MARKETING

Metrics: How to supercharge your experimentation program

Published

2 months ago

February 11, 2024

Metrics: How to supercharge your experimentation program

Experimentation can be pretty…well, testing at times. Downsized teams, restricted budgets, lack of buy-in, or a misguided focus on win rates (which, by the way, are always low – read on to see why that shouldn’t concern you).

So, how do you actually go about scaling an experimentation program? The process starts with choosing the right experimentation metrics.

Metrics are everywhere, but do they really impact business outcomes?

Yes – because metrics are all about measuring success. As a practitioner, you need to decide what really matters, what you’re trying to achieve, and how well you’re doing.

Establishing your key metrics also sets a baseline for comparisons, which you can use to chart progress over time. They also make your results easier to share across the organization by setting the benchmark for what ‘good’ looks like. As such, metrics play a key role in communicating the value of experimentation, achieving buy-in, and ultimately attracting the resources you need to scale up.

Image: Metrics by impact share

Measuring the impact of programs is a common challenge – and key metrics are a great way to answer that. Eric pointed out that setting the right metrics is perhaps the most important thing to get right, not just when launching an experimentation program but also in terms of moving it to the next level.

But… Only 12% of experiments actually win???

One of the most eye-catching findings was the fact that only 12% of experiments won. Yet you’d think win rate must be the most important factor in experimentation, right?

Wrong.

Our team discovered that win rates are more a vanity metric than a key indicator of performance. Eric highlighted the fact that impact is a far more reliable indicator of success. It not only covers your win rate, but also the uplift delivered – because at the end of the day, the monetary impact is what businesses really care about.

For example, would you rather have tests that win 10% of the time but deliver a million-dollar uplift? Or tests that win 50% of the time but only deliver $100 in additional revenues? (You don’t really have to answer that one.)

Look at the win rate alone and sure, it can be psychologically challenging to see just 12%. It’s not hard to imagine an underwhelmed management ask: why bother in the first place? Well, first of all, that’s where your metrics come into play, so you can evaluate what success really looks like.

At the same time, the need to flip things around and see yourself as learning 100% of the time. For example: the figures showed that just 12% of experiments also lose, which means you get to eliminate features that can have a negative effect. The 76% proving to be inconclusive means you can stop investing time and resources into irrelevant areas.

So sure, win rate is important – especially if you’re trying to get buy-in at the beginning of your program. But we saw you need to move past that and start framing the value of experimentation in terms of uplift, and translating win rates into expected impact per test.

So… what other metrics should you be looking at to get up to speed

The report also identified the most common metrics used to gauge the overall success of experimentation programs. The team found that velocity was far and away the most widely used metric for experimentation programs. The number of tests performed matters more than anything else – with the proviso, they are underpinned by quality. By that, we mean experiments with some thought behind them.

number of experiments run by a median company per year

Image: Median companies run 34 tests a year.

The impact is another key KPI. It may be a lagging metric but, as we’ve already seen, uplift is what the top dog, the big cheese, the head honcho, really cares about.

A third significant metric that came up is the percentage of an organization contributing to the program. This is critical when you’re on the road to maturity, creating momentum, and measuring how well you’re doing. Gaining buy-in from across the organization also plays a big part in extending the pipeline of testing ideas that will allow you to keep growing and improving.

More tests = more value. Even data says that’s not true.

Both I and Eric also discussed the importance of testing velocity: is it really as simple as more tests = more value? As a rule, yes: the evidence shows that more tests = more wins = more value. After all, however much research you do, whatever kind of preparations you make, you never know for sure what’s going to work. It stands to reason the more experiments you run, the greater your chance of hitting a winner.

When you’re getting your program up and running, say the first 12-18 months, yes – run as many tests as possible. That’ll help you build a data bank of successful stories with the aim of winning more resources and establishing a culture of experimentation.

But we also saw that moving to the next level is not necessarily about increasing velocity. It’s about focusing on complexity and moving beyond cosmetic changes. Minute tweaks tend to result in minute uplifts. Our research showed us that the highest uplift experiments share two things in common:

They make larger code changes with more effect on the user experience.
They test a higher number of variations simultaneously.

More complex experiments that make major changes to the user experience e.g. pricing, discounts, checkout flow, data collection, etc. are more likely to generate higher uplifts.

Solely focusing on revenue can be a roadblock

Revenue is another key metric that teams report on when highlighting the value of their experimentation program. Not surprising since ultimately revenue keeps a business… in business. Most companies are focused on making money, so that’s where you’re going to want to focus to gain support from the execs. Having said that, Mark and Eric discussed the flip side of the coin.

Uplift in revenue can be hard to track – say if you don’t have an ecommerce website, or if your business necessitates super complex buying cycles that last two or three years. In that case, if you can’t directly track revenue you want to focus your efforts as low down in the funnel as you can.

Or say your site or app doesn’t actually aim to generate revenue. They gave the example of a company that makes big sales directly to a small group of customers, and use their site to educate the public.

The key here is to understand the ultimate purpose of the channel and build your strategy around that. Rather than boosting conversions, you may instead be more interested in click-throughs to certain pages, maximizing time on site, encouraging sign-ups for an event or downloads for a paper.

It’s also worth considering a few other metrics that we found to be undervalued. Take search rate, for example. As the most undervalued experiment goal, it is only tested 1% of the time, yet it has the highest expected impact at 2.3%. Customers who actively search for a product or service are likely to convert at two to three times the rate of all other users.

Metrics impact on website visitors

Remember, no journey means no conversions.

Three at-a-glance takeaways

To wrap up, here are three takeaways to help you build and scale a successful experimentation program.

Think ABCD instead of simply AB. Experiments that test multiple treatments are three times more successful than standard A/B tests.
Conduct complex experiments. Tests that make major changes to the user experience (pricing, discounts, checkout flow, data collection, etc.) are more likely to win and with higher uplifts.
Choose the right metrics that match the overall purpose of your site or app’s objectives – and don’t get too hung up on win rates!

All this is just a taster.

Why not see the full report?

Our Evolution of Experimentation report is packed with data from 127,000 experiments, revealing insights, techniques, and examples for scaling up a successful experimentation program. Read the report.

Related Topics:experimentation Metrics program seo Supercharge

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MARKETING

Tinuiti Marketing Analytics Recognized by Forrester

Published

9 hours ago

April 19, 2024

Entireweb News Bot

Tinuiti Marketing Analytics Recognized by Forrester

News

By Tinuiti Team

Apr 16 2024

Rapid Media Mix Modeling and Proprietary Tech Transform Brand Performance

Tinuiti, the largest independent full-funnel performance marketing agency, has been included in a recent Forrester Research report titled, “The Marketing Analytics Landscape, Q2 2024.” This report comprehensively overviews marketing analytics markets, use cases, and capabilities. B2C marketing leaders can use this research by Principal Analyst Tina Moffett to understand the intersection of marketing analytics capabilities and use cases to determine the vendor or service provider best positioned for their analytics and insights needs. Moffett describes the top marketing analytics markets as advertising agencies, marketing dashboards and business intelligence tools, marketing measurement and optimization platforms and service providers, and media analytics tools.

As an advertising agency, we believe Tinuiti is uniquely positioned to manage advertising campaigns for brands including buying, targeting, and measurement. Our proprietary measurement technology, Bliss Point by Tinuiti, allows us to measure the optimal level of investment to maximize impact and efficiency. According to the Forrester report, “only 30% of B2C marketing decision-makers say their organization uses marketing or media mix modeling (MMM),” so having a partner that knows, embraces, and utilizes MMM is important. As Tina astutely explains, data-driven agencies have amplified their marketing analytics competencies with data science expertise; and proprietary tools; and tailored their marketing analytics techniques based on industry, business, and data challenges.

Our Rapid Media Mix Modeling sets a new standard in the market with its exceptional speed, precision, and transparency. Our patented tech includes Rapid Media Mix Modeling, Always-on Incrementality, Brand Equity, Creative Insights, and Forecasting – it will get you to your Marketing Bliss Point in each channel, across your entire media mix, and your overall brand performance.

As a marketing leader you may ask yourself:

How much of our marketing budget should we allocate to driving store traffic versus e-commerce traffic?
How should we allocate our budget by channel to generate the most traffic and revenue possible?
How many customers did we acquire in a specific region with our media spend?
What is the impact of seasonality on our media mix?
How should we adjust our budget accordingly?
What is the optimal marketing channel mix to maximize brand awareness?

These are just a few of the questions that Bliss Point by Tinuiti can help you answer.

Learn more about our customer-obsessed, product-enabled, and fully integrated approach and how we’ve helped fuel full-funnel outcomes for the world’s most digital-forward brands like Poppi & Toms.

The Landscape report is available online to Forrester customers or for purchase here.

MARKETING

Ecommerce evolution: Blurring the lines between B2B and B2C

Published

1 day ago

April 18, 2024

Entireweb News Bot

Ecommerce evolution: Blurring the lines between B2B and B2C

Understanding convergence

B2B and B2C ecommerce are two distinct models of online selling. B2B ecommerce is between businesses, such as wholesalers, distributors, and manufacturers. B2C ecommerce refers to transactions between businesses like retailers and consumer brands, directly to individual shoppers.

However, in recent years, the boundaries between these two models have started to fade. This is known as the convergence between B2B and B2C ecommerce and how they are becoming more similar and integrated.

Source: White Paper: The evolution of the B2B Consumer Buyer (ClientPoint, Jan 2024)

What’s driving this change?

Ever increasing customer expectations

Customers today expect the same level of convenience, speed, and personalization in their B2B transactions as they do in their B2C interactions. B2B buyers are increasingly influenced by their B2C experiences. They want research, compare, and purchase products online, seamlessly transitioning between devices and channels. They also prefer to research and purchase online, using multiple devices and channels.

Forrester, 68% of buyers prefer to research on their own, online . Customers today expect the same level of convenience, speed, and personalization in their B2B transactions as they do in their B2C interactions. B2B buyers are increasingly influenced by their B2C experiences. They want research, compare, and purchase products online, seamlessly transitioning between devices and channels. They also prefer to research and purchase online, using multiple devices and channels

Technology and omnichannel strategies

Technology enables B2B and B2C ecommerce platforms to offer more features and functionalities, such as mobile optimization, chatbots, AI, and augmented reality. Omnichannel strategies allow B2B and B2C ecommerce businesses to provide a seamless and consistent customer experience across different touchpoints, such as websites, social media, email, and physical stores.

However, with every great leap forward comes its own set of challenges. The convergence of B2B and B2C markets means increased competition. Businesses now not only have to compete with their traditional rivals, but also with new entrants and disruptors from different sectors. For example, Amazon Business, a B2B ecommerce platform, has become a major threat to many B2B ecommerce businesses, as it offers a wide range of products, low prices, and fast delivery

“Amazon Business has proven that B2B ecommerce can leverage popular B2C-like functionality” argues Joe Albrecht, CEO / Managing Partner, Xngage. . With features like Subscribe-and-Save (auto-replenishment), one-click buying, and curated assortments by job role or work location, they make it easy for B2B buyers to go to their website and never leave. Plus, with exceptional customer service and promotional incentives like Amazon Business Prime Days, they have created a reinforcing loyalty loop.

And yet, according to Barron’s, Amazon Business is only expected to capture 1.5% of the $5.7 Trillion addressable business market by 2025. If other B2B companies can truly become digital-first organizations, they can compete and win in this fragmented space, too.”

If other B2B companies can truly become digital-first organizations, they can also compete and win in this fragmented space

Joe Albrecht
CEO/Managing Partner, XNGAGE

Increasing complexity

Another challenge is the increased complexity and cost of managing a converging ecommerce business. Businesses have to deal with different customer segments, requirements, and expectations, which may require different strategies, processes, and systems. For instance, B2B ecommerce businesses may have to handle more complex transactions, such as bulk orders, contract negotiations, and invoicing, while B2C ecommerce businesses may have to handle more customer service, returns, and loyalty programs. Moreover, B2B and B2C ecommerce businesses must invest in technology and infrastructure to support their convergence efforts, which may increase their operational and maintenance costs.

How to win

Here are a few ways companies can get ahead of the game:

Adopt B2C-like features in B2B platforms

User-friendly design, easy navigation, product reviews, personalization, recommendations, and ratings can help B2B ecommerce businesses to attract and retain more customers, as well as to increase their conversion and retention rates.

According to McKinsey, ecommerce businesses that offer B2C-like features like personalization can increase their revenues by 15% and reduce their costs by 20%. You can do this through personalization of your website with tools like Product Recommendations that help suggest related products to increase sales.

Focus on personalization and customer experience

B2B and B2C ecommerce businesses need to understand their customers’ needs, preferences, and behaviors, and tailor their offerings and interactions accordingly. Personalization and customer experience can help B2B and B2C ecommerce businesses to increase customer satisfaction, loyalty, and advocacy, as well as to improve their brand reputation and competitive advantage. According to a Salesforce report, 88% of customers say that the experience a company provides is as important as its products or services.

Market based on customer insights

Data and analytics can help B2B and B2C ecommerce businesses to gain insights into their customers, markets, competitors, and performance, and to optimize their strategies and operations accordingly. Data and analytics can also help B2B and B2C ecommerce businesses to identify new opportunities, trends, and innovations, and to anticipate and respond to customer needs and expectations. According to McKinsey, data-driven organizations are 23 times more likely to acquire customers, six times more likely to retain customers, and 19 times more likely to be profitable.

What’s next?

The convergence of B2B and B2C ecommerce is not a temporary phenomenon, but a long-term trend that will continue to shape the future of ecommerce. According to Statista, the global B2B ecommerce market is expected to reach $20.9 trillion by 2027, surpassing the B2C ecommerce market, which is expected to reach $10.5 trillion by 2027. Moreover, the report predicts that the convergence of B2B and B2C ecommerce will create new business models, such as B2B2C, B2A (business to anyone), and C2B (consumer to business).

Therefore, B2B and B2C ecommerce businesses need to prepare for the converging ecommerce landscape and take advantage of the opportunities and challenges it presents. Here are some recommendations for B2B and B2C ecommerce businesses to navigate the converging landscape:

Conduct a thorough analysis of your customers, competitors, and market, and identify the gaps and opportunities for convergence.
Develop a clear vision and strategy for convergence, and align your goals, objectives, and metrics with it.
Invest in technology and infrastructure that can support your convergence efforts, such as cloud, mobile, AI, and omnichannel platforms.
Implement B2C-like features in your B2B platforms, and vice versa, to enhance your customer experience and satisfaction.
Personalize your offerings and interactions with your customers, and provide them with relevant and valuable content and solutions.
Leverage data and analytics to optimize your performance and decision making, and to innovate and differentiate your business.
Collaborate and partner with other B2B and B2C ecommerce businesses, as well as with other stakeholders, such as suppliers, distributors, and customers, to create value and synergy.
Monitor and evaluate your convergence efforts, and adapt and improve them as needed.

By following these recommendations, B2B and B2C ecommerce businesses can bridge the gap between their models and create a more integrated and seamless ecommerce experience for their customers and themselves.

MARKETING

Streamlining Processes for Increased Efficiency and Results

Published

2 days ago

April 18, 2024

Entireweb News Bot

Streamlining Processes for Increased Efficiency and Results

How can businesses succeed nowadays when technology rules? With competition getting tougher and customers changing their preferences often, it’s a challenge. But using marketing automation can help make things easier and get better results. And in the future, it’s going to be even more important for all kinds of businesses.

So, let’s discuss how businesses can leverage marketing automation to stay ahead and thrive.

Benefits of automation marketing automation to boost your efforts

First, let’s explore the benefits of marketing automation to supercharge your efforts:

Marketing automation simplifies repetitive tasks, saving time and effort.

With automated workflows, processes become more efficient, leading to better productivity. For instance, automation not only streamlines tasks like email campaigns but also optimizes website speed, ensuring a seamless user experience. A faster website not only enhances customer satisfaction but also positively impacts search engine rankings, driving more organic traffic and ultimately boosting conversions.

Automation allows for precise targeting, reaching the right audience with personalized messages.

With automated workflows, processes become more efficient, leading to better productivity. A great example of automated workflow is Pipedrive & WhatsApp Integration in which an automated welcome message pops up on their WhatsApp

within seconds once a potential customer expresses interest in your business.

Increases ROI

By optimizing campaigns and reducing manual labor, automation can significantly improve return on investment.

Leveraging automation enables businesses to scale their marketing efforts effectively, driving growth and success. Additionally, incorporating lead scoring into automated marketing processes can streamline the identification of high-potential prospects, further optimizing resource allocation and maximizing conversion rates.

Harnessing the power of marketing automation can revolutionize your marketing strategy, leading to increased efficiency, higher returns, and sustainable growth in today’s competitive market. So, why wait? Start automating your marketing efforts today and propel your business to new heights, moreover if you have just learned ways on how to create an online business

How marketing automation can simplify operations and increase efficiency

Understanding the Change

Marketing automation has evolved significantly over time, from basic email marketing campaigns to sophisticated platforms that can manage entire marketing strategies. This progress has been fueled by advances in technology, particularly artificial intelligence (AI) and machine learning, making automation smarter and more adaptable.

One of the main reasons for this shift is the vast amount of data available to marketers today. From understanding customer demographics to analyzing behavior, the sheer volume of data is staggering. Marketing automation platforms use this data to create highly personalized and targeted campaigns, allowing businesses to connect with their audience on a deeper level.

The Emergence of AI-Powered Automation

In the future, AI-powered automation will play an even bigger role in marketing strategies. AI algorithms can analyze huge amounts of data in real-time, helping marketers identify trends, predict consumer behavior, and optimize campaigns as they go. This agility and responsiveness are crucial in today’s fast-moving digital world, where opportunities come and go in the blink of an eye. For example, we’re witnessing the rise of AI-based tools from AI website builders, to AI logo generators and even more, showing that we’re competing with time and efficiency.

Combining AI-powered automation with WordPress management services streamlines marketing efforts, enabling quick adaptation to changing trends and efficient management of online presence.

Moreover, AI can take care of routine tasks like content creation, scheduling, and testing, giving marketers more time to focus on strategic activities. By automating these repetitive tasks, businesses can work more efficiently, leading to better outcomes. AI can create social media ads tailored to specific demographics and preferences, ensuring that the content resonates with the target audience. With the help of an AI ad maker tool, businesses can efficiently produce high-quality advertisements that drive engagement and conversions across various social media platforms.

Personalization on a Large Scale

Personalization has always been important in marketing, and automation is making it possible on a larger scale. By using AI and machine learning, marketers can create tailored experiences for each customer based on their preferences, behaviors, and past interactions with the brand.

This level of personalization not only boosts customer satisfaction but also increases engagement and loyalty. When consumers feel understood and valued, they are more likely to become loyal customers and brand advocates. As automation technology continues to evolve, we can expect personalization to become even more advanced, enabling businesses to forge deeper connections with their audience. As your company has tiny homes for sale California, personalized experiences will ensure each customer finds their perfect fit, fostering lasting connections.

Integration Across Channels

Another trend shaping the future of marketing automation is the integration of multiple channels into a cohesive strategy. Today’s consumers interact with brands across various touchpoints, from social media and email to websites and mobile apps. Marketing automation platforms that can seamlessly integrate these channels and deliver consistent messaging will have a competitive edge. When creating a comparison website it’s important to ensure that the platform effectively aggregates data from diverse sources and presents it in a user-friendly manner, empowering consumers to make informed decisions.

Omni-channel integration not only betters the customer experience but also provides marketers with a comprehensive view of the customer journey. By tracking interactions across channels, businesses can gain valuable insights into how consumers engage with their brand, allowing them to refine their marketing strategies for maximum impact. Lastly, integrating SEO services into omni-channel strategies boosts visibility and helps businesses better understand and engage with their customers across different platforms.

The Human Element

While automation offers many benefits, it’s crucial not to overlook the human aspect of marketing. Despite advances in AI and machine learning, there are still elements of marketing that require human creativity, empathy, and strategic thinking.

Successful marketing automation strikes a balance between technology and human expertise. By using automation to handle routine tasks and data analysis, marketers can focus on what they do best – storytelling, building relationships, and driving innovation.

Conclusion

The future of marketing automation looks promising, offering improved efficiency and results for businesses of all sizes.

As AI continues to advance and consumer expectations change, automation will play an increasingly vital role in keeping businesses competitive.

By embracing automation technologies, marketers can simplify processes, deliver more personalized experiences, and ultimately, achieve their business goals more effectively than ever before.