Archive for November, 2008

Magento is Doing A/B and Multivariate Testing – Are You?

Published November 24th, 2008 Analytics, Ecommerce No Comments

magento-googleoptimizer

Magento, the widely used open source ecommerce platform, just announced it will soon have an interface to integrate with Google Website Optimizer. Magento users will be able to enter the pertinent script right into a section in the Magento Admin Panel. This of course allows Magento users to do A/B and multivariate testing on their sites, with very little effort, and no heavy development effort. So it raises the question: are you doing this type of testing on your site?

I have had the experience of working on or with numerous sites that had high-end analytics packages like WebTrends or Omniture, but they were doing little or no split testing. The cost of having these packages is only validated if you are getting actionable data from them, and you’re making or saving your organization money with that data! Magento, an inexpensive ecom platform, is now integrated with a free optimization (and analytics) platform, enabling customers like Wearport.com to make data-driven decisions and optimize the visitor experience by answering questions like “would it be better if we actually displayed the prices of these items?”

Moving along, the obvious exec is question “how much money can you save or make through optimization?” Well, let’s look at an example. I was working on a client’s site, doing some basic analytics consulting to repair some problems, and I suggested an overhaul of their product page. There were some best practices that they needed to put in place, and I had some hunches about some aspects of the layout that I thought would improve their conversion rate. Primarily this had to do with the add-to-cart button and the options (usually size and color) selection. I knew we could run some simple split tests on the layout and options, and find the one that resulted in the best conversion rate. I was fairly certain I could raise the add-to-cart rate by 5%.

At first they balked at the idea because of the costs, of course. But I broke it down for them: $20 million in revenue from your website this year, what if you could boost that 5%? Another $1 million in revenue sounded pretty good. So, using Omniture SiteCatalyst, without any of the additional Omniture tools like Test&Target, we set up an A/B test. The developer I was working with was quick and talented, making things much easier. The developer wrote a quick script to randomly display visitors either the old version of the product page, or a new version with a cleaner, more strategically placed add-to-cart button. Tracking the version in our own cookie, we ensured they’d see the same version throughout their visit, and on subsequent visits. We set up an custom conversion event in SiteCatalyst. After two weeks, we analyzed the results. We saw a 10% boost in cart-adds, which resulted in an almost 10% boost in orders!

Next, we tackled the options. Usually color and size were the two options, and they were separate drop downs; one drop down to select color and another to select size. An obvious problem with this is knowing the availability of a size/color combo. We combined the drop downs, so colors were now listed along sizes (e.g. Grey 36, Grey 32, etc.). After two weeks, a 4% increase in cart adds, and a 5% increase in revenue!

Needless to say, the client became a strong believer in split testing. There were of course development and consulting costs involved in this. But an overall 14% boost in sales more than covered those costs, not to mention the long-term value of acquiring new customers by improving the visitor experience.

So, where do you start with split or multivariate testing? Anywhere! Start small, make one educated and solid assumption, and test it out. Watch the results, and then move on to another change, or, if you were unsuccessful, modify your first assumption and try again. The critical objective is to begin to make testing part of your decision making process. Next time you are sitting with your developer, marketing personnel, or site manager, deciding what you think “looks”, “would work”, or “worked at company x” better, just remember that your visitors will do a much better job of letting you know what works.

Segmentation and Custom Reporting Come to Google Analytics

Published November 15th, 2008 Analytics No Comments

ga-overview

Google Analytics has been the premiere free analytics solution for a few years now, but the landscape is changing. The purchase of IndexTools by Yahoo!, and the release of adCenter Analytics by Microsoft, have now threatened Google’s reign over this space. IndexTools in particular, has potential to be a very advanced analytics solution, for very little cost, if not completely free. The tools isn’t quite at the out-of-the-box Omniture or WebTrends offerings, but it is pretty close. All that is good discussion for a separate blog post, for now let’s focus on Google Analytics. In the last week or so, several enhancements to Google Analytics were introduced, two of them what I would consider major improvements to the product and major changes to the free analytics space.

The first change is the Overview interface. You now have a quick view of the performance of any Website Profiles in your account. It displays four metrics (Visits, Avg. Time on Site, Bounce Rate, Completed Goals) along with the id and URL of each of your sites, but the best feature is a percent delta column, which you can choose any of those four metrics for. So, as you can see in the screenshot, visits to the two sites has decreased in the last 30 days, and the big red arrow let’s me know this with a quick view.

google-analytics-advanced-segments

Moving onto the individual site data, the two glaring differences that I’ll focus on, are Advanced Segmentation and Custom Reporting. The Advanced Segmentation dropdown appears right in the upper left corner of the dashboard, the screenshot shows what it looks like when it is clicked on. I’ve created a custom segment called “Returning Visitors – Seattle”. Pretty self explanatory: it includes returning visitors from Settle.

google-analytics-new-returning-visitors

I won’t go into details on creating segments, but it is really easy, and like the new custom reporting interface, very Web 2.0 with drag-and-drop boxes. Besides the custom segments, there are also default segments, and you can add any of these into any report you are viewing. So on the fly, I can have my New vs. Returning Visitors report display Search Traffic, alongside the All Visits traffic (screenshot above). This facilitates measuring many comparisons and ratios, that used to require quite a few more steps and effort.

As previously mentioned, the Custom Reporting interface is slick and easy to use. You have the ability to add any metrics (columns) and dimensions (rows) you choose. One important feature, the system prevents you from creating invalid combinations of metrics and dimensions, something certain high priced analytics solutions often permit.

google-analytics-edit-custom-report

Finally, your reports can have multiple tabs, with separate metrics in them. So, in the report shown, I’ve created a tab for basic consumption metrics (page views, pages per visit, unique pageviews, etc.) and another for search metrics (visits with search, search depth, search exits, etc.). I can easily switch between the tabs, essentially packing two reports into one. The report itself is Visitor Type x City; it displays new vs. returning visitors by city.

There are several other minor enhancements to Google Analytics, but I’ll let you discover those on your own. The addition of segmentation and custom reports adds so much value to the package; it is a fantastic improvment for the hardcore GA users. Overall is great for the entire analytics space: it forces the paid solutions to further increase their value through their advanced features, and it also results in the free solutions catering to a larger and more sophisticated base of analytics users.

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