com/2015/06/25/amazon-prime-members-convert-74-time

The Evolution of A/B Testing

@Nicole_Mintiens

2366%Better than

average!

AMAZON PRIME’S CONVERSION RATE

Source: https://www.internetretailer.com/2015/06/25/amazon-prime-members-convert-74-time

The Evolution of A/B Testing

@Nicole_Mintiens

AMAZON’S TECHNOLOGY

Source: Builtwith.com

The Evolution of A/B Testing

@Nicole_Mintiens

AMAZON’S TECHNOLOGY

Source: Builtwith.com

The Evolution of A/B Testing

@Nicole_Mintiens

SOFTWARE ADVANCEMENTS• Marketing automation

The Evolution of A/B Testing

@Nicole_Mintiens

SOFTWARE ADVANCEMENTS• Marketing automation • Easy to install

The Evolution of A/B Testing

@Nicole_Mintiens

SOFTWARE ADVANCEMENTS• Marketing automation • Easy to install• WYSIWYG editors

The Evolution of A/B Testing

@Nicole_Mintiens

WHAT A/B TESTING CAN DO

• Validate hypotheses

The Evolution of A/B Testing

@Nicole_Mintiens

WHAT A/B TESTING CAN DO

• Validate hypotheses• Inform choices

The Evolution of A/B Testing

@Nicole_Mintiens

WHAT A/B TESTING CAN DO

• Validate hypotheses• Inform choices • Insight for iteration

The Evolution of A/B Testing

@Nicole_Mintiens

WHAT A/B TESTING CAN’T DO• Determine YOUR

–Problem

Thanks, Boss!

The Evolution of A/B Testing

@Nicole_Mintiens

WHAT A/B TESTING CAN’T DO• Determine YOUR

–Problem –User’s

needs/wantsThanks, Boss!

The Evolution of A/B Testing

@Nicole_Mintiens

WHAT A/B TESTING CAN’T DO• Determine YOUR

–Problem –User’s

needs/wants

• Improve traffic–Quality

Thanks, Boss!

The Evolution of A/B Testing

@Nicole_Mintiens

WHAT A/B TESTING CAN’T DO• Determine YOUR

–Problem –User’s

needs/wants

• Improve traffic–Quality–Volume

Thanks, Boss!

The Evolution of A/B Testing

@Nicole_Mintiens

CAN DOES NOT EQUAL SHOULDTesting will waste your time without:• Enough traffic

The Evolution of A/B Testing

@Nicole_Mintiens

CAN DOES NOT EQUAL SHOULDTesting will waste your time without:• Enough traffic• Enough research

The Evolution of A/B Testing

@Nicole_Mintiens

CAN DOES NOT EQUAL SHOULDTesting will waste your time without:• Enough traffic• Enough research• Technical resources

The Evolution of A/B Testing

@Nicole_Mintiens

THEN HOW DO YOU IMPROVE?!

The Evolution of A/B Testing

@Nicole_Mintiens

A PROCESSto improve performance

informed by INSIGHTand defined by GOALS.

CONVERSION RATE OPTIMIZATION(CRO)

The Evolution of A/B Testing

@Nicole_Mintiens

A PROCESSto improve performance

informed by INSIGHTand defined by GOALS.

GOALS

CONVERSION RATE OPTIMIZATION(CRO)

The Evolution of A/B Testing

@Nicole_Mintiens

ALWAYS ROOM FOR IMPROVEMENT• Customer acquisition cost

The Evolution of A/B Testing

@Nicole_Mintiens

ALWAYS ROOM FOR IMPROVEMENT• Customer acquisition cost• Return on investment

The Evolution of A/B Testing

@Nicole_Mintiens

ALWAYS ROOM FOR IMPROVEMENT• Customer acquisition cost• Return on investment• Customer understanding

The Evolution of A/B Testing

@Nicole_Mintiens

ALWAYS ROOM FOR IMPROVEMENT• Customer acquisition cost• Return on investment• Customer understanding• Google’s perception

The Evolution of A/B Testing

@Nicole_Mintiens

GOALS & TRACKING

Source: http://borsen.dk/opinion/blogs/view/17/4159/den_svaereste_marketingdisciplin.html

The Evolution of A/B Testing

@Nicole_Mintiens

YOUR IDEAL RESIDENTS

Prospects

Valu

e

I only rent the most affordable apartments.

The Evolution of A/B Testing

@Nicole_Mintiens

YOUR IDEAL RESIDENTS

Prospects

Valu

e

I only rent the most affordable apartments.

I’ll rent near my tech coworkers regardless of price.

The Evolution of A/B Testing

@Nicole_Mintiens

CUSTOMER RESEARCH

Source: https://blog.kissmetrics.com/wp-content/uploads/2015/02/NYU.lowres.ifiwere.jpg

The Evolution of A/B Testing

@Nicole_Mintiens

“The EFFECTIVENESS of

any lead generation campaign

comes down to your HOOK.”Mike King @IPullRankFounder iPullRankConsultant to Fortune/INC500 brands.

The Evolution of A/B Testing

@Nicole_Mintiens

VOICE OF CUSTOMER RESEARCH• What makes your

property unique?

The Evolution of A/B Testing

@Nicole_Mintiens

VOICE OF CUSTOMER RESEARCH• What makes your

property unique?

• Why you and not the competition?

The Evolution of A/B Testing

@Nicole_Mintiens

VOICE OF CUSTOMER RESEARCH• What makes your

property unique?

• Why you and not the competition?

The Evolution of A/B Testing

@Nicole_Mintiens

UNIQUE VALUE PROPOSITION (UVP):Above-the-fold EXPERIENCEthat communicates WHATyou do and WHYit’s UNIQUE.

The Evolution of A/B Testing

@Nicole_Mintiens

Original (A)

UVP: FIVE SECOND TEST

The Evolution of A/B Testing

@Nicole_Mintiens

Original (A) Variation (B)

UVP: FIVE SECOND TEST

The Evolution of A/B Testing

@Nicole_Mintiens

Original (A) Variation (B)

UVP: FIVE SECOND TEST

The Evolution of A/B Testing

@Nicole_Mintiens

CUSTOMER SEGMENTATION

The Evolution of A/B Testing

@Nicole_Mintiens

CUSTOMER SEGMENTATION

User Persona Creator: https://xtensio.com/user-persona/

The Evolution of A/B Testing

@Nicole_Mintiens

Slide credit to Angie Schottmuller - Check out the full presentation:

http://www.slideshare.net/aschottmuller/content-marketing-onpage-optimization-holy-grail

The Evolution of A/B Testing

@Nicole_Mintiens

LARGEST LEAKS

Image source: https://s-media-cache-ak0.pinimg.com/564x/7e/c9/f9/7ec9f92ab4e7819c76011e432e760ece.jpg

The Evolution of A/B Testing

@Nicole_Mintiens

LARGEST LEAKS

Image source: https://s-media-cache-ak0.pinimg.com/564x/7e/c9/f9/7ec9f92ab4e7819c76011e432e760ece.jpg

The Evolution of A/B Testing

@Nicole_Mintiens

ANALYZE ENGAGEMENT PATTERNSHeatmaps

The Evolution of A/B Testing

@Nicole_Mintiens

ANALYZE ENGAGEMENT PATTERNSHeatmaps

The Evolution of A/B Testing

@Nicole_Mintiens

ANALYZE PERCEPTIONS

The Evolution of A/B Testing

@Nicole_Mintiens

ANALYSIS FRAMEWORKG5 D-LITE

Deliver Relevance - Match then exceed user expectations.D

L

I

T

EThe Evolution of A/B Testing

@Nicole_Mintiens

ANALYSIS FRAMEWORKG5 D-LITE

Lower Friction - Reduce user anxiety. Simplify their process.

Deliver Relevance - Match then exceed user expectations.D

L

I

T

EThe Evolution of A/B Testing

@Nicole_Mintiens

ANALYSIS FRAMEWORKG5 D-LITE

Improve Clarity - Ensure messaging is clear, concise & valued.

Lower Friction - Reduce user anxiety. Simplify their process.

Deliver Relevance - Match then exceed user expectations.D

L

I

T

EThe Evolution of A/B Testing

@Nicole_Mintiens

ANALYSIS FRAMEWORKG5 D-LITE

Improve Clarity - Ensure messaging is clear, concise & valued.

Lower Friction - Reduce user anxiety. Simplify their process.

Deliver Relevance - Match then exceed user expectations.

Trigger Action - Motivate conversion. Remove distraction.

D

L

I

T

EThe Evolution of A/B Testing

@Nicole_Mintiens

ANALYSIS FRAMEWORKG5 D-LITE

Improve Clarity - Ensure messaging is clear, concise & valued.

Lower Friction - Reduce user anxiety. Simplify their process.

Deliver Relevance - Match then exceed user expectations.

Experiment - Learn, test and optimize for your users.

Trigger Action - Motivate conversion. Remove distraction.

D

L

I

T

EThe Evolution of A/B Testing

@Nicole_Mintiens

“A solid test hypothesis is an

INFORMED SOLUTIONto a real problem - not an arbitrary guess. ”Michael Aagaard

@ContentVerveInternational Speaker and Senior CRO @Unbounce

The Evolution of A/B Testing

@Nicole_Mintiens

HYPOTHESIS TEMPLATEIf [cause], then [effect], because [rationale].

Source: https://help.optimizely.com/Ideate_and_Hypothesize/Design_a_hypothesis_that_drives_your_business_goals

The Evolution of A/B Testing

@Nicole_Mintiens

TESTING

The Evolution of A/B Testing

@Nicole_Mintiens

TESTING Wait… do you even have enough traffic?

The Evolution of A/B Testing

@Nicole_Mintiens

Gives you CONFIDENCE that the changes you make to

your website ACTUALLYhave a positive IMPACT.

https://www.optimizely.com/optimization-glossary/statistical-significance/

STATISTICAL SIGNIFICANCE

“”

The Evolution of A/B Testing

@Nicole_Mintiens

MULTIFAMILY AVG SESSIONS/DAY

Source: 2016 G5 Multifamily Google Analytics Data

The Evolution of A/B Testing

@Nicole_Mintiens

MULTIFAMILY AVG SESSIONS/DAY

Source: 2016 G5 Multifamily Google Analytics Data

66The Evolution of A/B Testing

@Nicole_Mintiens

TEST DURATION CALCULATOR

Source: https://www.convert.com/tools/ab-test-duration-calculator/

Image source: http://www.vintag.es/2016/09/the-good-old-days-12-crazy-vintage-ads.html

The Evolution of A/B Testing

@Nicole_Mintiens

TEST DURATION CALCULATOR

Source: https://www.convert.com/tools/ab-test-duration-calculator/

Image source: http://www.vintag.es/2016/09/the-good-old-days-12-crazy-vintage-ads.html

The Evolution of A/B Testing

@Nicole_Mintiens

LOW TRAFFIC OPTIMIZATION

Source: http://unbounce.com/landing-pages/i-dont-have-enough-traffic-to-ab-test-my-landing-pages/

The Evolution of A/B Testing

@Nicole_Mintiens

A/B TESTING TOOLS

The Evolution of A/B Testing

@Nicole_Mintiens

A/B TESTING TOOLS

The Evolution of A/B Testing

@Nicole_Mintiens

BUILD VARIATIONSUse technical resources to ensure proper setup and tracking

The Evolution of A/B Testing

@Nicole_Mintiens

BUILD VARIATIONSUse technical resources to ensure proper setup and tracking

The Evolution of A/B Testing

@Nicole_Mintiens

LAUNCH TESTOriginal

(A)Variation

(B)

The Evolution of A/B Testing

@Nicole_Mintiens

LAUNCH TESTOriginal

(A)Variation

(B)

The Evolution of A/B Testing

@Nicole_Mintiens

MEASURE RESULTS

Image source: https://www.optimizely.com/ab-testing/

The Evolution of A/B Testing

@Nicole_Mintiens

MEASURE RESULTS

Image source: https://www.optimizely.com/ab-testing/

The Evolution of A/B Testing

@Nicole_Mintiens

DRAW INSIGHTS AND ITERATE

The Evolution of A/B Testing

@Nicole_Mintiens

Your properties aren't 1-size fits all and your strategy shouldn't be either.

DRAW INSIGHTS AND ITERATE

The Evolution of A/B Testing

@Nicole_Mintiens

MOST IMPORTANTLYResearch and

user feedback is

VITAL.

The Evolution of A/B Testing

@Nicole_Mintiens

REPEAT

GOALS

The Evolution of A/B Testing

@Nicole_Mintiens

THERE IS NO

BEST COLOR

41 Shades of Blue

The Evolution of A/B Testing

@Nicole_Mintiens

INDUSTRY BENCHMARKS

• Contextless data

The Evolution of A/B Testing

@Nicole_Mintiens

INDUSTRY BENCHMARKS

• Contextless data• Weak conclusions

The Evolution of A/B Testing

@Nicole_Mintiens

INDUSTRY BENCHMARKS

• Contextless data• Weak conclusions• Blind duplication

The Evolution of A/B Testing

@Nicole_Mintiens

INDUSTRY BENCHMARKS

• Contextless data• Weak conclusions• Blind duplication • Tactics over strategy

The Evolution of A/B Testing

@Nicole_Mintiens

USE STRATEGY,NOT JUST TACTICS

• Avoid risks

The Evolution of A/B Testing

@Nicole_Mintiens

USE STRATEGY,NOT JUST TACTICS

• Avoid risks• Use data effectively

The Evolution of A/B Testing

@Nicole_Mintiens

USE STRATEGY,NOT JUST TACTICS

• Avoid risks• Use data effectively• Discover solutions to

YOUR problems

The Evolution of A/B Testing

@Nicole_Mintiens

FREEMIUM (OR CLOSE) RESOURCES• Research:

– Personas

– Tracking

– Heatmapping

– Test Duration Calculator

• Analysis Tools:

G5 D-LITE CRO Framework

• Hypotheses:

If [cause], then [effect], because [rationale]

The Evolution of A/B Testing

@Nicole_Mintiens

“CRO IS LEARNING WHYYOUR USERS aren’t

converting and FIXING IT.”The Evolution of A/B Testing

@Nicole_Mintiens

GET THESE SLIDES: goo.gl/TPUOgA

THANKS!

DON’T JUST TEST, OPTIMIZE.

The Evolution of A/B Testing

@Nicole_Mintiens

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