Re-Run: The Secret Weapon of Experienced Online Marketers

That weapon of course is called Split Testing and this is worth a read:

What Is Split-Testing?

Split-testing is the process of creating two separate variations of anything that a visitor or a prospect is exposed to which requires them to take an action, such as a web page, a PPC ad or a banner ad. An action required for measuring a split-test can include the click-through-rate on a PPC ad, submitting a form to request a free consultation or purchasing a product online. Splitting traffic between the two variations of the same element shows you which one produces the best response rate.

Split-testing allows you to remove the guesswork from your marketing campaign by showing you the difference in response rates each variation produces. The first time that you design your web page and set up a PPC campaign, you’ll of course have to use your “best guess” and experience helps a lot here. However, once a page or an ad is activated and you start achieving results you can use split-testing to continually and incrementally improve these results over time.

Essentially, split-testing allows you to identify the combination of factors that produces the highest conversion rate and, in turn, the highest return on investment (ROI) from your advertising budget.

Why Is Split-Testing Important?

Split-testing is the fastest way to increase your conversion rate and lower your cost-per-action, which increases profitability. But more than this, it allows you to be more competitive in your marketplace by allowing you to spend more on advertising than your competition, yet still achieve higher levels of sales and growth at a lower Cost-Per-Action (CPA).

Split-testing also allows you to test what your competition is implementing on their site and to see how it affects your own conversion rates. Over time, split-testing allows you to capture a larger share of your online market.

Let’s Take A Look At The Numbers

Your competition is spending $2 per click and has a 1% conversion rate. That means it costs $200 to drive 100 website visitors. At a 1% conversion rate they are getting 2 conversions (ie sales or sales leads) for every $200, which means their CPA is $100 per action.

If through split-testing you were able to increase your conversion rate to 3% that means for the same $200 spend you would get the same website traffic, but instead of getting just 2 conversions, you would get 6. This means that your CPA is $33, rather than the $100 your competition is achieving…all from the same advertising budget.

What this really means is that you can afford to spend 3 x what your competition is spending and achieve the same CPA, which means that you will dominate the top positions on the search engines and capture the lion’s share of the online market. Convinced yet?

Conversely, if your competition is split-testing and you are not, they will get the lion’s share of the online market and you will miss out.

In the current economic climate, split-testing allows you to get the most out of your advertising budget and to continue growing your business during these tougher times.

What Should You Split-Test?

You should split-test anything shown to a visitor that requires an action. With PPC advertising you can split-test two separate ads and see which ad produces the lower CPA. With your website design you can split-test two separate pages and see which one produces the highest number of conversions. You can also split-test email campaigns, banner campaigns and other forms of paid advertising.

SEO listings (ie what displays in Google’s organic search) are harder to split-test because you don’t have full control over the information displayed in the listings. Saying that, you can split-test the page that prospects land on after they click on your SEO listing.

On your website, you should split-test the following items on your highest traffic web pages – which you can find through Google Analytics:

• Headlines
• Call to action
• Offer
• Sales copy
• Images
• Testimonials
• Button styles
• Navigation styles
• Background color
• Listing a phone number versus not listing a phone number
• And anything else which holds a prominent position on the page

For your PPC campaign, you should split-test the text ads, keywords and landing pages.

How To Split-Test

The most important metric to measure with split-testing is the CPA, which is measured with conversion tracking. If you don’t have a website form or shopping cart and all your website leads come via telephone or email, it will be much harder to split-test.

The easiest way to split-test is to use a form on your website for somebody to submit whenever they wish to contact your company. When somebody submits that form, they are taken to another page that is call the “thank you” page, which contains a short message saying something like, “Thank you for your enquiry, we will contact you shortly.”

With split-testing, a conversion code is placed on the ‘thank you’ page which then measures the results. If we were split-testing two landing pages using different headlines we would use split-testing software to rotate between those 2 pages so alternate visitors would see alternate versions of the landing page. After a reasonable amount of visits and because conversions are being tracked, one of the two versions will start producing a higher number of conversions than the other. This is then the better landing page, also referred to as the ‘control piece’. The goal with split-testing is always to try and beat the control piece.

To justify that a split-test is statistically correct you need enough visitors and conversions to make an informed decision– as a general rule you will need a minimum of 30 conversions before you can make a decision on which of the variations is best. Note that The difference between the conversions of each version has to be greater than the square root of the sum to ensure statistical integrity.

Technically Speaking, I know that you now want to read the rest or read more…

Tags: Conversion rate, Cost per action, Google, Google Analytics, Landing page, Marketing, Pay per click, Rate of return