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How to unleash the testing power of your emails

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Kath Pay How to unleash the testing power of your emails March 2014 Presentation

Kath lives and breathes marketing, she is not only a world-renown speaker and trainer but practices her art in the senior management team and as the Marketing Director of e-commerce conversion experts - cloud.IQ. She is recognized as the UK’s leading Email Marketing trainer and heads up training on Email Marketing & Personalization for Econsultancy & Emarkeeters
1 What do we want to know about our database? 2 What’s the best way to discover the answers? 3 What’s a way that provides an immediate boost but also delivers longitudinal results?
Unleash the testing powers of email
The Current State of Play Of Testing 1
Conversion Rate Optimization Report 2013 85% of companies are defining their goals and objectives for their tests
Conversion Rate Optimization Report 2013 Only 50% of companies are testing images and promotions & offers.
Conversion Rate Optimization Report 2013 On average 31% of companies are performing test on their websites 1 x per week
Conversion Rate Optimization Report 2013 Although email is the easiest channel to test only 63% are testing it
Email Marketing Census 2014 Even though Email Marketing delivers the highest ROI
Building the Case for Testing in Email 2
Testing a Landing Page vs Testing in E-mail Landing Page Email 1 2 3 1 2 3 Create test based upon hypothesis Create test based upon hypothesis Send campaign Determine winner within 24 hours
Who makes up your email database? Your Target Market!
Every email should contain a test… Think of every email as a survey of your target market
Strategically Plant Information And see what resonates with your audience
Testing different motivational factors
Different wording test.
Multi-variant test which combination provides the best result
8 Seconds Apply it to your landing pages, product pages, direct mail…..
Test which Subject Line - Descriptive vs Benefit
Emotional question in Subject Line will generate more sales than a directive statement Have a desire to learn about your audience
Identify what question are you trying to answer?
Create a Hypothesis
“taking the 1% from everything you do; finding a 1% margin for improvement in everything you do.”
Hypothesis Test in email Learn Apply to appropriate channels It’s a cycle of continuous learning
1 Don’t test for the sake of testing 2 Don’t just focus on one-off results – but focus on longitudinal gains, that can be rolled out everywhere 3 Be sure the measure the correct metric.
Be sure to measure the correct metric Subject Line Opened Clicked Converted Win

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How to unleash the testing power of your emails

  1. 1. Kath Pay How to unleash the testing power of your emails March 2014 Presentation
  2. 2. @ThueLMadsen#KISSwebinar Join the conversation on Twi er
  3. 3. Kath Pay – cloud.IQ - @kathpay Kath lives and breathes marketing, she is not only a world renown speaker and trainer but practices her art in the senior management team and as the Marketing Director of e-commerce conversion experts - cloud.IQ. She is recognised as the UK’s leading Email Marketing trainer and heads up training on Email Marketing & Personalization for Econsultancy & Emarkeeters Thue Madsen - KISSmetrics - @ThueLMadsen Thue is the KISSmetrics Webinar Wizard and Marketing Ops Specialist. Before joining forces with KISSmetrics, he was a Ly driver in SF, which is also how he ended up as a KISSmetrics marketer. Whenever Thue is not trying to automate everything around him, you can find him fishing and hiking in the Sierras.
  4. 4. @kathpay #KISSwebinar Join the conversation on Twi er
  5. 5. 1 The Current State of Play of Testing 2 Building the Business Case for Testing in Email 3 Testing Essentials Today we’ll be looking at….
  6. 6. WATCH WEBINAR RECORDING NOW
  7. 7. The goal of a test is not just to get a li , but to get a learning as well…
  8. 8. 1 What do we want to know about our database? 2 What’s the best way to discover the answers? 3 What’s a way that provides an immediate upli but also delivers longitudinal results? This then raises a few questions……
  9. 9. Unleash the testing powers of email
  10. 10. The Current State of Play Of Testing 1
  11. 11. Econsultancy Conversion Rate Optimization Report 2013 85% of companies are defining their goals and objectives for their tests
  12. 12. Econsultancy Conversion Rate Optimization Report 2013 Only 50% of companies are testing images and promotions & offers.
  13. 13. Econsultancy Conversion Rate Optimization Report 2013 On average 31% of companies are performing test on their websites 1 x per week
  14. 14. Econsultancy Conversion Rate Optimization Report 2013 Although email is the easiest channel to test only 63% are testing it
  15. 15. Econsultancy Email Marketing Census 2014 Even though Email Marketing delivers the highest ROI
  16. 16. LOG IN WITH GOOGLE Start Your Free KISSmetrics Trial
  17. 17. Building the Case for Testing in Email 2
  18. 18. Testing a Landing Page vs Testing in E-mail Landing Page Email 1 2 3 1 2 3 Create test based upon hypothesis Create test based upon hypothesis Send campaign Determine winner within 24 hours Spend $$ driving traffic Wait for days/weeks/ months 4 Determine winner
  19. 19. Who makes up your email database? Your Target Market!
  20. 20. Every email should contain a test… Think of every email as a survey of your target market
  21. 21. However – tests are be er than surveys…. Actions Speak Louder Than Words
  22. 22. Strategically Plant Information…. And see what resonates with your audience
  23. 23. 1 Strategically test our target market to gain valuable insights 2 Statistically confident results immediately 3 Use the Aggregation of Marginal Gain to be continually optimising and discovering further insights The benefits are many…..
  24. 24. 1 How can I get more traffic for less money? 2 What will drive up average order values? 3 How can I get more successful outcomes ? Testing is a Strategic Issue…
  25. 25. Create a Methodology
  26. 26. ….Testing different motivational factors….via subject lines 1.  [Optimization Summit] 3 Days to a Be er Website ($300 Off Coupon Inside!) – (Value Exchange, Incentive) 2.  Learn 3 tips that made 10,000 landing pages extremely successful – (Value Exchange, No Incentive) 3.  Optimization Summit 2012 – Speakers List Now Up! + Save $300 Today – (Newsworthy, Incentive) 4.  Quarterbacks aren’t the only changes being tested in Denver. – (Curiosity) 5.  A scientific way to increase your conversions – (Benefits) 6.  Do your landing pages pass this test? – (Fear)
  27. 27. “Fear” was the Winner – 125% more unique CTR’s Source: Marketing Experiments
  28. 28. Different wording test – PPC ad, Titles, Sub-headings, Banner Ads…. B had 88% higher open rate With a 95% confidence level A [First Name] Test, track, increase your profit – start today! B [First Name] Start tracking and optimizing your business today!
  29. 29. Test which image achieves the best conversion – product display or model wearing garment? Source: Movable Ink Apply it to your homepage, product pages, banner ads…..
  30. 30. Multi-variate test which combination provides the best result •  16 unique combinations (8 headers + 2 grtz) •  66,712 opens •  A er 10,279 opens, best combination was found, remaining 56,433 ! optimized version •  increase of conversion rate: 830% blank Source: 8 Seconds Apply it to your landing pages, product pages, direct mail…..
  31. 31. Test which Subject Line - Descriptive vs Benefit – is best for your product page Winner: Version A increased leads by 62% A Increase Customer Retention by 8% in a Single Month B SaaS Billing Is a Marketing Asset Apply it to your homepage, product pages, banner ads, PPC ads…..
  32. 32. A B +72% Ask your customers which they prefer! Apply it everywhere!…..
  33. 33. Not everything tested in email can be applied to other channels….. Email is a Push channel Web, Social, PPC, Search are Pull channels
  34. 34. Hypothesis To be used elsewhere? Emotional question in Subject Line will generate more sales than a directive statement Yes Emotional CTA will generate more sales than a pragmatic CTA Yes Double Loyalty points will generate more sales than 15% loyalty points Yes 5 items showing in the "You may also like" dynamic pod will generate more sales than 3 items Yes CTA in the preheader will generate more sales than a statement No Emotive image of person smiling & wearing outfit will generate more sales than image displaying outfit laid out. Yes Image 2 (looking at CTA) will generate more sales than Image 1 (looking at copy) Yes Let’s look at some hypothesis’ used in email
  35. 35. Testing Essentials How to successfully test in Email 3
  36. 36. Have a desire to learn about your audience 1
  37. 37. Identify what question are you trying to answer? 2
  38. 38. Create a Hypothesis3
  39. 39. A Hypothesis can be proved or disproved A hypothesis pre y much says, “I think by making this change, it will cause this effect.” So, based on your results, you should be able to say “this is true” or “this is false.”
  40. 40. “It means taking the 1% from everything you do; finding a 1% margin for improvement in everything you do.” h p://www.teamsky.com/article/0,27290,17547_5792058,00.html The GB cycling team's winning philosophy is "aggregation of marginal gains”: get a lot of small things right, put them all together, and they add up to a significant gain. h p://www.guardian.co.uk/sport/2008/aug/14/ olympics2008.olympicscycling1 ! Aggregation of Marginal Gains
  41. 41. Create building blocks
  42. 42. Hypothesis Test in email Learn Apply to appropriate channels It’s a cycle of continuous learning
  43. 43. 1 Don’t test for the sake of testing 2 Don’t just focus on one-off results – but focus on longitudinal gains, that can rolled out everywhere 3 Be sure the measure the correct metric Some rules…
  44. 44. Be sure to measure the correct metric Subject Line Opened Clicked Convert ed Win the pampering prize of a lifetime worth $10,000 38.19% 9.35% 6.74% Win spa breaks, a personal shopper and more worth $10,000 35.76% 11.03% 9.19% Win a pampered new you worth $10,000 38.01% 15.45% 10.67% Win a trip to Champneys and more worth $10,000 with Veet 33.23% 16.76% 11.01%
  45. 45. Oh! And one last thing! Be warned – testing is addictive!
  46. 46. 2015 KISSmetrics Guide KISSmetrics Demo h p://kiss.ly/growth h p://kiss.ly/demo
  47. 47. Questions? Kath Pay Marketing Director Cloud.IQ @kathpay Kath.pay@cloud-iq.com Thue Madsen Marketing Operations Specialist KISSmetrics @ThueLMadsen tmadsen@kissmetrics.com
  48. 48. THANK YOU Kath Pay @kathpay

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