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

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

2. @ThueLMadsen#KISSwebinar
Join the conversation on Twi er

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. @kathpay #KISSwebinar
Join the conversation on Twi er

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. WATCH WEBINAR RECORDING NOW

7. The goal of a test is not just
to get a li , but to get a
learning as well…

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. Unleash the testing
powers of email

10. The Current
State of Play
Of Testing
1

11. Econsultancy Conversion Rate Optimization Report 2013
85% of companies are defining their goals and objectives
for their tests

12. Econsultancy Conversion Rate Optimization Report 2013
Only 50% of companies are testing images and
promotions & offers.

13. Econsultancy Conversion Rate Optimization Report 2013
On average 31% of companies are performing test on their
websites 1 x per week

14. Econsultancy Conversion Rate Optimization Report 2013
Although email is the easiest channel to test only 63% are
testing it

15. Econsultancy Email Marketing Census 2014
Even though Email Marketing delivers the highest ROI

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17. Building the Case
for Testing in Email
2

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. Who makes up your email database?
Your Target Market!

20. Every email should contain a test…
Think of every email as a survey of your target market

21. However – tests are be er than surveys….
Actions
Speak
Louder
Than
Words

22. Strategically Plant Information….
And see what resonates with your audience

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. 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. Create a Methodology

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. “Fear” was the Winner – 125% more unique CTR’s
Source: Marketing Experiments

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. 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. 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. 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. A B
+72%
Ask your customers which they prefer!
Apply it everywhere!…..

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. 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. Testing Essentials
How to successfully test in
Email
3

36. Have a desire to learn
about your audience
1

37. Identify what question
are you trying to answer?
2

38. Create a Hypothesis3

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. “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. Create building blocks

42. Hypothesis
Test in
email
Learn
Apply to
appropriate
channels
It’s a cycle of continuous learning

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. 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. Oh! And one last thing!
Be warned – testing is
addictive!

46. 2015 KISSmetrics Guide KISSmetrics Demo
h p://kiss.ly/growth h p://kiss.ly/demo

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. THANK YOU
Kath Pay
@kathpay