a modern approach to ecommerce optimization

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A Modern Approach to Ecommerce Optimization #DMA13 Robert Gilbreath

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The deck from my DMA 2013 presentation. HUGE thanks to Monetate for letting lift many of the slides and tons of data for this.

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Page 1: A Modern Approach to Ecommerce Optimization

A Modern Approach to Ecommerce Optimization

#DMA13Robert Gilbreath

Page 2: A Modern Approach to Ecommerce Optimization

A Modern Approach to Ecommerce Optimization

• Web-based Shipping Software• Based in Austin, TX• Amazon, eBay, Etsy, and other

marketplaces• Shopify, Magento, Bigcommerce,

Volusion…• UPS, FedEx, DHL, USPS, Canada Post…

Robert Gilbreath- VP of Marketing- 20 years ecommerce / marketing- Internet Retailer Top 500 / Inc 500

companies

Page 3: A Modern Approach to Ecommerce Optimization

A Modern Approach to Ecommerce Optimization

Things to cover

- The HIPPO- History of Website Testing & Personalization- Culture of Optimization & Rewarding Risk- Data and consumers view of it- Personalization & Segmentation- Q & A

Page 4: A Modern Approach to Ecommerce Optimization

Does he (or she) exist within your organization?

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More Cute Baby Hippos

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Does he (or she) exist within your organization?

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Highest Paid Person’s Opinion (HIPPO)

- Methods / Tech of testing and personalization – Hippo stomp- Decisions and changes not based on tests- No real culture that embraced change – rewarded risks- Gut and/or ego decisions can be right, but…

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History of Website Testing & Personalization

- IT Heavy: Not totally controlled by marketing

Page 9: A Modern Approach to Ecommerce Optimization

History of Website Testing & Personalization

- IT Heavy: Not totally controlled by marketing- Limited Options: Rely on IT to make updates/changes/additions

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A Modern Approach to Ecommerce Optimization

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History of Website Testing & Personalization

- IT Heavy: Not totally controlled by marketing- Limited Options: Rely on IT to make updates/changes/additions- Speed: Slow to produce results/data

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History of Website Testing & Personalization

- IT Heavy: Not totally controlled by marketing- Limited Options: Rely on IT to make updates/changes/additions- Speed: Slow to produce results/data- Results: Data inconclusive (HIPPO may have grown stronger)

Page 13: A Modern Approach to Ecommerce Optimization

History of Website Testing & Personalization

- IT Heavy: Not totally controlled by marketing- Limited Options: Rely on IT to make updates/changes/additions- Speed: Slow to produce results/data- Results: Data inconclusive (HIPPO may have grown stronger)- Today’s tools remove most (all) of these barriers

Page 14: A Modern Approach to Ecommerce Optimization

Today’s Reality of Testing & Personalization

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Culture of Optimization & Rewarding Risk

- HIPPO / Tech Barriers / Overwhelming Amounts of Data

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A Modern Approach to Ecommerce Optimization

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A Modern Approach to Ecommerce Optimization

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Culture of Optimization & Rewarding Risk

- HIPPO / Tech Barriers / Overwhelming Amounts of Data - Lack of respect for what small changes can lead to

Page 19: A Modern Approach to Ecommerce Optimization

Do small changes to color make a difference?

Page 20: A Modern Approach to Ecommerce Optimization

Do small changes to color make a difference?

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Do small changes to color make a difference?

Conversion Rate: 4.5%

Average Order Value: 2.9%

Revenue per Session: 7.6%

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Do small lifts to Conversion Rate and AOV matter?

  Control Test Change

Visitors 1,000,000 1,000,000

CR 5.00% 5.60% 12.40%

AOV $50.00 $53.22 6.43%

Closed 50,000 56,000 6,000

  $2,500,000 $2,980,320 $480,320

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Culture of Optimization & Rewarding Risk

- HIPPO / Tech Barriers / Overwhelming Amounts of Data - Lack of respect for what small changes can lead to- Customers & Employees - Numb to experience / website / app

Page 24: A Modern Approach to Ecommerce Optimization

Culture of Optimization & Rewarding Risk

- HIPPO / Tech Barriers / Overwhelming Amounts of Data - Lack of respect for what small changes can lead to- Customers & Employees - Numb to experience / website / app- Example: Brooks Brothers

Page 25: A Modern Approach to Ecommerce Optimization

Brooks Brothers – Culture of Optimization

- Open meetings to discuss test ideas

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Brooks Brothers – Culture of Optimization

- Open meetings to discuss test ideas- Team members pick which variation they think will win

Page 27: A Modern Approach to Ecommerce Optimization

Brooks Brothers – Culture of Optimization

- Open meetings to discuss test ideas- Team members pick which variation they think will win- Team members feel more connected to the process

Page 28: A Modern Approach to Ecommerce Optimization

Brooks Brothers – Culture of Optimization

- Open meetings to discuss test ideas- Team members pick which variation they think will win- Team members feel more connected to the process- More Ideas – More Wins – More Increases to KPIs

Page 29: A Modern Approach to Ecommerce Optimization

Culture of Optimization & Rewarding Risk

- HIPPO / Tech Barriers / Overwhelming Amounts of Data - Lack of respect for what small changes can lead to- Numb to customer experience / website / app- Example: Brooks Brothers

Change the Culture - Turn the HIPPOS into the biggest advocates

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Companies estimate they lose, on average, 20% of their revenue annually to poor customer experiences.

Source: Oracle

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A Modern Approach to Ecommerce Optimization

Statistics

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A Modern Approach to Ecommerce Optimization

73.6% of all statistics are

made up.

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A Modern Approach to Ecommerce Optimization

Robert Gilbreath – ShipStation

Twitter: @Adomatica

Linkedin: /in/robertgilbreath

Email: [email protected]

Questions

Connect

Page 45: A Modern Approach to Ecommerce Optimization

You’ve mastered the theory, now put it into practice

Use the Show Guide to match this session’s categories with the providers in the Hall who can help execute!

See Page 18 for details