2010 Internet Marketing Predictions: Social Media ROI, Gaining Greater Value from Technology Investments, and Possible Implosion of Internet

Fair thee well 2009. You will not be forgotten…nor greatly missed. Welcome 2010. Even though we barely know you, you seem to be a huge improvement already.

But what triumphs and tribulations will you bring us? To find out, I pulled some of our thought leaders in front of a camera over the holidays to give us their predictions for what the New Year has in store…

Now that we’ve given you our predictions, we’d like to hear yours. Gaze into your crystal ball and tell us the challenges and opportunities you foresee in 2010. We’ll publish our favorite comments in a future blog post.

 2010 Internet Marketing Predictions: Social Media ROI, Gaining Greater Value from Technology Investments, and Possible Implosion of Internet

Super Bowl ROI: What is the value of an ad during the big game? Free in-depth data analysis for national network advertisers.

Like millions of other NFL fans, I lamented the elimination of my favorite team from playoff contention last weekend. Yes, my beloved Jacksonville Jaguars ended their season at 7-9 and pro football for me will not carry as much passion over the next four weeks as it did for the last 17.

But, like my fellow fans of the 20 teams that didn’t make the cut, I’ll find someone to cheer for during the playoffs and will ultimately enjoy watching a Cinderella make some magic happen in the Super Bowl. And of course, I will enjoy this annual celebration of advertising as millions watch every Super Bowl commercial almost as intently (and sometimes more so) than the game itself.

2076932073 39514c5ebc 225x300 Super Bowl ROI: What is the value of an ad during the big game? Free in depth data analysis for national network advertisers.Watching Super Bowl commercials is fun, but as a marketing researcher I have to ask the question – what is the return on this investment? Are you filling the stadium for your brand or playing to empty seats?

Every day I talk to marketers from all over the world. Companies like Royal Bank of Canada, Johnson & Johnson, and 1-800-Flowers who are asking the same question about their advertising budgets.

MarketingExperiments conducts research to not only help marketers answer this question, but find the most effective use of their marketing budget.

If you never ask, you’ll never know

Sometimes marketers are afraid to question the status quo, but in a time when every dollar counts we must ask the hard questions and find answers with real data rather than just intuition.

So, to my friends in the marketing departments of the national network Super Bowl advertisers, I offer you this: Share your objectives, metrics, and results from your Super Bowl campaign with us and we will help you determine the actual ROI from this media spend by constructing a model, analyzing the data (our specialty), providing short- and long-term ROI projection modeling, and measuring the financial impact to brand value.

All of this we will do FREE of charge and present the results to you and your team in a manner that is both powerful and easily understood. If your Super Bowl campaign was a winner, we’ll make that win easier to socialize. If you didn’t get the value you expected, we’ll help you understand why so you’re more informed next year.

Maybe your favorite NFL team won’t win the Super Bowl. That doesn’t mean that YOU are eliminated. Win the marketing Super Bowl this year by being the hero that brought in the experts (for FREE) to show how big your win really was. Email or call me at (904) 339-0068 and we’ll talk about the details.

 Super Bowl ROI: What is the value of an ad during the big game? Free in depth data analysis for national network advertisers.

Clarity Trumps Persuasion: How changing the first seven seconds of user experience drove a 201% gain

“Be sincere, be brief, be seated.” While some experts have dutifully penned entire tomes about this subject, the famous advice Franklin Roosevelt gave to his son about public speaking still resonates today for its stark honesty.

If Franklin Roosevelt 2.0 was giving advice about Internet marketing, he would probably change “brief” to “clear” (and perhaps “seated” to “testing”). While marketers invest the majority of their time and budgets on complex areas deeper down in the funnel, MarketingExperiments research has found that most of the gain from optimizing a website occurs in clarifying the first seven seconds of users’ experience.

Much of the complex analysis and formulaic methodologies used by our scientists to create optimized pages with triple-digit conversion improvements can be summed up in this truism…

Clarity Trumps Persuasion

The first seven seconds, and perhaps just those first three, are vital to clearly guiding your visitor into an inevitable conclusion to engage in a transaction with you. Below is a quick excerpt from a recent live web clinic in which Dr. Flint McGlaughlin, the Director of MECLABS (our parent organization), discusses how your visitors interact with your website in those first few moments they land on your page…

Yet Difficulty Trumps Clarity?

Of course, so many websites produced by experienced, professional marketers don’t follow this simple principle because, in reality, it can be quite difficult to truly be clear. Put another way, what is clear to an insider (a marketer that lives, breathes, and eats his product every day) can be meaningless and confusing to your visitor. And even when you have every intention to be clear, how many monkeywrenches get thrown your way (Sales wants one thing, Operations another, and don’t even get me started on Legal)?

To help you on your journey along the road to clarity and prosperity, you can view a replay of the clinic or read the latest issue of MarketingExperiments Journal. Our next live web clinic, Maximizing your Agency ROI: How adding science to the creative process reveals a 26% gain, will be taught on January 13th from 4 to 5 p.m. EST.

 Clarity Trumps Persuasion: How changing the first seven seconds of user experience drove a 201% gain

Clarity Trumps Persuasion: How changing the first seven seconds of user experience drove a 201% gain

“Be sincere, be brief, be seated.” While some experts have dutifully penned entire tomes about this subject, the famous advice Franklin Roosevelt gave to his son about public speaking still resonates today for its stark honesty.

If Franklin Roosevelt 2.0 was giving advice about Internet marketing, he would probably change “brief” to “clear” (and perhaps “seated” to “testing”). While marketers invest the majority of their time and budgets on complex areas deeper down in the funnel, MarketingExperiments research has found that most of the gain from optimizing a website occurs in clarifying the first seven seconds of users’ experience.

Much of the complex analysis and formulaic methodologies used by our scientists to create optimized pages with triple-digit conversion improvements can be summed up in this truism…

Clarity Trumps Persuasion

The first seven seconds, and perhaps just those first three, are vital to clearly guiding your visitor into an inevitable conclusion to engage in a transaction with you. Below is a quick excerpt from a recent live web clinic in which Dr. Flint McGlaughlin, the Director of MECLABS (our parent organization), discusses how your visitors interact with your website in those first few moments they land on your page…

Yet Difficulty Trumps Clarity?

Of course, so many websites produced by experienced, professional marketers don’t follow this simple principle because, in reality, it can be quite difficult to truly be clear. Put another way, what is clear to an insider (a marketer that lives, breathes, and eats his product every day) can be meaningless and confusing to your visitor. And even when you have every intention to be clear, how many monkeywrenches get thrown your way (Sales wants one thing, Operations another, and don’t even get me started on Legal)?

To help you on your journey along the road to clarity and prosperity, you can view a replay of the clinic or read the latest issue of MarketingExperiments Journal. Our next live web clinic, Maximizing your Agency ROI: How adding science to the creative process reveals a 26% gain, will be taught on January 13th from 4 to 5 p.m. EST.

 Clarity Trumps Persuasion: How changing the first seven seconds of user experience drove a 201% gain

Social Media Marketing: Use data and metrics to transition from wallflower to life of the party

In middle school, I was fairly cerebral. OK, some would say nerdy. And while that mindset certainly paid off in the classroom, it didn’t help much at the middle school dance. My younger self would have delighted at being able to read a book that held the secrets to being the life of the party. I even tried exploring my trusty encyclopedia set (remember those) for an answer.

3278650279 eb724efb44 246x300 Social Media Marketing: Use data and metrics to transition from wallflower to life of the partyI share the awkwardness of my formative years because I believe that when it comes to social media, most experienced marketers are little more than brace-faced thirteen-year-olds staring at Twitter and Facebook like a poster of New Kids on the Block – you know deep-down a perfect marriage exists but just don’t know how to make it happen.

So I was delighted to hear that our sister company, MarketingSherpa, is close to releasing its second Social Media Marketing Benchmark Report. The subtitle, “Data and Insights for Mapping an Effective Social Marketing Strategy,” highlights what has largely been missing from the social media discussion over the past few years – real substance.

By combating the ample hype with an ROI-based strategy, I hope this benchmark study can guide marketers in the transition from, as Senior Analyst Sergio Balegno puts it, “novice to competent practitioner capable of achieving social marketing objectives and proving ROI.” And Sergio and his team hope to provide the guidance to get you there. As he says, “To make this leap, marketers will need benchmark data to help them better understand what works (and what doesn’t) in social media marketing, and a practical method for mapping a strategy that will lead them to social marketing success.”

MarketingSherpa let me have an early, pre-publication peak at their data and share one of my favorite insights with you on the blog today. The 2010 Social Media Marketing Benchmark Report has 188 charts and tables, and the one below really caught my eye…

smmbs 480 Social Media Marketing: Use data and metrics to transition from wallflower to life of the party[click to enlarge]

The most effective tactic shown in the chart above – blogger relations – is used by far fewer organizations than less effective tactics primarily because of the effort required. At first glance, I thought the lesson from this chart is to start amping up blogger relations immediately.

But, as always with social media, hopping on the first thing one sees is the easy (and least effective) approach. And that’s what this chart is really showing. Too often, marketers focus on fast and easy ways to make use of social media instead of leveraging the most effective ways. Since social media is essentially free, why bother if something requires too much effort? Of course, in reality, social media is not free. You must invest a significant amount of time to do it right.

According to the Benchmark Report, “This focus on ‘fast and easy’ versus effectiveness is a problem that is far more prevalent with organizations in the trial phase of social marketing maturity than with more advanced social marketers working from a strategic social marketing plan.”

You see, in the end the most profitable approach to this new medium isn’t so new after all. Be strategic. Twitter is a tactic, not a strategy. And the real perfect marriage occurs when you pair proven marketing principles from your overall plan with social media tactics that make sense in your overall strategy.

You probably intrinsically know that this is the right thing to do, but I hope this little reminder helps you stay focused on what really works for your company as you execute on your 2010 plan. As for marrying the cute one from New Kids on the Block…I’ve got no advice to help you there.

 Social Media Marketing: Use data and metrics to transition from wallflower to life of the party

Nine of ‘09: You can increase email clickthrough rate…use Twitter for business…but you can’t listen to Penelope Cruz sing here…

Today’s blog post will not feature music, romance, or a cast of Academy Award winners. If you want to hear Penelope Cruz sing, you have to watch “Nine,” the film.

But while “Nine,” the blog post, can’t provide what Peter Travers from Rolling Stone describes as “…a hot-blooded musical fantasia”, I can share our nine most popular posts from 2009 full of lessons that will help you better understand successful viral videos and affiliate marketing, and improve your lead generation rate while building your email subscriber list. I’ll even throw in a (not quite as gushingly fabricated) review for each post from the Twittersphere.

4219923214 11671894e2 300x183 Nine of ‘09: You can increase email clickthrough rate…use Twitter for business…but you can’t listen to Penelope Cruz sing here…At first glance, a film with a starry cast and yet another “Top Blog Posts of 2009 Roundup” have little in common beyond the name. But the tenth lesson is in the execution. If you’re a frequent visitor to the blog, you’ll notice our new Topsy Retweet Button. One way we use Twitter is to listen to you, our audience. This button is an easier way for you to tell us (and the rest of the Twitterverse) which posts provide you with real value that so you can be successful at what you do, which is how we define our success.

So the next time you’re tempted to look at Twitter as just a chance to gossip about how Nicole Kidman began rehearsals for “Nine” just four weeks after giving birth…stop. And listen. Your customers are trying to talk to you.

Now, let’s raise the curtain on the nine most valuable blog posts of 2009 as decided by you…our audience.

  1. Twitter for businesses: 7 articles + tools you don’t want to miss – With hundreds of lists of Twitter tips and tools, and dozens more popping up each day, it’s getting impossible to keep up unless you work for Mashable. So in advance of June 19th’s Twitter Experiments: Getting beyond the “now what?” web clinic, we wanted to share some of our favorite tips, tools and articles related to the business side of Twitter. Instead of a laundry list of 87 tools or 143 people to follow, here are seven of the most valuable articles and resources we’ve seen lately. Enjoy. “This is good stuff…” @danfranktx
  2. What else can I test… to increase email clickthrough rate? – Email marketing is still the most preferred and effective way channel marketers can communicate directly with their customers. Here are eight tactics that you can use or re-visit to increase your email clickthrough rate. “A few good ways to increase your email clickthroughs” @rickburnes
  3. What do great viral videos have in common? – It’s always fascinating to see smart, unique and, occasionally crazy concepts come to life. Most interesting are those that somehow connect with a brand and really support brand awareness. Here a few of Gaby Diaz’s personal favorites. Besides being funny and eye-catching, what have these videos done right? “Short and straight to the point.” @brunoluis
  4. Google adds more flexibility and intelligence to Analytics and Website Optimizer – At the 2009 Partner Summit, Google gave a preview of the new Website Optimizer (GWO) features as well as soon-to-be-launched, feature-packed version 4 of Google Analytics. So what’s new with GWO? Let’s take a look. “Google’s smarter Analytics and Website Optimizer. It’s about time” @jasonbarczewski
  5. Affiliate marketing clinic study guide: 12 resources to get you going – For September 8th’s Affiliate Marketing web clinic, we explored this Internet-based marketing practice and how to optimize your programs. This shortlist contains a dozen of the best articles, research, forums, and related resources we’ve seen that can help those who are just starting out with affiliate marketing. “MarketingExperiments is an awesome free resource.” @bsainsbury
  6. What else can I test … to improve my lead generation rate? – Lead capture forms can be a powerful business driver – if they are relevant to the surrounding content and your prospect’s motivation, and placed intuitively to meet the prospect’s eyepath and sequence of thoughts while viewing your page. Unfortunately, many forms aren’t living up to their potential in these key areas. “3 ways to optimize your lead generation forms (I need to try one of these)” @mandy_vavrinak
  7. Alumni Questions: Reliable case studies, SEO, and test design – MarketingExperiments Training alumni often share their questions and concerns with our analysts before, during, and after they take one of our courses. These questions about reliable case studies, SEO, and test design are an example of the interaction you can expect if you attend a MarketingExperiments course. “Nice Q&A.” @diogenespassos
  8. Email Marketing: Building Valuable Subscriber Lists on the Cheap – On December 2nd’s web clinic, we explored how to maximize revenue from your house list. In this blog post, let’s look at a strategy for building that list on the cheap. “7 steps to blog contests for rapid list growth” @vmodarelli
  9. Creating a Culture of Testing: How to defeat the tyranny of best practices – Sometimes the most difficult part of testing is finding the right way to get started in your organization. Andy Mott discusses how to get the ball rolling. “Testing: ‘It’s like eating chips while watching a football game, you just can’t stop’” @johnlapierre

Enough nostalgia! In mere hours 2009 will be gone and 2010 will be here. How can marketers prosper next year? Tell use your 2010 Internet Marketing Predictions. We’ll post the most visionary ideas to the blog in the New Year.

 Nine of ‘09: You can increase email clickthrough rate…use Twitter for business…but you can’t listen to Penelope Cruz sing here…

Flash in a Pan: Do loops of creative on home pages deliver ROI or higher bounce rates?

Editor’s note: After returning from teaching the latest Live Optimization Workshop in New York City, Boris approached me about a new test he would like one of our research teams to run. I wasn’t surprised, since these workshops are usually dynamic events with a lot of exchanging of ideas. I suggested he bring the idea directly to you, our blog readers…

As a Senior Manager of Research and Strategy, I am often tasked with deciding which marketing implementations we should test (and as Associate Editor, it seems Dan’s job is to suggest that all my ideas are his).

One area for experimentation that intrigues me is Flash banners that display multiple frames of creative – especially on home pages. These loops often present the top offers, value proposition highlights, awards the company received, etc. Many also provide a degree of control, letting the visitor “navigate” back and forth within the loop. In my experience, AOL and Yahoo pioneered this format with news highlights.

dell flash banners 580px Flash in a Pan: Do loops of creative on home pages deliver ROI or higher bounce rates?

So as we finalize our research calendar for the upcoming year, I (not Dan) had the idea to come directly to you, our blog readers, to learn about your experiences with this technique. Have you or anyone you know tested it before? Do you currently have real-world implementations that might fit into our research calendar?

My hypothesis, based on the principles we’ve observed from years of testing, is that these loops will underperform a more standard, narrative presentation of the same information – even though the latter requires more room since the content of the loop would have to be laid out sequentially. As Dr. Flint McGlaughlin explained in the most recent live web clinic, the first few seconds are critical to conversion.

If you hide your call to action on the fifth frame, odds are your visitors will not stick around to find out what you’re trying to tell them. And if your page speaks to multiple segments, the personas that might be drawn in by what is displayed on frames two, three, and four will all be greeted initially by frame one, which likely won’t connect. In addition, the heavy graphics of the loop will likely overshadow your headline, inhibiting your ability to start a conversation with your visitor.

Let me caution that this is just my hypothesis, a tentative insight at best. That’s why we test. We don’t seek to guess what really works. We harness the power of testing to discover what really works.

So let me know your Flash-related test experiences, or current initiatives that would be worthy of testing, by leaving a comment on this post or visiting the MarketingExperiments Optimization group on Linkedin.

Editor’s note: If you think this exchange between Boris and I was a bit testy, you haven’t seen anything yet. Next year, Boris and I will begin a series of debates on this blog. The first question we’ll wrestle over is… Does the future of media companies, ad agencies, and content marketers lie in technology or content?

 Flash in a Pan: Do loops of creative on home pages deliver ROI or higher bounce rates?

Never Pull Sofa Duty Again: Stop guessing what your audience wants and start asking

As online markers and business owners, we have this self-imposed pressure to continually come up with tests to improve what we guess users might want. Yet, in talking with our Research Partners and other marketers, I find there is a real lack of direct communication with end users to help us actually know what visitors want.

We literally create test or optimization ideas in our cubicles, internal focus groups, and mass email conversations around the department. And then we leave out the most important people – our actual users or visitors.

If you just rely on your own analytical skills and creativity without consulting your users, two things are bound to happen. You will burn out by taxing your limited resources to constantly try to develop what to do or test next out of thin air. And eventually you will end up totally disconnected from your users.

When I bring up this topic, I often hear, “Now wait a minute…I have tons of metrics I can collect and pages to test. I can surely figure out my users.”

This is a valid point to a certain extent. We have our web metrics, click map reports, page testing, sales analysis, and the list goes on. However, even with all of those tools, what we are really trying to do is intelligently deduce what our visitors want.

Since it is the holiday season, I’ll use the example of the husband that gets the wife an iron for Christmas. He made the assumption (the keyword being assumption) that since she spends a lot of time ironing she would appreciate a gift that improves her ironing experience.

sleeping man Never Pull Sofa Duty Again: Stop guessing what your audience wants and start askingIf Mr. Assumption had actually listened to his wife more about what she would like, maybe he would not have had to spend four days pulling sofa duty as a result. While we all laugh because we either connect to the mistake of giving or receiving such a gift, we have to ask ourselves if we are making the same assumption errors.

We often forget the tools that we have at our disposal to make a direct connection to users and learn what they need from us. Here are three often overlooked techniques:

Exit Surveys
While we all hate to add an extra step, some people do not mind giving information about their visit. This feedback can be invaluable in learning what areas of your website are worth testing to possibly lift conversions and ultimately provide a better experience for your users.

exit survey Never Pull Sofa Duty Again: Stop guessing what your audience wants and start askingRemember, these exit surveys do not have to be just for people that are abandoning the process. Query visitors that have successfully made it through your signup process, lead capture form, ecommerce purchase…you get the idea. If you have never dabbled in the murky art of exit surveys, there are many companies out there that can help get you started.

A word of caution – don’t be greedy and ask 15 questions, especially all on the same page. People complain about exit surveys and completion rate, but I think the root of the problem is that they ask too many questions. Put yourself in the user’s shoes – would you take the survey? Perhaps test putting just one question per page and see if that leads to a higher completion rate or at least some partial data.  I have also seen some audiences respond better to a breadcrumb-type approach.

Cheat Sheet

  • Engage your users through customer service response surveys
  • Keep your questions to a minimum or completion rate will be abysmal
  • Thank them for their feedback and let them know they are helping make a better future product
  • Do not incentivize this area too much or data will not be accurate since people may be looking for a handout instead of trying to help

Actually talk to your users
OK, you may now get your brown bag out and hyperventilate a little before continuing.

Feeling better? Good. For many companies you already possess enough contact information to reach out to your customers. So pick up the phone or mouse, call or email those customers, and communicate directly with the people that make the Herman Miller chair you are now sitting in possible (or comfortable generic cloth one in my case).

If you are looking for feedback on a process, such as checkout, request it as close to the completed action as possible. This will ensure things are still fresh in their mind. And don’t just send a cold auto-responder email.  A personalized email or call will show how important you are taking this process and more likely elicit a better response.

Cheat Sheet

  • Reach out to your users and ask them how to make things better
  • Ask in a very personal, human fashion to avoid the “system-generated message” feel
  • Thank them for their time and perhaps even reward them, but do not mention an incentive until the end to ensure you are not skewing the data
  • Follow up as quickly as possible so users have the steps fresh in their mind

team Never Pull Sofa Duty Again: Stop guessing what your audience wants and start askingInteract with your sales and customer service team
The  teams that interface with users on a daily basis can give you insights to your customers’ kudos and complaints. They might compare your offering to a competing product, request an easier-to-read features page, or need a more robust FAQ section. You can learn a lot by taking the elevator down a floor and talking to the teams that have some of the best internal insight into your users.

Cheat Sheet

  • Like Ziggy in the complaints department, front-line employees have unique insights into what your customers want and don’t want
  • Take the elevator down a floor and ask probing questions about their customer interactions
  • Then take the elevator up a floor and brag about how these insights have helped you deliver ever-increasing net profits

In conclusion, I present you with this challenge. Do not view your users as the sleeping dragon in the cave that you do not want to disturb. Ask, probe, explore, and create a working relationship to increase your site’s performance while delivering for your customers. This will ensure that you are actually creating processes and web experiences both usable and relevant to your users.  I know we only covered three ways to interface with your clients, so comment below on some methods you use to gather customer feedback.

How do you interact with your users and customers? What is your favorite metaphor for making assumptions about what your visitors want? Share your triumphs and ideas in the comments section of this post or start a conversation with your peers in the MarketingExperiments Optimization group.

 Never Pull Sofa Duty Again: Stop guessing what your audience wants and start asking

Creating a Culture of Testing: How to defeat the tyranny of best practices

You can hear Senior Manager of Research Partnerships Andy Mott answer the question How Can You Make Your Web Site Smarter? on the replay of Omniture’s latest webinar. But in my experience with these events, there is usually an interesting back story. So I cornered Andy in his office at a vulnerable time (his beloved Gators had recently lost the SEC Championship game) and found out what he really wanted to say…

Q: You discussed the 2009 Omniture Online Conversion Survey on a recent Omniture webinar. What surprised you the most?

Well I won’t say this surprised me. Maybe saddened is a better word. The survey asked “How frequently is online marketing testing employed in your company?” About half of the respondents said infrequently or never.

Q: Wow! That is pretty shocking, especially considering that these people are already familiar with testing through Omniture or MarketingExperiments. Maybe I could understand if this were the general population of marketers. But why have testing tools in place and not test? Why do you think half of them are flying blind?

Well people know they need to test. They probably know their competitors are testing and getting results. But the idea of executing a test is such a paradigm shift in the way that they’ve always done things.

Those that are higher in an organization tend to be more experienced. And if they are more experienced, they may be locked into the advertising agency way of doing things from 30 years ago, just like the doctor who overlooks recent findings and does what worked best for him when he went to medical school.

Q: Change is difficult. But still, thirty years ago these same people were also wearing polyester and doing the hustle. I’m a little skeptical that they would still try to shoehorn old media principles into new media.

It’s not intentional. If something has always worked for you, why change?

But what we really have is the tyranny of best practices. I’ll give you a great example. Many marketers still believe that they must have the call to action “above the fold” on a web page. Yet testing has shown this to be an utter myth.

Q: And nothing disproves a best practice better than a test that shows what actually works for their specific situation.

That’s the thing. Once companies start testing and see the ROI they are absolutely hooked.

test Creating a Culture of Testing: How to defeat the tyranny of best practicesQ: How do you take that first step? For, say, an email marketing manager reading this, how do you create a culture of testing in an organization?

Business-level executives don’t care about optimization or testing or even online marketing really. What they care about is results. So you need to talk to them in their language.

At MarketingExperiments, we publish all of our research and it is available for free. So go to the research archive and pull some experiments so you can show example results and make the business case for testing. At this point, all you are looking for is a small budget to begin testing.

Those first tests will help you establish a beachhead that you can use to further penetrate the organization. Because once businesses see the results they can gain from testing, it can get addictive. It’s like eating chips while watching a football game, you just can’t stop.

Q: The challenge is to just get the ball rolling. This sounds great in theory. Do you have any real-world examples?

I have countless examples. Since we started this conversion by talking about my recent webinar with Omniture, let me tell you about a Research Partner that first got interested in testing by attending an Omniture webinar that featured Dr. Flint McGlaughlin.

Companies that test usually like to stay anonymous because they view this process as such a competitive advantage. So I’ll just say they are a very large financial institution.

So this marketing manager attended Flint’s webinar and was totally sold. He was convinced that they should begin testing. But he’s only responsible for a very small patch in this giant company. It took him six months to get the approval to begin testing, doing the things I previously mentioned.

Q: Six months? It’s easy to get discouraged in that time. I’m not sure how many people would see it through.

But here’s the kicker. That marketing manager and his boss are now charged with trumpeting this win across the entire organization. He is now in front of his boss’s boss’s boss presenting his test results. In fact, in a few days he will be presenting in front of the SVP committee that advises the CEO.

Q: Well then he must have achieved some really out-of-this-world test results. What did he get…three digits…four digits? I mean, how common is that?

They got a 38% revenue boost over what the agency was doing.

Q: Well, that sounds decent, but a committee of SVPs really cares about 38% in one test?

You say that because you are so used to the power of testing, so you just want to see huge numbers. Let me put this another way – by not testing they would have been leaving 38% more money on the table since the cost of testing was infinitesimal compared to their massive marketing budget.

And that’s the thing. This company has a huge marketing budget. They sponsor the Olympics. They name stadiums. They purchase a ton of media. And since they don’t have space to sell in most of these executions, they’re driving everyone to the website. So if they find they could make more 38% more money without having to increase any of these huge marketing spends, the increase in ROI is humongous. Even a one or two percent increase could make or break a quarter.

Q: I see. I didn’t make the connection to that old media marketing spend. But I would think it goes beyond just old media driving people to a website. Online marketing is growing by leaps and bounds. I would think companies want to make sure they are getting a return on that investment as well. According to Forrester Research, digital spending will nearly double over the next five years at the expense of traditional marketing.

Forget five years from now, even today companies spend more than $25 billion on interactive marketing – things like mobile marketing, social media, email marketing, display advertising, and search marketing. That is 12% of all advertising spending. So when enterprises, like that financial institution I discussed, learn that they can take just a tiny fraction of the spend on this growing segment and invest it in a way that ensures the effectiveness of everything else they do – with real-world, statistically valid data – they get very excited.

Q: And I would think, for the employees that can tell management “I know how to get the best ROI from this” – not think or have an opinion, but know with real numbers – that’s quite a smart career move.

If other people are discussing so-called “best practices” and you’re showing real results, then you become the go-to person. The one who knows how this stuff really works. Because nothing defeats the tyranny of best practices as well as the audacity of testing.

And if you’re the guy that knows the right things to do in an explosively growing field like Internet marketing, while marketing budgets on everything else are falling, you’re in a good place no matter what the economy is doing.

How did you get the ball rolling on testing in your organization? What are your biggest challenges to create a culture of testing in your organization? Share your triumphs and challenges in the comments section below or post them to our MarketingExperiments Optimization group.

 Creating a Culture of Testing: How to defeat the tyranny of best practices

Email Marketing: Building Valuable Subscriber Lists on the Cheap

This has not been a banner year for marketing budgets by any estimation. So you might be surprised that two tactics actually garnered increased budgets in 2009 – email and social media. Your peers consider email a highly cost-effective tactic and see social media as a way to extend that content to new markets. This research comes from MarketingSherpa’s 2010 Email Marketing Benchmark Report, which contains practical data to improve your budgeting and grow your overall business.

We’ve found email marketing to be a hot topic as well, with near-record attendance at Wednesday’s web clinic (If you couldn’t attend, please subscribe to the free MarketingExperiments Journal to be notified when the replay and research brief are available). To build on that clinic, which explored ways to maximize revenue from your house list, here is a cost-effective way to grow your list:

In the past year, low-cost has become the most popular modifier of the word “campaigns” for most marketers. Of course, you never want to sacrifice results simply for the sake of cost.391609724 6a85f6981b Email Marketing: Building Valuable Subscriber Lists on the Cheap According to the 2010 Email Marketing Benchmark Report, blog contests are an inexpensive way to quickly gain motivated subscribers. Here are the seven key steps to making the most of blog contests to rapidly grow your list:

Bullseye

There are highly relevant audiences for blogs on almost every interest under the sun, including Sun (Microsystems, that is) and, likely, an audience with interests very similar to your best customers. But, contrary to popular belief, these audiences aren’t all micro. According to the web-traffic analysts at Compete, some so-called “mommy blogs” get well over 100,000 unique visitors a month. For an example, see Dooce (if you’re a parent, you know what she’s referring to).

Lay down the law

Make sure you clearly define a set of rules to keep everything running smoothly. For example, you could give extra entries to readers who refer friends. Or even host a second, private contest for the blogger who generates the most entries. And remember, the more compelling the prize, the more motivated your audience will be.

…and he told two friends…and she told two friends

After you set up a landing page to explain the contest and capture entrant’s information and referrals, email referred prospects automatically and invite them to join the contest as well. With luck (and a compelling contest), you may reach the Holy Grail of cost-effective online promotion – going viral.

Seek the source

To understand which channels deliver best, create coded links to track traffic originating from blogs (with unique links for each blog), referrals, newsletter emails to current subscribers, social networks, etc. If you hold a separate blogger contest as well, you could create an anonymized tracking page to show bloggers how many entries they’ve generated compared to competitors, which may encourage them to step up efforts.

Release the hounds

Once you have the mechanics of the contest in place, finding the right bloggers will take a bit of hunting on your part. Here’s one simple strategy. Use basic Web searches to find applicable blogs. When you spot a likely target, use its “blog roll,” or links section, to find similar sites. Look at the sites’ number of RSS subscribers (if publicized) as well as the freshness of its content. Then, you can reach out to the bloggers (using info found on the site or a “Contact Us” form) with an email that includes a description of the contest, a coded link to the landing page, a link to the stats page, and a link to a promo ad.

Remember your members

While these bloggers will hopefully drive new subscribers, don’t forget to let the current members of your virtual fan club enter as well. The contest deserves at least a mention in your email newsletter, Twitter feed, Facebook group, social networks, weekly coffee klatch, Pinochle tournaments, and any other place you regularly communicate with your most loyal customers. Not only are you deepening your relationship with existing customers, making it easy for them to pass the contest on to friends is another cost-effective, viral way to grow your list.

Rinse, wash, repeat

If you do not prevent multiple signups, you will have to scrub your list of duplicates. You may also want to remind new subscribers why they are receiving your email newsletter (“Thank you for entering our contest and signing up for…”). Include an easy way to unsubscribe, a must for the CAN-SPAM Act, since some may have focused more on your prize than the fact that they were also signing up for an email newsletter. This is also a way for your least motivated list members to self-select and get removed before too many of them hit the “SPAM” button and hinder your deliverability.

After you’ve counted all your new subscribers, look at your metrics to see what you could have done better. And then, start another contest with your newfound knowledge pushing you to even greater success.

For a real-world example of a marketer that used these tactics to grow a small email list to 20 times its previous size, turn to page 129 of the 2010 Email Marketing Benchmark Report. MarketingExperiments blog readers can receive a $100 discount.

And for a more in-depth look at making email and social media deliver for your bottom line, check out Email Summit ’10 in Miami from January 20-22. PLUS, Dr. Flint McGlaughlin will teach a Pre-Summit Live Email Optimization Workshop to help you maximize your email capture rate and quality. Register by January 8 to receive an early bird discount of $200.

Photo attribution: http://www.flickr.com/photos/idogcow/ / CC BY 2.0

 Email Marketing: Building Valuable Subscriber Lists on the Cheap