Exploiting The Intersection of PPC and CRO - HeroConf 2017
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Andrew Miller's presentation from April 2017 at HeroConf in Los Angeles covers the intersection of Pay Per Click advertising and Conversion Rate Optimization.
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Exploiting The Intersection of PPC and CRO - HeroConf 2017
- 1. @AndrewCMiller #HeroConf Exploiting the Intersection of PPC and CRO Andrew Miller Co-Founder
- 2. @AndrewCMiller #HeroConf How to budget for PPC to support CRO tests. How to factor PPC strategies into CRO test design. How to layer PPC audiences to avoid skewing your CRO test results. A 6-Step CRO process that begins with research and ends with analysis.
- 4. @AndrewCMiller #HeroConf Ignore the bridge between PPC and CRO at your own peril!
- 5. @AndrewCMiller #HeroConf Capture and Convert THE LIST GOES ON… BIDDING AD CREATIVE AUDIENCE TARGETS THE LIST GOES ON… CALLS TO ACTION OFFERS RELEVANCE
- 6. @AndrewCMiller #HeroConf COST PER CLICK CONVERSION RATE COST PER ACQUISITION Metrics that Matter = ÷
- 8. SMALL BUSINESSES Constrained by budgets Small teams of generalists Time LARGE BUSINESSES Multiple teams Different stakeholders Competing objectivesANYBODY Wrong metrics HiPPO or group think Tactics before strategy
- 9. @AndrewCMiller #HeroConf A Q U O T E O F T E N I N C O R R E C T L Y A T T R I B U T E D T O I S A A C N E W T O N We build too many walls and not enough bridges.
- 10. @AndrewCMiller #HeroConf J E F F B R I D G E S Yeah, well, that's just, like, your opinion, man.
- 11. @AndrewCMiller #HeroConf A 6-Step CRO Process
- 13. @AndrewCMiller #HeroConf 1 Research & Analysis What conversion problem are you trying to solve? Gather data and assumptions to understand the issue. STAGE QUESTION ACTIONS
- 14. @AndrewCMiller #HeroConf 2 Hypothesis Formation What solution(s) will solve the conversion problems? Develop a testable hypothesis that can be proven with data. STAGE QUESTION ACTIONS
- 15. @AndrewCMiller #HeroConf 3 Experiment Planning How, where, when will we test? What metrics matter most? Show your work. Document the test plan and parameters. STAGE QUESTION ACTIONS
- 16. @AndrewCMiller #HeroConf 4 Design & Copywriting Which variables will we change to test our hypothesis? Create variants of your control page for A/B testing. STAGE QUESTION ACTIONS
- 17. @AndrewCMiller #HeroConf 5 Implementation & QA Is everything correct? Can we measure everything? Create a checklist to ensure consistently functional tests. STAGE QUESTION ACTIONS
- 18. @AndrewCMiller #HeroConf 6 Results Rollout & Repetition What did we learn? What can be applied to future tests? Document and share test results to inform future campaigns. STAGE QUESTION ACTIONS
- 20. @AndrewCMiller #HeroConf COMMON CRO KNOWLEDGE: Test one variable at a time. EASILY-FORGOTTEN FACT: PPC campaigns introduce lots of variables.
- 21. @AndrewCMiller #HeroConf Use identical campaign settings Compare similar markets & devices Don’t mix audiences & keywords Controlled VariablesMinimize the impact of incomplete or inconclusive data
- 22. @AndrewCMiller #HeroConf Try not to test over holidays or major news events Consider other marketing and promotions Analyze the same number of days and days of the week Tests Don’t Occur in a VacuumDon’t let seasonal or other temporary variables skew test results
- 23. @AndrewCMiller #HeroConf Gather Customer Insights & DataAugment your lead data to increase its value CAMPAIGN DATA CUSTOM VARIABLES CLICK IDs
- 25. @AndrewCMiller #HeroConf Preserve the integrity of CRO results by testing against identical audiences.
- 26. @AndrewCMiller #HeroConf ALL WEB USERS PREVIOUS VISITORS & CUSTOMER LISTS ABANDONED FUNNEL Include & Exclude The Right AudiencesAim for clean, consistent segments to avoid misreading results CONVERTED Extremely vague Brand aware Ready to activate Primed for loyalty
- 27. @AndrewCMiller #HeroConf PPC Targeting Impacts CRO Test ResultsAim for clean, consistent segments to avoid misreading results Do users on different devices have different experiences?Does geographic proximity impact conversion rates? Are your offers appealing to specific gender? Are your most valuable prospects older or younger?
- 28. @AndrewCMiller #HeroConf Budgeting for PPC to support CRO
- 29. @AndrewCMiller #HeroConf Purchase enough visitors to achieve statistical significance in an acceptable timeframe.
- 30. Determine a proper sample size Aim for > 95% confidence level Ensure the validity of your test results Statistical Significance Reduce probability of an invalid result
- 31. VWO’s A/B Test Duration Calculator: vwo.com/ab-split-test-duration/ KissMetrics A/B Significance Test getdatadriven.com/ab-significance-test Optimizely’s A/B Test Sample Size Calculator www.optimizely.com/resources/sample- size-calculator/ Helpful Budgeting ToolsEnsure the validity of your test results
- 32. @AndrewCMiller #HeroConf How to budget for PPC to support CRO tests. How to factor PPC strategies into CRO test design. How to layer PPC audiences to avoid skewing your CRO test results. A 6-Step CRO process that begins with research and ends with analysis.
Editor's Notes
- Building a bridge over a treacherous river Failure is not an option At worst: imminent demise At best: a decent shot at $10 grand on AFV
- Does this make anybody nervous? Probably piranhas and all sorts of previously undiscovered bacteria. This is how I felt the first time I set up a CRO test with PPC traffic. This is what I see nearly every day when marketers ignore the links between PPC and CRO
- Missed opportunities to improve CPA. Flawed test results and bad data Bad business decisions
- PPC is capture CRO is convert PPC and CRO are both iterative processes Testing and learning
- CPA can be lead, sale, or any conversion CPC is cost to acquire one visitor Conv Rate is percentage of visitors that convert CPA = CPC ÷ Conv Rate To lower CPA, one must lower CPC or raise CR
- Adjust CPA target, CPC, and Conversion Rate Find scenarios that meet or exceed your target CPA Make a copy!
- This is not just a problem for small businesses or enterprise. This affects everybody. 10 years, only a handful get it right. It’s just hard. But small business can beat larger competitors by out-converting
- Reality is that too many companies build walls between PPC and CRO. Too many people assume this is the only way. So to those that just accept the constraints faced by small or large businesses, I say
- We can do better. We can break down the walls between PPC and CRO. But first, we have to understand CRO and how to design a proper test.
- Why have a process? Repeatable actions lead to consistency. Iterative – can always be improved.
- Most people jump straight to step 4 – Design & Copywriting. Starts with Research & Analysis.
- Goal is to use data to identify the problem.
- Use the data to inform your hypothesis. "I believe we can improve metric X by changing variable Y"
- Possibly the most crucial step. Getting it wrong will skew your data or lead to invalid results. Outline all test components as if you were going to have somebody else replicate it. This is how real scientists validate each other's findings.
- The fun part. What most people associate with CRO or LPO. Impossible to justify the test variables or treatments without a solid test plan.
- A great time to share results with other marketing channels.
- How PPC impacts your CRO and LPO tests.
- Linking PPC and CRO is like building a bridge: Beautiful when complete, dangerous when under construction.
- Apples to apples comparisons Analyze results by comparing similar segments
- Clean data allows for better decisions.
- Set up in PPC campaigns gclid, mslkid UTM parameters, valuetrack parameters Test variant, offer, control vs. experiment group, previous customer data Make sure your CRO platform, analytics, and CRM are configured to capture this info
- These are primarily PPC audiences. Consider all potential combinations of website users and previous customers. Exclude or include based on your strategy & experiment design.
- Factor in device, geography, demographics. Some CRO platforms allow for segmenting test subjects to run clean tests. If yours doesn’t, use your PPC settings or analytics segments to derive insights.
- Too little traffic leads to long tests or inconclusive results.
- Building a bridge over a treacherous river Failure is not an option At worst: imminent demise At best: a decent shot at $10 grand on AFV