Option A or option B? This is a question that you’ve probably been asked for as long as you can remember, but how does this relate to marketing? A/B testing and Conversion Rate Optimization (CRO) are tools used in digital marketing. You don’t have to be a scientist to run these types of tests, so stick around to find out what we’re learning about this week in #wwudigimark, as I talk about everything A/B Testing and CRO.
What is CRO?
CRO is much like all the people running through this funnel. The goal is to change site visitors into conversions. It is defined as “the systematic process of increasing the percentage of website visitors who take a desired action.” A conversion (aka goal) is measured in micro-conversions and macro conversions. CRO is measured by calculating a conversion rate.
What is A/B Testing?
Also known as split testing, A/B testing is a way in which companies can compare two versions of a website to figure out which performs better. This is nothing new, as the method of A/B testing has been around for almost 100 years! A/B tests show which version of a webpage is performing better than the other so that website conversions can be optimized. This is determined through statistical analysis that shows what variation of the webpage has been performing best for the conversion goal of the company. A/B testing is a tool used by companies to not only optimize their conversion rate, but also to optimize user experience. The easier it is for a user to interact with your site, the more likely they are to convert. Using A/B tests are another way to also understand consumer’s behavior and their preferences as to what makes them to pursue an interaction or conversion with a webpage.
Measuring CRO
The way to measure CRO, is by finding a conversion rate (the percentage of visitors who take a desired action). This is calculated by dividing the site traffic by the number of times a user completes a goal then multiplying it by 100.
Performing A/B Tests
Listen to this little girl! A/B tests are science, but you don’t need to be a scientist to perform them. The test follows a similar layout to the scientific method, but it will be unlike any chemistry experience you may have had to do in a gen chem class. According to Optimizely, the steps to start running an A/B test are as follows:
1. Determine conversion to improve
2. Hypothesize change
3. Identify variables/create variations
4. Run experiment
5. Measure/analyze results
When performing the experiment, half of the traffic is shown the control (original) variable and the other half are shown the variation (modified) variable. The engagement with each page is collected, measured and then analyzed through a statistical software. It is important that the users receive the page randomly, as A/B testing is a randomized controlled experiment.
Why use CRO?
Paying special attention to CRO is important because ultimately the interaction site visitors have with your webpage is crucial to continuing to profit as a company. The more likely a visitor is to interact with your webpage, the more likely they are to convert and use your site again. It also benefits SEOs. According to MOZ, there are five ways that CRO benefits SEOs. They are:
1. Improved customer insights
2. Better ROI
3. Better scalability
4. Better user experience
5. Enhanced trust
This is important because while CRO may not directly affect SEO, it gives you more insight into how to best use SEO. CRO helps a company make the most of their webpage and get the most out of the current traffic that they already have. If you don’t use CRO, you are most likely not maximizing the use of your webpage and therefore you are wasting money! It is important to use CRO because it will also assist your sales team. If you consider the conversion of visitors to your webpage, it makes it easier for the sales team because they will have leads which could make their job a little easier.
Why use A/B Testing?
A/B testing should be used because it gives you necessary data to ensure you are maximizing your marketing budget. It gives you major improvements with small and minor changes. There is low risk but high reward in using these types of tests, and they are useful to answer smaller questions and to improve small goals one at a time. They also better help to pinpoint exactly what was not allowing a company’s webpage to be most successful.
Who’s Done it Well?
Many companies use CRO and A/B testing as methods for their performance research. People who use A/B testing and CRO may work on email campaigns, paid internet advertising, e-commerce, in the travel industry, or at technology companies. Companies like The Discovery Channel, Secret Escapes, and ComScore have all successfully used A/B testing to increase the conversion rate through the help of the company Optimizely.
The Discovery channel was able to utilize AB testing to increase video engagement and improved ad viewing. This resulted in a 6% increase of click-throughs in the video content.
The company Secret Escapes utilized Optimizely to successfully double their mobile signup rate while optimizing their customer acquisition.
Lastly, ComScore was able to test Brand Validation and Social Proof to create a 69% increase in leads generated in many of the world’s primary enterprises, publishers and agencies.
Conclusion
A/B tests and CRO hold a special place in the heart of digital marketers. I hope that this article has taught you some basics about both unique tools that can be used to help companies optimize their online websites. Stay tuned for next week’s topic in #wwudigimark and remember, you don’t have to be a scientist to perform A/B tests, so don’t be afraid to try them!