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AARHUS
     UNIVERSITY




WEBSITE OPTIMIZATION:
TUNING FOR CONVERSIONS



Jacob L. Orquin, Ph.D.
Department of Business Administration
Aarhus University



                              ASB AU
                                MAPP
AARHUS
      UNIVERSITY




WHY OPTIMIZE WEBSITES?
Increase turnover        Reduce costs
Conversion rate          Support costs
Turnover            OR   Advertising costs
Sales leads
                         CPA
Page views
Avg. sales value




                                             ASB AU
                                               MAPP
AARHUS
   UNIVERSITY




REDUCE ATTRITION




                   ASB AU
                     MAPP
AARHUS
       UNIVERSITY




OPTIMIZATION METHODS
•   Usability testing
•   Web analytics
•   A/B- and multivariate testing
•   Eye tracking
•   Behavioral targeting




                                    ASB AU
                                      MAPP
AARHUS
   UNIVERSITY




THE WEB EXPERIENCE




                     ASB AU
                       MAPP
AARHUS
   UNIVERSITY




BUILDING BLOCKS FOR THE WEB EXPERIENCE




                                ASB AU
                                  MAPP
AARHUS
   UNIVERSITY




USABILITY




                ASB AU
                  MAPP
AARHUS
   UNIVERSITY




COMMERCIAL USABILITY

                  Focus on:


                  Conversion
                  Pageviews and engagement
                  Satisfaction
                  Loyalty




                                        ASB AU
                                          MAPP
AARHUS
        UNIVERSITY




DON’T MAKE ME THINK
•   ”Usability isn’t rocket surgery”


•   Typical user questions:


•   How do this function work?
•   Where is the ______?
•   Why did they call it that?
•   Where am I?
•   What happens when I click here?

                                       ASB AU
                                         MAPP
AARHUS
         UNIVERSITY




USABILITY DEFINITIONS I
"[Usability refers to] the extent to which a product can be used by specified users to achieve
specified goals with effectiveness, efficiency and satisfaction in a specified context of user.“
ISO 9241-11
"Human-centered design is characterized by: the active involvement of users and a clear
understanding of user and task requirements; an appropriate allocation of function between
users and technology; the iteration of design solutions; multi-disciplinary design.”
ISO 13407
Ease of learning
Efficiency of use
Memorability
Error frequency and severity
Subjective satisfaction
                                                                                    ASB AU
                                                                                      MAPP
AARHUS
       UNIVERSITY




USABILITY DEFINITIONS II
A comparison of different usability definitions from Seffah et al. (2006).




                                                                   ASB AU
                                                                     MAPP
AARHUS
   UNIVERSITY




USER EXPERIENCE PROCES




                         ASB AU
                           MAPP
AARHUS
       UNIVERSITY




USABILITY BUSINESS CASE
A usability test costs from 25.000 up to 75.000 DKK and usually improves
conversion rates around 20 – 50 % (sometimes as high as 200 – 500 %).


An e-shop has the following data:
Annual turnover: ~ 2,5 million DKK
Unique visitors: ~ 225.000
Annual sales: ~ 4.500


Is it worth investing in a usability test if it costs 50.000 DKK and improves
conversion rate with 10 %?
                                                                     ASB AU
                                                                       MAPP
AARHUS
      UNIVERSITY




USABILITY METHODS
Think aloud and prototype tests are among the more common methods




                                                          ASB AU
                                                            MAPP
AARHUS
       UNIVERSITY




THINK ALOUD PROTOCOL
1.   Select website (or section of site) for testing
2.   Define target group
3.   Define tasks
4.   Define areas of attention
5.   Recruit respondents
6.   Run test sessions
7.   Analyze data and identify problems
8.   Present and solve problems with stakeholders


                                                       ASB AU
                                                         MAPP
AARHUS
   UNIVERSITY




COMMUNICATING THE RESULTS




                                   vs.




                usability report         workshop
                                                    ASB AU
                                                      MAPP
AARHUS
       UNIVERSITY




A WEBSITE OPTIMIZATION CASE 1
Purpose of the optimization:
•   Increase average visit duration
•   Increase conversion rate
•   Increase user activity




                                      ASB AU
                                        MAPP
AARHUS
   UNIVERSITY




A WEBSITE OPTIMIZATION CASE 2
                   Methods used:
                   •   Focus groups
                   •   Think-aloud usability tests


                   To the left is the entry page before
                   (upper) and after the optimization.




                                                ASB AU
                                                  MAPP
AARHUS
   UNIVERSITY




A WEBSITE OPTIMIZATION CASE 3
                  The effect of the optimization :


                  Increase in average visit duration: 21%
                  Increase in conversion rate: 72 %
                  Increase in user activity: 16 %


                  To the left: some of the optimizations
                  that lead to an increase in user activity



                                                ASB AU
                                                  MAPP
AARHUS
      UNIVERSITY




WEB ANALYTICS TECHNOLOGY
WA is all about tracking and data collection. The page tag technology is
the most common.




                                                                ASB AU
                                                                  MAPP
AARHUS
      UNIVERSITY




WEB ANALYTICS PROCESS
Visualisation of the web analytics process from Waisberg and Kaushik
(2009).




                                                              ASB AU
                                                                MAPP
AARHUS
      UNIVERSITY




KPI’S AND WEB METRICS
The business objectives are translated into measurable
succes/performance indicators




                                                         ASB AU
                                                           MAPP
AARHUS
      UNIVERSITY




WHAT TO MEASURE?
Visualisation of the conversion funnel from Waisberg and Kaushik (2009).




                                                               ASB AU
                                                                 MAPP
AARHUS
      UNIVERSITY




WHAT TO MEASURE?
Bounce rates on top landing pages




                                    ASB AU
                                      MAPP
AARHUS
      UNIVERSITY




WHAT TO MEASURE?
Bounce rates on top keywords




                               ASB AU
                                 MAPP
AARHUS
   UNIVERSITY




WEB ANALYTICS LINGO
                  Building Block Terms:
                  Page, Page Views, Visits, Unique Visitors, New
                  Visitor, Repeat Visitor, Repeat Visitor &
                  Returning Visitor
                  Visit Characterization:
                  Entry Page, Landing Page, Exit Page, Visit
                  Duration, Referrer, Internal Referrer, External
                  Referrer, Search Referrer, Visit Referrer, Original
                  Referrer, Click-through, Click-through
                  Rate/Ratio, Page Views per Visit
                  Content Characterization:
                  Page Exit Ratio, Single-Page Visits, Single Page
                  View Visits (Bounces), Bounce Rate
                  Conversion Metrics:
                  Event, Conversion

                                                      ASB AU
                                                        MAPP
AARHUS
      UNIVERSITY




A/B TESTING
Website optimization using A/B split testing is very stong method for
increasing conversions. A very basic experimental design. Borrowed from
Kohavi et al (2007):




                                                              ASB AU
                                                                MAPP
AARHUS
      UNIVERSITY




TESTING FOR THE OPTIMAL PRICE
Initial price and four treatments were tested in a simple A/B design.
Experiment reported at marketingexperiments.com (2008).




                                                                  ASB AU
                                                                    MAPP
AARHUS
      UNIVERSITY




TESTING FOR THE OPTIMAL PRICE
Results of the test. marketingexperiments.com (2008).




Remember that it’s not only a matter of price vs. orders there is also
the LTV to take into accout.
                                                                  ASB AU
                                                                    MAPP
AARHUS
       UNIVERSITY




WHAT ELSE TO OPTIMIZE?
www.conversion-rate-experts.com/articles/101-google-website-optimizer-tips/




                                                                              ASB AU
                                                                                MAPP
AARHUS
       UNIVERSITY




QUESTIONS FOR EYE TRACKING
•   Are users looking where you want them to look?
•   What important call-to-action does not receive attention?
•   What is looked at but not clicked at?
•   How well do symbols describe what the user is looking for?
•   Where should important content be placed?
•   What distracts web site visitors?
•    How does the decision making process look like during problem
    solving?



                                                                 ASB AU
                                                                   MAPP
AARHUS
        UNIVERSITY




EYE TRACKING PROCESS



Website optimization using eye tracking;
1.   Define website goals
2.   Prioritize design elements and desired actions
3.   Measure visual attention
4.   Measure click rate
5.   Identify poor performing elements of the website

                                                        ASB AU
                                                          MAPP
AARHUS
   UNIVERSITY




OUTPUT - HEATMAP

                berlingske.dk/Heatmap




                                        ASB AU
                                          MAPP
AARHUS
   UNIVERSITY




OUTPUT – GAZE PLOT

                berlingske.dk/Gaze plot




                                          ASB AU
                                            MAPP
AARHUS
      UNIVERSITY




REAL TIME INSPECTION
Video of eye tracking
youtube.com/watch?v=m58MG_aua_Q&feature=channel_page




                                                   ASB AU
                                                     MAPP
AARHUS
   UNIVERSITY




AREA OF INTEREST (AOI)

                berlingske.dk/Area of interest (AOI)




                                                   ASB AU
                                                     MAPP
AARHUS
   UNIVERSITY




FIXATION COUNT ON AOI




                        ASB AU
                          MAPP
AARHUS
   UNIVERSITY




CATCHINESS TABLE




                   ASB AU
                     MAPP
AARHUS
   UNIVERSITY




VISUAL VALUE




                ASB AU
                  MAPP
AARHUS
   UNIVERSITY




DISTRIBUTION OF ATTENTION




                            ASB AU
                              MAPP
AARHUS
       UNIVERSITY




AN EYE TRACKING CASE
The purpose of the eye tracking anlysis:


•   Optimize attention to ”call-to-actions”
•   Optimize attention to banners



The case is in Danish … sorry about that!




                                              ASB AU
                                                MAPP
AARHUS
UNIVERSITY




             ASB AU
               MAPP
AARHUS
UNIVERSITY




             ASB AU
               MAPP
AARHUS
UNIVERSITY




             ASB AU
               MAPP
AARHUS
UNIVERSITY




             ASB AU
               MAPP
AARHUS
UNIVERSITY




             ASB AU
               MAPP
AARHUS
UNIVERSITY




             ASB AU
               MAPP
AARHUS
UNIVERSITY




             ASB AU
               MAPP
AARHUS
      UNIVERSITY




BEHAVIORAL TARGETING
Behavioral targeting is about getting the right message to the right person
at the right time.




                                                                 ASB AU
                                                                   MAPP
AARHUS
   UNIVERSITY




ADSPEND WORLDWIDE




                    ASB AU
                      MAPP
AARHUS
      UNIVERSITY




BEHAVIORAL TARGETING IS GROWING
Behavioral tageting spend is 5,687 % of total spend on internet advertising
in 2008 and growing …




                                            Rasmus Himmelstrup Jørgensen (2007)


                                                                  ASB AU
                                                                    MAPP
AARHUS
   UNIVERSITY




THE TECHNOLOGY BEHIND




                        ASB AU
                          MAPP
AARHUS
   UNIVERSITY




TARGETING IN ACTION
                Targeted ad   Targeted promotion?




                                                    ASB AU
                                                      MAPP
AARHUS
      UNIVERSITY




CONTACT
Jacob L Orquin, Ph.D.
Department of Business Administration
Aarhus University
E-mail: jalo@asb.dk

Check out my company:
www.userpilot.dk




                                        ASB AU
                                          MAPP

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Website Optimization: Tuning for Conversions

  • 1. AARHUS UNIVERSITY WEBSITE OPTIMIZATION: TUNING FOR CONVERSIONS Jacob L. Orquin, Ph.D. Department of Business Administration Aarhus University ASB AU MAPP
  • 2. AARHUS UNIVERSITY WHY OPTIMIZE WEBSITES? Increase turnover Reduce costs Conversion rate Support costs Turnover OR Advertising costs Sales leads CPA Page views Avg. sales value ASB AU MAPP
  • 3. AARHUS UNIVERSITY REDUCE ATTRITION ASB AU MAPP
  • 4. AARHUS UNIVERSITY OPTIMIZATION METHODS • Usability testing • Web analytics • A/B- and multivariate testing • Eye tracking • Behavioral targeting ASB AU MAPP
  • 5. AARHUS UNIVERSITY THE WEB EXPERIENCE ASB AU MAPP
  • 6. AARHUS UNIVERSITY BUILDING BLOCKS FOR THE WEB EXPERIENCE ASB AU MAPP
  • 7. AARHUS UNIVERSITY USABILITY ASB AU MAPP
  • 8. AARHUS UNIVERSITY COMMERCIAL USABILITY Focus on: Conversion Pageviews and engagement Satisfaction Loyalty ASB AU MAPP
  • 9. AARHUS UNIVERSITY DON’T MAKE ME THINK • ”Usability isn’t rocket surgery” • Typical user questions: • How do this function work? • Where is the ______? • Why did they call it that? • Where am I? • What happens when I click here? ASB AU MAPP
  • 10. AARHUS UNIVERSITY USABILITY DEFINITIONS I "[Usability refers to] the extent to which a product can be used by specified users to achieve specified goals with effectiveness, efficiency and satisfaction in a specified context of user.“ ISO 9241-11 "Human-centered design is characterized by: the active involvement of users and a clear understanding of user and task requirements; an appropriate allocation of function between users and technology; the iteration of design solutions; multi-disciplinary design.” ISO 13407 Ease of learning Efficiency of use Memorability Error frequency and severity Subjective satisfaction ASB AU MAPP
  • 11. AARHUS UNIVERSITY USABILITY DEFINITIONS II A comparison of different usability definitions from Seffah et al. (2006). ASB AU MAPP
  • 12. AARHUS UNIVERSITY USER EXPERIENCE PROCES ASB AU MAPP
  • 13. AARHUS UNIVERSITY USABILITY BUSINESS CASE A usability test costs from 25.000 up to 75.000 DKK and usually improves conversion rates around 20 – 50 % (sometimes as high as 200 – 500 %). An e-shop has the following data: Annual turnover: ~ 2,5 million DKK Unique visitors: ~ 225.000 Annual sales: ~ 4.500 Is it worth investing in a usability test if it costs 50.000 DKK and improves conversion rate with 10 %? ASB AU MAPP
  • 14. AARHUS UNIVERSITY USABILITY METHODS Think aloud and prototype tests are among the more common methods ASB AU MAPP
  • 15. AARHUS UNIVERSITY THINK ALOUD PROTOCOL 1. Select website (or section of site) for testing 2. Define target group 3. Define tasks 4. Define areas of attention 5. Recruit respondents 6. Run test sessions 7. Analyze data and identify problems 8. Present and solve problems with stakeholders ASB AU MAPP
  • 16. AARHUS UNIVERSITY COMMUNICATING THE RESULTS vs. usability report workshop ASB AU MAPP
  • 17. AARHUS UNIVERSITY A WEBSITE OPTIMIZATION CASE 1 Purpose of the optimization: • Increase average visit duration • Increase conversion rate • Increase user activity ASB AU MAPP
  • 18. AARHUS UNIVERSITY A WEBSITE OPTIMIZATION CASE 2 Methods used: • Focus groups • Think-aloud usability tests To the left is the entry page before (upper) and after the optimization. ASB AU MAPP
  • 19. AARHUS UNIVERSITY A WEBSITE OPTIMIZATION CASE 3 The effect of the optimization : Increase in average visit duration: 21% Increase in conversion rate: 72 % Increase in user activity: 16 % To the left: some of the optimizations that lead to an increase in user activity ASB AU MAPP
  • 20. AARHUS UNIVERSITY WEB ANALYTICS TECHNOLOGY WA is all about tracking and data collection. The page tag technology is the most common. ASB AU MAPP
  • 21. AARHUS UNIVERSITY WEB ANALYTICS PROCESS Visualisation of the web analytics process from Waisberg and Kaushik (2009). ASB AU MAPP
  • 22. AARHUS UNIVERSITY KPI’S AND WEB METRICS The business objectives are translated into measurable succes/performance indicators ASB AU MAPP
  • 23. AARHUS UNIVERSITY WHAT TO MEASURE? Visualisation of the conversion funnel from Waisberg and Kaushik (2009). ASB AU MAPP
  • 24. AARHUS UNIVERSITY WHAT TO MEASURE? Bounce rates on top landing pages ASB AU MAPP
  • 25. AARHUS UNIVERSITY WHAT TO MEASURE? Bounce rates on top keywords ASB AU MAPP
  • 26. AARHUS UNIVERSITY WEB ANALYTICS LINGO Building Block Terms: Page, Page Views, Visits, Unique Visitors, New Visitor, Repeat Visitor, Repeat Visitor & Returning Visitor Visit Characterization: Entry Page, Landing Page, Exit Page, Visit Duration, Referrer, Internal Referrer, External Referrer, Search Referrer, Visit Referrer, Original Referrer, Click-through, Click-through Rate/Ratio, Page Views per Visit Content Characterization: Page Exit Ratio, Single-Page Visits, Single Page View Visits (Bounces), Bounce Rate Conversion Metrics: Event, Conversion ASB AU MAPP
  • 27. AARHUS UNIVERSITY A/B TESTING Website optimization using A/B split testing is very stong method for increasing conversions. A very basic experimental design. Borrowed from Kohavi et al (2007): ASB AU MAPP
  • 28. AARHUS UNIVERSITY TESTING FOR THE OPTIMAL PRICE Initial price and four treatments were tested in a simple A/B design. Experiment reported at marketingexperiments.com (2008). ASB AU MAPP
  • 29. AARHUS UNIVERSITY TESTING FOR THE OPTIMAL PRICE Results of the test. marketingexperiments.com (2008). Remember that it’s not only a matter of price vs. orders there is also the LTV to take into accout. ASB AU MAPP
  • 30. AARHUS UNIVERSITY WHAT ELSE TO OPTIMIZE? www.conversion-rate-experts.com/articles/101-google-website-optimizer-tips/ ASB AU MAPP
  • 31. AARHUS UNIVERSITY QUESTIONS FOR EYE TRACKING • Are users looking where you want them to look? • What important call-to-action does not receive attention? • What is looked at but not clicked at? • How well do symbols describe what the user is looking for? • Where should important content be placed? • What distracts web site visitors? • How does the decision making process look like during problem solving? ASB AU MAPP
  • 32. AARHUS UNIVERSITY EYE TRACKING PROCESS Website optimization using eye tracking; 1. Define website goals 2. Prioritize design elements and desired actions 3. Measure visual attention 4. Measure click rate 5. Identify poor performing elements of the website ASB AU MAPP
  • 33. AARHUS UNIVERSITY OUTPUT - HEATMAP berlingske.dk/Heatmap ASB AU MAPP
  • 34. AARHUS UNIVERSITY OUTPUT – GAZE PLOT berlingske.dk/Gaze plot ASB AU MAPP
  • 35. AARHUS UNIVERSITY REAL TIME INSPECTION Video of eye tracking youtube.com/watch?v=m58MG_aua_Q&feature=channel_page ASB AU MAPP
  • 36. AARHUS UNIVERSITY AREA OF INTEREST (AOI) berlingske.dk/Area of interest (AOI) ASB AU MAPP
  • 37. AARHUS UNIVERSITY FIXATION COUNT ON AOI ASB AU MAPP
  • 38. AARHUS UNIVERSITY CATCHINESS TABLE ASB AU MAPP
  • 39. AARHUS UNIVERSITY VISUAL VALUE ASB AU MAPP
  • 40. AARHUS UNIVERSITY DISTRIBUTION OF ATTENTION ASB AU MAPP
  • 41. AARHUS UNIVERSITY AN EYE TRACKING CASE The purpose of the eye tracking anlysis: • Optimize attention to ”call-to-actions” • Optimize attention to banners The case is in Danish … sorry about that! ASB AU MAPP
  • 42. AARHUS UNIVERSITY ASB AU MAPP
  • 43. AARHUS UNIVERSITY ASB AU MAPP
  • 44. AARHUS UNIVERSITY ASB AU MAPP
  • 45. AARHUS UNIVERSITY ASB AU MAPP
  • 46. AARHUS UNIVERSITY ASB AU MAPP
  • 47. AARHUS UNIVERSITY ASB AU MAPP
  • 48. AARHUS UNIVERSITY ASB AU MAPP
  • 49. AARHUS UNIVERSITY BEHAVIORAL TARGETING Behavioral targeting is about getting the right message to the right person at the right time. ASB AU MAPP
  • 50. AARHUS UNIVERSITY ADSPEND WORLDWIDE ASB AU MAPP
  • 51. AARHUS UNIVERSITY BEHAVIORAL TARGETING IS GROWING Behavioral tageting spend is 5,687 % of total spend on internet advertising in 2008 and growing … Rasmus Himmelstrup Jørgensen (2007) ASB AU MAPP
  • 52. AARHUS UNIVERSITY THE TECHNOLOGY BEHIND ASB AU MAPP
  • 53. AARHUS UNIVERSITY TARGETING IN ACTION Targeted ad Targeted promotion? ASB AU MAPP
  • 54. AARHUS UNIVERSITY CONTACT Jacob L Orquin, Ph.D. Department of Business Administration Aarhus University E-mail: jalo@asb.dk Check out my company: www.userpilot.dk ASB AU MAPP