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The 3 reasons why Amazon is a role-model for conversion optimization

By Joerg Dennis Krueger on

If you are looking for a model for conversion optimization, Amazon is right up there with the best! However, you have to take a closer look to understand why this is so and exactly what features you should take as an example. A superficial assessment isn’t enough.

This article covers the three main reasons why Amazon is an absolute paragon for building and, in particular, optimizing a webshop. Please note that the use of the word “model” to describe Amazon doesn’t mean you should copy it! The point is to apply the methods used to create it in order to develop your own shop.

1) Because you can’t remember the last Amazon relaunch!

Amazon.de in 2001 (Source: Archive.org)

Amazon.de in 2001 (Source: Archive.org)

Do you remember the last relaunch of Amazon? It’s hard to believe but there has never been a relaunch of Amazon! In the last 10 years a lot has changed at Amazon, but there has never been a real relaunch. Archive.org is a good example of this approach.

However, the fact there has never been a relaunch doesn’t mean that the website hasn’t changed. In fact it’s probably fair to say that no other on-line store has changed as much as Amazon. However, instead of carrying out a complete relaunch, they prefer to optimize what they have and thus continually develop.

Amazon in 2008 (Source: Archive.org)

Amazon.de in 2008 (Source: Archive.org)

After all, there’s nothing worse than a relaunch! Rethinking everything is only necessary if the business model is fundamentally changed or if the initial set up was simply very poor. If you already have a successful store there is no reason to completely transform it. Changes must be made bit by bit.

Each change must be measurable so it can be assessed as to whether it is going in the right direction. Amazon thus continually develops the shop rather than turning everything upside down. It applies conversion Kaizen at its best!

2) Information before design

Do you think Amazon looks good? If so, you are one of the few people who think that Amazon’s design is attractive. However, although some people think that the aesthetic aspect of the site has been somewhat neglected, the store  functions fantastically well, probably better than any other. One of the main reasons for this is that Amazon pays attention to details which are criminally neglected by many other operators. This applies above all to information.

From the point of view of conversion, information is the most important element of most websites, far ahead of graphic design. Even if a  shop is attractively designed, it won’t function if key information is missing. The difficulty lies in the fact that for each shop and to some extent each product category, there is different information which is essential and cannot be omitted.

Amazon has invested a great deal of work in providing more in-depth information for potential buyers, particularly on the product pages (EPA). Always present are pictures of the products, the price, the delivery time and reviews. Depending on the product category, information on content and technical information is also provided. On top of this there is a product description of varying detail, including pictures and videos.

  • Have you ever seen product descriptions in another webshop which are as detailed as Amazon’s?
  • What other on-line store informs you so precisely how quickly the product can be delivered?
  • Where else will you find such extensive evaluations and discussions regarding products?

Of course information is not everything. The logical arrangement of the site, the individual design and the user guide are also important. In this respect Amazon takes a very simple approach which may appear somewhat confused at first glance but, as experience has shown, is very quickly understood by all users and highly rated by them.

However, it is important to remember that Amazon also invests heavily in trust. Although it is neither a member of TRUSTe nor bears similar trust seals, the shop is considered one of the most trustworthy operators around. The payments processing is faultless, the delivery times are very clear and exchanges can be made quickly and without complications. Amazon never tires of presenting these advantages in every possible place (“Order within the next two hours and you will receive your shipment tomorrow by 12.00 noon”).

3) Because Amazon tests, tests and tests again

All this was not conceived by someone at Amazon at the drawing board stage. In fact the opposite is true! Amazon constantly tests numerous ideas for changes and their effect on the conversion rate and revenues. There is nothing at Amazon which has not been tested. This has allowed the store to continually develop and tailor itself more and more closely to (ever-changing) customer needs, thus becoming the absolute market and innovation leader in the world of e-commerce.

This process has not made Amazon a particularly attractive webshop in terms of appearance, but one which is precisely tailored to the needs of the visitors. Naturally, it has grown beyond pure testing and also uses the findings for pinpoint targeting. This applies not only to products (“Visitors who purchased X also purchased Y”), but also to the presentation of the shop for individual user groups, whether it be “coarse” targeting where, for example, each product category is individually constructed, or more intensive individual targeting for individual visitors.

The author

Joerg Dennis Krueger is responsible for the business unit “Conversion Optimization” at QUISMA – A GroupM company, an international network for performance marketing headquartered in Munich, Germany. He is author of the book “Conversion Boosting” and blogs at http://conversionboosting.com/blog/.

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Great testing idea to retain newsletter subscribers

By Scott Miller on

I went to unsubscribe from a opt-in list and spotted a great test idea.  This particular advertiser, was clever enough to add an option for staying on the list.

I would love to see a test of this and find out how much this second option actually reduced list unsubscriptions.

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8 New Years Testing Resolutions for better A/B and Multivariate Results

By Scott Miller on

1. Put the shotgun down, website testing is not turkey hunt!

If one thing was made apparent by the WhichTestWon testing awards this year, its that most web marketers are toting around a shutgun, rather than a sniper rifle when it comes to testing. Very few of the entries provided meaningful learnings, beyond “one page is better than the other.”  If we had asked people WHY Recipe C beat the control, not many would have had a definitive answer.

So I implore you to stop testing lots of things at the same time (shotgun approach) and instead, pick and isolate variables carefully and deliberately (sniper rifle.)  When the test is done, you’ll be able to proudly say, Recipe C beat the control, and the reason WHY is that a medium button that is red and includes the word FREE gets more clicks.

Why does this matter?  Because you can take this learning and apply to your next test-

2. Test, Learn, Change, Test, Learn, Change, Test Learn… Iterate More!

Iteration is the secret to delivering the best possible product.  Picture what it would be like if car manufacturers did not iterate on their designs?  We would all be driving around in clunkers that were no more reliable than they were in the early 1900s.  Luckily, this is not the case!

The same is true with testing your sites, landing pages, and other online creative.  Rather than using the shotgun approach by testing repeated wildly differing designs- put on your white lab coat and treat your web optimization campaign like a real scientific experiment.  Run focused, controlled, carefully designed experiments- varying only one thing for an AB test or a handful of things in a multivariate test.

This approach may not be quite as exciting as the former, but in the end, you will learn more, and have a better likelihood of success.  Once you have completed one test, be immediately ready to run the next, iterating (or building) on what you have learned.

3. Add the word OFAT to Your Testing Vocabulary

Just because OFAT sounds horrible (old and fat?) it is neither bad, old nor fat.  OFAT stands for One Factor At a Time- in other words one variable at a time.  Google erroneously took the term ‘AB test’ and popularized it to mean testing wildly differing designs (in fact different web addresses.)  AB testing was originally synonymous with OFAT- meaning in a split test, you isolate one variable and change it to measure the effect of the change.

4. Take a Class or Read a Book

In my job, I get to observe the testing practices of a great number of marketers and agencies. I can say with a degree of certainty that many of them (including those “certified by Google”) would benefit by taking the time to study testing best practices.  Even though they are technical and not specifically geared towards web testing reading up on experimental design and design of experiments can help you create better tests with more reliable results.  A side benefit is that they will possibly require less traffic to get statistical validity as well.  There are a set of well understood principals from offline testing which can be ported over to the online world with great success!

6. Learn from example

Lately,  a number of inspiring sites have popped up with examples of real test results, expert commentary, and other resources.  One of my favorites is Anne Hollands “WhichTestWon” which hosts a weekly blog asking their namesake question.  Marketers submit two versions of a prior test, and visitors to the site are given the opportunity to pick which they thought won!  These sites can help you in two ways- 1.) You get a view into the mind of other marketers and how they chose to design experiments, and 2.) They can be a great source of ideas for testing on your own site!

7. Take a walk offline

Some businesses count as many as 70% or more of their conversions from offline sources (telephone orders.)  The simple fact is you cannot afford to ignore these when you are running a test.  Would you drive a car with the windshield 70% obscured??  Sadly, many many marketers do the equivalent testing online.  If you get a lot of orders by phone, you need to hook some phone conversion tracking capabilities to your test.  I am not sure how many testing vendors support phone tracking integration, but I know at least one that does (wink).

As for the phone tracking vendors, a search of Google will illuminate many- varying widely in cost.  Most will work for testing purposes.  The important thing is to make sure that each unique recipe tested is correctly assigned to a unique phone number.  Then when a call comes in, the phone system needs to be told to report a conversion for that page version.  It sounds confusing because it is.  Luckily, all of this complexity happens in the background.

8. Pay Attention to Segments to Maximize Testing Satisfaction

Ask yourself what would happen if Santa Clause delivered the same present to every child, regardless of age, nationality, or gender.  Would most kids be happy with their gifts?  I doubt it!  Instead, Santa segments his audience, making sure little boys get toy cars, action figures, and the like, and little girls get dolls, stuffed animals, jewelry, etc.

Don’t make a mistake by assuming all of your website visitors are going to respond to test options in the same way.  Many marketers are running tests with darkened glasses on here, blindly ignoring the nuances that commonly exist amongst different traffic segments.  Make a goal in 2010 to invest in a testing platform that can show you how visitors from Google performed compared to visitors from Facebook, and which version of the test won for each group.

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We’re collaborating on and sponsoring the WhichTestWon testing awards… enter now!

By Scott Miller on

WhichTestWon.com is a cool new site built by Anne Holland.  In case you are not familiar with Anne, she was the founder of Marketing Sherpa.  This site is sooo much fun if you are into testing and doing site conversion optimization.  Basically, each week the site features a real test- and asks visitors to “use their gut” to pick which version resulted in more sales, more conversion, or higher stickiness- before showing the correct answer and some expert analysis.

The first annual awards were announced last week, and you have until November 20 to get your entry submitted!  There will be an awards webcast in the beginning of December (we’ll announce it here or you can follow whichtestwon.com to stay up to date.)

Winners will get links from us, whichtestwon.com and a number of other sites that choose to cover the awards.  Furthermore, you get a cool badge to place on your site indicating that you were a winner.  Plus it’s a great resume bullet to say your AB test won an Award!  This has the potential to earn you or your agency a lot of free publicity!

The categories  include things like Best: Homepage Test, , , , , , .

The rules are pretty simple, but one important thing to note is that your test does not have to use Vertster.  In fact if you have a good test to enter that you did with Google Optimizer, Omniture, or any other software, feel free to enter it!  We’ll keep your results anonymized as well!

So hurry up and enter- the deadline is Nov 20.

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Ecommerce Home Page Test- Featured on WhichTestWon.com

By Scott Miller on

Think you know what is going to convert the best?  If so, put your ego where your mouth is and head over to WhichTestWon, the new site from Anne Holland (founder of MarketingSherpa) to see how good you are at picking the winner from a selection of split tests.  Even if you have no idea which won, there is still a lot to be learned from this collection of test results.

This week,  a test run on the Vertster Optimization Platform appeared on WhichTestWon.  In this test, two significantly different home pages were pitted against each other.  One featured traditional sales copy, and the test version had a big video, as well as use of an authority endorsement.   Place your vote for the winner and read the full case study on the site!

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Filed under: A/B Testing, Case Studies
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