Archive for October, 2009

Testing Your Site (A/B testing)

October 30th, 2009

from

Find out what works best by using A/B testing on your website.
By Melissa Campanelli   |   Entrepreneur MagazineApril 2006

Not long ago, A/B testing was solely available to large companies–it was time-consuming, expensive and required much IT help. But now, many companies offer hosted testing and optimization services affordable to smaller businesses.

That’s good news for e-tailers seeking to improve their sites. A/B testing (aka A/B split testing) allows you to test two versions of your website. You can measure how customers respond to both versions and then optimize the site based on that information. Kefta, Offermatica and Optimost are three leading companies that offer A/B testing; services run about $10,000 per month.

RingCentral Inc. in San Mateo, California, is one growing e-tailer that’s had success with A/B testing. The multimillion-dollar telecommunications firm targets small businesses and sells its services exclusively online. Last summer, the company worked with Offermatica to run some A/B tests with the goal of boosting the percentage of visitors signing up for its services.

RingCentral tested various elements of its site, including the home page. Two versions were prepared: one with a laundry list of features–more graphics, links to a user guide and FAQs–and one with a detailed description of the benefits of working with RingCentral. RingCentral learned that the page with more links to additional information led more people to the sign-up page.

After changing the site accordingly, the 35-employee company saw a 46 percent increase in overall sales by year-end. “Thousands of people look at our site each day, and we have many ways we can present information to them,” says Vlad Shmunis, RingCentral’s 45-year-old founder. “A/B testing lets the public vote–basically with their wallets.”

To be effective, A/B testing should be ongoing. Some additional tips from Offermatica CEO Matthew Roche:

1. Run tests on the registration or shopping cart page. Says Roche, “Improving these areas generally provides the greatest impact on the bottom line.”

2. Focus on big elements. Instead of testing text color or font size, says Roche, focus on areas such as product, pricing, primary copy, images, offers and calls to action.

3. Test heavily trafficked campaigns in two weeks or less. Says Roche, “This creates better answers fast.”

Originally published in the April 2006 issue of Entrepreneur Magazine

A/B testing (aka A/B split testing)

October 30th, 2009

from: http://en.wikipedia.org/wiki/A/B_testing

A/B testing, split testing, or bucket testing is a method of marketing testing by which a baseline control sample is compared to a variety of single-variable test samples in order to improve response rates. A classic direct mail tactic, this method has been recently adopted within the interactive space to test tactics such as banner ads, emails and landing pages.

Significant improvements can be seen through testing elements like copy text, layouts, images and colors. However, not all elements produce the same improvements, and by looking at the results from different tests, it is possible to identify those elements that consistently tend to produce the greatest improvements.

Employers of this A/B testing method will distribute multiple samples of a test, including the control, to see which single variable is most effective in increasing a response rate or other desired outcome. The test, in order to be effective, must reach an audience of a sufficient size that there is a reasonable chance of detecting a meaningful difference between the control and other tactics: see Statistical power.

This method is different than multivariate testing which applies statistical modeling which allows a tester to try multiple variables within the samples distributed.

Companies Well-Known For Use of A/B Testing for Website Optimization

Many companies use the designed experiment approach to making marketing decisions. It is getting more of a common practice as the tools and expertise grows in this area. One study suggests up to two-thirds of web companies are dabbling in A/B testing.

While it is widely used behind the scenes to maximize profits, the practice occasionally makes it into the spotlight.

  • Amazon.com. Practically pioneered its use within the web ecommerce space. Also stirred controversy by testing into optimal price-points].
  • Google. One of their top designers left and spoke out against excessive use of the practice.
  • Intuit
  • Microsoft
  • Ebay

The Basics of Building an Online Business

October 30th, 2009

from: http://www.entrepreneur.com/microsites/networksolutionsebizcenter/article184982.html

8 tried and true steps for attracting visitors to your site–and getting them to buy.
By Derek Gehl   |   February 28, 2007

As an internet marketing guide, a lot of people ask me how to start and grow an online business. I tell them this: There’s a proven sequence of steps you can follow to guarantee your success. How do I know? I’ve seen thousands of people start and grow online businesses following the same exact process.

Step 1: Find a need and fill it.
Most marketers make the mistake of finding a product before they have a market. But unless people are actively searching for your product online, you’ll never make a sale. The trick is to find a group of people with a common problem they’re trying to solve and then solve it.

Thankfully, the internet makes market research easy. Here are some easy steps for researching your market:

  • Visit online forums to see what questions people ask and what problems they’re trying to solve.
  • Figure out which keywords a lot of people are searching but not many sites are competing for.
  • Check out your potential competitors by visiting their sites and taking note of what they’re doing to fill demand.

After you’ve done this, use what you’ve learned to create a product for a market that already exists–and do it better than your competitors.

Step 2: Write sales copy that sells.
On a website, your copy has to do the selling for you. There’s a proven formula for writing sales copy that’ll take visitors through the selling process from the moment they arrive:

  • Arouse interest with a compelling headline.
  • Describe the problem your product can solve.
  • Show them why you can be trusted to solve the problem.
  • Add testimonials from people who’ve used the product.
  • Talk about the product and how it benefits the user.
  • Make an offer or a guarantee.
  • Create urgency.
  • Ask for the sale.

Throughout your sales copy, focus on how your product or service is uniquely able solve people’s problems or make their lives better. Think like a customer and ask, what’s in it for me?

Step 3: Design and build your website.
Once you’ve got your market and product and you’ve nailed down your selling process, you’re ready to build your site.

Remember to keep it simple. Your website is your online storefront, so be sure to make it customer friendly. You have less than 10 seconds to grab a visitor’s attention before they’re gone. Some important tips to keep in mind:

  • Use a plain, sans-serif font, like Arial, on a white background.
  • Make your navigation clear and simple and keep it consistent throughout your site.
  • Only use graphics, audio or video if they enhance your message.
  • Include an opt-in offer so you can collect e-mail addresses.

Step 4: Use search engines to drive targeted buyers to your site.
How do you get traffic to a brand-new site? Pay-per-click advertising, which has two advantages:

  • The ads show up on search pages immediately.
  • They allow you to test different keywords, headlines, prices and selling approaches.

Not only do you get traffic immediately, but once you’ve figured out what keywords are working best, you can use them throughout your copy and code, which will help your rankings in organic search results.

Step 5: Establish an expert reputation for yourself to drive even more traffic to your site.
People use the internet to find information. If you provide valuable information for other sites to use–and include a link back to your site–you’ll get more traffic and better search engine rankings. Some ideas for establishing yourself as an expert include:

  • Give away free content, like articles, videos or other useful information, and distribute that content through online article directories and social media sites.
  • Include “send to a friend” links on your site’s valuable content.
  • Become an active expert in industry forums and social networking sites where your target market hangs out.

If you use these tactics, you’ll reach new readers. But even better, every site that posts your content will link back to yours, and search engines love links from relevant sites and will reward you in the rankings accordingly.

Step 6: Use the power of e-mail marketing to keep in touch with your visitors and turn them into buyers.
When you build an opt-in list, you’re creating one of the most valuable assets your online business can have–permission to send visitors e-mail. Why is e-mail marketing so valuable?

  • You’re giving potential customers something they’ve asked for.
  • You’re developing lifetime relationships with people in your target market.
  • The response is 100 percent measurable.
  • It’s cheaper and more effective than print, TV or radio advertising because it’s highly targeted.
  • It can be almost entirely automated.

Anyone who visits your site and opts in to your list is a very hot lead. And there’s no better tool than e-mail to let you effortlessly follow up with those leads.

Step 7: Increase your income through back-end sales and upselling.
One of the most important internet marketing guidelines is to develop every customer’s lifetime value. At least 36 percent of people who have purchased from you once will buy from you again if you follow up with them. Closing the first sale with a customer is by far your most difficult task–not to mention your most expensive one. So here’s how to get them to buy again:

  • Offer products that complement their original purchase.
  • Send out electronic loyalty coupons they can redeem on their next visit.
  • Offer related products on your “thank you” page.

If you reward customers for being loyal, they’ll become even more loyal to you in return.

Step 8: Start an affiliate program to maximize your sales and revenue.
Once your business is up and running, it’s time to launch your affiliate program. Affiliates are people who promote your products on their sites for a cut of the selling price. Every time they send you a buyer, you pay them a commission.

An affiliate program is a simple, low-maintenance way to grow your business. Once you get your program set up, all you have to do is share your marketing materials with your affiliates and send out checks when they make sales.

By doing this, you don’t have to go out and spend money on advertising–your affiliates do the advertising for you. Better yet, you only pay them when they make a sale.

The internet changes quickly, but the principles of how to start and grow a successful online business have changed very slowly in the more than 10 years I’ve been in the business.

If you’re just starting out, stick to the sequence of steps in this quick guide. If you’ve been online awhile, do a quick review and see if there’s a step you’ve been neglecting or never got around to doing in the first place. You can’t go wrong with the basics.


Derek Gehl is Entrepreneur.com’s “E-Business” columnist and the CEO of the Internet Marketing Center, an internet marketing firm that has helped thousands of people learn to start and run their own online businesses.He has just released the 2007 edition of his comprehensive Internet marketing guide, The Insider Secrets to Marketing Your Business on the Internet.

The Four Secrets of Successful PPC Campaigns

October 30th, 2009

from: http://websitetips.com/articles/marketing/secrets/

Over the past decade, online marketing has become an integral part of most businesses’ marketing strategies. In particular, Search Engine Marketing (SEM) and Search Engine Optimization (SEO) have become one of the most common channels for any business to sell its products and services. In this article, I will share some insights into successful SEM and SEO campaigns.

The attractive quality of SEM and in particular pay per click (PPC) advertising is that the results are measurable. As a strategic marketer, I have never come across any sales or marketing tool which is so transparent and cost-effective.

PPC campaigns allow you to see vital statistics on user behavior, text ads, keywords and much more. Best of all, however, is the fact that you can use PPC campaigns as “instant sales generators:” You can pause your campaign when sales are high or you can switch them on again when sales are low to get a new sales boost.

Secret 1: Have an Online Strategy in Place Before You Start!

Prior to implementing your online strategy you should consider the following:

I. Define the Purpose of Your Online Marketing Campaign

Some businesses use PPC purely as a “sales generator” tool, other businesses use it as a way to encourage new client leads and others simply for increased brand awareness.

II. Identify the Medium and Long Term Online Strategy

It is important to have realistic medium and long term expectations. Bear in mind that online campaigns deliver improved results the longer you run them.

III. Set a Realistic Monthly Budget

Always consider your budget relative to your product’s profit margin. PPC can have a massive effect on sales and lead generation, but in our experience, we often find that very few businesses develop a strategy before they start their campaign.

The alarmingly common approach of “let’s allocate some budget for 6 months and see what happens” is a recipe for disaster. Particularly for the first weeks of your PPC campaign run time, it is imperative that you dedicate a significant amount of time to fine-tuning key words and text ads.

An alternative solution is to employ an agency and ask them for a trial PPC campaign in which the results are assessed after 4 weeks. If your agency cannot deliver results within the first 2-3 weeks, chances are that they are not allocating your budget to the right key words and text ads or did not consult you properly in the first place.

Secret 2: Prepare Your Website!

Statistics show that you have got exactly 6 seconds to convince a visitor to stay on your site. If the visitor does not instantly find what he or she is looking for, your budget will not translate into business or leads. It is critical for your website to have the following characteristics:

Enticing images
If you offer a service, pictures of happy people will give the impression of satisfied end users. If you are offering a product, make sure that your images are clear and represent your product in a true manner.
Good web copy
Remember that less is more when it comes to web copy. Don’t clutter your site with unnecessary text. Good web copy should fit in one frame.
Call to action phrases
Tell your visitors what you want them to do. Examples of good call to action phrases are: “Call now!”, “Buy today!”, “Contact us!”.
No scroll bars
Wherever possible, fit everything into one screen or frame. The more a user has to scroll, the more chance you have in loosing the visitor.
Site design in HTML
Flash websites might look great, but are a killer for any SEM campaign. You may incorporate some flash images to enhance your site’s look and feel, however keep your site predominately HTML.

Remember: Unless your site is ready, your traffic will not convert into sales or leads.

Secret 3: Start Small – Choose One Search Engine Only

Especially if you are dipping your toe into the pay per click pool for the first time, it is more than OK to start off small. In my experience, too many companies are confronted by the variety of choice between different PPC search engines and are tricked into thinking they need to be on all these so-called “networks” immediately.

New online advertisers are often considering big players such as Google AdWords and Yahoo! Search Marketing (Yahoo!7 and ninemsn in Australia), but also the smaller fish such as Sensis, Ask, MIVA and Mirago. Too many different campaigns – each of which are run according to different rules, different budgets and different funding – are too much to juggle for most first time online advertisers.

It is important to stay focused when deciding on your first search marketing network, and refer back to your online strategy to properly match your purpose to the correct network. I would always recommend trialing a campaign on Google due to its amount of market share (55%) and quality traffic. If your campaign performs well on Google, chances are it will also perform on other networks.

Walk before you can run. Test your campaign on one network first to get a feel for it, and when you feel more confident then consider branching out.

Secret 4: Trial and Assess the Results

After choosing the correct search engine network to implement your PPC campaign, embark on a simple three week trial campaign. The great thing about PPC is that you can pause it whenever you like, so you are not locked into any long term commitment after your designated ‘trial period.’

Once you have seen the campaign results for the first three weeks, you (or your online agency) should be able to identify trends for your particular business. For instance, you should be able to see which of your key words were most sought after, which words attracted most enquiries or led to sales, which “click-days” and “click times” were extremely popular and which companies you compete with.

Example: one of our clients in the beauty industry knew after their three week trial period that Wednesdays and Thursdays between 12 noon and 4pm were extremely popular for them in regards to clicks and enquiries for their services. As a result, they shifted their entire media budget on these 2 days and now receive twice as many enquiries as they had gotten in previous weeks – with the same investment!

Whilst trends are important to analyze for both your medium- and long-term online strategy, you must also closely analyze the direct impact that the campaign has on your business. Your sales team (or whoever answers calls in your business) needs to be briefed before the campaign starts and should monitor where new business leads are coming from.

Analysis of your new business enquiries and where they found out about you is important to accurately gauge the impact of a prolonged PPC campaign. Use your trial campaign as an indication of what is to come.

In my experience, PPC campaigns improve immensely over time and a feature of their success depends on the amount of time that is invested in their development.

About the Author

Barbara Fischer is the founder and director of Sydney based agency, Trendhaus Marketing. The core service offerings are strategic consulting, branding and online marketing. http://www.trendhaus.com.au

Escaping the Dark Ages of Online Marketing with Tom Leung

October 29th, 2009