making the right decisions within a continuously changing digital world - google

savage@totalsavagetech.com http://savagemarketingtech.com

Confidential & Proprietary

Source: http://angloafrican.com/facebook-artificial-intelligence-wants-to-get-close-to-you/

CRO: Making the right decisions within a continuously changing digital world

How do you know you are making the rights decisions?

A 150 million pound website redesign that lead to a

8,1% decrease in online sales

Source: http://www.digital-tonic.co.uk/digital-tonic-blog/went-wrong-marks-spencer-website-redesign-made-lose-sales/

Digg redesign - 26% loss of traffic

Source: http://readwrite.com/2010/09/23/digg_redesign_tanks_traffic_down_26/

1930s

Radio

1990s

Internet

1950s

TV

2010s

Mobile

Change…...

1600s

Printing press

1820s

Photography

History

(Personal story)

© 2015 EXACT - ONLINE BUITENKANSEN VOLGENS GOOGLE 12

And adoption speed increases

Source: http://www.nydailynews.com/life-style/smartphones-world-article-1.1295927

per day

At bus stop, listen to new music playlist 8:30am

Buy new tote to take to Coachella 11:15am

Browse festival styles on YouTube 7:15pm

On bus, check email for sales this weekend 5:29pm

At lunch, play Scrabble while waiting in line 1:33pm

Use flashlight app to find dropped earring 11:09pm

Use maps to get directions to Creole food truck 1:13pm

At work, book Coachella tickets 11:36am

Wake up and read news online 6:50am

On the bus, read articles about Coachella 8:42am

150x

Source: http://www.criteo.com/news/press-releases/2016/05/mobile-commerce-at-the-tipping-point-almost-half-of-all-uk-ecommerce-transactions-now-take-place-on-mobile/

Almost half of UK eCommerce transactions (48.9%) now take place on mobile devices, up 6 percent year-on-year.

Source: http://www.criteo.com/news/press-releases/2016/05/mobile-commerce-at-the-tipping-point-almost-half-of-all-uk-ecommerce-transactions-now-take-place-on-mobile/

Confidential and Proprietary

50% 60%

Proprietary + Confidential Proprietary + Confidential

Proprietary + Confidential

In 2016 we expect to see industries where more than 50% of traffic is mobile

Are you prepared for the mobile tipping point?

The cost of new technologies is declining fast

Change is the new constant

Confidential & Proprietary

Large firms struggle to keep up with digital innovation according to a recent study by KPMG and Harvey Nash

Source: http://www.consultancy.uk/news/2171/large-firms-struggle-to-keep-up-with-digital-innovation

2 out of 3 digital transformation projects fail

According to a new study from Genpact

Source: http://www.consultancy.uk/news/2656/two-thirds-of-digital-transformation-projects-fail

“Only 5% of organizations feel that digital gives

them a point of differentiation over their

competitors,”

according to an Accenture study published in October 2015.

Large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less

value than predicted.

17 percent of IT projects go so bad that they can threaten the very existence of the company

Making the right digital decisions is difficult

1955 vs. 2014;

88% are gone

Only 68 survived…..

Source: http://www.aei.org/publication/fortune-500-firms-in-1955-vs-2014-89-are-gone-and-were-all-better-off-because-of-that-dynamic-creative-destruction/

Life expectancy of a company in the S&P 500

Life expectancy of a company in the S&P 500

Life expectancy of a company in the S&P 500

Public Internet Company Capitalizations (1995 - 2015)

Source: http://www.slideshare.net/kleinerperkins/internet-trends-v1/6-6Public_Internet_Company_Market_Capitalizations

Making the wrong decisions can have a big impact

New possibilities in marketing

Messages tailored to specific persons

A dialogue is now possible instead of one way communication

Right message

Right Time

Right Person

Right location

Right context

1 on 1 combinations at scale

Right time Right

message

Know your data Always on Know your

customer

Right Person

But how do you know if you are making the right decision?

Test your marketing to make the right decisions

● Big redesigns are not the way to go ● New technologies are being adopted faster ● The mobile tipping point is coming ● Innovations is happening faster and faster

and large corporations are finding it difficult to adapt

● The impact of making the wrong decisions is getting bigger

● Test your marketing message at scale

In a world of continuous change companies need to improve continuously…..

Evolution not revolution

Confidential & Proprietary

‘It is not the strongest of the species who survive, nor the most intelligent but the ones most

responsive to change’ Charles Darwin

From Revolution to Evolution

A 150 million pound website redesign that lead to a

8,1% decrease in online sales

Source: http://www.digital-tonic.co.uk/digital-tonic-blog/went-wrong-marks-spencer-website-redesign-made-lose-sales/

How do you know you are making the rights decisions?

Evolve through a framework of continuous a/b testing of incremental changes

Think big and make

incremental changes

A/B test & measure

true impact

Look at your

customer's behaviour

Look at your data

Look at your

customer's behaviour

Focus on the User

“There is no substitute for personally watching and listening to real people”

- Larry Page

Look at your

customer's behaviour

Look at your

customer's behaviour

Look at your

customer's behaviour

Look at your

customer's behaviour

Look at your

customer's behaviour

Insights: The 25-34 years old mobile users are more likely to not add products to the cart. However,

on desktop, they’re the more likely to do so. Are we dealing with cross devices users?

Look at your data

Think big and make

incremental changes

Test and iterate / pilot

Think big and make

incremental changes

Evolutionary design

Think big and make

incremental changes

A B

A/B test & measure

true impact

A/B test & measure

true impact

Kohl’s hypothesis: The retailer set out to test the hypothesis that opening stores an hour later would not lead to a significant drop in sales

A/B test & measure

true impact

So how do you know you are making decisions that create an impact?

Evolve through a framework of continuous a/b testing of incremental changes

Think big and make

incremental changes

A/B test & measure

true impact

Look at your

customer's behaviour

Look at your data

30% of A/B tests is successful. This also means that if you do not a/b test, there is a 70% chance that if you implement a change on your website it will have no or a negative impact on your revenue.

70%

Appendix

But……..

Google confidential | Do not distribute

“If you’re Picasso don’t A/B test,

but for the rest of us it’s humbling

to evaluate our ideas….”

— By Colin McFarland, skyscanner

Yes, but we’re already agile and using scrum

Yes, but you cannot jump a 6 meter chasm in 2 10 foot jumps

Yes, but we can start in 2017 at the earliest

savage@totalsavagetech.com http://savagemarketingtech.com