What Your Customers Want

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What Your Customers Want: How to predict customer behavior for maximum ROI

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Today’s team

Dr. Flint McGlaughlin Managing Director

Jon Powell Senior Research Manager

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Marketing takes time and resources

The Ideal Customer The Marketer

The Message

No Thanks

Time

Energy

Budget

? How can I know that my campaigns will be successful before I invest resources?

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Background: Medical provider specializing in treating a particular chronic pain. Goal: To plan a content marketing strategy based on which approach generates more appeal in condition-based searchers. Primary Research Question: Which content approach will achieve a higher clickthrough rate? Approach: A/B Multifactor Split Test

Experiment ID: Research Partner Identity Protected Location: MarketingExperiments Research Library Test Protocol Number: TP4067

Research Notes:

Experiment: Background

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Experiment: Medical Condition Keywords

Medical Condition Keywords: • Keyword 1 • Keyword 2 • Keyword 3 • Keyword 4 • Keyword 5 • Keyword 6

Ad Abbreviated Med. Conditions: • Thyroid pain • Sciatic nerve • Blood Pres. • Kidney cysts • Colonic pain • Lumbar pain

*Keywords have been randomly selected and optimized to protect partner identity

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Experiment: Treatments

Treatment Design:

• Template test in 6 condition-

based ad groups

• Headline is specific to

[condition] ad group

• Variable is description line one

• Value corresponds to content

approach

[Condition] Sufferer? Free access to kidney pain resources from the experts in kidney health. [Display URL]/[condition]

T1: Body Part Pain Resources

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[Condition] Sufferer? Compare available treatments, from the experts in [specialty] health. [Display URL]/[condition]/[condition]

T2: Treatment Options

Treatment Design:


based ad groups





approach

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[Condition] Sufferer? Learn about the causes & solutions, from the experts in [specialty] health. [Display URL]/[condition]

T3: Causes and Solutions*

Treatment Design:


based ad groups





approach

*Audience member submission

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[Condition] Sufferer? How to recognize the symptoms, from the experts in [specialty] health. [Display URL]/[condition]

T4: Recognize Symptoms

Treatment Design:


based ad groups





approach

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Experiment: Side-by-side

[Condition] Sufferer? Free access to specific pain resources from the experts in [specialty] health. Display URL/[condition]

T1: specialty Pain Resources [Condition] Sufferer?

Compare available treatments, from the experts in [specialty] health. Display URL/[condition]


[Condition] Sufferer? Learn about the causes & solutions, from the experts in [specialty] health. Display URL/[condition]

T3: Causes and Solutions* [Condition] Sufferer? How to recognize the symptoms, from the experts in [specialty] health. Display URL/[condition]


*Amy’s submission

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Version CTR Rel. diff Stat. Conf

[Specialty] Pain Resources 0.15% - -

Treatment Options 0.17% 14.1%

Causes & Solutions* 0.26% 71.8%

Symptoms 0.30% 99.7%

99.7% Increase in clickthrough rate ‘Symptoms’ generated 99.7% more clicks than the ‘[Specialty] Pain Resources’

What You Need to Understand: The ‘Symptoms’ content approach is most appealing to visitors making condition-based searches.

*Audience submission

Experiment: Results

99.9%

99.9%

65.8%

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The Ideal Customer The Marketer

The Message

No Thanks

Time

Energy

Budget

? How can I know that my campaigns will be successful before I invest resources?

How can we predict success?

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Today we are going to learn 3 principles to help us predict the success of our campaigns.

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PRINCIPLE #1: All you need to know is enough to predict

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Key Principles

PRINCIPLE #1:

Customer research can generate an overwhelming amount of data. We can cut through it with this simple maxim:

All we need to know is enough to predict customer behavior.


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Knowing enough to predict

Our researchers call this knowledge the “Customer Theory.” Customer Theory Definition: The Customer Theory is an understanding of the customer that enables us to predict their total response to a given offer.

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[Condition] Sufferer? Free access to [specialty] pain resources from the experts in [specialty] health. [Display URL]/[condition]

T1: [Specialty] Pain Resources [Condition] Sufferer? Compare available treatments, from the experts in [specialty] health. [Display URL]/[condition]


[Condition] Sufferer? Learn about the causes & solutions, from the experts in [specialty] health. [Display URL]/[condition]

T3: Causes and Solutions* [Condition] Sufferer? How to recognize the symptoms, from the experts in [specialty] health. [Display URL]/[condition]


*Amy’s submission

? What can we predict based on these results?

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Experiment #2: Background

Background: Medical provider specializing in treating chronic pain. Goal: To plan a content marketing strategy based on which approach generates more appeal in condition-based searchers. Primary Research Question: Which content approach will achieve a higher clickthrough rate? Approach: A/B Multifactor Split Test

Experiment ID: Research Partner Identity Protected Location: MarketingExperiments Research Library Test Protocol Number: TP4068

Research Notes:

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Admin Note: Reference Test Protocol

From Test Protocol

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General Hypothesis: “Based on what we learned from the previous content approach test, if we use a symptom content approach while matching the control's specificity to each ad group, we can achieve a higher click-through rate.” -Quoted from Test Protocol

Experiment #2: Control Keyword 1 Treatment Read about our xx-minute treatment for keyword pain relief. [Display URL]/Keyword_1

Keyword 2 Treatment Keyword pain? You Have Options. Ask Our Experts About [procedure]. [Display URL]

Keyword 3 Treatment Relieve [keyword] Pain with Our Unrivaled xx-Minute Procedure. [Display URL]/Keyword 3

Degenerative Keyword Disease Relieve Degenerative [keyword] Pain w/ Our Unrivaled Revolutionary Program [Display URL]/Degenerative

Keyword 4 Treatment New 53-Minute Procedure, Reclaim Your Life From [keyword] Pain. [Display URL]/Keyword

Relief From Keyword Pain Read about our 30-minute treatment for total freedom from [keyword] pain! [Display URL]

Control Ads

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Experiment #2: Treatment 1 Keyword 1 Symptoms Read about our XX-minute treatment For keyword pain relief. [Display URL]/keyword

Keyword 2 Symptoms Keyword 2? You Have Options. Ask Our Experts About [Procedure™]. [Display URL]

Keyword 3 Symptoms Relieve [keyword] Pain with Our Unrivaled XX-Minute Procedure. [Display URL]/keyword

Keyword 4 Symptoms New xx-Minute Procedure, Reclaim Your Life From [keyword] Pain. [Display URL]/keyword

Keyword 5 Symtpoms Read about our XX-minute treatment for total freedom from [keyword] pain! [Display URL]

Treatment 1 Ads

How treatment will test hypothesis: “If treatment 1 wins, we will learn that the symptom content approach is most effective only when used in the headline.” -Quoted from Test Protocol

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How treatment will test hypothesis: “If treatment 2 wins, we will learn that the symptom content approach is most effective when used in the description and when the description is specific to the ad group.” -Quoted from Test Protocol

Experiment #2: Treatment 2 Keyword 1 Treatment Read about our xx-minute treatment for keyword pain relief. [Display URL]/keyword

Keyword 2 Treatment Read about keyword Symptoms and see how our experts can help! [Display URL]

Keyword 3 Treatment Read about keyword Symptoms and see how our experts can help! [Display URL]/keyword

Degenerative Keyword Disease Read how our keyword experts can help relieve Degenerative keyword Symptoms! [Display URL]/Degenerative

Keyword 4 Treatment Read about keyword Symptoms and see how our experts can help! [Display URL]/keyword

Relief From Keyword Pain Read about keyword Symptoms and see how our experts can help! [Display URL]

Treatment 2 Ads

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Experiment #2: Treatment 3

How treatment will test hypothesis: “If treatment 3 wins, we will learn that the symptom content approach is most effective when used in BOTH the headline and description and when the description is specific to the ad group.” -Quoted from Test Protocol

Keyword 1 Symptoms Read about our xx-minute treatment for keyword pain relief. [Display URL]/keyword

Keyword 2 Symptoms Read about keyword Symptoms and see how our experts can help! [Display URL]

Keyword 3 Symptoms Read about keyword Symptoms and see how our experts can help! [Display URL]/ /keyword

Keyword 3 Symptoms Read about keyword Symptoms and see how our experts can help! [Display URL]/ /keyword

Keyword 4 Symptoms Read about keyword Symptoms and see how our experts can help! [Display URL]

Treatment 3 Ads

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Experiment #2: Results

Version CTR Rel. diff Stat. Conf

Control 0.28% - -

T1- Headline Change 0.26% -5.8%

T2- Description Change 0.21% -26.5%

T3- Both Change 0.39% 40.6%

40% Increase in clickthrough rate Adding ‘Symptoms’ to BOTH headline and description produced a 40% increase

What You Need to Understand: By applying the insight from the previous test and inserting ‘symptoms’ into both the headline and description, the team was able to create more successful treatments across all ad groups.

99.9%

99.9%

60.6%

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Which? Why? What?

Research Question Theory Question

Value Proposition Question: If I am your ideal customer, why should I buy from you rather than your competitors?

Ideal Customer

Behavior reflects identity

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201% 2% 29%

Test results are interpreted and second test was created based on

the analyst’s observations

Again, test results are interpreted and the next

round of testing is started for this page

Test is again interpreted and transferrable principles are applied to other offer pages

Knowing enough to predict Customer Theory applied

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451%

302%

603% 257% 28%

• The discoveries and insights about customer motivation from the three prior tests were applied to other landing pages and used to optimize PPC campaigns.

• The purposeful effort to identify and selectively apply these transferrable insights led to widespread optimization gains.

Knowing enough to predict Customer Theory applied

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PRINCIPLE #2: The Internet is a laboratory

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Key Principles

PRINCIPLE #1: Customer research can generate an overwhelming amount of data. All we need to know is enough to predict customer behavior. PRINCIPLE #2: The Internet is not just another marketing channel, it is the primary laboratory for conducting customer research.


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The Internet as a lab

The Internet has become the most efficient means of gathering business intelligence BEFORE a major online (or offline) campaign.

Level 1

Level 2

Level 3

The Decision Resolution

“To know what people really think, pay regard to what they do, rather than what they say.” – Descartes (source unknown)

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The Internet as a lab Traditional marketing process

The Traditional Marketing Process

Business Leader Creates

Product

Agency delivers creative

Marketing Implements

Online marketing has simply been ADDED to the process.

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The Behavior-Based Marketing Process

Business Leader Creates

Product

Agency delivers creative

Marketing Implements

If we can interrupt the process and test the message, then we can drive results across the business.

The Internet as a lab Behavioral-based marketing process

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The Internet as a lab

548%

SEO Landing Page

Example

141%

Homepage

Lower investment channels

Higher investment channels

Offline Campaigns

*TV image by Brylle

http://www.arteyfotografia.com.ar/522/fotos/279124/

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PRINCIPLE #3: Negative tests can generate positive results

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Key Principles

PRINCIPLE #1: Customer research can generate an overwhelming amount of data. All we need to know is enough to predict customer behavior. PRINCIPLE #2: The Internet is not just another marketing channel, it is the primary laboratory for conducting customer research. PRINCIPLE #3: The goal of a test is not (simply) to get a lift but rather to get a learning. Even a negative test can translate into a positive result.


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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: A/B/C Multivariate test involving changes in headline, credibility indicators, and images according to optimization best practices.

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

Research Notes:

Experiment #3: Background

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Control

Experiment #2: Control

? What are some problems you see with the control?

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Treatment 1

Treatment 2 Experiment #3: Treatments

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• 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.

Treatment 1


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• 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.

Treatment 2


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Treatment 1 Treatment 2 Control

Experiment #3: Side-by-side

Which of these treatments had the highest conversion rate?

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Vs.

Control Treatment 1

Conversion Rate = 14.26% Conversion Rate = 6.74%

53%

Experiment #3: Treatment 1 results

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Vs.

Control Treatment 2

Conversion Rate = 14.26% Conversion Rate = 6.84%

52%

Experiment #3: Treatment 2 results

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Version CR Rel. diff Stat. Conf

Original 14.26% - -

Treatment 1 6.74% -52.7%

Treatment 2 6.84% -52.0%

53% Decrease in conversion The lowest performing treatment decreased conversion by 53%

What You Need to Understand: Through the negative lift in this test, we were able to learn that the customer was already sold by the time they landed on this page.

95%

95%


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• 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?

Control

Experiment #4: Control

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• Much of the copy on this page is removed, leaving simple form submission fields.

• No real selling points are included in this design.

Treatment

Experiment #4: Treatment

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Experiment #4: Side-by-side

Control

Treatment

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Version CR Rel. diff Stat. Conf

Original 12.09% - -

Treatment 21.54% 78.12%

78% Increase in conversion The treatment increased conversion by 78.12%

95%


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What You Need to Understand: Without the “negative lifts” that challenged almost every part of our normal optimization methodology, it would have taken much longer to achieve the eventual 78% increase.

X X

Test Cycle: Results

53% 52% 78%

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What You Need to Understand: Without the “negative lifts” that challenged almost every part of our normal optimization methodology, it would have taken much longer to achieve the eventual 78% increase.

Test Cycle: Results

53% 52% 78%

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Summary: Putting it all together

Key Principles

PRINCIPLE #1: Customer research can generate an overwhelming amount of data. All we need to know is enough to predict customer behavior. PRINCIPLE #2: The Internet is not just another marketing channel, it is the primary laboratory for conducting customer research. PRINCIPLE #3: The goal of a test is not (simply) to get a lift, but rather to get a learning. Even a negative lift can translate into a positive result.

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Optimization Summit 2012 in Denver

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Audience Questions

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Question 1

How do we formulate a proper research question?

?

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Question 2

How do you balance SEO with Value Proposition?

?

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Question 3

Is it possible to have the same landing page for organic and PPC traffic?

?

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Question 4

Can you talk about application of customer theory to engaging charitable donations?

?

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Question 5

How does Value Proposition apply to sales?

?

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http://whiterimage.com/

Submission 1

Primary Channel: Search Target Audience: Females, 18-40 Page Objective: To read more about a product.

http://whiterimage.com/

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62 http://www.appup.com

Submission 2

Primary Channel: Advertising via display, search, email Target Audience: Consumers who use PCs Page Objective: Click download to get more information and then download the free software with another click.

http://www.appup.com/

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Submission 3 Primary Channel: Organic keywords- home lighting; ceiling lights; table lamps; We just updated the page and lost ranking. Target Audience: Home owners 40+ and contractors. Page Objective: The next action should be to search, and once they search they should buy. We plan to have a sign-up box on the search page so users can enter their email to receive special offers.

http://kewlighting.co.uk/

http://kewlighting.co.uk/

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Submission 4

http://www.wwf.org.za/donate

Primary Channel: Homepage (organic, referral, and email) Target Audience: Existing WWF donors (contacts), non-donors (leads) on our database and new leads that can be converted to new donors to WWF-SA Page Objective: Click to another page with more detail/next steps.

http://www.wwf.org.za/donate

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Submission 5 Primary Channel: Display advertising (Sympatico, Facebook, Olive Network, Casale, Cineplex) and paid search Target Audience: Future students (main target grade 12 grads -18-24, but extending as wide as to 35; mainly in Ontario and western Quebec) Page Objective: To click “book a tour” or “request a publication”

http://www.algonquincollege.com/prospective/

http://www.algonquincollege.com/prospective/

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MECLABS conducts rigorous experiments in the new science of optimization. We apply our discoveries to help leaders optimize the financial performance of their sales and marketing programs. Learn more about how you may be a fit for a MECLABS research partnership: • Select Research Partnership

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