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15 Steps for the Perfect Split Test

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15 Steps for the Perfect Split Test

When marketers like us create landing pages, write email copy, or design call-to-action buttons, it can be tempting to use our intuition to predict what will make people click and connect.

However, you’re much better off conducting A/B testing than basing marketing decisions off of a “feeling”, as this can be detrimental to your results.

Keep reading to learn how to conduct the entire A/B testing process before, during, and after data collection so you can make the best decisions from your results.

A/B testing can be valuable because different audiences behave, well, differently. Something that works for one company may not necessarily work for another. In fact, conversion rate optimization (CRO) experts hate the term “best practices” because it may not actually be the best practice for you. But, this kind of testing can be complex if you’re not careful.

Let’s go over how A/B testing works to ensure that you don’t make incorrect assumptions about what your audience likes.

How does A/B testing Work?

To run an A/B test, you need to create two different versions of one piece of content, with changes to a single variable. Then, you’ll show these two versions to two similarly sized audiences and analyze which one performed better over a specific period of time (long enough to make accurate conclusions about your results).

Explanation of what a/b testing is

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A/B testing helps marketers observe how one version of a piece of marketing content performs alongside another. Here are two types of A/B tests you might conduct in an effort to increase your website’s conversion rate:

Example 1: User Experience Test

Perhaps you want to see if moving a certain call-to-action (CTA) button to the top of your homepage instead of keeping it in the sidebar will improve its click-through rate.

To A/B test this theory, you’d create another, alternative web page that uses the new CTA placement. The existing design with the sidebar CTA — or the “control” — is Version A. Version B with the CTA at the top is the “challenger.” Then, you’d test these two versions by showing each of them to a predetermined percentage of site visitors. Ideally, the percentage of visitors seeing either version is the same.

Learn how to easily A/B test a component of your website with HubSpot’s Marketing Hub.

Example 2: Design Test

Perhaps you want to find out if changing the color of your call-to-action (CTA) button can increase its click-through rate.

To A/B test this theory, you’d design an alternative CTA button with a different button color that leads to the same landing page as the control. If you usually use a red call-to-action button in your marketing content, and the green variation receives more clicks after your A/B test, this could merit changing the default color of your call-to-action buttons to green from now on.

To learn more about A/B testing, download our free introductory guide here.

A/B Testing in Marketing

A/B testing has a multitude of benefits to a marketing team, depending on what it is you decide to test. Above all, though, these tests are valuable to a business because they’re low in cost but high in reward.

Let’s say you employ a content creator with a salary of $50,000/year. This content creator publishes five articles per week for the company blog, totaling 260 articles per year. If the average post on the company’s blog generates 10 leads, you could say it costs just over $192 to generate 10 leads for the business ($50,000 salary ÷ 260 articles = $192 per article). That’s a solid chunk of change.

Now, if you ask this content creator to spend two days developing an A/B test on one article, instead of writing two articles in that time period, you might burn $192 because you’re publishing one fewer article. But if that A/B test finds you can increase each article’s conversion rate from 10 to 20 leads, you just spent $192 to potentially double the number of customers your business gets from your blog.

If the test fails, of course, you lost $192 — but now you can make your next A/B test even more educated. If that second test succeeds in doubling your blog’s conversion rate, you ultimately spent $384 to potentially double your company’s revenue. No matter how many times your A/B test fails, its eventual success will almost always outweigh the cost to conduct it.

There are many types of split tests you can run to make the experiment worth it in the end. Here are some common goals marketers have for their business when A/B testing:

Now, let’s walk through the checklist for setting up, running, and measuring an A/B test.

How to Conduct A/B Testing

ab test graphic

Follow along with our free A/B testing kit with everything you need to run A/B testing including a test tracking template, a how-to guide for instruction and inspiration, and a statistical significance calculator to see if your tests were wins, losses, or inconclusive.

Before the A/B Test

Let’s cover the steps to take before you start your A/B test.

1. Pick one variable to test.

As you optimize your web pages and emails, you might find there are a number of variables you want to test. But to evaluate how effective a change is, you’ll want to isolate one “independent variable” and measure its performance. Otherwise, you can’t be sure which variable was responsible for changes in performance.

You can test more than one variable for a single web page or email — just be sure you’re testing them one at a time.

To determine your variable, look at the elements in your marketing resources and their possible alternatives for design, wording, and layout. Other things you might test include email subject lines, sender names, and different ways to personalize your emails.

Keep in mind that even simple changes, like changing the image in your email or the words on your call-to-action button, can drive big improvements. In fact, these sorts of changes are usually easier to measure than the bigger ones.

Note: There are some times when it makes more sense to test multiple variables rather than a single variable. This is a process called multivariate testing. If you’re wondering whether you should run an A/B test versus a multivariate test, here’s a helpful article from Optimizely that compares the two processes.

2. Identify your goal.

Although you’ll measure several metrics during any one test, choose a primary metric to focus on before you run the test. In fact, do it before you even set up the second variation. This is your “dependent variable,” which changes based on how you manipulate the independent variable.

Think about where you want this dependent variable to be at the end of the split test. You might even state an official hypothesis and examine your results based on this prediction.

If you wait until afterward to think about which metrics are important to you, what your goals are, and how the changes you’re proposing might affect user behavior, then you might not set up the test in the most effective way.

3. Create a ‘control’ and a ‘challenger.’

You now have your independent variable, your dependent variable, and your desired outcome. Use this information to set up the unaltered version of whatever you’re testing as your control scenario. If you’re testing a web page, this is the unaltered page as it exists already. If you’re testing a landing page, this would be the landing page design and copy you would normally use.

From there, build a challenger — the altered website, landing page, or email that you’ll test against your control. For example, if you’re wondering whether adding a testimonial to a landing page would make a difference in conversions, set up your control page with no testimonials. Then, create your challenger with a testimonial.

4. Split your sample groups equally and randomly.

For tests where you have more control over the audience — like with emails — you need to test with two or more audiences that are equal in order to have conclusive results.

How you do this will vary depending on the A/B testing tool you use. If you’re a HubSpot Enterprise customer conducting an A/B test on an email, for example, HubSpot will automatically split traffic to your variations so that each variation gets a random sampling of visitors.

5. Determine your sample size (if applicable).

How you determine your sample size will also vary depending on your A/B testing tool, as well as the type of A/B test you’re running.

If you’re A/B testing an email, you’ll probably want to send an A/B test to a subset of your list that is large enough to achieve statistically significant results. Eventually, you’ll pick a winner and send the winning variation on to the rest of the list. (See “The Science of Split Testing” ebook at the end of this article for more on calculating your sample size.)

If you’re a HubSpot Enterprise customer, you’ll have some help determining the size of your sample group using a slider. It’ll let you do a 50/50 A/B test of any sample size — although all other sample splits require a list of at least 1,000 recipients.

ab testing sample size settings in hubspot

If you’re testing something that doesn’t have a finite audience, like a web page, then how long you keep your test running will directly affect your sample size. You’ll need to let your test run long enough to obtain a substantial number of views. Otherwise, it will be hard to tell whether there was a statistically significant difference between variations.

6. Decide how significant your results need to be.

Once you’ve picked your goal metric, think about how significant your results need to be to justify choosing one variation over another. Statistical significance is a super important part of the A/B testing process that’s often misunderstood. If you need a refresher, I recommend reading this blog post on statistical significance from a marketing standpoint.

The higher the percentage of your confidence level, the more sure you can be about your results. In most cases, you’ll want a confidence level of 95% minimum — preferably even 98% — especially if it was a time-intensive experiment to set up. However, sometimes it makes sense to use a lower confidence rate if you don’t need the test to be as stringent.

Matt Rheault, a senior software engineer at HubSpot, likes to think of statistical significance like placing a bet. What odds are you comfortable placing a bet on? Saying “I’m 80% sure this is the right design and I’m willing to bet everything on it” is similar to running an A/B test to 80% significance and then declaring a winner.

Rheault also says you’ll likely want a higher confidence threshold when testing for something that only slightly improves conversion rate. Why? Because random variance is more likely to play a bigger role.

“An example where we could feel safer lowering our confidence threshold is an experiment that will likely improve conversion rate by 10% or more, such as a redesigned hero section,” he explained.

“The takeaway here is that the more radical the change, the less scientific we need to be process-wise. The more specific the change (button color, microcopy, etc.), the more scientific we should be because the change is less likely to have a large and noticeable impact on conversion rate.”

7. Make sure you’re only running one test at a time on any campaign.

Testing more than one thing for a single campaign — even if it’s not on the same exact asset — can complicate results. For example, if you A/B test an email campaign that directs to a landing page at the same time that you’re A/B testing that landing page, how can you know which change caused the increase in leads?

During the A/B Test

Let’s cover the steps to take during your A/B test.

8. Use an A/B testing tool.

To do an A/B test on your website or in an email, you’ll need to use an A/B testing tool. If you’re a HubSpot Enterprise customer, the HubSpot software has features that let you A/B test emails (learn how here), calls-to-action (learn how here), and landing pages (learn how here).

For non-HubSpot Enterprise customers, other options include Google Analytics, which lets you A/B test up to 10 full versions of a single web page and compare their performance using a random sample of users.

9. Test both variations simultaneously.

Timing plays a significant role in your marketing campaign’s results, whether it’s time of day, day of the week, or month of the year. If you were to run Version A during one month and Version B a month later, how would you know whether the performance change was caused by the different design or the different month?

When you run A/B tests, you’ll need to run the two variations at the same time, otherwise you may be left second-guessing your results.

The only exception here is if you’re testing timing itself, like finding the optimal times for sending out emails. This is a great thing to test because depending on what your business offers and who your subscribers are, the optimal time for subscriber engagement can vary significantly by industry and target market.

10. Give the A/B test enough time to produce useful data.

Again, you’ll want to make sure that you let your test run long enough to obtain a substantial sample size. Otherwise, it’ll be hard to tell whether there was a statistically significant difference between the two variations.

How long is long enough? Depending on your company and how you execute the A/B test, getting statistically significant results could happen in hours … or days … or weeks. A big part of how long it takes to get statistically significant results is how much traffic you get — so if your business doesn’t get a lot of traffic to your website, it’ll take much longer for you to run an A/B test.

Read this blog post to learn more about sample size and timing.

11. Ask for feedback from real users.

A/B testing has a lot to do with quantitative data … but that won’t necessarily help you understand why people take certain actions over others. While you’re running your A/B test, why not collect qualitative feedback from real users?

One of the best ways to ask people for their opinions is through a survey or poll. You might add an exit survey on your site that asks visitors why they didn’t click on a certain CTA, or one on your thank-you pages that asks visitors why they clicked a button or filled out a form.

You might find, for example, that a lot of people clicked on a call-to-action leading them to an ebook, but once they saw the price, they didn’t convert. That kind of information will give you a lot of insight into why your users are behaving in certain ways.

After the A/B Test

Finally, let’s cover the steps to take after your A/B test.

12. Focus on your goal metric.

Again, although you’ll be measuring multiple metrics, keep your focus on that primary goal metric when you do your analysis.

For example, if you tested two variations of an email and chose leads as your primary metric, don’t get caught up on open rate or click-through rate. You might see a high click-through rate and poor conversion rates, in which case you might end up choosing the variation that had a lower click-through rate in the end.

13. Measure the significance of your results using our A/B testing calculator.

Now that you’ve determined which variation performs the best, it’s time to determine whether your results are statistically significant. In other words, are they enough to justify a change?

To find out, you’ll need to conduct a test of statistical significance. You could do that manually … or you could just plug in the results from your experiment to our free A/B testing calculator.

For each variation you tested, you’ll be prompted to input the total number of tries, like emails sent or impressions seen. Then, enter the number of goals it completed — generally you’ll look at clicks, but this could also be other types of conversions.

hubspot ab testing calculator

The calculator will spit out the confidence level your data produces for the winning variation. Then, measure that number against the value you chose to determine statistical significance.

14. Take action based on your results.

If one variation is statistically better than the other, you have a winner. Complete your test by disabling the losing variation in your A/B testing tool.

If neither variation is statistically better, you’ve just learned that the variable you tested didn’t impact results, and you’ll have to mark the test as inconclusive. In this case, stick with the original variation, or run another test. You can use the failed data to help you figure out a new iteration on your new test.

While A/B tests help you impact results on a case-by-case basis, you can also apply the lessons you learn from each test and apply it to future efforts.

For example, if you’ve conducted A/B tests in your email marketing and have repeatedly found that using numbers in email subject lines generates better clickthrough rates, you might want to consider using that tactic in more of your emails.

15. Plan your next A/B test.

The A/B test you just finished may have helped you discover a new way to make your marketing content more effective — but don’t stop there. There’s always room for more optimization.

You can even try conducting an A/B test on another feature of the same web page or email you just did a test on. For example, if you just tested a headline on a landing page, why not do a new test on body copy? Or a color scheme? Or images? Always keep an eye out for opportunities to increase conversion rates and leads.

You can use HubSpot’s A/B Test Tracking Kit to plan and organize your experiments.

ab test tracking

Download This Template Now

How to Read A/B Testing Results

As a marketer, you know the value of automation. Given this, you likely use software that handles the A/B test calculations for you — a huge help. But, after the calculations are done, you need to know how to read your results. Let’s go over how.

1. Check your goal metric.

The first step in reading your A/B test results is looking at your goal metric, which is usually conversion rate. After you’ve plugged your results into your A/B testing calculator, you’ll get two results for each version you’re testing. You’ll also get a significant result for each of your variations.

2. Compare your conversion rates.

By looking at your results, you’ll likely be able to tell if one of your variations performed better than the other. However, the true test of success is whether the results you have are statistically significant. This means that one variation performed better than the other at a significant level because, say, the CTA text was more compelling.

Say, for example, Variation A had a 16.04% conversion rate and variation B had a 16.02% conversion rate, and your confidence interval of statistical significance is 95%. Variation A has a higher conversion rate, but the results are not statistically significant, meaning that Variation A won’t significantly improve your overall conversion rate.

3. Segment your audiences for further insights.

Regardless of significance, it’s valuable to break down your results by audience segment to understand how each key area responded to your variations. Common variables for segmenting audiences are:

  • Visitor type, or which version performed best for new visitors versus repeat visitors.
  • Device type, or which version performed best on mobile versus desktop.
  • Traffic source, or which version performed best based on where traffic to your two variations originated.

Let’s go over some examples of A/B experiments you could run for your business.

A/B Testing Examples

We’ve discussed how A/B tests are used in marketing and how to conduct one — but how do they actually look in practice?

As you might guess, we run many A/B tests to increase engagement and drive conversions across our platform. Here are five examples of A/B tests to inspire your own experiments.

1. Site Search

Site search bars help users quickly find what they’re after on a particular website. HubSpot found from previous analysis that visitors who interacted with its site search bar were more likely to convert on a blog post. So, we ran an A/B test in an attempt to increase engagement with the search bar.

In this test, search bar functionality was the independent variable and views on the content offer thank you page was the dependent variable. We used one control condition and three challenger conditions in the experiment.

In the control condition (variant A), the search bar remained unchanged.

control condition in the hubspot search bar A B test

In variant B, the search bar was made larger and more visually prominent, and the placeholder text was set to “search by topic.”

variant b of the hubspot search bar AB test

Variant C appeared identical to variant B, but only searched the HubSpot Blog rather than the entire website.

In variant D, the search bar was made larger but the placeholder text was set to “search the blog.” This variant also searched only the HubSpot Blog

variant c of the hubspot search bar AB test

We found variant D to be the most effective: It increased conversions by 3.4% over the control and increased the percentage of users who used the search bar by 6.5%.

2. Mobile CTAs

HubSpot uses several CTAs for content offers in our blog posts, including ones in the body of posts as well as at the bottom of the page. We test these CTAs extensively for optimize their performance.

For our mobile users, we ran an A/B test to see which type of bottom-of-page CTA converted best. For our independent variable, we altered the design of the CTA bar. Specifically, we used one control and three challengers in our test. For our dependent variables, we used pageviews on the CTA thank you page and CTA clicks.

The control condition included our normal placement of CTAs at the bottom of posts. In variant B, the CTA had no close or minimize option.

variant B of the hubspot mobile CTA AB testIn variant C, mobile readers could close the CTA by tapping an X icon. Once it was closed out, it wouldn’t reappear.

variant C of the hubspot mobile CTA AB test

In variant D, we included an option to minimize the CTA with an up/down caret.

variant d of hubspot's mobile cta A B test

Our tests found all variants to be successful. Variant D was the most successful, with a 14.6% increase in conversions over the control. This was followed by variant C with an 11.4% increase and variant B with a 7.9% increase.

3. Author CTAs

In another CTA experiment, HubSpot tested whether adding the word “free” and other descriptive language to author CTAs at the top of blog posts would increase content leads. Past research suggested that using “free” in CTA text would drive more conversions and that text specifying the type of content offered would be helpful for SEO and accessibility.

In the test, the independent variable was CTA text and the main dependent variable was conversion rate on the content offer form.

In the control condition, author CTA text was unchanged (see the orange button in the image below).

variant A of the author CTA AB test

In variant B, the word “free” was added to the CTA text.

variant B of the author CTA AB test

In variant C, descriptive wording was added to the CTA text in addition to “free.”

variant C of the author CTA AB test

Interestingly, variant B saw a loss in form submissions, down by 14% compared to the control. This was unexpected, since including “free” in content offer text is widely considered a best practice.

Meanwhile, form submissions in variant C outperformed the control by 4%. It was concluded that adding descriptive text to the author CTA helped users understand the offer and thus made them more likely to download.

4. Blog Table of Contents

To help users better navigate the blog, HubSpot tested a new Table of Contents (TOC) module. The goal was to improve user experience by presenting readers with their desired content more quickly. We also tested whether adding a CTA to this TOC module would increase conversions.

The independent variable of this A/B test was the inclusion and type of TOC module in blog posts, and the dependent variables were conversion rate on content offer form submissions and clicks on the CTA inside the TOC module.

The control condition did not include the new TOC module —control posts either had no table of contents, or a simple bulleted list of anchor links within the body of the post near the top of the article (pictured below).

variant A of the hubspot blog chapter module AB test

In variant B, the new TOC module was added to blog posts. This module was sticky, meaning it remained onscreen as users scrolled down the page. Variant B also included a content offer CTA at the bottom of the module.

variant B of the hubspot blog chapter module AB test

Variant C included an identical module to variant B but with the CTA removed.

variant C of the hubspot blog chapter module AB test

Both variants B and C did not increase the conversion rate on blog posts. The control condition outperformed variant B by 7% and performed equally with variant C. Also, few users interacted with the new TOC module or the CTA inside the module.

5. Review Notifications

To determine the best way of gathering customer reviews, we ran a split test of email notifications versus in-app notifications. Here, the independent variable was the type of notification and the dependent variable was the percentage of those who left a review out of all those who opened the notification.

In the control, HubSpot sent a plain text email notification asking users to leave a review. In variant B, HubSpot sent an email with a certificate image including the user’s name.

variant B of the hubspot notification AB test

For variant C, HubSpot sent users an in app-notification.

variant C of the hubspot notification AB test

Ultimately, both emails performed similarly and outperformed the in-app notifications. About 25% of users who opened an email left a review versus the 10.3% who opened in-app notifications. Emails were also more often opened by users.

Start A/B Testing Today

A/B testing allows you to get to the truth of what content and marketing your audience wants to see. Learn how to best carry out some of the steps above using the free e-book below.

Editor’s note: This post was originally published in May 2016 and has been updated for comprehensiveness.


The Ultimate A/B Testing Kit


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MARKETING

The Rise in Retail Media Networks

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A shopping cart holding the Amazon logo to represent the rise in retail media network advertising.

As LL Cool J might say, “Don’t call it a comeback. It’s been here for years.”

Paid advertising is alive and growing faster in different forms than any other marketing method.

Magna, a media research firm, and GroupM, a media agency, wrapped the year with their ad industry predictions – expect big growth for digital advertising in 2024, especially with the pending US presidential political season.

But the bigger, more unexpected news comes from the rise in retail media networks – a relative newcomer in the industry.

Watch CMI’s chief strategy advisor Robert Rose explain how these trends could affect marketers or keep reading for his thoughts:

GroupM expects digital advertising revenue in 2023 to conclude with a 5.8% or $889 billion increase – excluding political advertising. Magna believes ad revenue will tick up 5.5% this year and jump 7.2% in 2024. GroupM and Zenith say 2024 will see a more modest 4.8% growth.

Robert says that the feeling of an ad slump and other predictions of advertising’s demise in the modern economy don’t seem to be coming to pass, as paid advertising not only survived 2023 but will thrive in 2024.

What’s a retail media network?

On to the bigger news – the rise of retail media networks. Retail media networks, the smallest segment in these agencies’ and research firms’ evaluation, will be one of the fastest-growing and truly important digital advertising formats in 2024.

GroupM suggests the $119 billion expected to be spent in the networks this year and should grow by a whopping 8.3% in the coming year.  Magna estimates $124 billion in ad revenue from retail media networks this year.

“Think about this for a moment. Retail media is now almost a quarter of the total spent on search advertising outside of China,” Robert points out.

You’re not alone if you aren’t familiar with retail media networks. A familiar vernacular in the B2C world, especially the consumer-packaged goods industry, retail media networks are an advertising segment you should now pay attention to.

Retail media networks are advertising platforms within the retailer’s network. It’s search advertising on retailers’ online stores. So, for example, if you spend money to advertise against product keywords on Amazon, Walmart, or Instacart, you use a retail media network.

But these ad-buying networks also exist on other digital media properties, from mini-sites to videos to content marketing hubs. They also exist on location through interactive kiosks and in-store screens. New formats are rising every day.

Retail media networks make sense. Retailers take advantage of their knowledge of customers, where and why they shop, and present offers and content relevant to their interests. The retailer uses their content as a media company would, knowing their customers trust them to provide valuable information.

Think about these 2 things in 2024

That brings Robert to two things he wants you to consider for 2024 and beyond. The first is a question: Why should you consider retail media networks for your products or services?   

Advertising works because it connects to the idea of a brand. Retail media networks work deep into the buyer’s journey. They use the consumer’s presence in a store (online or brick-and-mortar) to cross-sell merchandise or become the chosen provider.

For example, Robert might advertise his Content Marketing Strategy book on Amazon’s retail network because he knows his customers seek business books. When they search for “content marketing,” his book would appear first.

However, retail media networks also work well because they create a brand halo effect. Robert might buy an ad for his book in The New York Times and The Wall Street Journal because he knows their readers view those media outlets as reputable sources of information. He gains some trust by connecting his book to their media properties.

Smart marketing teams will recognize the power of the halo effect and create brand-level experiences on retail media networks. They will do so not because they seek an immediate customer but because they can connect their brand content experience to a trusted media network like Amazon, Nordstrom, eBay, etc.

The second thing Robert wants you to think about relates to the B2B opportunity. More retail media network opportunities for B2B brands are coming.

You can already buy into content syndication networks such as Netline, Business2Community, and others. But given the astronomical growth, for example, of Amazon’s B2B marketplace ($35 billion in 2023), Robert expects a similar trend of retail media networks to emerge on these types of platforms.   

“If I were Adobe, Microsoft, Salesforce, HubSpot, or any brand with big content platforms, I’d look to monetize them by selling paid sponsorship of content (as advertising or sponsored content) on them,” Robert says.

As you think about creative ways to use your paid advertising spend, consider the retail media networks in 2024.

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AI driving an exponential increase in marketing technology solutions

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AI driving an exponential increase in marketing technology solutions

The martech landscape is expanding and AI is the prime driving force. That’s the topline news from the “Martech 2024” report released today. And, while that will get the headline, the report contains much more.

Since the release of the most recent Martech Landscape in May 2023, 2,042 new marketing technology tools have surfaced, bringing the total to 13,080 — an 18.5% increase. Of those, 1,498 (73%) were AI-based. 

Screenshot 2023 12 05 110428 800x553

“But where did it land?” said Frans Riemersma of Martech Tribe during a joint video conference call with Scott Brinker of ChiefMartec and HubSpot. “And the usual suspect, of course, is content. But the truth is you can build an empire with all the genAI that has been surfacing — and by an empire, I mean, of course, a business.”

Content tools accounted for 34% of all the new AI tools, far ahead of video, the second-place category, which had only 4.85%. U.S. companies were responsible for 61% of these tools — not surprising given that most of the generative AI dynamos, like OpenAI, are based here. Next up was the U.K. at 5.7%, but third place was a big surprise: Iceland — with a population of 373,000 — launched 4.6% of all AI martech tools. That’s significantly ahead of fourth place India (3.5%), whose population is 1.4 billion and which has a significant tech industry. 

Dig deeper: 3 ways email marketers should actually use AI

The global development of these tools shows the desire for solutions that natively understand the place they are being used. 

“These regional products in their particular country…they’re fantastic,” said Brinker. “They’re loved, and part of it is because they understand the culture, they’ve got the right thing in the language, the support is in that language.”

Now that we’ve looked at the headline stuff, let’s take a deep dive into the fascinating body of the report.

The report: A deeper dive

Marketing technology “is a study in contradictions,” according to Brinker and Riemersma. 

In the new report they embrace these contradictions, telling readers that, while they support “discipline and fiscal responsibility” in martech management, failure to innovate might mean “missing out on opportunities for competitive advantage.” By all means, edit your stack meticulously to ensure it meets business value use cases — but sure, spend 5-10% of your time playing with “cool” new tools that don’t yet have a use case. That seems like a lot of time.

Similarly, while you mustn’t be “carried away” by new technology hype cycles, you mustn’t ignore them either. You need to make “deliberate choices” in the realm of technological change, but be agile about implementing them. Be excited by martech innovation, in other words, but be sensible about it.

The growing landscape

Consolidation for the martech space is not in sight, Brinker and Riemersma say. Despite many mergers and acquisitions, and a steadily increasing number of bankruptcies and dissolutions, the exponentially increasing launch of new start-ups powers continuing growth.

It should be observed, of course, that this is almost entirely a cloud-based, subscription-based commercial space. To launch a martech start-up doesn’t require manufacturing, storage and distribution capabilities, or necessarily a workforce; it just requires uploading an app to the cloud. That is surely one reason new start-ups appear at such a startling rate. 

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As the authors admit, “(i)f we measure by revenue and/or install base, the graph of all martech companies is a ‘long tail’ distribution.” What’s more, focus on the 200 or so leading companies in the space and consolidation can certainly be seen.

Long-tail tools are certainly not under-utilized, however. Based on a survey of over 1,000 real-world stacks, the report finds long-tail tools constitute about half of the solutions portfolios — a proportion that has remained fairly consistent since 2017. The authors see long-tail adoption where users perceive feature gaps — or subpar feature performance — in their core solutions.

Composability and aggregation

The other two trends covered in detail in the report are composability and aggregation. In brief, a composable view of a martech stack means seeing it as a collection of features and functions rather than a collection of software products. A composable “architecture” is one where apps, workflows, customer experiences, etc., are developed using features of multiple products to serve a specific use case.

Indeed, some martech vendors are now describing their own offerings as composable, meaning that their proprietary features are designed to be used in tandem with third-party solutions that integrate with them. This is an evolution of the core-suite-plus-app-marketplace framework.

That framework is what Brinker and Riemersma refer to as “vertical aggregation.” “Horizontal aggregation,” they write, is “a newer model” where aggregation of software is seen not around certain business functions (marketing, sales, etc.) but around a layer of the tech stack. An obvious example is the data layer, fed from numerous sources and consumed by a range of applications. They correctly observe that this has been an important trend over the past year.

Build it yourself

Finally, and consistent with Brinker’s long-time advocacy for the citizen developer, the report detects a nascent trend towards teams creating their own software — a trend that will doubtless be accelerated by support from AI.

So far, the apps that are being created internally may be no more than “simple workflows and automations.” But come the day that app development is so democratized that it will be available to a wide range of users, the software will be a “reflection of the way they want their company to operate and the experiences they want to deliver to customers. This will be a powerful dimension for competitive advantage.”

Constantine von Hoffman contributed to this report.

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Mastering The Laws of Marketing in Madness

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Mastering The Laws of Marketing in Madness

Mastering The Laws of Marketing in Madness

Navigating through the world of business can be chaotic. At the time of this publication in November 2023, global economic growth is expected to remain weak for an undefined amount of time.

However, certain rules of marketing remain steadfast to guide businesses towards success in any environment. These universal laws are the anchors that keep a business steady, helping it thrive amidst uncertainty and change.

In this guide, we’ll explore three laws that have proven to be the cornerstones of successful marketing. These are practical, tried-and-tested approaches that have empowered businesses to overcome challenges and flourish, regardless of external conditions. By mastering these principles, businesses can turn adversities into opportunities, ensuring growth and resilience in any market landscape. Let’s uncover these essential laws that pave the way to success in the unpredictable world of business marketing. Oh yeah, and don’t forget to integrate these insights into your career. Follow the implementation steps!

Law 1: Success in Marketing is a Marathon, Not a Sprint

Navigating the tumultuous seas of digital marketing necessitates a steadfast ship, fortified by a strategic long-term vision. It’s a marathon, not a sprint.

Take Apple, for instance. The late ’90s saw them on the brink of bankruptcy. Instead of grasping at quick, temporary fixes, Apple anchored themselves in a long-term vision. A vision that didn’t just stop at survival, but aimed for revolutionary contributions, resulting in groundbreaking products like the iPod, iPhone, and iPad.

In a landscape where immediate gains often allure businesses, it’s essential to remember that these are transient. A focus merely on the immediate returns leaves businesses scurrying on a hamster wheel, chasing after fleeting successes, but never really moving forward.

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A long-term vision, however, acts as the north star, guiding businesses through immediate challenges while ensuring sustainable success and consistent growth over time.

Consider This Analogy: 

Building a business is like growing a tree. Initially, it requires nurturing, patience, and consistent care. But with time, the tree grows, becoming strong and robust, offering shade and fruits—transforming the landscape. The same goes for business. A vision, perseverance, and a long-term strategy are the nutrients that allow it to flourish, creating a sustainable presence in the market.

Implementation Steps: 

  • Begin by planning a content calendar focused on delivering consistent value over the next six months. 
  • Ensure regular reviews and necessary adjustments to your long-term goals, keeping pace with evolving market trends and demands. 
  • And don’t forget the foundation—invest in robust systems and ongoing training, laying down strong roots for sustainable success in the ever-changing digital marketing landscape.

Law 2: Survey, Listen, and Serve

Effective marketing hinges on understanding and responding to the customer’s needs and preferences. A robust, customer-centric approach helps in shaping products and services that resonate with the audience, enhancing overall satisfaction and loyalty.

Take Netflix, for instance. Netflix’s evolution from a DVD rental company to a streaming giant is a compelling illustration of a customer-centric approach.

Their transition wasn’t just a technological upgrade; it was a strategic shift informed by attentively listening to customer preferences and viewing habits. Netflix succeeded, while competitors such a Blockbuster haid their blinders on.

Here are some keystone insights when considering how to Survey, Listen, and Serve…

Customer Satisfaction & Loyalty:

Surveying customers is essential for gauging their satisfaction. When customers feel heard and valued, it fosters loyalty, turning one-time buyers into repeat customers. Through customer surveys, businesses can receive direct feedback, helping to identify areas of improvement, enhancing overall customer satisfaction.

Engagement:

Engaging customers through surveys not only garners essential feedback but also makes customers feel valued and involved. It cultivates a relationship where customers feel that their opinions are appreciated and considered, enhancing their connection and engagement with the brand.

Product & Service Enhancement:

Surveys can unveil insightful customer feedback regarding products and services. This information is crucial for making necessary adjustments and innovations, ensuring that offerings remain aligned with customer needs and expectations.

Data Collection:

Surveys are instrumental in collecting demographic information. Understanding the demographic composition of a customer base is crucial for tailoring marketing strategies, ensuring they resonate well with the target audience.

Operational Efficiency:

Customer feedback can also shed light on a company’s operational aspects, such as customer service and website usability. Such insights are invaluable for making necessary enhancements, improving the overall customer experience.

Benchmarking:

Consistent surveying allows for effective benchmarking, enabling businesses to track performance over time, assess the impact of implemented changes, and make data-driven strategic decisions.

Implementation Steps:

  • Regularly incorporate customer feedback mechanisms like surveys and direct interactions to remain attuned to customer needs and preferences.
  • Continuously refine and adjust offerings based on customer feedback, ensuring products and services evolve in alignment with customer expectations.
  • In conclusion, adopting a customer-centric approach, symbolized by surveying, listening, and serving, is indispensable for nurturing customer relationships, driving loyalty, and ensuring sustained business success.

Law 3: Build Trust in Every Interaction

In a world cluttered with countless competitors vying for your prospects attention, standing out is about more than just having a great product or service. It’s about connecting authentically, building relationships rooted in trust and understanding. It’s this foundational trust that transforms casual customers into loyal advocates, ensuring that your business isn’t just seen, but it truly resonates and remains memorable.

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For instance, let’s talk about Oprah! Through vulnerability and honest connections, Oprah Winfrey didn’t just build an audience; she cultivated a community. Sharing, listening, and interacting genuinely, she created a media landscape where trust and respect flourished. Oprah was known to make her audience and even guests cry for the first time live. She had a natural ability to build instant trust.

Here are some keystone insights when considering how to develop and maintain trust…

The Unseen Fast-Track

Trust is an unseen accelerator. It simplifies decisions, clears doubts, and fast-forwards the customer journey, turning curiosity into conviction and interest into investment.

The Emotional Guardrail

Trust is like a safety net or a warm embrace, making customers feel valued, understood, and cared for. It nurtures a positive environment, encouraging customers to return, not out of necessity, but a genuine affinity towards the brand.

Implementation Steps:

  • Real Stories: Share testimonials and experiences, both shiny and shaded, to build credibility and show authenticity.
  • Open Conversation: Encourage and welcome customer feedback and discussions, facilitating a two-way conversation that fosters understanding and improvement.
  • Community Engagement: Actively participate and engage in community or industry events, align your brand with genuine causes and values, promoting real connections and trust.

Navigating through this law involves cultivating a space where authenticity leads, trust blossoms, and genuine relationships flourish, engraving a memorable brand story in the hearts and minds of the customers.

Guarantee Your Success With These Foundational Laws

Navigating through the world of business is a demanding odyssey that calls for more than just adaptability and innovation—it requires a solid foundation built on timeless principles. In our exploration, we have just unraveled three indispensable laws that stand as pillars supporting the edifice of sustained marketing success, enabling businesses to sail confidently through the ever-shifting seas of the marketplace.

Law 1: “Success in Marketing is a Marathon, Not a Sprint,” advocates for the cultivation of a long-term vision. It is about nurturing a resilient mindset focused on enduring success rather than transient achievements. Like a marathon runner who paces themselves for the long haul, businesses must strategize, persevere, and adapt, ensuring sustained growth and innovation. The embodiment of this law is seen in enterprises like Apple, whose evolutionary journey is a testament to the power of persistent vision and continual reinvention.

Law 2: “Survey, Listen, and Serve,” delineates the roadmap to a business model deeply intertwined with customer insights and responsiveness. This law emphasizes the essence of customer-centricity, urging businesses to align their strategies and offerings with the preferences and expectations of their audiences. It’s a call to attentively listen, actively engage, and meticulously tailor offerings to resonate with customer needs, forging paths to enhanced satisfaction and loyalty.

Law 3: “Build Trust in Every Interaction,” underscores the significance of building genuine, trust-laden relationships with customers. It champions the cultivation of a brand personality that resonates with authenticity, fostering connections marked by trust and mutual respect. This law navigates businesses towards establishing themselves as reliable entities that customers can resonate with, rely on, and return to, enriching the customer journey with consistency and sincerity.

These pivotal laws form the cornerstone upon which businesses can build strategies that withstand the tests of market volatility, competition, and evolution. They stand as unwavering beacons guiding enterprises towards avenues marked by not just profitability, but also a legacy of value, integrity, and impactful contributions to the marketplace. Armed with these foundational laws, businesses are empowered to navigate the multifaceted realms of the business landscape with confidence, clarity, and a strategic vision poised for lasting success and remarkable achievements.

Oh yeah! And do you know Newton’s Law?The law of inertia, also known as Newton’s first law of motion, states that an object at rest will stay at rest, and an object in motion will stay in motion… The choice is yours. Take action and integrate these laws. Get in motion!


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