Matt Lacey Head of Optimisation at PRWD

1. YOU’RE TESTING
WHAT?!
FOUR TYPES OF TESTS
YOU SHOULD BE
RUNNING
MATT LACEY
Head of Optimisation
@matt_lacey12
17TH SEPTEMBER 2013
PRWD Reveal
MANCHESTER

2. TALK OVERVIEW
What should you be testing?
Pricing & Price Framing
Proposition Testing
Optimising for Engagement
Optimising for Conversion
@PRWD
#PRWDREVEAL

3. WHAT SHOULD YOU BE TESTING?
@PRWD
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4. WHAT’S
WRONG WITH
TESTING
BUTTON
COLOURS
Disclosure: We test buttons. Size,
Prominence, Copy, Positioning and yes,
Colour.
But:
There are likely to be constraints that
limit the number of tests that you can
run based on design & developer
resource
In most situations we find that there are
tests that can be run that will deliver
more interesting results and more value
@PRWD
#PRWDREVEAL

5. HOW TO
CHOOSE WHAT
TO TEST
What is the data telling me about visitor
behaviour?
- Top landing pages
- Pages with high traffic
- Key leak or conversion points
What are users telling me about their
experiences? What can we observe about
their behaviour?
- Usability errors
- Influential proposition messaging
What does the business know about
customer struggles or business challenges?
- Customer service insights
- Merchandising team
@PRWD
#PRWDREVEAL

6. HOW TO
PRIORITISE
YOUR TESTS
Triage
-
Just Do It – JDI
Single Feature Test
Batch Testing
Radical Redesign Testing
Larger Redesign projects
Triangulation
- Multiple research methods
confirm or strengthen the same
issues
Potential Impact vs Effort Required
- Likelihood to impact key metrics
vs
- Design/Development effort
- Build time
- Development schedule
@PRWD
#PRWDREVEAL

7. 1. PRICE & PRICE FRAMING
TESTS
@PRWD
#PRWDREVEAL

8. WHY TEST
PRICING?
Through moderating or observing hundreds
of user testing sessions we have often
asked:
“If you could buy the same product
from two different websites, what
factors would be important in
helping you choose which to buy
from?”
User consistently respond with:
1. Price
2. Delivery
( price and timescales)
@PRWD
#PRWDREVEAL

9. SEVEN
PRINCIPLES OF
PRICING
1. Pricing should be based on value, not
cost
2. Prices should be tangible
3. Prices should be comparable
4. To change your prices, you must reframe
5. Price differentiation is the key enabler
of profit
6. Pricing communication shapes the
customers perception of value
7. You must be prepared to lose some
sales.
S o u rce: L ei g h Cal dwel l : T h e P s y ch o l o g y o f P ri ce: H o w t o u s e p ri ce t o
i n creas e deman d, p ro f i t an d cu s t o mer s at i s f act i o n
@PRWD
#PRWDREVEAL

10. TECHNIQUE:
Three Principles of Anchoring
PRICE
ANCHORING
1. The perception of price is often based
on the context.
2. Decision making and the power of
suggestion
3. Avoiding extremes
S o u rce: P ri ce
In t el l i g en t l y http://blog.priceintelligently.com/blog/bid/181199/PriceAnchoring-to-Optimize-Your-Pricing-Strategy
@PRWD
#PRWDREVEAL

11. WHICH TEST
WON?
Four Options:
1. Control
2. Variation A – (SAVE £22)
3. Variation B – (SAVE 38%)
4. Variation C – remove ‘(cancel
anytime)’ from monthly
12.5%
overall increase in
subscriptions for Variation A (SAVE £22)
@PRWD
#PRWDREVEAL

12. PRICE & PRICE
FRAMING
TAKEAWAYS
Consider the range of price options
available and test.
• This could apply to product or service
costs, delivery costs, etc
Run tests to make price more transparent
• What do people get for their money
• Test messaging that explains what
people are paying for.
Control comparisons
• Test using competitor prices for
comparisons
@PRWD
#PRWDREVEAL

13. 2. PROPOSITION TESTING
@PRWD
#PRWDREVEAL

14. The second a visitor comes to you they have
in mind: “Why should I buy from you versus
all your competitors?”
You need to display clear unique value
propositions or unique campaign
propositions.
Bryan Eisenberg,
Godfather of CRO
Everyone who is successful in online
conversion is doing this. If you’re not, you’re
wasting your time.
Watch clip: http://www.youtube.com/watch?feature =player_embedded&v =ps7bB9-ksMY
@PRWD
#PRWDREVEAL

15. BEFORE
AFTER
4.35% increase in CR
This equated to a six-figure increase in revenue.
@PRWD
#PRWDREVEAL

16. GET REVISING
SIGN-UP TABLE
Price doesn’t put me off, although the
basic package is more than enough for
me.
I think the site has already got
everything I need.
Moderated User testing participants
@PRWD
#PRWDREVEAL

17. @PRWD
#PRWDREVEAL

18. GET REVISING
SIGN-UP TABLE
185%
increase in premium subscriptions
with a small drop in free subscription. This was seen to
be a good trade-off.
You have more features held back to
encourage people to subscribe at a later
date.
@PRWD
#PRWDREVEAL

19. PROPOSITION
TESTING
TAKEAWAYS
Test what features/functionality is given
for free and what is paid for
Test how your proposition is
displayed/framed on your site
Test offering different thresholds for free
delivery
Test introducing urgency to the process
@PRWD
#PRWDREVEAL

20. 3 RADICAL REDESIGNS
OPTIMISING FOR ENGAGEMENT
@PRWD
#PRWDREVEAL

21. OPTIMISING FOR
ENGAGEMENT
This opens up the top of the conversion
funnel.
This is likely to be the point where you
have the largest number of potential test
participants.
Search for landing or key site pages with
high bounce rates or those that rarely lead
to conversions
Key Areas to Test
Homepage
Top landing pages
@PRWD
#PRWDREVEAL

22. BEFORE
AFTER
10.2%
performance
improvement in booking conversion rate
@PRWD
#PRWDREVEAL

23. BEFORE
AFTER
10% improvement in CR
@PRWD
#PRWDREVEAL

24. BEFORE
AFTER
6.8% improvement in CR
@PRWD
#PRWDREVEAL

25. ENGAGEMENT
OPTIMISATION
TAKEAWAYS
Let users know that they have landed in the
right place
Make sure that pages have a clear focus
and visual hierarchy. Users need to know
where to begin.
Test both simplifying the experience and
adding in more detail
A smaller amount of highly qualified
visitors can trump large amounts of unqualified visitors and convert better
@PRWD
#PRWDREVEAL

26. 4 RADICAL REDESIGNS
OPTIMISING FOR CONVERSION
@PRWD
#PRWDREVEAL

27. OPTIMISING FOR
CONVERSIONS
Testing towards the end of your funnel
helps to convert users who are closest to
converting and tend to have higher intent.
Improvements here opens up the bottom of
the conversion funnel.
Simplifying and removing issues that slow
momentum is crucial.
Key Areas to Test
Checkout (login, delivery, payment)
Contact/Sign-up forms
@PRWD
#PRWDREVEAL

28. BEFORE
AFTER
72% improvement in
Registrations from the homepage
@PRWD
#PRWDREVEAL

29. BEFORE
AFTER
7.4% CR improvement from
sign-up page
@PRWD
#PRWDREVEAL

30. CONVERSION
OPTIMISATION
TAKEAWAYS
Don’t be afraid to offer visitors an
opportunity to convert at an early stage
Use persuasive techniques to pull users
through (not push!)
Simplify forms to the bare minimum fields
required
Reduce errors. There’s a huge correlation
between users getting an error and
abandoning the funnel
Provide key supporting proposition
messaging throughout the process
Re-enforce positive messages (e.g. security
in checkout)
@PRWD
#PRWDREVEAL

31. FINAL
TAKEAWAY
With the right kind of research
and preparation the odds are
stacked in your favour.
Therefore:
Be data driven. Be bold.
High risk, high reward.
@PRWD
#PRWDREVEAL

32. THANKS FOR
LISTENING
Are there any questions?
MATT LACEY
17TH SEPTEMBER 2013
Head of Optimisation
@matt_lacey12
@PRWD
#PRWDREVEAL
PRWD Reveal
MANCHESTER