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	<title>MarketingProfs Daily Fix Blog &#187; multivariate_testing</title>
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		<title>Experiment or Go Home!</title>
		<link>http://www.mpdailyfix.com/experiment-or-go-home/?utm_source=rss&amp;utm_medium=rss&amp;utm_campaign=experiment-or-go-home</link>
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		<pubDate>Wed, 05 Sep 2007 12:49:24 +0000</pubDate>
		<dc:creator>Avinash Kaushik</dc:creator>
				<category><![CDATA[Featured Posts]]></category>
		<category><![CDATA[a/b_testing]]></category>
		<category><![CDATA[avinash kaushik]]></category>
		<category><![CDATA[experimentation and testing]]></category>
		<category><![CDATA[google_website_optimizer]]></category>
		<category><![CDATA[multi-variate testing]]></category>
		<category><![CDATA[multivariate_testing]]></category>
		<category><![CDATA[offermatica]]></category>
		<category><![CDATA[optimost]]></category>
		<category><![CDATA[sitespect]]></category>

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		<description><![CDATA[You are a lovely Marketer and all you want is the coveted Marketer of the Year award. Yet your website conversion rate is stuck at 2%&#8230; no matter how hard you try. It&#8217;s not your fault. There are three forces that are working against you&#8230; .

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If you do not have an [...]]]></description>
			<content:encoded><![CDATA[<p>You are a lovely Marketer and all you want is the coveted <strong>Marketer of the Year </strong>award. Yet your website conversion rate is stuck at 2%&#8230; no matter how hard you try. It&#8217;s not your fault. There are three forces that are working against you&#8230; .</p>
<p><span id="more-18536"></span><br />
* * * * *
</p>
<p>If you do not have an active experimentation and testing program in your company then you are leaving so much money on the table that it is not even funny.<br />
It is not too extreme to say: <em>If you are not doing testing then pack your bags now and go home because there is no way you can win.</em></p>
<p>You are a lovely Marketer and all you want is the coveted Marketer of the Year award. Yet your website conversion rate is stuck at 2%, no matter how hard you try. Its not your fault. There are three forces that are working against you:</p>
<ol>
<li>Your website is being used for purposes it has not been created for. And you don&#8217;t even know. Few website owners / Marketers / Analysts understand all of the reasons why people come to their websites (Visitor Primary Purpose).
<p>If you don&#8217;t know why they are there, how will you know how to create a great customer experience?</li>
<li>A monolith does not come to your site, segments do. If I unpack that statement what I mean is that even if 100% of the traffic on your site is there to buy (right now), it still is formed of many different types of customers who need to be communicated to in a unique manner (calls to action, content, promotions, and yes even buttons).</li>
<li>HiPPO&#8217;s rule the world when it comes to creating customer experiences. And that&#8217;s a bad thing. No matter what you think the optimal customer experience should be on the website it is quite likely that you walk into a meeting room, or office, and regardless of your competence the HiPPO decides what goes on the site.
<p>HiPPO stands for: the <strong>Hi</strong>ghest <strong>P</strong>aid <strong>P</strong>erson&#8217;s <strong>O</strong>pinion. HiPPO&#8217;s are your bosses, their bosses, your creative directors etc etc.</li>
</ol>
<p align="center"><img height="371" alt="HIPPO - HIghest Paid Person's Opinion" hspace="7" src="http://www.kaushik.net/avinash/wp-content/uploads/2007/08/hippo-highestpaidperson'sopinion.png" width="499" /></p>
<p>In the past you did not have too many options to counter the HiPPO&#8217;s and get your ideas to the site or why people comes to your site and what problems they have. Now you can run a simple <a href="http://www.kaushik.net/avinash/2007/04/the-three-greatest-survey-questions-ever.html">three question golden survey</a> and find out Visitor Primary Purpose.</p>
<p>You can also let ideas democracy flourish in your company: Captain Experimentation to the rescue!</p>
<p>In its simplest form experimentation and testing is showing two or three or fifty pieces of creative / content / promotions etc to a website visitor. After a statistically significant amount of time let the results of the test help you decide what your customers like / react positively to.</p>
<p>In the last 18 months or so your ability to test has dramatically improved, thanks to evolution of technology, new vendors and integrated reporting.</p>
<p>You can get going with your own website&#8217;s capability to do A/B/C testing (if you have a decent website platform then you are set).</p>
<p align="center"><img height="313" alt="a-b testing" hspace="7" src="http://www.kaushik.net/avinash/wp-content/uploads/2007/08/a-b_testing.png" width="549" /></p>
<p>Take a page on your site, tell your web server to split traffic to three different version, with your web analytics tool measure success. That&#8217;s all it takes to get your idea validated!</p>
<p>The cool babe of the month is Multivariate Testing. It is the ability of simply partitioning up various parts of the page and putting different pieces of content in each partition to see which combination of element works.</p>
<p>Here is your default page (and who on this earth does not need, <em>nay deserve</em> , a hundred roses?):</p>
<p align="center"><img height="336" alt="mvt-home page" hspace="7" src="http://www.kaushik.net/avinash/wp-content/uploads/2007/08/mvt-home_page.png" width="349" /></p>
<p>To test all you do is log into your multivariate testing tool, upload all your wonderful ideas, and turn the experiment. You can pump in different images into the main 100 flowers image above. You can put in customer testimonials in the white space on to top right. You can even take your boss&#8217;s wonderful idea of adding Buy Now buttons under each product.</p>
<p>The tool takes care of rending the pages to your website visitors and runs the experiment for you (with the only IT involvement for your company being addition of a few lines of javascript code &#8211; you the Marketer is finally in control baby!!). Each visitor to your website sees a unique page:</p>
<p align="center"><img height="440" alt="mvt test combinations" hspace="7" src="http://www.kaushik.net/avinash/wp-content/uploads/2007/08/mvt_test_combinations.png" width="455" /></p>
<p>Now here comes the sweetest part. Analytics are included, you just sit back and wait for the green bars to indicate 95% confidence!</p>
<p align="center"><img height="217" alt="mvt-statistical significance" hspace="7" src="http://www.kaushik.net/avinash/wp-content/uploads/2007/08/mvt-statistical_significance.png" width="518" /></p>
<p>The tool tells you which one works for your customers optimally, and by how much. You don&#8217;t have to guess.</p>
<p>Convinced?</p>
<p>Here&#8217;s one last thing.</p>
<p>You can start doing multivariate testing tomorrow using the 100% free <a href="http://services.google.com/websiteoptimizer/">Google Website Optimizer</a> tool. All you need is a Google AdWords account (you don&#8217;t even need to spend money on AdWords!!). You can get the code, implement, upload and start testing in a couple hours.</p>
<p>Once you get really good at this you can get a paid tool where you might get lots more features (initially you might not need them but later perhaps you will).</p>
<p>If you don&#8217;t want to go down the free route get one of the nice paid tools, Offermatica, Optimost, SiteSpect etc.</p>
<p>To help you choose the right tool for you (and know the kind of effort involved in your company and the impact it will have on your customers) here is a handy selection matrix:</p>
<p align="center"><img height="314" alt="testing type selection matrix" hspace="7" src="http://www.kaushik.net/avinash/wp-content/uploads/2007/08/testing_type_selection_matrix.png" width="490" /></p>
<p>Ms. / Mr. Super Marketer the shackles are now off! <em>Good luck and God speed!!</em></p>
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